Blueprint Sells Kansas SNF
A well-maintained skilled nursing facility located about 20 minutes north of Lawrence, Kansas sold for significantly below replacement cost in a deal arranged by Amy Sitzman, Giancarlo Riso and Michael Segal of Blueprint Healthcare Real Estate Advisors. Why such a low price? Other than the obvious risks of purchasing a skilled nursing facility these days, this was the only Kansas facility of the West Coast-based owner/operator. There was also upside in census, expense management and case mix at the 60-bed facility. So, Blueprint brought the deal to an owner/operator that it had worked with before and could guarantee a high degree of closing certainty. Completing the due diligence and... Read More »
Are SNFs About To Go Out Of Business?
A recent survey by the American Health Care Association reveals some disheartening news. If you believe the results of a survey of 463 nursing home providers by the American Health Care Association, well, we are in bigger trouble than I thought. Apparently, 40% of the respondents said they would not be able to sustain operations for another six months at the current “pace,” which we assume to mean the current census and cost levels. A whopping 72% said they would not be able to sustain operations for another year. The problem is that they, unlike the private pay seniors housing industry, have already received several billion dollars of financial aid to help during the pandemic. If they... Read More »
Arizona Skilled Nursing Facility Closes For Highest Per-Bed Price
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold a brand-new transitional care facility in Flagstaff, Arizona for the highest per-bed price seen in the state for at least five years. While the actual price was not disclosed, according to our Senior Care Acquisition Report, 25th Edition, the highest publicly disclosed price per unit for a SNF sale in Arizona was $180,100 per bed. So, we know it was at least higher than that. Developed in 2018 by Embree Asset Group, a national single-tenant development company, the facility features 50 private beds. It is also well located less than one mile from both downtown Flagstaff and the Flagstaff Medical Center,... Read More »
CBRE Funds Joint Venture’s Colorado Acquisition
Cadence Living and a private equity joint venture partner acquired two senior living communities in the Denver, Colorado metro area, thanks in part to financing secured by the CBRE National Senior Housing team of Aron Will, Austin Sacco and Matthew Kuronen. Located in Aurora and Lakewood, these two communities combine for 152 assisted living and 35 memory care units. Both were previously operated by Brookdale Senior Living. The new joint venture owner will invest around $4 million to improve the communities’ marketability. To fund the acquisition, CBRE arranged a $14.4 million bridge loan from a regional bank. It came with a four-year term, three years of interest only and a one-year... Read More »
Regions Bank Secures Financing For Seattle Development
The Regions Bank Healthcare Real Estate team recently secured construction financing for a to-be-built senior living community in a Seattle, Washington suburb. The three-story building will include 65 independent living units, 63 assisted living units and a total of nearly 107,500 square feet. It is being built by a joint venture between a Southeast-based developer/owner and a Southwest-based owner/operator. To finance it, they obtained a $28.3 million mini-perm loan, which comes out to approximately $221,000 per unit. The loan features a floating rate and five-year initial term, with four years of interest only. There is also a staged reduction in recourse, and at or prior to maturity,... Read More »
HHC Finance Closes Four HUD Deals
Housing & Healthcare Finance (HHC Finance) just announced four transactions from its HUD pipeline, totaling more than $44 million. The first deal was closed for a 120-bed skilled nursing facility in Ohio. Built in the early 1970s, it had occupancy in the low 90s and received a $10 million loan. Another skilled nursing facility in Ohio then obtained a $10.2 million loan from HHC Finance. That 93-bed facility was a little older (built in the mid-1960s) and was also well occupied around 95%. Next, HHC Finance closed a $10.5 million HUD loan for a 100-bed skilled nursing facility in Maryland. And finally, the firm closed its largest deal of the group for a 165-bed skilled nursing... Read More »
National Health Investors Beats the Odds
Sometimes the regular, tried and true sale/leaseback arrangements that used to be the mainstay of REIT financing still work. Just ask National Health Investors (NHI). After reading some of the depressing second quarter earnings releases, some more than others, it was a bit refreshing to see that NHI reported an 8% increase in lease income, an 11% increase in net income, an 8% increase in net income per share and a 7% increase in FFO per share, all year over year. And you thought the sky was falling. The REIT collected about 100% of second quarter’s contracted rents, and approximately 96.9% of rents due in July (so far). Have they granted some concessions? Sure, for the... Read More »
Colony Capital Sells Connecticut Memory Care Community
A 48-unit memory care community in Clinton, Connecticut (New Haven MSA) has a new, New York-based owner/operator, thanks to the work of Steve Thomes, Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors. According to our M&A database Deal Search Online, this property previously sold in 2013 for $10.5 million, or $218,750 per unit. Previously owned by the private equity firm Westport Capital, it was operating at roughly a 30% margin on approximately $3.2 million of revenues. Occupancy was also close to 100%, with rents ranging from $5,000 to $6,000 per month. So, things were going well. Not only that, the 10-year old community was substantially renovated in... Read More »
Gardner Capital Invests In Midwest Seniors Housing Properties
Family-owned private equity firm Gardner Capital made a couple of investments in the senior apartment market, both in the Midwest. First, the company and partner Housing Authority of Elgin developed a brand-new community in West Dundee, Illinois, with 61 units set aside for low-income seniors. And according to Gardner Capital, this is just the first of several projects planned for the Chicago area. The community features one-bedroom units with 735 square feet and two-bedroom units with 892 square feet. Omaha, Nebraska-based Seldin Company will operate it, adding the property to its large presence in the central United States, including in Nebraska, Iowa, Illinois, Missouri, Kansas,... Read More »
Bellwether Enterprise Secures Freddie Mac Financing
Bellwether Enterprise Real Estate Capital closed a cash-out refinance for a large active adult community in Placentia, California. Owned and operated by Mesa Management, Emerald Isle features a total of 422 units, with both one- and two-bedroom options ranging in size from 588 to 1,128 square feet. There are also numerous amenities, from a fitness center and clubhouse to a putting green and heated swimming pool/spa. It was built in 2004. Working through Freddie Mac, Bellwether Enterprise’s Jason Krupoff originated $82.487 million in financing for the property. The 10-year loan includes five years of interest only at an interest rate below 3% and was underwritten at a 60% loan-to-value... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
