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 »
ProMedica And MetroHealth Collaborating On New Kind of SNF
We have always expressed confidence in skilled nursing’s role in the post-acute continuum of care model going forward, but it’s true that the sector will also have to adapt to guarantee its place there. Two Ohio-based health systems signed a collaborative agreement to operate a new kind of skilled nursing facility, one that we may see more of in the future. Toledo-based ProMedica and Cleveland-based The MetroHealth System will operate the facility (which will open later this year) on the site of the former Deaconess Hospital and will be jointly staffed by the health systems. ProMedica will provide most of the caregivers and will hire and manage the... Read More »
Welltower Obtains Cheap Capital
There has been a lot of noise over the past year about the debt markets being “closed,” or partially so, spreads widening, terms tightening and lenders not wanting to venture into loans with new borrowers. And, we have to mention, Treasury rates have risen significantly, with the 10-year rate actually tripling from its low in 2020. With that as background, we were glad to see that Welltower was able to sell $750 million in unsecured 10-year notes at an interest rate of 2.8%. That represents a spread of just 120 basis points over the 10-year Treasury rate. If not a record, that is close to a record low spread for a healthcare REIT raising funds on an unsecured basis. And it... Read More »
Hollywood, Florida Acquisition Sees Multiple Sources of Financing
IDB Bank and Contemporary Healthcare Capital collaborated on a financing package to support the acquisition of an assisted living community in Hollywood, Florida. Built in the early 1960s and renovated in 2016, this community boasted an average occupancy of 96.5% in the last 12 months, an impressive feat to say the least. It features 105 beds in 57 units and is being purchased by an assisted living owner/operator looking to grow its presence in Broward County. They already own one community in Hollywood and provide third-party operations for another local community for 428 Healthcare Management. To fund the deal and some immediate repairs, IDB first placed a... Read More »Schedule a demo
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