Is Now the Time for Risk Sharing?
Senior care providers are faced with an opportunity for risk sharing in managing patient or population health. Having a stake in the payment for services for the elderly comes with risks, of course. Read More »
Busy May For Meridian
Meridian Capital’s Ari Adlerstein, Ari Dobkin and Josh Simpson are fast closing in on a billion-dollar year in loan closings, and we’re not even halfway through 2019. Across 29 transactions so far, the team has arranged more than $955 million in financing for skilled nursing, assisted living and independent living properties across 18 states. Most notably, Meridian arranged $200 million in bridge financing for more than 25 skilled nursing facilities and over 2,500 beds. There were a couple of construction financings, including a $24 million loan (plus $9.1 million in equity) for a to-be-built 104-bed independent living/assisted living community in Arizona and an $11.5 million loan to fund... Read More »Did Capital Senior Living Reject Acquisition Offer From TPG?
Fresh off closing its $3.7 billion opportunistic real estate fund this March, TPG may have to wait a bit to make its next big acquisition in the senior living space, as its rumored offers to acquire the struggling Capital Senior Living Corporation have all apparently been rebuffed by the company, according to Bloomberg. The approaches were supposedly made in the past few months. The news, however, caused the CSU share price to jump as much as 24% to $4.47. Considering the company’s four-year trend, falling from a peak of $27.50 in April 2015 to below $4.00 per share in May, there is still a long way to go. But at its current value, a buy-out has to be looking more and more attractive. And... Read More »
Welltower Pays $100 Million-Plus for Denver Community
Welltower has picked up a Denver, Colorado senior living property to the tune of $118 million, or roughly $581,000 per unit. Originally built by the seller, AEW, in late 2014 for approximately $74 million, the community featured 203 total units with a mix of independent living, assisted living and memory care and was operated by Balfour Senior Living. AEW had purchased the land back in 2012 for $9.4 million. It is located in a highly desirable downtown Denver neighborhood adjacent to the 17-acre Confluence Park, which can help explain its high per-unit value. Read More »
Lancaster Pollard Refinances Texas SNFs
Four years on from their acquisition, four skilled nursing facilities owned by Summit Healthcare REIT refinanced through HUD, thanks to Jason Dopoulos of Lancaster Pollard. Located in Granbury, Woodville, Jacksonville, and Longview, Texas, Summit and its joint venture partner, Best Years, LLC, acquired the facilities in 2015 for $27 million, or $55,900 per bed. They were then leased back to the seller, a third-party operator. Fast forward to today, and Lancaster Pollard Mortgage Company provided $20.7 million in total HUD financing, the 17th completed deal closed for Summit by Lancaster Pollard. Totaling $120 million in par value, that’s a productive relationship. Read More »
Helios Gets New Tenants for Two Former Senior Care Centers Facilities
Two skilled nursing facilities in Texas previously operated by the now-bankrupt Senior Care Centers found new tenants, courtesy of Helios Healthcare Advisors. Each featuring 120 beds, the Lubbock and Houston facilities are owned by a Texas-based developer that wanted to find new, more financially stable operators. Good call. Helios sourced two Texas-based regional operators to fill those roles, coming in with market lease rates and pre-negotiated purchase options. In addition, they received a short-term line of credit for CHOW coverage. With Helios’ help, they were able to smoothly take over operations. Read More »
IDB Bank Arranges Loan for Florida Facility
Watercrest Senior Living Group’s first-ever “Market Street” senior living community located in Viera, Florida, recently refinanced with the help of Israel Discount Bank of New York (IDB Bank). Opened in 2016 under Watercrest’s new stand-alone memory care brand, the 60-unit community experienced a quick lease-up, reaching 50% occupancy in the first five months after opening. Things clearly have gone smoothly since, as it is now refinancing with a $10.7 million loan structured by IDB Bank. Lisa Silvers, senior vice president of healthcare lending, handled the transaction. Read More »
Capital Senior Living and Brookdale Still In Price Tank
Stock values still hitting lows, but not cheap enough for big buyers to come in. I am not sure if you have been following it, but Capital Senior Living’s share price just hit a new low yesterday. In fact, the market value of the company is just $110 million. Think about it, some individual assets have traded at prices above this, and while the $110 million does not include the debt on its books, there have got to be buyers putting pencil to paper. Brookdale Senior Living is not faring too well either. But they aren’t buying into the low valuations, at least for now. The question remains, if things are not going to be much better six months from now, why buy shares now? You may as well... Read More »
Embattled Senior Living Community Sells in California
There was a lot more than meets the eye for Evans Senior Investments’ latest closing in California, and it’s something the industry should take notice of. The sale involved an 87-unit senior living community in San Luis Obispo, which was built in 2000 and expanded in 2006 to now include 74 assisted living units, four independent living units and nine separate cottages. Operations were solid, until its owner was charged with manslaughter for the death of a resident. The story boils down to a resident with pretty advanced dementia living in a community not licensed for memory care. In the end, the resident was hit by a car and died. These stories unfortunately appear from time to time, but... Read More »
Regions Bank Closes Ohio Bridge Loan
Chris Honn of Regions Bank’s Healthcare Real Estate Group worked on behalf of an Ohio-based private owner to close a $16.8 million bridge loan with a floating interest rate and two-year term. The loan is also interest-only for the entire term, until maturity, when Regions plans to provide an agency refinance. The owner repaid construction debt with the transaction, in addition to getting cash out. They opened the 103-unit assisted living/memory care community in suburban Cleveland in the fall of 2018. It is already 65% occupied, but the interest-only payments should help the owner during the remaining lease-up period. Read More »Schedule a demo
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