Ziegler and M&T Partner To Refinance Illinois Community
Ziegler and M&T Realty Capital Corporation partnered to secure a Fannie Mae refinance on an independent living community in St. Charles, Illinois. Owned by Essex Communities, the community obtained a $15.145 million loan with a 10-year term and fixed interest rate of 3.99%. There are five years of interest-only payments, followed by a 30-year amortization. Essex also benefits from a declining prepayment schedule. Essex originally developed the 80-unit community in 1999 under a not-for-profit, entrance fee model sponsored by the City and Township of St. Charles. But Essex decided to purchase the building in 2019 for approximately $12.8 million,... Read More »
Ensign Acquires Colorado SNF Portfolio
The Ensign Group made its second acquisition of the year, adding the operations of three skilled nursing facilities in Colorado to its growing portfolio. The deal included a 140-bed facility in Boulder, a 76-bed in Berthoud and a 106-bed facility in Denver. Ensign entered into a long-term, triple net lease through its Colorado-based subsidiary, Endura Healthcare, effective April 1. That brings Ensign’s portfolio to 235 healthcare operations, 22 of which also include assisted living operations, across 13 states. Ensign also owns the real estate at 94 locations. Earlier this year, the provider acquired the operations of a skilled nursing facility in San Antonio, Texas.... Read More »
Regional Owner/Operator Settles On Ohio SNF
Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors handled the sale of a 99-bed skilled nursing facility in northeastern Ohio. The property, which is located near Youngstown, faced occupancy issues, prompting the regional owner/operator to strategically divest. Blueprint put the property under contract earlier in 2020, but uncertainty stemming from the pandemic caused the initial buyer to pause the process. They forfeited their exclusivity to do so, and Blueprint took the property back out to market, generating three new competitive offers. Ultimately, however, the initial buyer was the best fit. Nothing wrong with a bit of caution, we suppose.... Read More »
Senior Care M&A Tanks In Q1
After a strong fourth quarter, senior care M&A activity cooled off this winter. We thought that after 59 seniors housing and care M&A transactions were announced in December 2020, a monthly record, we had returned to some kind of “normal” in terms of dealmaking. Well that just didn’t happen in the first quarter of 2021, when despite widespread vaccination of the senior care population investor activity cooled to just 77 publicly announced deals. That is just a preliminary total but is well off Q4’s total of 127 deals. M&A in the skilled nursing sector especially slowed down, accounting for just 32% of the deals announced during the quarter. But it makes sense. If various... Read More »
Welltower Census Bottoming Out
Usually, a few weeks does not translate into a long-term trend, but for Welltower’s SHOP portfolio, it may just be the case. And it is one we have all been waiting for since it is the largest portfolio in the senior living sector to make some forecasts from. After plummeting by approximately 1,200 basis points since February 2020, average occupancy has seemed to have bottomed out in March 2021 at 73.7%. The monthly declines in occupancy in the first quarter were already slowing, with March being the best of the pandemic era with just a 10-basis point drop. But for the weeks ended March 12 and March 19, it rested at 73.7%, before rising 20 basis points the next week and 10 the week after... Read More »
Senior Living Investment Brokerage Closes Two Value Add Deals
The Senior Living Investment Brokerage trio of Jason Punzel, Brad Goodsell and Vince Viverito sold three seniors housing communities across the country. Both deals involved properties with a good amount of upside, which is certainly not uncommon these days. The first deal involved a 73-unit assisted living/memory care community in central California. Their REIT owner decided to realign its portfolio, hence the sale. A regional owner/operator plans to remodel both communities. The SLIB team then sold a 67-unit independent living/assisted living community in Wayzata, Minnesota (Minneapolis MSA), that had been vacant since the early days of the pandemic. A number of COVID-19 illnesses caused... Read More »
Locust Point Closes Second Seniors Housing & Care Fund
Locust Point Capital just closed its second fund focused on direct lending in the seniors housing and care sector. Locust Point Seniors Housing Debt Fund II, L.P. closed above its target at $428 million, receiving strong interest from a combination of pension funds, endowments, foundations, insurance companies and wealth advisors. Three quarters of the commitments came from United States-based investors, while European investors provided the balance. The fund well exceeds Locust Point’s first, which launched in 2016 with a $312 million debut total, but the strategies will be roughly the same. Fund II will provide subordinate debt, preferred equity and opportunistic senior... Read More »
HHC Finance Closes Three More HUD Refinances
Housing & Healthcare Finance (HHC Finance) is continuing to take advantage of historically low interest rates by arranging HUD refinances for its clients. The company’s most recent activity saw it secure three loans totaling more than $33 million for three senior care facilities. There was a 100-bed skilled nursing facility in Delaware and two assisted living communities totaling close to 200 units in New Jersey (100 units) and New York (95 units). The refinances replaced existing HUD loans and extended the clients’ terms. HHC Finance also closed another $37 million in loan modifications for its (happy) clients. Read More »
Capital Funding Group Secures Another Bridge Loan
Capital Funding Group continues its run of activity with a bridge refinance of two assisted living communities in two New York City boroughs. Totaling $88.9 million, the loan was secured on a 239-bed community in Queens and a 184-bed community in Brooklyn. Both properties hold Assisted Living Program licenses and are owned by an undisclosed major provider. Director Craig Casagrande and Senior Associate Andrew Jones originated the transaction. Despite nearly reaching $90 million, this financing represents just a fraction of Capital Funding Group’s bridge lending haul so far this year, totaling over $500 million across 11 separate loans (in addition to more than $235 million in... Read More »
Henry Ford Village Gets Stalking Horse Bidder
A couple of months ago, we wrote about a bankruptcy sale/auction for a large CCRC in Michigan, and we’ve just learned the property has entered into a stalking horse asset purchase agreement with MED Healthcare Partners, in accordance with bid procedures approved by the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division. MED agreed to acquire substantially all of the community’s assets for $69 million, or $66,500 per unit/bed, unless a higher or better offer in accordance with the bid procedures and deadlines (and approved by the court) is accepted. The deadline for competing offers to be submitted is set for April 30. A hearing to approve the sale transaction is... Read More »Schedule a demo
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