Ohio Memory Care Community Refinances with Lancaster Pollard
Lancaster Pollard’s Brendan Healy, Doug Harper and Casey Moore helped the owner of a 64-unit memory care community in Powell, Ohio (Columbus MSA) obtain a cash-out refinance through Fannie Mae. Built in 2016 at a cost of $12.5 million, or just below $200,000 per unit, the community was developed by Eleanor Alvarez, the CEO of LeaderStat, a healthcare recruiting and consulting firm. That staffing knowledge clearly came in handy, as Ms. Alvarez is now refinancing with a $14.6 million non-recourse mortgage, featuring a fixed rate and 12-year term. With a typical 70% loan-to-value, that puts the value of the community at well over $300,000 per unit. Read More »
Philly-Area CCRC Goes from Bank to Bond Debt
Facing rising short-term interest rates, a not-for-profit CCRC in the Philadelphia, Pennsylvania, market turned to Ziegler to refund its existing bank debt with a tax-exempt bond issue. The community is located on a 63-acre campus about 10 miles northwest of downtown Philadelphia in the town of Gladwyne, offering 151 independent living units, 69 IL villas, 33 personal care units, 16 memory care units and 49 private skilled nursing beds. It had benefited from variable-rate debt over the last decade, investing in expansions and improvements over the years. However, when short-term rates were on the rise, but declining at the long end of the yield curve, they decided to refinance the bank... Read More »
Brookdale Activists On The Move
Brookdale Senior Living investor Land & Buildings has nominated Jonathan Litt and Jay Flaherty to Brookdale’s board. Still pushing for a REIT spin-off? He’s baaaack. After his 10-year stint as CEO of HCP, Inc., which included his ill-fated and ill-timed acquisition of the former HCR ManorCare, Jay Flaherty may be back in the senior care mix. That is, if Jonathan Litt of Land & Buildings has his way. Land & Buildings Capital Growth Fund, LP has delivered notice to Brookdale Senior Living that it is nominating Flaherty and Litt for election to the company’s board of directors. We shall see how that flies with the current Brookdale board. Our guess is that they will not go... Read More »
Chicago Pacific Founders Acquires Again
A week after it was announced that Chicago Pacific Founders acquired a new senior living community in Conroe, Texas, the firm followed it up with another purchase, this time in Scottsdale, Arizona. Featuring 101 units of independent living and assisted living, the community will now be managed by CPF’s operating subsidiary, Grace Management. The community was originally built in 1998 and is located close to numerous shopping and medical centers. Chicago Pacific Founders plans to invest in improvements to the community in addition to renaming it. The final purchase price came to $27 million, or about $267,300 per unit. Steve Gebing, Hamid Panahi, Cliff David and Tony Cassie of Institutional... Read More »
Cooper City Community Sold to Artemis Real Estate Partners
Artemis Real Estate Partners recently acquired a 120-unit assisted living/memory care community in Cooper City, Florida (Broward County) for approximately $37.5 million, or $312,500 per unit. AEW Capital Management was the seller, having purchased the original site in 2015 for $2.5 million and developed the community in 2017. Senior Lifestyle Corporation operates the community. Artemis reportedly took out a $23.4 million loan to finance the acquisition. Rents start at $4,000 at the community, which features amenities such as a barber shop, card room, business center and a fitness center. The community also provides physical, occupational and speech therapy, catering for private functions,... Read More »
Harrison Street Refinances White Bear Lake Community
Cushman & Wakefield acted as the exclusive advisor to a joint venture between The Waters Senior Living and Harrison Street Real Estate Capital on the refinance of their 136-unit senior living community in White Bear Lake, Minnesota. Developed in 2016, this community provides independent living, assisted living and memory care services under The Waters brand. The C&W team of Jay Wagner, Sam Dylag and Jack Griffin brought the owners together with the lender, BMO Harris Bank, which provided the $24.3 million loan to take out the original construction financing. Derek Zeller, Imran Javaid and Brian Vis made up the BMO team on the transaction. Read More »
Grandbridge Arranges Active Adult Financing
With Baby Boomers still too young to move into most seniors housing communities and labor costs growing, many companies see opportunity in the active adult market, which some view as a largely untapped market. We’ll have to see how “under the radar” these assets will stay in the next couple of years. Jumping into the market, Grandbridge Seniors Housing and Healthcare Finance Group just facilitated construction financing for the development of a 318-unit age-restricted community in Plano, Texas operated by Life Style Management Inc. The transaction consisted of about $62.3 million in taxable and tax-exempt bonds under the 142(d) bond program administered by BB&T Capital Markets.... Read More »
Recent Senior Care M&A Deals, Week Ending July 5, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Northeast owner/operatorBountiful Hills$3.25 million CareTrust REITCascadia of Nampa$12.8 million Senior Living CommunitiesWildewood Downs$35 million Chicago Pacific FoundersWoodhaven... Read More »
How Have the REIT Stocks Performed in 2019?
Last week, we discussed the stock performance of the seniors housing and healthcare providers. Now, it’s the healthcare REITs’ turn. Overall, it was a good first half of the year, with all of them posting price increases, with the exception of Senior Housing Properties Trust, reflecting its Five Star problems. Its share price tumbled by 29.4%. The top performer was New Senior Investment Group, but it came off a terrible 2018 (down 45%) and still trades below what it did 18 months ago. The star of the year, so far, is CareTrust REIT which is up 28.8% after being the second-best performer last year with a price increase of 10%. And then there is HCVenTower, otherwise known as the Big Three,... Read More »
Portopiccolo Makes Another SNF Acquisition
The Portopiccolo Group just made its third skilled nursing acquisition of the year, making it one of the most prolific buyers in that space in 2019. Its most recent target was a 150-bed skilled nursing facility in Virginia Beach, Virginia. To fund the acquisition, Portopiccolo turned to Contemporary Healthcare Capital to closed $1.97 million in mezzanine financing in addition to receiving a senior loan from United Community Bank. About $2.7 million in capital upgrades will also be funded. The transaction is similar to Portopiccolo’s acquisition earlier this year of a 130-bed skilled nursing facility in Roanoke, Virginia that included a 24-bed accredited ventilator unit. That always... Read More »Schedule a demo
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