KeyBank Secures Financing For Idaho Property
Thomas Development Co., a multifamily real estate developer based in Boise, Idaho, acquired a low-income senior apartment community in nearby Caldwell thanks to financing secured by Sarah Geis and Kevin Ruf of KeyBank Community Development Lending and Investment. The community is brand new and features 48 units comprised of 32 one-bedroom and 16 two-bedroom units. The two-story building also has a community room, exercise rooms, a library and management office. Forty-one of the apartments are restricted to residents earning 40% to 60% of the area median income, and the remaining seven units are market rate. Tomlinson Associates is the operator, and a manager will live on site. ... Read More »
Recent Senior Care M&A Deals, Week Ending October 27, 2020
In the last two weeks, we have seen a fair number of closings in the senior care market. Here are a few highlights. Long-Term Care AcquirerTargetPrice FairsteadFederation Davie Apartments$17.9 million Regional owner/operatorAssisted living community in WI$3.1 million CT-based owner/operator2 skilled nursing facilities in CTN/A Not disclosedSt John's Manor$1.3... Read More »
San Bernadino County Community Sells To In-Place Tenant
A competitive bidding process ended with the sale of an 83-unit assisted living/memory care community in Yucaipa, California (San Bernadino County). The winning bidder ended up being the existing tenant, which paid $13.9 million, or $167,500 per unit. Jim and Cindy Hazzard of JCH Senior Housing Investment Brokerage handled the transaction. Previously owned by a partnership, this community was built in 2003 and 2004 with 54 assisted living units, 29 memory care units and 130 total licensed beds on a 7.5-acre campus. The deal was supposed to close in March but was delayed by the pandemic, and in the end, there was no change in the purchase price. It certainly helped that operations were... Read More »
Senior Care Realty Handles Wisconsin Transaction
Bob Richards of Senior Care Realty represented a husband and wife team in their sale of a small assisted living community in Manitowoc, Wisconsin, thereby allowing them to retire from the business. This was their only senior care asset, which they developed in 2014 to feature 24 assisted living units and 26 beds, with a small portion of those set aside for memory care. Operations were strong with occupancy in the mid-90s and an operating margin of 31% on about $1.1 million of revenues, which did not drop off much as a result of the pandemic. With such consistent performance, there was also no movement on the final purchase price negotiated before COVID of $3.1 million, or $130,000 per... Read More »
MONTICELLOAM Funds Working Capital For Pennsylvania Property
MONTICELLOAM, LLC and its affiliates (Monticello) secured a $1.25 million working capital loan for the operating company of a large skilled nursing facility in Pennsylvania. The facility has 181 beds and is owned by an experienced owner/operator with nearly 3,600 licensed beds in its portfolio. It has grown its portfolio in the last several years thanks to acquisition financing provided by Monticello. Read More »
HJ Sims Secures Financing For CCRC Expansion
We mentioned last week that the lending market for not-for-profit CCRCs has been quite active, particularly to fund expansion projects, and another one was announced by HJ Sims. Sims raised $38.18 million for Presbyterian Villages of Michigan (PVM), a Michigan-based not-for-profit that has been operating since 1945. Sims’ relationship with PVM began in 2015 when they underwrote a bond issue and then continued to provide advisory services. In 2002, PVM acquired land adjacent to its Village of East Harbor campus for an expansion project. Sixteen years later, they opened a new health and wellness center. The current financing by HJ Sims will finance the... Read More »
“Lument” Lighting Up The Senior Care Lending World
The combined firms of Hunt Real Estate Capital, RED Capital Group and Lancaster Pollard are moving forward together under one brand name: Lument. According to ORIX Real Estate Capital’s CEO James Flynn, the name was chosen for its associations with light and energy, emphasizing the combined company’s expertise, products and resources along with its drive to guide its clients to successful closings. The name change also follows a period of organizational restructuring among the three legacy companies, process streamlining and investment in new technology following the company merger in April 2020. Now, with the integration complete and the scale of ORIX’s balance... Read More »
Getting Ahead of Labor
The pandemic has riled operations at seniors housing communities and skilled nursing facilities across the country, and the long-term effects are still somewhat unknown. But one issue that was top of mind for many operators before COVID and will still be for years to come is labor. There are several facets to the issue too, from finding and attracting skilled labor to retaining staff to paying wages that are increasing every year. The pandemic has sent the unemployment rate straight up, but how many of those newly unemployed are really qualified to work in a senior care facility? Or want to. Probably very few. And retaining staff not adequately trained or prepared for the work is a hard... Read More »
Blueprint Handles Two East Coast Sales
Blueprint Healthcare Real Estate Advisors handled a couple of sales on opposite ends of the East Coast. First, in Connecticut, Steve Thomes and Chris Hyldahl sold two skilled nursing facilities that were acquired by a private investment group based in New York City as part of a 10-SNF portfolio in late 2017. Combining for 197 licensed beds, one facility is located in the Hartford MSA, and the other is in Fairfield County near the New York border. Older facilities, they were occupied in the mid-70s when the marketing process started in 2019, and it’s fair to say the pandemic and ensuing lockdowns took a further toll on census. Revenues also at the time of marketing were approximately $16... Read More »
The Prestige Group Sells Vacant Personal Care Home in Pennsylvania
Jim Baranello of The Prestige Group had an uphill battle marketing for sale a vacant personal care facility in the northeast area of Philadelphia, Pennsylvania during the pandemic, but he got the deal done. Owned by a family for nearly 20 years, the 35-bed facility was originally built in 1910 but converted to personal care in the last 20 years. Set in the Tacony section of Philadelphia, it features 15 units and five bathrooms in three stories, with a full commercial kitchen. The facility was inherited by a second generation who did not want to continue operating it and who chose to shut it down in 2019. Positioned for a buyer to either continue operating the building for personal care... Read More »Schedule a demo
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