Long Island Development Obtains Bond Financing
HJ Sims secured more than $100 million in tax-exempt bond debt for a brand-new independent living community adjacent to Gurwin Healthcare System’s skilled nursing facility and assisted living community in Commack, New York. When completed, the new IL building will transform the whole campus to a full-fledged CCRC, the fourth on Long Island. Gurwin has been providing health care services since 1988 and has now grown to include a 460-bed skilled nursing facility and a 201-bed assisted living community, plus a host of other services like memory care, palliative and hospice care, respiratory care, on-site dialysis and infusion therapy and two home health care... Read More »
Capital Senior Living Comes Out With Fourth Quarter Earnings
Better late than never, we suppose. On the last day of the first quarter, Capital Senior Living (CSU) came out with its fourth quarter earnings results, and the leaner (much leaner) company will hopefully be better able to navigate the numerous issues still facing it. Investors seemed somewhat optimistic, sending CSU shares up 3% in the hours immediately after the earnings call and up 12% early the next day, with the share price reaching a high of $42.00 per share on April 1. There is some reason to be optimistic. Since CSU announced it had exiting all of its triple-net leases on January 7 (which resulted in reduced lease liabilities of $265.4 million and improved... Read More »
Ziegler Secures Refinance & Partnership Buyout in Wisconsin
Ziegler’s Senior Housing & Care Finance Practice has successfully closed the refinance and partnership buyout of a family-owned post-acute care provider in southeastern Wisconsin. Eskay Real Estate 2020, Inc. (Eskay) owns and operates two campuses in the towns of Union Grove and Lomira, providing both skilled nursing and assisted living services at each location. The properties held two SBA loans, which Eskay wished to refinance, and one of the partners also chose to divest his majority interest in the company. In comes Ziegler, which refinanced the loans with $9.557 million of HUD debt. Proceeds from the permanent debt allowed Eskay’s CEO,... Read More »
KeyBank Arranges Development Financing For Pennsylvania Property
A new affordable senior apartment community in Canonsburg, Pennsylvania is going ahead thanks to a couple of financing options arranged and provided by KeyBank Community Development Lending. MVAH Partners, LLC, the project’s developer, will both convert a vacant former elementary school and add to the building at an estimated cost of $14.8 million. By the spring of 2022, there will be 42 units of low-income seniors housing and eight market-rate units. Blueprints, a not-for-profit organization focused on services for low-income seniors, is partnering with MVAH on the project. To fund it, KeyBank provided an $11 million construction loan and arranged $12 million of 9% LIHTC... Read More »
Several New Hires Announced This Spring
The start of spring came with a flurry of new hires at several brokerage firms. First, Andrew Morris joined Greystone as its Director of Healthcare Acquisitions, where he will report to Arthur Hatzopoulos, Corporate Executive Vice President at the company. Mr. Morris comes from Hana2.0 Property Group where he was Director of Investments and focused on sourcing and closing healthcare real estate acquisitions. Before that, he also held roles at Cascade Capital Group, Omega Healthcare Investors, and GE Capital. At Greystone, Mr. Morris will be focusing on seniors housing and healthcare acquisition opportunities but zeroing in on the skilled nursing... Read More »
Capital Funding Group Closes Q1 In Style
Capital Funding Group’s new off-balance sheet credit venture, CFG Credit Partners, has done it again, arranging another nine-figure bridge loan to support the acquisition of a skilled nursing portfolio. This transaction totaled $285 million. Using the funding, a nationally recognized borrower (which has worked with CFG before) was able to acquire 16 skilled nursing facilities in the Mid-Atlantic region. Erik Howard and Tim Eberhardt originated the transaction for Capital Funding Group, and Capital Funding, LLC, a subsidiary of CFG Bank, participated in the transaction. This deal appears very similar to CFG Credit Partners’ $317.5 million bridge-to-HUD financing for Eagle Arc Partners’... Read More »
Getting Very Mad
Academics say that PE firms are responsible for the deaths of up to 20,000 Medicare patients over 12 years. Reckless. I don’t know about you, but I am really getting mad at what I am reading. Four academics just came out with a research paper on the impact of private equity on the skilled nursing industry. Backed up by equations that few of us would understand, they concluded that private equity firms are responsible for up to 20,000 deaths of Medicare patients in nursing homes over a 12-year period. Really? The study included 128 deals for 1,674 facilities and 136 unique PE firms that acquired nursing facilities. Hmm. 136 “unique” PE firms. Even over 12 years that seems like a stretch. I... Read More »
Scribner Capital/Fundamental Advisors Close Mezz Deal
Scribner Capital just announced another financing closed with partner Fundamental Advisors, just a couple of weeks after the partnership funded a deal in Jacksonville Beach, Florida. This transaction involved a construction loan provided to support the development of a senior living community in Prescott Valley, Arizona. Set to open next summer, the community will include 25 independent living, 75 assisted living and 30 memory care units, plus six IL cottages. Residents will also be able to take advantage of amenities like the on-site theater and a club room with mountain views. Link Senior Development, which focuses on secondary and tertiary markets in the western United States, is... Read More »
M&T Realty Closes Chicagoland Refinance
M&T Realty Capital Corporation provided a $15.145 million Fannie Mae loan to refinance an 80-unit active adult community in St. Charles, Illinois (Chicago MSA). Steven Muth and Matthew Pipitone led the financing for M&T, while Eric Johnson of Ziegler arranged the deal. The loan came with a 10-year term and a fixed interest rate below 4.00%. It was structured with five years of interest-only payments, followed by a 30-year amortization schedule. Also, the loan carried a declining prepayment schedule, which provides the borrower, who remains undisclosed, additional flexibility in future years. The community being refinanced was extremely well occupied... Read More »
NorthMarq Refinances Merrill Gardens Community
A Merrill Gardens-operated senior living community in Rancho Cucamonga, California just refinanced its debt with a $31 million loan arranged by Stuart Oswald and Gordon Mickelson of NorthMarq. Owned by a joint venture between Merrill Gardens and AEW Capital Management, the three-year old community features 112 units of independent living, assisted living and memory care. A life insurance company provided the debt, which came with a five-year term and 30-year amortization. NorthMarq structured the loan prior to stabilization, but the community was approaching that level upon closing. Read More »Schedule a demo
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