The Labor Problem That Does Not Go Away
The pandemic should provide the reason, and time, for providers to re-think labor. When the weekly unemployment filings broke records last spring, there were some people who thought that with millions of workers newly unemployed, the labor crisis afflicting senior care might ease. As far as we have heard, it has not. An unintended consequence of this pandemic is that with census nationally dropping by 1,000 basis points, or more, staffing needs have dropped as well. Fewer people to feed and care for means not as much staff needed, at least in theory. So far, we have not heard of unemployed workers lining up to work in nursing homes or assisted living communities. Most likely the two... Read More »
Regions Bank Closes Two More Deals
The summer activity continued for Regions Bank. Earlier this week, we covered the bank’s refinance of two construction loans for a senior living community in the Cincinnati, Ohio area and for a community in Lorton, Virginia. Chris Honn also closed a non-recourse balance sheet loan for an assisted living/memory care community in Merced, California. Built in the late 1990s, the community features 84 units and was stabilized under the management of a large California-based operator. The owner, a large privately owned developer/operator based in San Diego and a new customer for Regions Bank, obtained an $8.33 million loan to repay existing bank debt and provide some... Read More »
PGIM Real Estate Refinances Virginia Memory Care
PGIM Real Estate closed the refinance of a memory care community in Forest, Virginia (Lynchburg MSA), the second it has closed for the client this year. Runk & Pratt built the property in 1999 to include 76 units and has added a number of unique features, such as a multi-sensory room that provides soothing and engage stimuli to its residents. There are also three enclosed courtyards and a greenhouse, along with on-site therapy. Occupancy was around 89%. Christopher Fenton and Catherine Eby of PGIM Real Estate facilitated the $13.2 million HUD financing, which came with a 35-year term and amortization. The loan replaces HUD debt that had a higher interest... Read More »
REIT Finds New Tenant for Ohio Skilled Nursing Portfolio
It’s not the easiest time for a transition in operators, but Michael Segal, Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors facilitated the change across a portfolio of four skilled nursing facilities in Ohio. Owned by a public REIT, three of the facilities are located in the Columbus and Cincinnati MSAs, while the fourth is in the northwest part of the state near Indiana. Totaling 613 licensed beds, 502 of which are dually certified and 111 are residential care, they historically operated near stabilized levels, but revenue and census declined as a result of the pandemic. That put pressure of the lease coverage, and the prior operator expressed a... Read More »
Lancaster Pollard Announces Promotions, And A Deal
Lancaster Pollard Mortgage Company, a division of ORIX Real Estate Capital, announced several promotions in its seniors housing and healthcare team. These follow other changes at the top, with Aaron Beck being the chief production offer and East team leader in the Spring, and Casey Moore, Doug Harper and Quintin Harris also expanding their leadership roles, with Messrs. Moore and Harper leading the West, and Mr. Harris leading the Midwest. Michael Blackwell joined the team and will be responsible for originating new business and maintaining existing client relationships in the Northeast. He originally came to Lancaster Pollard as an associate in 2016 and is currently a vice... Read More »
The “Forgotten Middle” Returns
As occupancy levels continue to drop or remain subdued because of the pandemic, there seems to be less talk about the so-called “forgotten middle,” those seniors who can’t afford, but may need or want, some sort of senior living option. The NIC presented the findings of its study on this topic last year, and it created a lot of excitement. But the focus has shifted to dealing with declining census and profits. Mary Ann Donaghy, formerly the Chief Marketing Officer at NIC and now an independent consultant, recently posted an interesting article on LinkedIn about the topic, specifically how to move from theory to reality in developing a real plan for dealing with this... Read More »
Regions Bank’s Summer Bonanza
It looks like the Regions Bank team did not take much time off this summer, closing a series of loans across the country for senior living clients, including financing the development of a senior living community in a Seattle suburb last month. We’ll start with a couple of loans that took out construction debt. First, to refinance a brand-new, two-story senior living community in a Cincinnati, Ohio suburb, Jack Boulder and Chris Honn arranged a $31.4 million bridge loan. The community features 28 independent living, 83 assisted living and 40 memory care units. It is owned by a joint venture that is primarily sponsored by a private developer/owner/operator based in the Midwest, and an... Read More »
Blueprint Sells Two New York ALFs
A couple of value-add assisted living communities sold in upstate New York. Blueprint Healthcare Real Estate Advisors was hired by the REIT seller to lead the sale process, which was part of a larger strategic disposition. Located in the greater Rochester market, the two communities were underperforming, which was only made worse by the pandemic. A very competitive regional market for assisted living services also made for a tough operating environment. So, a regional buyer with ties in the Rochester market ended up as the acquirer and the license transfer was completed. They paid an undisclosed cash amount. Working on the transaction was Blueprint’s Ben Firestone, Steve... Read More »
Hunt Capital Partners Secures Financing for Ohio Property
An affordable senior apartment community is going up in Findlay, Ohio, about 45 miles south of Toledo, thanks to a combination of financing sources. Located on 3.7 acres, the community will feature 50 units for seniors who earn up to 30%, 50% and 60% of the area median income. Blanchard Valley Health System (BVHS) is building the community on its mixed-use development site that includes medical offices, market-rate apartments and single-family condos. BVHS also owns and operates an adjacent CCRC, Birchaven Village, which future residents of the senior apartment community will be able to use its services and amenities. Construction commenced in August and will be... Read More »
Newmark Knight Frank Refinances Florida Community
A brand-new senior living community that has already reached stabilization just secured a bank refinance thanks to the efforts of the Newmark Knight Frank team. Located in an affluent submarket of Jacksonville, Florida, HarborChase of Mandarin is set on a 4.1-acre parcel purchased by Vestcor Communities in 2016 for $2.5 million, and groundbreaking quickly followed. The community features 94 independent living and assisted living units, along with 20 units set aside for memory care residents. Back in 2016, development cost was estimated at $27 million, or over $235,000 per unit. The community opened in 2018 and quickly stabilized by January 2020. Even with the pandemic, occupancy remained... Read More »Schedule a demo
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