CIBC Bank USA Refinances California Portfolio
CIBC Bank USA recently closed a $76 million transaction for a California-based operator to refinance acquisition debt on three formerly distressed properties in the Golden State. Those properties include two skilled nursing facilities and one assisted living community. The deal included a $60 million term loan and a $16 million working capital facility. The term loan will also help support the company’s overall balance sheet, while the working capital will be used across the 13 properties and more than 1,000 beds in the operator’s portfolio. Read More »
Columbia Pacific Secures Construction Financing for Virginia Project
Live Oak Bank closed a $26.1 million construction loan for the development of a 126-unit assisted living (90 units) and memory care (36 units) community located in Chesapeake, Virginia. The loan came with a five-year term, but no other details were disclosed. Columbia Pacific Real Estate Fund III, LP is developing the project, which is situated on 6.63 acres. Leisure Care, a consistent partner of CPA, will operate it going forward. This represents Live Oak Bank’s second loan closing with CPA in the last six months. Read More »
Ziegler Closes Bond Financing For North Carolina CCRC
Ziegler successfully funded a major expansion of a not-for-profit CCRC in Durham, North Carolina. The Forest at Duke, which is located just south of the Duke University campus, opened in 1992 as a Type-B community. It currently serves over 360 residents across 154 independent living apartments, 88 IL cottages, 34 assisted living units and 58 licensed skilled nursing beds, four of which are certified for Medicare and none for Medicaid. The board decided it was time to expand and released plans to add a replacement health and wellness center that will include 32 assisted living and 58 skilled nursing units in a “small house” format in a five-story building. Each household... Read More »
National Health Investors Cuts Dividend
Even though National Health Investors didn’t have to cut its dividend, management made the prudent decision to reduce its quarterly dividend by 18% to 90 cents a share. The yield had been at the high end of its peers at 6.6%, and now it will be 5.4%. Even though at least one analyst last week came forward saying he didn’t think a cut would be made, the market shrugged off the news, with NHI shares dropping just 1.26%. Perhaps they should have gone bigger. Coincident with the dividend announcement, NHI also announced one of its major tenants, Holiday Retirement Corporation, was going to defer $600,000 in monthly rent for May through July. NHI will take that deferred... Read More »
Meridian Capital Group Finishes May with a Flourish
Meridian Capital Group is having quite the year, already with $2.7 billion in transaction volume closed to date in 2021. Most recently, the firm closed more than $390 million in deals for a combination of 42 skilled nursing, independent living, assisted living and memory care properties in nine states. Meridian’s Ari Adlerstein, Ari Dobkin, Josh Simpson, Matt Lesnik, Jesse Rauch, David Gottlieb, Jacob Scott and Rafi Sod negotiated the transactions. Maybe a well-deserved summer vacation is on the horizon now? Beaches are open. On the M&A side, the team closed a number of sales, the largest being the $74 million sale of six skilled nursing facilities comprising 925 beds in... Read More »
The SLIB Team Sells AL/MC in Oregon
There has been a lot of talk about pricing, both during the pandemic and as we are coming out of it. Is it a buyer’s market, or a seller’s market? Should you be conservative, or aggressive and take advantage of the current positive momentum? How about being just right? In a transaction that just closed on June 1, Jason Punzel, Vince Viverito and Brad Goodsell of Senior Living Investment Brokerage represented the regional owner/operator of a 95-unit assisted living and memory care community located in Oregon. Built in 1997 with a renovation in 2015, it is licensed for 107 beds and has an occupancy rate of 92%. Yes, through the pandemic they mostly kept COVID out and the... Read More »
PGIM Arranges Two HUD Refinances
PGIM’s Seniors Housing and Healthcare Group arranged refinances for two seniors housing communities in the Southeast, the third and fourth properties refinanced for the same client during the pandemic. Christopher Fenton, Catherine Eby, Adrian Hartman, and Robyn Cunningham originated the loans. The first, totaling $7.93 million, went to a 112-bed skilled nursing facility in Bastrop, Louisiana. Rather than a loan modification, Mr. Hartman and Ms. Cunningham secured a loan to maximize annual cash flow through term extension and a rate savings of 0.8% when considering the lowered MIP. In the other deal, Mr. Fenton and Mrs. Eby provided a $15.94 million loan for a... Read More »
California Dreamin’
In a different sort of transaction than Senior Living Investment Brokerage’s recent Oregon deal, the team of Brad Goodsell, Jason Punzel and Vince Viverito handled the sale of a value-add property in California. Located about 12 miles southeast of Los Angeles, this 77-unit assisted living and memory care community was built in 1984 with a renovation in 2017. Occupancy was closer to where the rest of the industry has been near the end of the pandemic at 76%. A local owner/operator paid $7.7 million, or an even $100,000 per unit (certainly makes the math easy), with an in-place cap rate of about 7.7%. With the low occupancy, the operating margin is just under 19%, which certainly... Read More »
The Stahler Group Sells Monterey County Memory Care Community
The Stahler Group of Marcus & Millichap just closed the sale of a 69-unit assisted living/memory care community in Monterey County, California. Well located with strong demand and limited competition, the 22-year-old community was owned by a not-for-profit healthcare provider and originally leased by Emeritus, then ultimately by Brookdale Senior Living. Brookdale chose to not renew their lease for the community, which brought in sufficient cash flow but also offered significant operational upside with occupancy at 65%. After multiple full-price, competitive offers, a buyer with a strong regional presence stepped in to buy the community, using acquisition debt from a regional... Read More »
NORC Releases New Study On COVID Mortality
Just after we had wrapped up one of our lead stories in the June issue of The SeniorCare Investor on the nursing home comeback and some COVID myths, NORC at the University of Chicago released its analysis about mortality rates in five states across the senior care spectrum. With funding from NIC, they looked at five states – Colorado, Connecticut, Florida, Georgia and Pennsylvania – and 3,817 seniors housing properties in 113 counties in those states. Perhaps the key finding, at least for the independent living and CCRC providers (and their residents) was that 67% of the IL communities never experienced a COVID-related death. Better yet, the COVID mortality rate... Read More »Schedule a demo
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