NorthMarq Closes Construction Financing in Cincinnati
When at first you don’t succeed, try again. That was one borrower’s motto when a financing placement attempt fell through with one lender, so they decided to go to Noah Juran of NorthMarq to get the deal done. To fund the construction of a senior care facility on the borrower’s existing senior living campus in Cincinnati, Ohio, Mr. Juran secured an $18.2 million construction loan through Stearns Bank, plus $5.5 million of equity from an undisclosed source. The debt, which features a three-year, interest-only term, comes in at 64% loan-to-cost. That puts the development cost at $28.4 million, or $346,300 per unit. Set to open in either late-2020 or early-2021, the project will include a mix... Read More »
Recent Senior Care M&A Deals, Week Ending October 11, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Liberty Healthcare ServicesFoley Center at Chestnut RidgeN/A Capital Senior VenturesKindred Spring ValleyN/A Opal Senior LivingJuniper Village at Naples$5.5 million Oxford Living6 Ontario senior living... Read More »
The “Recession-Resistant” Aura of Assisted Living
There is a lot of chatter about the potential for a recession hitting the U.S. economy soon. You’ve seen the metrics on slowing growth, both domestically and even more so globally, and the impact that tariffs have had on supply chains, manufacturing and investment. And the uncertainty of the 2020 election will not help growth in the next year, barring some major trade agreement with China. But if we do indeed plunge into recession, what will the impact be on assisted living? The sector was famously “recession-resistant” in the last downturn, and since nobody is predicting a financial calamity like that in the next few years, that should bode well. Assisted living values have been rising... Read More »
Capital Senior Ventures Acquires Final Kindred Skilled Nursing Facility
Capital Senior Ventures made a bet on the Las Vegas skilled nursing market, acquiring a state-of-the-art skilled nursing facility in the city for an undisclosed price. Built in 2015, the facility is the last SNF owned by Kindred Healthcare. It consists of 160 beds, including 118 private and 21 semiprivate rooms. In addition to there being private showers in all patient bathrooms, there were some units with bariatric lifts as well. Other amenities include multiple dining areas, a movie theater, four therapy gyms, outdoor courtyards and a transitional home therapy suite. Sounds like a Marriott we would want to move into. Plus, the facility is ideally located next to Spring Valley Medical... Read More »
Oxford Living Acquires Another Ontario Portfolio
Institutional investment and development firm Oxford Capital Group, together with its joint venture partner, has made a large investment in the Canadian seniors housing sector, acquiring a portfolio of six private pay communities located throughout Ontario. These communities provide both independent living and supportive living services throughout the 645 total units. They are located in Toronto, Fort Erie, Niagara Falls, Kitchener and Guelph, and join Oxford’s nine other communities in Ontario (all acquired in just the last nine months). Oxford made the acquisition through its affiliate Oxford Living in a joint venture with New York-based insurance and investment firm, Starr Insurance... Read More »
Independent Living Tower Breaks Ground in Seattle
Perhaps as a sign of the strength of both the CCRC and independent living markets, a CCRC in Seattle, Washington just broke ground on a 21-story, 77-unit independent living tower on its existing campus in the First Hill neighborhood. Owned by Transforming Age, a national not-for-profit with existing communities in Washington, Minnesota and Nebraska, it announced that the project is already 70% presold two years before the expected 2021 opening. The tower will include a mix of one-bedroom and two-bedroom units, as well as penthouse apartments. There will also be a 240-seat performing arts center, full-service spa, bar, café and a club room with panoramic views of Puget Sound and the Olympic... Read More »
Therapy and PDPM
We are now one week into the new PDPM reimbursement system, and already therapist layoffs have begun. Well, we are just one week into the new Patient-Driven Payment Model (PDPM) for Medicare reimbursement for skilled nursing facilities, and already the therapist layoffs have begun. Why? Because providers are no longer paid for the amount of therapy they provide patients. The new payments will be based on patient needs, especially for higher acuity patients. So, here is my question. If the patient profile has not changed from September to October, why were patients provided with a certain number of therapy hours in September if they actually did not need that much therapy, or if the extra... Read More »
Juniper Communities Shifts Focus from Florida
Juniper Communities has completely exited the state of Florida, with Bradley Clousing and Jeff Binder of Senior Living Investment Brokerage facilitating the final sale. With the transaction, the assisted living/memory care provider will now focus on its established Northeast and Colorado markets, where it has eight communities in Pennsylvania, two in New Jersey and five in the Centennial State. The Naples community was originally built in 2000, which in the heavily developed southwestern Florida market is certainly on the older side. Age isn’t everything, but it does usually affect the rents you can charge, which has a cascading effect if any fixed or variable costs were to suddenly shoot... Read More »
Greystone Announces Three Financings and One New Hire
Running the agency gamut at the start of October, Greystone announced three financings it closed through Fannie Mae, Freddie Mac and HUD. First up, the firm refinanced an independent living community in Pearland, Texas (Houston MSA) with a 10-year, $37 million Fannie Mae loan. Cary Tremper originated the transaction on behalf of Integrated Real Estate Group (IREG) and their operating affiliate Integrated Senior Lifestyles. IREG opened the community in 2017, with 214 units that include one-bedroom, two-bedroom and three-bedroom options, plus eight villas. There are also a host of a la carte services and amenities. Development cost reached $35.1 million, or $158,100 per unit. Then, Greystone... Read More »
Newmark Knight Frank Closes Three Varied Transactions
The Newmark Knight Frank debt origination team has been hard at work this year, closing $1.6 billion in new financings so far this year. Heidi Brunet, who joined this April, and Chris Johnson handled a Freddie Mac financing for a newly built independent living community in Aurora, Colorado. The 10-year, fixed-rate, pre-stabilized loan totaled $43 million. Ms. Brunet and Laura McDonald of Protective Life also refinanced two assisted living/memory care communities in Virginia and Pennsylvania with a $43 million loan. An experienced owner/operator opened these communities in June of this year. Finally, Sarah Anderson of Newmark arranged acquisition financing for two AL/MC communities in Boca... Read More »Schedule a demo
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