CareTrust REIT Acquires Rental CCRC Portfolio
CareTrust REIT acquired four former Marriott rental CCRCs in Southern California for a combined purchase price of $125.2 million, or $196,500 per unit. That just about equals the average price per unit for seniors housing properties in the 2020 M&A market, according to 26th Edition of The Senior Care Acquisition Report. Originally developed by Marriott in 1999 and 2000, these communities total 360 assisted living units, 97 memory care units and 180 skilled nursing beds. They are all located in high-income markets in Camarillo, Carlsbad, Rancho Mirage and San Juan Capistrano. An institutional owner hired Evans Senior Investments to market and sell the... Read More »
Kidder Mathews Finds JV Equity Partner For Kansas Development
After the team arranged the construction debt on the planned senior apartment community in Shawnee, Kansas, Sean McNee and Robert Black of Kidder Mathews then secured a JV equity partner for the project on behalf of the developer, JC Mulligan Development Group, and the sponsor, Omega Senior Living. Featuring 228 apartments and 60 attached, for-sale villas (starting at $345,000 per villa), the developer commenced site improvements before the pandemic set in, which caused a six-month delay in any work. Completion is now expected by winter of 2022-2023, at a total cost near $45 million, or $196,000 per unit for the apartments. Monthly rents will range from $1,450 for a studio to $2,050 for... Read More »
CBRE Secures Construction Loan For Oregon Project
Construction lending may be slow at the moment, but Aron Will, Austin Sacco and Adam Mincberg of CBRE arranged financing for a to-be-built seniors housing community in Happy Valley, Oregon. A joint venture between The Springs Living and Harrison Street Real Estate Capital is building the community, which is set on a 6.95-acre site about 10 miles southeast of downtown Portland. Across the 210 units, half will be reserved for independent living, with the other half split between assisted living and memory care. There will also be numerous amenities, including an indoor pool, a movie theater, and a private dining room. CBRE secured a $60.4... Read More »
Home Health vs. Assisted Living
If people need care and full-time supervision, there is no cost comparison between assisted living and home health. Here’s a real life example. A friend recently asked for some advice (true story) about her 85-year old mother who was hospitalized, then went to a rehab facility, and then had the decision between moving back home or to an assisted living community. I think the family was inclined to assisted living, but mom wanted to go home, of course. The assisted living community in Connecticut, operated by a well-respected regional chain, offered $4,300 per month for a one-bedroom unit, but after the assessment admitted that she may be bumped up a care level or two. Given the... Read More »
Genesis to be Delisted After Welltower Split
When Genesis HealthCare announced last year that it may not make it in the following 12 months, you knew something had to be done. And then at the beginning of this year when its longstanding CEO, George Hager, departed, you knew that replacing one person with another was just not going to cut it. But perhaps it enabled the Board to move on what had to be done to salvage a desperate situation. Late on Tuesday, Welltower announced that it has substantially exited its 10-year operating relationship with Genesis HealthCare. The move cannot be seen as much of a surprise considering Genesis’ “going concern” notice last year, multiple major write downs associated with... Read More »
SLIB Starts March With Six Closings
What a month it has been for Senior Living Investment Brokerage, and it’s only been a few days. After a stellar start to February when the firm announced five transactions comprising eight seniors housing properties across the country, SLIB brokers announced six closings on the first two days of March. Four deals closed in the Southeast, starting with the sale of a 46-unit assisted living/memory care community in Gainesville, Georgia, north of Atlanta. Daniel Geraghty and Bradley Clousing handled the deal on behalf of a group of five TIC investors that originally bought the property in 2006. The TIC sponsor had since filed for bankruptcy and subsequently took control of the... Read More »
A Holiday with Atria
Last week, as part of its earnings release, New Senior Investment Group announced that Atria Senior Living would be taking over management of 21 independent living communities managed by Holiday Retirement Corporation. From a diversification perspective, this makes great sense for New Senior because Holiday had been managing 98 of New Senior’s 103 properties. In the REIT world, that kind of tenant concentration is a no-no. Like most owners across the country, including Atria, the New Senior portfolio has seen its occupancy drop by 690 basis points in the past year. This is much better than the average for assisted living and skilled nursing, but as we... Read More »
Housing & Healthcare Finance Announces HUD Activity
Housing & Healthcare Finance (HHC Finance) closed over $83 million in HUD loans during the month of February. The firm kicked off its activity with a $24 million loan for a large 280-bed skilled nursing facility in New Jersey. That was followed by two more HUD loans totaling $46 million closed for SNFs in Maryland and Illinois. Finally, HHC Finance took out previous HUD debt for a long-term customer in Connecticut with a new $13 million loan closed through the (a)7 program. Each loan came with interest rates in the low-2s and terms ranging from 30 to 35 years. HHC Finance rounded out its February activity with over $115 million of loan modifications closed for clients in Missouri,... Read More »
PGIM Refinances Virginia Seniors Housing Community
PGIM Real Estate’s Seniors Housing and Healthcare Group refinanced a 57-unit seniors housing community in Lynchburg, Virginia with a new HUD loan, providing the owner with substantial annual loan payment savings. That makes for a happy client. Family-owned and operated Runk & Pratt was the borrower, closing its second transaction with PGIM in the last 10 months. The community was built in the 1980s and boasted 95% occupancy. It previously had a HUD mortgage holding an interest rate of 4.25%. However, Christopher Fenton and Catherine Eby arranged a new $13.2 million loan that both extended the borrower’s loan maturity and lowered the interest rate to 3.03%. That results in annual debt... Read More »
Texas-Based Operator Acquires Dallas-Area SNF
Jeff Rhodes, Bill Janis and Mario Wilson of Helios Healthcare Advisors arranged acquisition financing for a 120-bed skilled nursing facility in the Dallas metro area. This was the only operation for the current Texas-based operator, which is acquiring the facility from the out-of-state landlord. Newly built in 2014, the facility maintained above average occupancy at the time of the sale. Helping its operations was its location in an affluent suburb near a handful of major hospitals. It also consistently achieves strong clinical ratings. The Helios team arranged a $12.53 million bridge loan from a regional lender to help cover the $13.06 million, or $108,800 per... Read More »Schedule a demo
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