Recent Senior Care M&A Deals, Week Ending July 10, 2020
The start of the third quarter came with a flurry of deals. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Not disclosed3 skilled nursing facilities in IL$7.5 million MedCore Partners7 senior living communities in WA and CAN/A National Church ResidencesThe Villas at Water's EdgeN/A Primovie8 German senior care facilities$164.44... Read More »
Average Seniors Housing Occupancy Falls To Record-Low
The latest occupancy figures are out from NIC, and we suppose it could have been worse. Seniors housing communities reported that their census dropped on average by 280 basis points in the second quarter of 2020, from 87.7% to 84.5%. That is the lowest level ever recorded since NIC started reporting this data 14 years ago. Separating the market out, assisted living communities experienced a steeper decline, from 85.3% to 82.1% during the quarter, while independent living, which was in better health as a sector going into the pandemic, fell 240 basis points to 87.4%. Given the longer lengths of stay and the younger, healthier residents in independent living, that makes sense. Being a more... Read More »
Blueprint Healthcare Real Estate Advisors Closes Six Deals
With all the difficulties in securing debt, visiting properties and obtaining third-party approvals, let alone the financial uncertainty of purchasing a senior care property right now, deals are still getting done, and Blueprint Healthcare Real Estate Advisors announced the closing of six senior care transactions in a three-day span. Those transactions totaled more than $76.6 million too. We’re sure it took a lot of creativity and some long nights to get over the finish line, so well done. The deals closed at the end of the second quarter and into the third, a typically busy time for dealmaking normally, but this represented a 50% increase over Blueprint activity during the same... Read More »
CIBC Closes Acquisition Financing for Skilled Nursing Portfolio
It has been a busy last couple of weeks at CIBC. After closing two cash-out refinances for five skilled nursing facilities, totaling over $43 million in loans, the bank arranged acquisition financing for another three skilled nursing facilities. Daniela Miranda and Matthew Tyler secured the $7.5 million loan for the buyer to complete a purchase option on the portfolio. Located in Illinois, the three facilities total 280 beds and had an effective age of 25 years. They had been run by a local operator, and occupancy was historically in the 60s. The operating margin was around 10%. CIBC arranged a five-year loan on the real estate and also closed a $2.0 million revolving line of credit to... Read More »
KeyBank Secures Financing For To-Be-Built Community
KeyBank Real Estate Capital arranged construction financing for an affordable seniors housing community in Austin, Texas, which is expected to open in 2022. Being developed by Dallas-based Generation Housing Development and Hill Tide Partners, the project will comprise two four-story buildings and 174 total units, split between 102 one-bedroom and 72 two-bedroom apartments. Each unit will have a bathroom and range in size from 614 to 1,131 square feet. There will also be a community garden, swimming pool, community center, theater room, business center and fitness center. Ownership will reserve 17 units for residents earning 40% of the area median income, 148 units for those earning 60%... Read More »
Federal Oversight Coming To Assisted Living?
Congressional report on assisted living and COVID-19 looks more like a hatchet job than really trying to help. Senators Warren and Markey’s report is in, and try counting how many times the word “federal” was used, as in there are no “federal” reporting requirements, data should be regularly reported to the “federal” government, assisted living facilities should receive support through “federal” programs, and on and on. They had sent a very detailed questionnaire to the 11 largest assisted living operators, and found that 24% of the communities operated by them had at least one positive COVID-19 test, and 8% had outbreaks of at least 10 residents, with positive cases coming in at more... Read More »
Capital Funding Group Reports Impressive First Half of 2020
We’re not sure how, but Capital Funding Group announced a record-setting first half of 2020 with more than $600 million in financings closed for skilled nursing and assisted living clients. We’re sure that not only made those at Capital Funding Group happy, but also their clients, who were able to access capital during the liquidity crunch at the start of the pandemic. Getting to that impressive volume, CFG closed 27 bridge loans totaling more than $400 million, 23 HUD loans totaling about $200 million and six A/R lines of credit that reached over $30 million in combined capital. In February, CFG also launched a new off-balance sheet financing program that significantly... Read More »
Joint Venture Acquires Two Development Sites
With an eye to the future, ZOM Senior Living and Watermark Retirement Communities bought two parcels of land in southeast Florida to develop a couple of seniors housing communities. Development has certainly slowed for a variety of reasons, like state and local orders, lack of financing or an abundance of caution from investors. After all, who can be sure how much lease-up projections may change in the next several years. Some developers willing to break ground today may benefit from the lack of new supply, but it will vary from market to market. The ZOM/Watermark joint venture will first break ground later this summer on a 196-unit community in Coral Gables... Read More »
Watercrest Breaks Ground On South Carolina Senior Living Community
Watercrest Senior Living Group broke ground on another senior living community just a couple of months after starting work on a 98-unit senior living community in Macon, Georgia. This most recent project is located in Myrtle Beach, South Carolina, and also comprises 76 units of assisted living and 22 units of memory care. There will be amenities like a salon and spa, plus outdoor features like verandas, fireplaces and other social gathering spaces. Residents can also benefit from the local golf courses, medical centers and entertainment of Myrtle Beach. Just like the Georgia development, Watercrest is developing the community with equity partners Peninsula U.S. Real Estate, a private... Read More »
Cambridge Realty Capital Closes HUD Deal
The HUD pipeline is still flowing these days, and Cambridge Realty Capital Companies announced a loan closing for a 115-bed skilled nursing facility in northeast Texas in the city of Longview. Built in the 1980s but well maintained, this facility has so far been spared from COVID-19. The New York-based owner decided to refinance and, with the help of Cambridge, obtained a $3.907 million HUD loan. The interest rate came in under 3%, and the loan came with a fully amortized 29-year term. Read More »Schedule a demo
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