KeyBank Refinances Two Bickford Senior Living Properties
Bickford Senior Living refinanced two of its seniors housing communities in Iowa through HUD, with the help of John Randolph of KeyBank Real Estate Capital’s Commercial Mortgage Group and Grant Saunders of KeyBank’s Healthcare Finance Group. Bickford received $17 million in combined HUD financing, with fully amortizing 35-year terms. Both communities were built in 1998, with the Davenport location including 35 assisted living and seven memory care units and the Marion campus comprising 31 assisted living and seven memory care units. They are two of Bickford’s 65 seniors housing operations in 11 states. In addition to visiting physical, occupational and speech... Read More »
Is Brookdale Bottoming Out
Even though Brookdale Senior Living reported its lowest census levels ever in February, the month-to-month declines were low and may signal a bottom soon. As most of you know, I have been pretty negative about where things were going last year, and how long it might take for the industry to dig out of its hole. But my gut tells me things are beginning to turn around. Brookdale Senior Living just reported on its February occupancy, and I believe it is the first major seniors housing company to report average occupancy for the month below 70%. It hit 69.4%. That’s the bad news. The good news is that the monthly decline of 60 basis points was the smallest since last March. And the month-end... Read More »
SLIB Sells Underperforming Missouri Skilled Nursing Facility
Jeff Binder and Ryan Saul of Senior Living Investment Brokerage started March with the sale of a 137-bed nursing facility in Missouri. It was relatively large at 137 beds, but occupancy was near 50%. It was not too old, having been built in stages in 1984, 1989 and 1994, but 25 to 35 years old is still old. Located in Ballwin (St. Louis MSA), it was sold because of the facility’s underperformance, despite its good location, by a large Missouri operator. The buyer plans on doing significant renovations and refreshing of some common areas, as it wants to expand its services into the St. Louis MSA. The buyer was selected in September from a pool of five... Read More »
CareTrust REIT Acquires Again
On the back of its purchase of four CCRCs in California last week, CareTrust REIT jumped back in the buyer pool to acquire a 150-bed skilled nursing facility in Santa Barbara. In the off-market transaction, CareTrust also retained the operator, California-based Covenant Care, under an assumed long-term lease. That brings CareTrust and Covenant’s relationship to eight facilities. The REIT spent approximately $15.86 million (excluding around $40,000 of transaction costs), or $105,700 per bed on the facility. The existing lease, which has approximately four years left on its term, with two five-year renewal options, produces about $1.5... Read More »
Live Oak Bank Closes Two Financings
The team at Live Oak Bank arranged a couple of financings for two owner/operator clients. First, to refinance a newly built memory care community in Tarpon Springs, Florida, Live Oak provided a five-year, floating rate bridge loan totaling $12.3 million to the developer, Watercrest Senior Living. Opened in March 2018, the purpose-built community has 64 units and operates under Watercrest’s “Market Street” brand. Watercrest worked with Lument to arrange the financing. This brings Watercrest’s portfolio to 13 communities in Florida, Georgia, South Carolina and Virginia. The second transaction saw Live Oak Bank provide a $28.5... Read More »
Berkadia Refinances Portfolio of Florida Memory Care Communities
Berkadia’s Seniors Housing & Healthcare Group refinanced a portfolio of six small memory care communities in central Florida. When we say small, we mean it, as each property featured six units. Occupancy was a combined 99% at the time of underwriting and has consistently been fully occupied with a waiting list. Berkadia processed the transaction on behalf of the California-based sponsor as a scattered site loan through HUD. The $5.16 million loan represented a 60% loan-to-value ratio and came with a 34-year term. It retired a short-term bridge loan that was arranged in June 2020 to retire several small individual property loans. Ownership was also able to extract... Read More »
Walker & Dunlop Arranges HUD Financing for Seven SNFs
The Chicago-based Walker & Dunlop HUD Finance Team announced that it has structured a combined $126.65 million in financing for seven skilled nursing facilities located throughout the Northeast and Midwest. Joshua Rosen led the origination team on the deal. Four of the properties received financing from the LEAN program, while the three others went through the agency’s loan modification program. The loans included terms ranging from 30 to 34 years. Three of the properties are located in Massachusetts (Brockton, Chelsea and Fall River), three in Illinois (Chicago, Niles and Northbrook) and one in Romeo, Michigan. Read More »
Recent Senior Care M&A Deal Chart, Week Ending March 5, 2021
March began with a bevy of seniors housing and care M&A transaction announcements. Here are some highlights in our deal chart. Long-Term Care AcquirerTargetPrice Owner/operatorAmber Glen Assisted Living & Memory Care$2.325 million CareTrust REIT, Inc.4 CCRCs$125.2 million Partnership buyerBeach House Assisted Living & Memory CareN/A Local not-for-profitColonial Place Assisted Living & Memory CareN/A Partnership buyerBrookdale Muscle... Read More »
Greystone Secures Bridge Financing for Missouri SNF
The Greystone Seniors Housing Capital Markets team secured bridge financing to refinance a 147-bed skilled nursing facility in Missouri. Owned by RSF Partners, a Dallas-based private equity firm focused primarily on the seniors housing sector, the facility was built around 10 years ago. There was previously a five-year term loan on the property, which is being taken out by a new $12 million loan with a two-year term. Read More »
Newmark Sells Largest Community of the Year
The investment sales team at Newmark sold one of the largest retirement communities we have seen in the market, and the new owners have plans to change it. Imperial Plaza in Richmond, Virginia was built in 1967 and has four towers on its 27.7-acre campus. Currently, there are 941 units broken out into 743 independent living, 146 assisted living and 32 memory care units. All the units are in the four high-rise towers. Occupancy had historically been between 88% and 91%, but it had slipped to about 75% as a result of the pandemic. Despite this, in-place cash flow remained relatively strong. The purchase price was $68.85 million, or about $74,750 per unit, and... Read More »Schedule a demo
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