Lancaster Pollard Secures Two Permanent Refinances
Lancaster Pollard Mortgage Company closed two agency refinances of newly built senior care properties, retiring existing construction debt in both transactions. The first was arranged for a 106-bed skilled nursing facility in Warner Robins, Georgia that was built in 2015 and operated by Health Management, a middle-Georgia operating group. LP’s Conner Girdley arranged the $9.4 million loan through HUD. Then, in Cypress, Texas, Scott Blount, Doug Harper and Casey Moore led the way on a $14.6 million Fannie Mae refinance on behalf of a senior living community owned by Avanti Senior Living and Iron Point Partners. Also built in 2015 at a cost of $15 million, the property consists of 50... Read More »
NHI Provides Construction Financing for Wisconsin Development
A new assisted living/memory care community is being built in Oshkosh, Wisconsin thanks to a construction loan provided by National Health Investors. Totaling 66 beds, this development will be managed by 41 Management upon completion in about a year. 41 Management has been growing steadily since its founding in 2011, with a portfolio now numbering 28 communities throughout the Midwest, not including two other properties currently in development. This is NHI’s first deal with the operator. The $10.8 million loan comes with a five-year term and annual interest rate of 8.5%, plus two one-year renewal options. Funding of the construction will also be provided by periodic draws on NHI’s... Read More »
Disrupters and Other Game Changers
The annual Senior Living Innovation Forum kicks off this weekend, and it is a great meeting to talk openly about how we can do things differently, and better, to both survive and thrive. I am heading out to the annual Senior Living Innovation Forum this weekend, and I just can’t wait. It is relatively small, around 200 people, and is designed to be an open discussion with C-suite executives in a casual format. But the discussions focus on ideas that may shape the industry in the future. Or disrupt certain aspects of it. Or lower costs in an environment where many providers are being challenged both with costs and with revenues. I have been tasked to lead a session called “Capital vs.... Read More »
Brookdale Gets Another Large Freddie Mac Financing
Brookdale Senior Living continues to make moves that put the company on surer financial footing, having just refinanced existing debt with a $111.1 million Freddie Mac loan arranged by Monique Bimler of KeyBank Real Estate Capital. Secured in two tranches of 14 cross-collateralized seniors housing properties in Arizona, Florida, Massachusetts, Maryland, Mississippi, New York, Oregon, Texas, Virginia and Washington, the first mortgage was arranged as a 10-year split payment master note. There will be a five-year interest-only period split between 40% floating rate and 60% fixed rate payments, with a 30-year amortization schedule after that. This transaction follows a much larger $327... Read More »
St. Louis-Area Acquisition Funded by Regions Bank
Regions Bank Healthcare Real Estate Group assisted a joint venture in obtaining acquisition financing for their purchase of two assisted living communities in the St. Louis MSA. Built in 2000 and 2006, these two Illinois communities featured a combined 135 assisted living units. Thanks to a $12.675 million, or $93,900 per unit, bank loan, they were acquired by a Florida-based investor and a Missouri-based management company. The non-recourse loan was structured with a five-year, floating-rate term and an interest-only period. Amber Crosby and Chris Honn of Regions closed the transaction. Read More »
Giannini Sells Two Rural SNFs in Northern Minnesota
Two skilled nursing facilities that are struggling with census sold in rural Minnesota thanks to Ray Giannini of Marcus & Millichap. Featuring 80 skilled nursing and 10 assisted living beds at one location in Eveleth, and 83 skilled nursing beds in the town of Virginia, these facilities were both built in the 1960s near the Iron Range in northern Minnesota. They were not well-occupied, at just 50.5% and 64%, and cash flow was also limited. Monarch Healthcare Management purchased the facilities from Benedictine Health System for $6.5 million, or $37,600 per bed. Read More »
CBRE Refinances Chico Expansion Project
After expanding its Chico, California senior living community a couple of years ago, Westmont Living refinanced the new development with a Freddie Mac loan arranged by Andrew Behrens, Aron Will, Austin Sacco and Adam Mincberg of CBRE. Set next to a lake within a master planned age-restricted community, the 80-unit assisted living expansion opened in 2017 to join the existing 138-unit senior living community that offers independent living, assisted living and memory care services. Since Westmont took over operations in early 2006, the property has experienced consistently strong occupancy above 90%. In 2016, CBRE had arranged a $32.3 million Fannie Mae loan, with a 10-year, fixed-rate term... Read More »
Recent Senior Care M&A Deals, Week Ending June 14, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Hillview GroupSignature Healthcare Center of Waterford$29.3 million Korian6 Spanish skilled nursing facilities$26.85 million New York-based provider3 WI skilled nursing facilitiesN/A Paramount Care Centers3 skilled nursing... Read More »
Helios Sells Wisconsin SNF Portfolio (and a Home Health Business)
Still less than a year after forming Helios Healthcare Advisors, Bill Janis and Mario Wilson are keeping the closings coming with a skilled nursing sale in Wisconsin, their first in the state (with Helios) but certainly not their last. The deal featured three skilled nursing facilities previously owned by a Wisconsin-based provider who decided to exit the industry after a longstanding presence in the local market. Also included in the sale was a home health company that brings not only solid revenues to the new owner, which is entering the home health business with this deal, but also another care option for their patients. That buyer ended up being a New York-based owner/operator with a... Read More »
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 »Schedule a demo
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