New Senior Divests Struggling Pittsburgh Property
With its Pittsburgh, Pennsylvania senior living community in danger of losing its license, New Senior Investment Group decided to divest the troubled asset, selling to an area not-for-profit for nearly half of what it originally paid for the property in 2013. The community’s operator, Oregon-based Blue Harbor Senior Living, had received a number of violations and operated it on a provisional license that meant that only 80 of its 164 units could be occupied. That could make anyone a motivated seller. So, six years after SNR acquired the community from the original developer for approximately $15.6 million, they decided to sell to Vincentian Collaborative System, a faith-based... Read More »
NHI Expands Relationship with Senior Living Communities
Senior Living Communities (SLC) secured financing from National Health Investors to purchase and renovate a 248-unit CCRC in Columbia, South Carolina, bringing the REIT’s relationship with SLC to 11 properties with either a long-term lease or a mortgage loan. The $35 million, or $141,100 per unit, purchase price was funded by a draw on NHI’s revolving credit facility with a $32.7 million loan. It came with a five-year term and two one-year extension options at an interest rate of 7.25%. Originally built in 2000 and continuously expanded through 2014, the entrance fee community has 76 independent living homes, 60 IL units, 40 assisted living units, eight memory care units and a 64-bed... Read More »
Blueprint Arranges Two Assisted Living Transactions
Caring for higher acuity residents in assisted living comes with added risks, staffing needs and costs. That goes without saying. But, by accepting those residents, owners and operators also charge higher rents and expect a higher level of cash flow to compensate them. That is at least what the new owner of two assisted living communities in the Dallas-Fort Worth area is banking on. Amy Sitzman and Joshua Salzman of Blueprint Healthcare Real Estate Advisors represented the seller, a national seniors housing owner/operator, in the transaction. Totaling 114 units, their communities were purpose-built in the late-1990s in established and affluent suburban neighborhoods. Now, Elmington Senior... Read More »
High Quality SNF Refinances with Cambridge Realty Capital Companies
A skilled nursing facility with an array of post-acute services just refinanced through HUD with the help of Cambridge Realty Capital Companies. Located in Madison, New Jersey, the 102-bed facility is situated across the street from Drew University and about three miles from Morristown Memorial Hospital. It provides IV therapy, tracheostomy care, wound care, stroke care, orthopedic and trauma rehab, pain management and physical therapy in a combination of private and semi-private rooms. There is also concierge service, restaurant-style dining and an on-site beauty/barber shop, plus other amenities. Those bells and whistles don’t directly improve care quality, but they certainly help in... Read More »
Affordable Housing Secures HUD Financing from HJ Sims
Much of the investor attention in seniors housing is paid towards the higher-end, luxury communities. Those properties are able to charge much higher rents and usually operate at higher margins. But a huge swath of the senior population cannot come close to afford living in those communities, making the demand for middle- and low-income units very strong in some markets. With that, HJ Sims arranged a cash-out refinance for a 125-unit affordable seniors housing community in Middletown, Pennsylvania (Harrisburg MSA) to help its owner both distribute equity to its partners and invest in major upgrades to the community. Originally built in the 1980s, it operates under a Section 8 HAP Contract... Read More »
Skilled Nursing Is Here To Stay
Three experts chimed in about what the future holds for skilled nursing, and while headwinds persist, they were all positive on the sector. I have been remiss in not talking about the excellent webinar you may have missed (link here) on June 13 about investing in the skilled nursing market. While the panelists all agreed that the operating environment will continue to be challenged for a while, they were all positive on what the new PDPM reimbursement system will do for most providers, and the sector as a whole. While there has been some compression in skilled nursing cap rates, the historical average of 12% to 13% seems to be one that will be around for a while, despite the 10-year... Read More »
Clousing Arranges Second Savannah Sale This Year
Closing his second senior living transaction in Savannah this year, Brad Clousing of Senior Living Investment Brokerage sold a large senior living community located just 10 minutes away from the historic center downtown. Built in 1986 and 1998, the 209-unit community features a majority of independent living units (146), but assisted living and memory care rooms too. Plus, the previous owner, HJ Sims, recently converted its personal care license to an assisted living license, giving the buyer added flexibility when it comes to acuity types. That should help as they embark on a plan to increase occupancy (from its current 74%) and boost the operating margin (from about 16% on $4.9 million... Read More »
Creativcap Shows Off Its Variety
Shortly after its founding earlier this year by Greystone-alum Scott Kavel, Creativcap showed off some impressive variety in its three latest transactions, helping close a life company loan, a mezzanine loan and bridge financing. First, Creativcap was the exclusive correspondent for a $6 million mezzanine loan that is funding the construction of an 87-unit assisted living/memory care community in Roseville, California. GG Finance, an entity affiliated with Creativcap, provided the loan. Then, to Elgin, Illinois, where the owner of a three-year old AL/MC community refinanced an existing bridge loan from a bank with a new $20 million, fixed-rate loan provided by a life insurance company.... Read More »
Not-For-Profit Health System Exits Illinois SNF
Joe Shallow, Vice President of Prestige Group, represented a Midwest not-for-profit health system in its disposition of a 92-bed skilled nursing facility in Aledo, Illinois (Quad City area) to a private, for-profit owner, which Mr. Shallow sourced as well. Genesis Health System (not to be confused with for-profit Genesis HealthCare) had owned the facility which was built in 1970 adjacent to one of its hospitals. There was even an enclosed walkway built between the buildings in 2001. The facility was kept in good condition and reported a solid quality mix between 45% and 50%, pretty good in this industry. It also boasted a 16-unit memory care unit that was newly remodeled and featured all... Read More »
Florida CCRC Secures Bond Debt
A not-for-profit CCRC in Lakeland, Florida is now able to further its mission and strategic plans thanks to $32.8 million in bond financing placed by Ziegler. Approximately $18 million of the community’s outstanding Series 2008 bonds had become callable, and the property also wanted to finance about $17.4 million in future capital expenditures. So, working with the not-for-profit client for the first time, Ziegler stepped in to secure a low interest rate and reduce their annual debt service. This community was originally built in 1986 and currently operates 337 independent living, 49 assisted living and 72 skilled nursing units on its campus. All of its health care units, which maintain a... Read More »Schedule a demo
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