Fourth Quarter Occupancy Nudges Up
Some good news was recently released by NIC MAP, showing occupancy rates for stabilized seniors housing communities (independent living and assisted living) increasing by 10 basis points sequentially, but a four-basis point decline year over year. The assisted living market, which has been the most troubled over the past several years, saw a 20-basis point increase sequentially, but a 14-basis point decline year over year. The bottom line is that while some progress has been made recently, we are still way behind a year and two ago, with a long way to go to really get to “stabilization” as an industry. The other good news is that absorption is running ahead of trailing-12 month new... Read More »
Berkadia Closes Three Financings for SNF Clients
Berkadia announced a series of loan closings last month totaling $57.2 million. There were four HUD financings, including three loans totaling $26.2 million closed for a portfolio of three skilled nursing facilities in Washington. Jay Healy arranged the financing for a Washington-based owner/operator, which used the proceeds to pay off short-term debt, fund improvements to the properties and reduce its debt service payments. Located in Brewster, Kennewick and Spokane, these facilities were on average 89.3% occupied with a strong quality mix. Mr. Healy was then joined by Bianca Anduko to secure a $16 million HUD loan for a 146-bed skilled nursing facility in western Maryland. The... Read More »
Helios Handles Boston-Area SNF Sale
Bill Janis and Mario Wilson of Helios Healthcare Advisors represented a family owner in their complete exit from the skilled nursing industry with the sale of their 169-bed SNF in an upscale suburb of Boston, Massachusetts. Consistently achieving a four- or five-star rating from CMS, the facility maintained a good reputation in the local market. It was the preferred provider among the area’s ACOs and hospital systems, and as a result boasted average occupancy above 90% and a strong rehab and private pay census. The family owner had operated it for over 20 years, but the time had come for them to exit the business. The Helios team procured over 10 offers from local and regional providers... Read More »
BMO Harris Bank Closes Credit Facilities
BMO Harris Bank’s Healthcare Real Estate Finance group has been busy lately closing credit facilities for senior living clients. The first transaction saw the bank close a $59.4 million facility for LCS’ acquisition of The Clare CCRC in downtown Chicago, Illinois. We profiled the sale in this month’s edition of The SeniorCare Investor, and subscribers can read the story here. Then, BMO provided a syndicated $75 million senior credit facility for Largo Land Development, LLC and Watermark Retirement Communities to develop a 219-bed independent living/assisted living/memory care community and a 64-unit active adult community in Upper Marlboro, Maryland (Washington, D.C. MSA). BMO partnered... Read More »
Greystone Funds Harbert’s Acquisition of California Community
Harbert Seniors Housing Fund II, L.P. has acquired a 134-unit senior living community in Rocklin, California thanks to a Fannie Mae financing arranged by Greystone. Built in 2015 and operated by Merrill Gardens, this community operated with independent living, assisted living and memory care units, with a licensed capacity of 142 residents. Merrill Gardens will be a joint venture partner in the community, in addition to continuing as operator. The $37 million structured adjustable rate mortgage loan comes with a 10-year term and five years of interest only. Read More »
Recent Senior Care M&A Deals, Week Ending January 10, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice NJ-based owner/operatorSkilled nursing facility in Boston, MA area$12 million Harbert Seniors Housing Fund II, L.P.The Pines at RocklinN/A Ithaca-based owner/operatorHorizon Villages$8 million American House Senior Living Communities/REDICOAmerican House WyomingN/A Regional owner-operatorCrest of Clemmons$5... Read More »
O&M Investments Announces Latest M&A Moves
It has been a busy year for Nick Martinez & Todd Okum of O&M Investments, having closed five acquisitions in three states. Earlier this year, the firm picked up an 88-bed skilled nursing facility in Orrville, Ohio (Cleveland MSA) that was operating around breakeven, a 104-bed SNF in Richardson, Texas with a wing recently converted to skilled memory care, and a portfolio of three skilled nursing facilities in the Columbus, Ohio MSA with 297 total licensed beds. In the fourth quarter of 2019, Messrs. Martinez and Okum closed two more purchases. First, in October they acquired a 120-bed skilled nursing facility in Fort Worth, Texas. Built in 1973, the facility was occupied in the... Read More »
SLIB Closes First 2020 Deal
Dave Balow just closed Senior Living Investment Brokerage’s first deal of 2020, featuring a 42-unit active adult community in Ithaca, New York. Built in 1986 with all cottage-style apartments, the community was well-maintained and boasts a long wait list. It’s not affiliated with Cornell University, but apparently a number of Cornell professors live there. Operations were strong, with a 46% margin on about $1.1 million of revenues, but its private owner was looking to retire. The buyer is an Ithaca-based senior living owner/operator group that has a strong senior living footprint in the area and is partnered with several individuals to further develop the adjacent land to add more... Read More »
Dwight Capital’s Active Fourth Quarter
Dwight Capital reported a very active fourth quarter, with more than $116 million of HUD and bridge loans closed for senior living and skilled nursing clients. One of the largest transactions saw Adam Sasouness and Adam Offman finance a $16.5 million bridge loan for a 375-bed skilled nursing facility in Oklahoma City, Oklahoma that features both short- and long-term rehabilitation, a secure memory care unit and a recently renovated dialysis unit. Mr. Offman also originated a pair of bridge loans in Rhode Island, including $16.4 million for a 167-bed assisted living/memory care/skilled nursing facility in Greenville and an $8.16 million loan for a 100-bed SNF in Pascoag. Another highlight... Read More »
People on the Move, January 2020
There were a few high-profile moves in the senior care world in the last month. JLL announced the addition of a new advisory and investment transaction services practice, to be led by Deborah Street. Coming from CBRE, where she was previously the Vice President of the National Senior Housing group, Ms. Street will join JLL as a Senior Vice President and leader of the new practice, which will provide on-demand underwriting, strategic planning, transaction structure/return analysis, transaction management, and due diligence, as well as ongoing asset management services. She will work with Managing Directors Brian Chandler and Bryan Lockard, JLL’s Co-Leads for the Seniors Housing Valuation... Read More »Schedule a demo
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