KeyBank Secures Financing For Six Heartis Properties
KeyBank Real Estate Capital secured $105.9 million in financing to recapitalize a portfolio of six assisted living/memory care communities operating under the Heartis brand, on behalf of their owner, Caddis Partners. The financing structure consists of an $80 million syndicated senior credit facility and a $25.96 million mezzanine loan provided by an institutional partner. The portfolio has a combined 631 units and 642 total beds, including both assisted living and memory care services. Five Heartis properties are located in Clear Lake, Longview, San Antonio, Arlington and Waco, Texas, while the sixth property is located in Peoria, Illinois. This financing will allow for stabilization of... Read More »
Greystone Provides Financing for Three North Carolina SNFs
Greystone is back at it again, this time providing $36.5 million in HUD financing for three skilled nursing facilities in North Carolina. The deal takes out acquisition bridge debt that Greystone had previously arranged on behalf of the borrower for these facilities, using the firm’s non-recourse bridge lending program. Fred Levine originated the transactions. Carver Living Center in Durham is a 232-bed facility which offers both long and short-term care, as well as a memory care unit. This facility received $17.16 million in financing that carries a fixed, low interest rate over a 30-year term. It was built in 1990. Willow Ridge Rehabilitation and Living Center, located in Rutherfordton... Read More »
Brookdale Senior Living Census Jumps
The census problems at Brookdale Senior Living definitely bottomed out late in the winter of this year. Weighted average occupancy in both February and March was 69.4%, a level at which it is tough to make money. But that has increased by 180 basis points in June to 71.2%, still a low number but moving in the right direction. And it has increased for three straight months at a time when historically the industry sees little occupancy gains. Occupancy levels at the end of each month have done even better. These bottomed out in February at 70.1% and increased for four straight months, ended June at 72.6% for a 250-basis point increase in four months. Again, this is a time... Read More »
What Do REIT Investors Know?
Remember back in March 2020 when the financial world was falling apart, rapidly? March 18 was the bottom for most of the healthcare REIT stocks, when investors thought the pandemic might wipe out a good portion of their investment value in senior care properties. At the time, they weren’t too far off, when top-quality REITs such as Ventas plunged to market values that had not been seen in years. But it was much more of a knee-jerk panic attack based on worst-case scenarios. Hindsight is always great, isn’t it? Within two weeks, most REITs had recovered 30% to 80% of that initial loss, and then steadily rose for the rest of the year. The odd thing was that this nine-month... Read More »
Is New Development Back Sooner Than Thought?
Rick Swartz, Jay Wagner and Sam Dylag of Cushman & Wakefield represented Barberry Homes in their sale of two entitled seniors housing sites in Massachusetts. One site in Natick will consist of 86 assisted living and memory care units on 5.53 acres, while the other in Millis will feature 105 independent living, assisted living and memory care units on 7.697 acres. The sales price came to $14,550,000, or just over $76,000 per unit that will be built. That is a relatively high price, but they are both located in the Boston suburbs where land values are high the entitlement process can be tough. As originally proposed, the Natick building will have... Read More »
Greystone Secures HUD Financing in San Diego County
If you own an old seniors housing community in a good market, now is the time to refinance and make the necessary improvements before the next wave of demand hits. Otherwise, you may be left in the back of the line for customers. Perhaps this was the thinking of an owner in Escondido, California with a 105-bed assisted living and memory care community, that also offers short-term stays and was built more than 30 years ago. For skilled nursing, that is practically new, but for assisted living, it is becoming ancient. The owner turned to Leor Dimant, Managing Director at Greystone, to help consolidate some debt on the property and obtain additional funds for renovations and... Read More »
Second Quarter Occupancy Results
NIC MAP just released its second-quarter occupancy trends results, and unfortunately, it was not what the industry had hoped for. For the overall seniors housing industry, average occupancy remained flat at 78.7% from the first quarter to the second quarter. Given the reports of bottoming out by March for several of the large operators and the REITs with large operating portfolios, and strong census increases in April and May, we were a bit surprised that the quarter-to-quarter change was stagnant. We figured maybe at least a 50-basis point increase or higher. The one thing this tells us is that the early spring momentum did not carry over into June. Or possibly it was the... Read More »
Ziegler Finances Another CCRC Expansion
Investment banking firm Ziegler just closed on a $115.63 million bond financing for a Florida CCRC called Vicar’s Landing. The not-for-profit community is located in Ponte Vedra Beach on a 24.3-acre site within Sawgrass, a 4,800-acre private resort and residential community. The community currently includes 227 independent living units, 38 assisted living units and 60 skilled nursing facilities. The new funds will be used to pay off some existing bond debt and partially finance a new project that will be located a mile from the current campus, to be called Vicar’s Landing at Oak Bridge. The proceeds will also be used to fund a debt service reserve fund, fund capitalized interest and pay... Read More »
Summit Healthcare REIT Buys Three SNFs
A wholly-owned subsidiary of Summit Healthcare REIT purchased three skilled nursing facilities in San Bernardino County, California with a total of 191 beds. The purchase price came to $20,055,000, or $105,000 per bed, higher than the average but well below the highest prices paid in the state. The facilities will be triple-net leased to California-based Rockwell Healthcare, a new tenant for Summit Healthcare REIT. Summit is a registered non-traded REIT that focuses on seniors housing and care real estate in the U.S. Its current portfolio includes interests in 46 seniors housing facilities in 13 states. Read More »
Blueprint Gets Top Dollar for Empty Building
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold a 70- unit empty building (70 beds) in the Texas Panhandle for $10 million, or nearly $143,000 per unit. That is an extraordinary price given that it was empty, was never licensed and never opened. Built by Mainstreet in 2019 with 49,959 square feet and fully furnished at the time of the sale (probably needed to dust off the furniture), the facility never opened and was eventually foreclosed on by the bank lender. Mainstreet had built many of these transitional care facilities over the years, several of which never opened as competition for high-acuity, post-acute patients soared, as did the... Read More »Schedule a demo
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