Big Midwest Sale Gets Mezzanine Financing
Contemporary Healthcare Capital (CHC) announced that it provided mezzanine financing for Cascade Capital Group’s large portfolio acquisition of Upper Midwest senior care facilities from last month. The portfolio sale included five skilled nursing facilities and two assisted living communities in Minnesota and South Dakota. Their outgoing operator was on the verge of bankruptcy, adding complexity to the transaction that was handled by Rob Reis of Marcus & Millichap. The Minnesota facilities were leased to Monarch Healthcare Management and the South Dakota facilities to Eduro Healthcare. CIBC had provided the senior acquisition loan, but CHC followed that up with a $4.22 mezzanine... Read More »
De Paul Health Care Divests Three Philly-Area SNFs
De Paul Health Care sold three of its Philadelphia-area skilled nursing facilities, leaving the New Jersey-based provider with four SNFs in its portfolio, in addition to its existing medical office building and residential community businesses. Mark Myers and Joshua Jandris of IPA Seniors Housing represented the De Paul family in the transaction, which included a 49-bed skilled nursing facility and a 120-bed SNF in Philadelphia, and a 162-bed facility in Absecon, New Jersey (adjacent to Atlantic City). These facilities were operating at breakeven, despite solid occupancy, which leaves some room for added value for the new owner, Paramount Care Centers. Christopher Utz of Ziegler Seniors... Read More »
Live Oak Bank Closes Two Balance Sheet Loans
Utilizing its balance sheet lending program, Live Oak Bank closed two conventional loans on behalf of senior living clients. Adam Sherman led the way on both transactions. The first was arranged for a to-be-built assisted living/memory care community in Mason, Ohio being developed by Berengaria Development, the real estate arm of Marcus Investments. There will be 23 AL and 18 MC units, with BrightStar Senior Living, an affiliate of home health care provider BrightStar Care, leasing and operating the property upon completion. The project received a $6.9 million loan, with a five-year term, 25-year amortization and 24 months of interest only payments to accommodate the construction and... Read More »
Blueprint Represents Good Samaritan In Arizona Sale
Sioux Falls, South Dakota-based The Evangelical Lutheran Good Samaritan Society exited two of its senior care facilities in the Phoenix area with the help of Amy Sitzman of Blueprint Healthcare Real Estate Advisors. If this deal looks familiar, it’s because The Ensign Group announced early in the May that it was the buyer of the two campuses. Built in various stages from the mid-1970s to the early 2000s, the properties included a Peoria campus with 150 skilled nursing beds and 70 independent living units, and a Mesa campus with 58 SN beds, 88 IL units and 18 assisted living beds. Good Samaritan had recently invested several million dollars in renovations and maintained four- or five-star... Read More »
HJ Sims Arranges Funding for CCRC’s Recovery
With bank financing arranged by HJ Sims in hand, a CCRC in West Chester, Pennsylvania is set to rebuild after a 2017 fire destroyed its main building and also killed four residents. The Barclay Friends community, affiliated with The Kendal Corporation, had moved most of its residents into its 96-bed skilled nursing facility less than a year after the fire. But the destroyed building had not only housed most of the residents, but also the dining/common areas and administrative space, so the time to replace it could not have come soon enough. Kendal will build a two-story, 60-unit building to house both assisted living and memory care residents. Property and casualty insurance was expected... Read More »
Cadence Living Making Moves in Arizona
A Scottsdale, Arizona-based senior living operator is set for a major expansion into its home state, joining other builders in the booming Phoenix metro market. Cadence Living and its San Diego-based development partner Global Seniors Housing acquired the 7.7-acre plot in the town of Chandler (about 20 miles southeast of Phoenix) and is set to start construction on the project later this year. Estimated about a cost of $46 million, or about $240,000 per unit, the community will feature 191 units of independent living, assisted living and memory care services. The community will join Cadence’s brand-new community in Glendale, which opened this March with 165 senior living units, plus two... Read More »
A HUD Debacle With SNFs?
One major default is used to blast a very profitable arm of the government. I don’t know if anyone noticed the June 3 lead article in The New York Times business section, but the reporter, Matthew Goldstein, should have talked to more people. One company, Rosewood Care Centers, defaulted on $146 million in loans secured by 13 skilled nursing and assisted living facilities in Illinois and Missouri. According to the story, it now demonstrates the “problems plaguing the HUD program.” Plaguing? Give me a break. Yes, it may have been likely that the buyer of these facilities in 2013 had few financing options given the two states’ reimbursement history, but that is one reason why HUD is supposed... Read More »
REITs Are Moving Assets Again
Just when we thought it was safe to go outside again, it was revealed that Welltower had transferred the operations of 20 memory care and Alzheimer’s communities from one of its formerly favored tenants, Silverado Senior Living, to a formerly much smaller tenant, Frontier Management. These 20 properties represent 50% of Silverado’s memory care operations, and the transition is obviously a serious blow. To say that people were shocked by this development would be an understatement. Of the 20 properties, 11 are located in Texas and the rest scattered among four other western and midwestern states. We understand that sometimes a REIT or a lender has to make difficult decisions to protect its... Read More »
The Tale of Two SNFs
Every now and then, there is a transaction that really highlights the two diverging skilled nursing markets. On the one side are the older, traditional SNFs that struggle with high Medicaid censuses, rising physical plant costs and shrinking operating margins, and often end up selling for under $50,000 per bed, or lower. Then, there are the newer, transitional care facilities that accept almost exclusively Medicare or private pay patients and feature more home- or even resort-like amenities. Two of these kinds of facilities just secured bridge financing from Berkadia valued at over $285,500 per bed. Imagine what price they would command in the M&A market. Jay Healy of Berkadia’s... Read More »
CBRE Refinances California Community
A Bay Area senior living community recently refinanced with the help of the A-team at CBRE that included Andrew Behrens, Aron Will, Austin Sacco and Adam Mincberg. The borrower was a joint venture between northern California owner/operator Carlton Senior Living plus Piedmont Properties Group, a large multifamily/senior living investor. They bought the 153-unit independent living community in 2007 for approximately $17.65 million, or $115,400 per unit. Located in Concord, California, the property was originally built in 1991 less than two miles from the top-ranked adult specialty care hospital in the country, John Muir Medical Center. At the time of the acquisition, its debt (which included... Read More »Schedule a demo
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