Walker & Dunlop Originates Financings for Four Communities
Walker & Dunlop Managing Director Kevin Giusti and Senior Analyst Brian Neal recently originated $37.47 million in financing for four assisted living and memory care facilities: Bloom at Bluffton in Bluffton, South Carolina; Bloom at Hilton Head in Hilton Head, South Carolina; Cascades of Tucson, in Tucson, Arizona; and Regency Jackson in Jackson, Tennessee. The Bloom Portfolio consists of two assisted living and memory care homes in South Carolina with 117 total units that sold in May for $12.25 million to WindRiver Companies for a cap rate around 5.7%. Built around 20 years ago, the communities had seen occupancy decline to 70% due to the pandemic and several new communities opening... Read More »
Newmark Summer Sales Continue
Late last week, we profiled several of Newmark’s latest closings, but we also said that we were not finished. One deal was referenced in Welltower’s recent earnings release, as the REIT’s purchase of seven senior living communities from White Oak Healthcare Partners finally closed. The communities, averaging more than 20 years in age and featuring a mix of 41 independent living, 214 assisted living and 176 memory care units, sold for $49.8 million, or $108,700 per unit. Frontier Management will take over operations of the portfolio, which is spread out across California (three locations), Georgia, Tennessee, Washington and Texas. The firm also... Read More »
Welltower Announces Big Census Gains
Welltower released its second quarter earnings results, and its growth strategy was on full display with $1.5 billion in pro-rata gross investments from April to June, at an initial yield of 8.8%. That does not even include the largest deal, which was its proposed $1.58 billion acquisition of 86 independent living communities owned by Holiday Retirement (and Holiday’s owner, Fortress Investment Group). That deal is set to close in the third quarter at a 6.2% initial cash cap rate. Welltower will also enter into a RIDEA-based management contract with Atria Senior Living, which acquired Holiday’s operating business. Welltower completed another notable... Read More »
The Mogharebi Group Closes Its Second Sale in a Week
The Mogharebi Group (TMG) has closed its second seniors housing sale in a week, despite being mostly focused on the multifamily investment sales market. Last week, the firm arranged the sale of an independent living community in San Bernardino, California. This week, Otto Ozen and Alex Mogharebi represented a Los Angeles-based private investment group, Crystal Asset Management, in its $18 million sale of Country Club Apartments, a 79-unit seniors housing community, also in San Bernardino. Built in 1986, the two-story community features two-bedroom apartments with floor plans averaging 903 square feet. Schuler Investment Corp. bought the property from Crystal and secured $9.8 million in... Read More »
Kandu Capital Can Do It Again
Last month we reported on the sale of two senior living communities in South Carolina by Kandu Capital and its operating affiliate Bloom Senior Living. They did well on the sale, especially at the tail end of COVID, and we referred to it as maybe a triple based on the price compared with the original cost basis. It looks like they have done it again, but this time with a property in St. Petersburg, Florida. This 94-unit assisted living and memory care community was operating at breakeven when Bloom purchased it in 2017 from a local owner/operator. It didn’t do much better the next year, but finally made it into reasonable positive territory by 2019, and then doubled... Read More »
Newmark Reports Active Summer So Far
Newmark announced a slew of seniors housing closings, a couple of which we have already profiled this month. In total, the firm’s closings for June and July surpassed $580 million in volume. First was the sale of two active adult communities in Texas. Multifamily development and investment firm Cortland sold the properties to Livingston Street Capital for a combined $73.5 million, or $182,800 per unit, at a cap rate in the low 4s. Next, the Newmark team handled the sale of a 94-unit assisted living/memory care community in St. Petersburg, Florida. The seller, Kandu Capital, had purchased the 2014-vintage property in 2017 for $5.5 million, or just under $60,000 per unit. Now, Kandu... Read More »
CIT Provides Financing for Cornerstone Healthcare Group
Cornerstone Healthcare Group Holdings Inc. and its long-term acute care hospital segment recently received $100 million in financing from CIT Group Inc.’s Healthcare Finance business. The funds will be used to refinance existing debt, meet working capital requirements, and for other general company reasons. CIT is also providing a suite of cash management and capital markets services in conjunction with the transaction. The transaction combined multiple financings into a single solution, resulting in a more efficient execution. Created in 1990, Cornerstone Healthcare Group is a diversified healthcare firm in Dallas, Texas, that administers a network of specialized hospitals, senior living... Read More »
Oxford Announces New Hire From Wells Fargo Capital Finance
After more than 17 years at Wells Fargo Capital Finance, Kevin Harbour has joined Oxford Finance’s healthcare services real estate and asset-based financing unit. Mr. Harbour’s responsibilities as Managing Director will include maintaining the firm’s real estate bridge lending products, developing new financial products for qualifying healthcare enterprises, expanding Oxford’s asset-based financing platform across all healthcare industries, and managing the firm’s underwriting and business development teams. Mr. Harbour comes to Oxford with 18 years of expertise in healthcare lending, most recently as Head of Healthcare Loan Originations at Wells Fargo Capital... Read More »
Berkadia Brokers HUD Refinance for Oklahoma SNF
Berkadia arranged a HUD refinance for a 111-bed/54-unit skilled nursing facility in Muskogee County, Oklahoma, located southeast of Tulsa. Originally built in 1974, the facility features 58 ventilator beds. Its historical occupancy had averaged 75%, but it is certainly possible that census fell below that figure during the pandemic. Jay Healy of Berkadia originated a $5.6 million loan on behalf of the undisclosed borrower. Read More »
Regions Bank Finances California Construction Project
The Regions Bank Healthcare Real Estate Team arranged construction financing for a joint venture to build a 213-unit senior living community in a submarket of San Diego, California. Owned by a Minnesota-based developer, an Arizona-based owner/operator and a Midwest-based institutional private equity firm, the project will feature 103 independent living, 86 assisted living and 24 memory care units. It received a $68.6 million mini-perm loan with a floating rate and a five-year initial term. There were also four years of interest only and a staged reduction in loan repayment recourse. Plus, at or prior to maturity, Regions may take out the loan with agency debt. Chris Honn led the way... Read More »Schedule a demo
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