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 »
Walker & Dunlop Arranges Several Sales
The Walker & Dunlop Investment Sales team, including Joshua Jandris, Mark Myers, Brett Gardner and Jordyn Berger, is off to a good start to their year, already announcing a few closings with another four set to close in the next six weeks. In total, the team has about $1.0 billion of listings under contract and scheduled closings in its pipeline. They first closed the sale of an independent living portfolio in the Atlanta, Georgia metro area. Operated by The Mansions Group and owned by a group of investors and developers, the four communities are newly built, considered to be “A” quality and combine for 559 units. Most were stabilized with occupancy above 90%, but the newest... Read More »
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 »Schedule a demo
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