Lument Arranges Fannie Mae Refinance
Lument recently arranged a $28 million refinance through Fannie Mae for a 105-unit independent living/assisted living community in Solana Beach, California (San Diego MSA). The loan features a 10-year term, five-years of interest only and a 30-year amortization. Plus, the borrowers, Senior Resource Group and its equity partner Collins Development Company, were able to obtain substantial cash-out proceeds. Doug Harper led the transaction. Read More »
Greystone Finances AL/MC Community Through Freddie Mac
Greystone’s Seniors Housing Capital Markets team recently provided a $27 million Freddie Mac loan to refinance an assisted living/memory care community in the southwestern United States. Featuring 69 units, it is owned by Harbert Seniors Housing Fund I and operated by an experienced seniors housing provider. The loan came with a 10-year term. Read More »
Long-Term Care Insurance Moratorium?
In a lack of wisdom, North Dakota legislators are considering a bill to ban long-term care insurance policy sales for three years. Just as Medicaid funding is getting stretched and the need for long-term care services will be increasing, North Dakota is apparently considering a bill that would impose a three-year ban on the sale of long-term care insurance policies. Really? The sponsors want to study the market and the history of premium increases. Great, and they have every right to do so, but to ban sales for three years while you “study the market”? Come on, how big is the market in North Dakota? Spend a week. Look, long-term care insurance is not perfect, and there are Cadillac... Read More »
Diversified Healthcare Trust Update
Diversified Healthcare Trust is feeling the pain that most of the REITs also have been feeling: census is still dropping. Its senior housing operating portfolio (SHOP) posted a 380-basis point decline in census in the fourth quarter. While not good, the progression was worse. It started with a 70-basis point drop in October, growing to 130 basis points in November and then a plunge of 180 basis points in December alone. And this when 93% of its SHOP communities, the vast majority managed by Five Star Senior Living, are open for new admissions. What this means is that just because you are open for business, it does not necessarily mean people will move, even if it is safer... Read More »
Blueprint Closes Kerrville, Texas SNF Deal
Jacob Gehl and Humair Sabir of Blueprint Healthcare Real Estate Advisors kicked off the firm’s 2021 M&A activity with a memory care sale in Kerrville, Texas. Built in 2001 with 36 units, the community was last acquired in 2014 by a private partnership for $2.4 million, or $66,700 per unit, according to our M&A deal database. It was losing money at the time because of high staff turnover, but thanks to a good reputation in the local market and vastly increasing its staff tenure, the community was operating well, with occupancy regularly above 90% and the operating margin around 30%. Still, a new owner could take advantage of scale to grow cash flow even more, and that... Read More »
Senior Living Investment Brokerage Handles Oregon Sale
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage worked together to sell a 70-unit independent living community in Medford, Oregon. Set amongst the Cascade and Siskiyou Mountains, the community was originally built in 1975 and renovated in 1980. Its operations could be improved, as occupancy fell just below 60%, and the operating margin was just 9% on more than $1.33 million of revenues. The community’s vintage could make that task harder, but age isn’t everything. A local owner/operator bought the property and is planning to remodel and reposition the community. They paid $3.5 million, or $50,000 per unit, which should leave plenty... Read More »
PGIM Arranges Array of HUD Financings
PGIM’s Seniors Housing and Healthcare Group was busy on the HUD front this month, closing three loans totaling more than $33 million for three senior care facilities. Christopher Fenton, Corley Audorff, Catherine Eby and Josh Williams originated the loans and all worked on the largest transaction, which was a $21.9 million loan for a 238-unit assisted living/skilled nursing campus in Connecticut. Utilizing HUD’s 232/223(a)(7) program, the not-for-profit owner was able to lower its current interest rate by 81 basis points, and the loan term was extended to 35 years. Then, Messrs. Audorff and Williams funded a $10.9 million loan for a 141-unit senior care... Read More »
SLIB Facilitates Family’s Exit From Seniors Housing Industry
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage headed to Forest Grove, Oregon (Portland MSA) for their latest seniors housing sale. Previously owned by a family who is retiring from the industry, the property includes 92 units and 134 beds of assisted living and memory care. The AL portion was first built in 1996, with the memory care added in 2000. The building was nearly full (occupancy was at 98%), and it brought in nearly $1.28 million of EBITDAR on about $5.63 million of revenues. A regional owner/operator will be taking over that healthy cash flow and paid $15.7 million, or $170,650 per unit, for the... Read More »Recent Senior Care M&A Deal Chart, Week Ending January 29, 2021
Senior care M&A continues to plod along, here is our recent deal chart! Long-Term Care AcquirerTargetPrice Regional owner/operatorThe Grove and Gardens$15.7 million Peak Capital PartnersThe Estates at Arbor Oaks$18.75 million Not disclosedThe Handmaker Senior Living$15.5 million Owner/operatorRosewood Rehabilitation & Nursing... Read More »
Blueprint Handles Upstate New York Transaction
Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the sale of an 80-bed skilled nursing facility in upstate New York, representing the private ownership group seller in the process. Originally developed in the mid-1970s in Rensselaer, New York (across the Hudson River from Albany), the facility recently received significant capital investments that included interior renovations, operational equipment upgrades and technological enhancements. Ownership also made improvements to the majority of private rooms, which helped keep the quality mix very strong at around 50%. Operations were also solid (and improving before COVID-19), with... Read More »Schedule a demo
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