Monticello Secures Working Capital For Southeast SNF Portfolio
Just a week after arranging first lien debt for a portfolio of three skilled nursing facilities in Kentucky and North Carolina, MONTICELLOAM, LLC and its affiliates (Monticello) went back and secured a working capital loan to the portfolio’s operating companies. Averaging nearly 50 years in age, the portfolio totals 312 beds. Two of the facilities were refinanced with the debt, while a 114-bed facility in Kentucky was acquired. Given the age, we image some of that working capital will be put to use modernizing and refurbishing the physical plants. The first lien debt totaled $30 million, with a 36-month term, while the working capital loan totaled $2.50 million. They were arranged on... Read More »
Kayne Anderson Closes Another Acquisition
Cushman & Wakefield’s Tampa-based seniors housing team led by Allen McMurtry and David Kliewer sold a 117-unit independent living community in Trinity, Florida (about 20 miles northwest of Tampa). The seller, a development group comprised of Walt Chancey of Gulf Coastal Development, Ricky Rookis of Rookis Development and Watermark Retirement Communities, recently built the five-story community adjacent to a 97-unit assisted living/memory care property that they also developed in 2016. There are one-and two-bedroom unit options ranging in size from 737 to 1,162 square feet. Designed by Chancey Architecture and Chancey Interior Design, it also features numerous amenities including... Read More »
Blueprint Finds New Tenant for Kansas City-Area SNF
Working on behalf of a REIT landlord, Blueprint Healthcare Real Estate Advisors found a new tenant for a 140-bed skilled nursing facility in Liberty, Missouri (Kansas City MSA). Built in 1971 with all semi-private units, the facility was approximately 80% occupied. Cash flow was also near stable levels, but rent coverage was limited. Owned by Omega Healthcare Investors, it was the only facility in Missouri for the operator, Consulate Health Care. As a result, Consulate sought an exit in order to focus on other core markets, but previous efforts proved ineffective. However, right after the onset of COVID-19, Michael Segal and Ben Firestone initiated the lease transition to REACH LTC, an... Read More »
Recent Senior Care M&A Deals, Week Ending June 5, 2020
Senior care M&A came roaring back this week, with two major sales by Welltower totaling more than $1 billion. Check out our recent deal chart. Long-Term Care AcquirerTargetPrice Joint venture6 senior living communities$300 million Kayne Anderson Real Estate AdvisorsSeniors housing & medical office building portfolio$1 billion FairsteadFederation Sunrise Apartments$29.5 million Front... Read More »
Foundry Commercial and Foster Senior Living Form JV
Orlando, Florida-based Foundry Commercial has formed a new joint venture with Missouri-based Foster Senior Living to manage, acquire and develop seniors housing communities. The JV will be known as FSL Senior Living Ventures, LLC, and Kevin Maddron, CFO of Foundry Commercial and long-term player in the senior living market (most recently with CNL Retirement) will be leading the charge for the JV. He is well positioned for the role given his CNL background and some work he did with Foster after leaving CNL three years ago. Foundry Commercial is a real estate services and investment firm that was founded in 2007 and has grown to 350 employees and more... Read More »
Evans Senior Investments Wraps Up Michigan Portfolio Sale
Evans Senior Investments kicked off June with the sale of a seniors housing/skilled nursing portfolio in Michigan. With Welltower’s major sale also coming to light at the start of the month, hopefully that’s a sign of a more fruitful summer for the industry as a whole. The portfolio consisted of two seniors housing/skilled nursing campuses and one stand-alone skilled nursing facility, with a total of 88 assisted living units, 36 memory care units and 270 skilled nursing beds. Built in 1997, 2007 and 2008, the senior living portion of the portfolio was 100% private pay, while the skilled nursing census boasted a high mix of Medicare patients. The transaction represented the second closing... Read More »
Blueprint Facilitates Royal Senior Care’s Invesque Exit
Blueprint Healthcare Real Estate Advisors helped Invesque exit its entire Royal Senior Care portfolio. That included the sale of two properties and transition of the other four properties to another existing operating partner. One of the sold properties was a 60-unit assisted living/memory care community in Eatonton, Georgia. Built in 2014 with 42 AL and 18 MC units, this community was originally purchased by Care Investment Trust for $15.5 million, which was then taken over by Invesque. Royal also owned a 35% interest in the property and is acquiring the remaining interest for an undisclosed price. The other property was located in Florida and sold to a third party. The four... Read More »
Carnegie Capital Finances Oregon Assisted Living Acquisition
A portfolio of four assisted living communities in rural Oregon found a new owner with the help of debt arranged by JD Stettin of Carnegie Capital, the seventh transaction closed by Mr. Stettin during the pandemic. Totaling 136 units, the portfolio is being converted to include memory care, and will feature a mix of 60 AL and 85 MC units across the four communities. Occupancy could be improved, but the current residents will not be displaced as a result of the project. The portfolio was owned by a large national senior care provider with facilities in over 25 states. But that turnaround opportunity attracted a new owner, a private fund based in Oregon and Arizona that is highly motivated... Read More »
Seniors Housing M&A Market Comes to Life
Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market. It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the liquidity in the market and what we may expect in the coming weeks. Well, we breathed a sigh of relief when Welltower announced two separate transactions for seniors housing portfolios completed by Newmark Knight Frank with a total value close to $800 million. When the MOBs are added in, the total comes to about $1.3 billion. More details on these... Read More »
Newmark Knight Frank Handles Welltower’s $1.3 Billion Sale
There were rumors circulating last month of a major portfolio sale by one of the healthcare REITs, and given the dearth of deals in May, we clung on to the promise of it. Well, on June 1, Welltower announced not one, but two large seniors housing portfolio dispositions, along with a major medical office building sale, all combined for a roughly $1.3 billion purchase price. Ryan Maconachy and Chad Lavender of Newmark Knight Frank handled the transactions, bringing one of them from NDA to closing in just 45 days, including securing agency financing to fund it. To close any deal these days is exceedingly difficult, not only one of this scale, so well done to the Newmark team. It certainly... Read More »Schedule a demo
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