PGIM Real Estate Funds AEW/Merrill Gardens Portfolio Purchase
Earlier this week, we reported on the Welltower sale of 10 seniors housing communities to AEW Capital Management and Merrill Gardens Senior Living, and now we have learned that PGIM Real Estate provided the acquisition debt. The partnership buyer obtained a $460 million loan with a seven-year term. There is also a combination of fixed-rate and floating-rate terms. The debt funded both the acquisition and the recapitalization of the 10-property portfolio, which includes a total of 1,507 units of independent living, assisted living, memory care and even some multifamily units. There are also approximately 29,000 square feet of... Read More »
Kayne Anderson Acquires Again
Kayne Anderson Real Estate Advisors has already been one of the most active acquirers during the pandemic, with its purchase of seven senior living communities from Welltower for approximately $500 million as the major highlight. We have thought that private equity, with its deep pockets and billions of dollars on the sidelines, was well positioned to take advantage of value-add deals this year and would help kick start the senior care M&A market. The M&A market hasn’t really come back to life, but private equity firms have certainly been the biggest players of the year. Just look at AEW’s acquisition of another Welltower portfolio. Kayne Anderson recently acquired two... Read More »
National Health Investors Acquires Wisconsin Assisted Living Community
Ten months after refinancing a 43-unit assisted living/memory care community in Bellevue, Wisconsin, National Health Investors executed on a purchase option for the property. Opened in 2019, the community was operated by 41 Management through its affiliate Matthews Senior Living. Not long after the community opened, NHI provided a $3.87 million mortgage with a one-year term and two six-month renewal options. It also came with an interest rate of 13%. In addition, NHI obtained a purchase option, which it is executing at $12.3 million, or $286,000 per unit. The community was then leased back to 41 Management at an initial term of 15 years with two five-year renewal options. The... Read More »
HJ Sims Finds Bank Financing for Philly CCRC
Working on behalf of a large CCRC in northeast Philadelphia, HJ Sims helped arrange a bank financing through the community’s existing banking partner. Philadelphia Protestant Home (PPH) currently consists of 266 independent living units, 175 personal care units and a 126-bed skilled nursing facility. Ownership had been funding capital improvements from general fund revenues, but in order to manage its cash flow, it chose to finance $6.5 million of upcoming capex projects. So HJ Sims worked with Citizens Bank, the community’s existing banking partner, to secure a $6.5 million loan with a 10-year, fully amortizing term and a five-year interest-only period that is followed by monthly... Read More »
The Virtual NIC
This year’s NIC Conference will certainly be different, but let’s make the most of the digital social experience. As you can see, I am not Steve. Ben Swett here, filling in while Steve is out of the office. Next week is the start of the first virtual NIC Conference, and even though we would obviously rather see all of you in person, we hope to still see you virtually. Over the next two weeks, there will be plenty of educational sessions on finance and the impact of the current pandemic on operations, census and, of course, cash flow. And if you are into nursing homes, where else can you find a former CMS administrator and the current CEO of AHCA at the same place? I know we’re... Read More »
Grandbridge Gains Investment Sales Team
Grandbridge Real Estate Capital is making a big jump into seniors housing investment sales with the addition of three veterans highly experienced in the space. Cushman & Wakefield’s Tampa, Florida team, led by Allen McMurtry, David Kliewer and Jay Jordan, made the move to Grandbridge’s Seniors Housing and Healthcare Finance Group, which is headed by Richard Thomas in Atlanta, Georgia. They will bring experience representing sellers of seniors housing communities across the country, spanning over 190 properties in 35 states. Recently, the former C&W team arranged the $105 million sale of The Clare in downtown Chicago in December 2019, cementing its status... Read More »
Plante Moran and Retirement Dynamics Release Sentiment Survey
Plante Moran Living Forward and Retirement Dynamics announced the results of its COVID-19 Sentiment Report, and the results are a mixed bag for the senior living industry. Surveying more than 23,000 independent living residents, prospects on waiting lists and staff, and receiving more than 5,000 responses, the partnership found out how sentiment has changed in regard to living and working at an independent living community, and how respondents thought the sector had dealt with the pandemic. The good news is that a majority responded positively to each question. The bad news is that the margins do not bode well for an industry that is already struggling to raise its penetration rate, let... Read More »
Ziegler Funds CCRC Expansion Project in North Carolina
With financing in hand from Ziegler, a not-for-profit CCRC in North Carolina is embarking on an expansion project to increase both its independent living and transitional care offerings. Set on 72 acres in High Point, Pennybyrn at Maryfield’s currently consists of 180 independent living units split between 131 apartments and 49 cottages, 24 assisted living units, 24 memory care units and 125 skilled nursing beds. It is owned and operated by Maryfield, Inc., which was incorporated in 1947 by the Congregation of the Poor Servants of the Mother of God, an order of the Roman Catholic Church. This is not the first time Ziegler has worked with Maryfield, Inc., having a relationship with the... Read More »
HHC Finance Secures Several HUD Refinances
Housing & Healthcare Finance (HHC Finance) is wrapping up HUD’s fiscal year with several transactions closed through the agency. First, the firm arranged a $19 million loan for a 200-bed skilled nursing facility in New York, then followed up with a $20 million HUD refinance of a 155-bed skilled nursing facility in Ohio. Continuing with financing large SNFs, HHC Finance also closed a $22 million loan for a 225-bed facility in Ohio. All three facilities were built in the 1970s but have received numerous capital improvements over the years. Each HUD loan came with interest rates in the very low 2s. What a deal. HHC Finance next closed a $6.8 million HUD supplemental loan for an... Read More »
Welltower Portfolio Sold
Since last March, we have been wondering what happened to Welltower’s large sale of a prominent seniors housing operating portfolio of western senior living properties. It would have been the largest deal of the year so far at the original $740 million price, but it fell apart, as we assume many deals did once the coronavirus pandemic unleashed its terror. We had heard through the grapevine that it was still in the market, but it wasn’t until late last week that we saw in some local publications out West that a few of the pieces of the portfolio were closed, according to the local real estate filings, including identifying Merrill Gardens as the operator. That would... Read More »Schedule a demo
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