Not-For-Profit Health System Exits Illinois SNF
Joe Shallow, Vice President of Prestige Group, represented a Midwest not-for-profit health system in its disposition of a 92-bed skilled nursing facility in Aledo, Illinois (Quad City area) to a private, for-profit owner, which Mr. Shallow sourced as well. Genesis Health System (not to be confused with for-profit Genesis HealthCare) had owned the facility which was built in 1970 adjacent to one of its hospitals. There was even an enclosed walkway built between the buildings in 2001. The facility was kept in good condition and reported a solid quality mix between 45% and 50%, pretty good in this industry. It also boasted a 16-unit memory care unit that was newly remodeled and featured all... Read More »
Florida CCRC Secures Bond Debt
A not-for-profit CCRC in Lakeland, Florida is now able to further its mission and strategic plans thanks to $32.8 million in bond financing placed by Ziegler. Approximately $18 million of the community’s outstanding Series 2008 bonds had become callable, and the property also wanted to finance about $17.4 million in future capital expenditures. So, working with the not-for-profit client for the first time, Ziegler stepped in to secure a low interest rate and reduce their annual debt service. This community was originally built in 1986 and currently operates 337 independent living, 49 assisted living and 72 skilled nursing units on its campus. All of its health care units, which maintain a... Read More »
Is REIT Financing an Anachronism?
REIT have recently run into problems with their skilled nursing tenants failing to make lease payments because of the rent escalators rising faster than their profits. REITs have received much of the ire for this, but, is that fair for such a historically successful financing option? Read More »
Big Bronx SNF Gets Big HUD Financing
A large skilled nursing facility in the Bronx just received one of the largest HUD loans ever on a single building in the agency’s history, totaling $104 million. Berkadia Commercial Mortgage arranged the refinance, with Mark Zafrin and Mark Frimmel of Michelman & Robinson, LLP representing the borrower, 3155 Grace Avenue Trust (a Delaware Statutory Trust) in the transaction. The transaction was also HUD’s first with a DST borrower under the Section 232 program. Totaling 524 beds, this skilled nursing facility, which occupies an entire city block in the Bronx, was completely renovated by its not-for-profit owner in 2006 and then purchased by a private investor group in 2013. In that... Read More »
Recent Senior Care M&A Deals, Week Ending June 21, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice The Portopiccolo Group LLCMountain Home Health & Rehab$8.075 million Monarch Healthcare ManagementSt. Raphael's Health and Rehabilitation & St. Michael's Health and Rehabilitation$6.5 million HumanGoodPresby's Inspired LifeMerger Kayne Anderson Real Estate AdvisorsCasa Sandoval$39... Read More »
BPM Real Estate Exits Assisted Living Industry
BPM Real Estate sold its entire portfolio of high-quality seniors housing communities in the western United States, and the assisted living industry saw off one of its early pioneers, Walter Bowen. After more than 30 years in assisted living, the real estate investor will focus on other real estate classes, including multifamily, apartment and office buildings, in addition to the independent living market. Totaling 670 units, these communities feature a combination of independent living, assisted living and memory care services at locations in Nevada (1), California (2) and Oregon (3). They consist of both stabilized assets and newly renovated communities with some operational upside, but... Read More »
Capitol Seniors Housing Refinances California Community
Five years on from its acquisition of an 83-unit senior living community in Tustin, California, Capitol Seniors Housing is refinancing the property with a $15 million loan secured by Aron Will, Austin Sacco and Adam Mincberg of CBRE National Senior Housing. Originally built in 1985, this community consists of mostly assisted living units, with a memory care component as well. We have heard that it was acquired from Harrison Street Real Estate Capital five years ago for around $250,000 per unit and at a market cap rate close to the average for AL communities (around 8%). Since then, Capitol Seniors Housing has invested in capital improvements and modern updates to better compete with other... Read More »
Contemporary Healthcare Capital Funds Portopiccolo Purchase
New Jersey-based The Portopiccolo Group has expanded its skilled nursing holdings in the Southeast and entered the North Carolina market with its latest acquisition. The target is located in the western part of the state in Hendersonville and features 134 licensed beds, at 72% occupancy. In the end, it sold for $8.075 million, or about $60,000 per bed, at approximately 1.17x its 2018 revenue. To fund the acquisition, Coastal States Bank provided a $6.25 million senior mortgage loan and Contemporary Healthcare Fund III, LP provided a $1.358 million mezzanine loan, both structured as a unitranche loan. That included about $600,000 for future renovations. This acquisition is the fifth for... Read More »
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 »Schedule a demo
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