Seven-Property Portfolio Sold At Steep Discount
Some more information has come out on MedCore Partners’ off-market acquisition of seven senior living communities from Ventas, and it may preview how far values may fall in the wake of COVID-19. A release from Kong Capital, which partnered with MedCore to acquire the portfolio, shows that the purchase price negotiated with Ventas fell from the originally agreed upon $70 million to $52 million as a result of declining NOI and the new realities that come with owning senior care properties these days. The purchase comes to just under $90,000 per unit, and represents a 26% decline, certainly on the high end of people’s predictions for a valuation correction across the seniors housing industry.... Read More »
Meridian Capital Group Carries On With Large Transaction Volume
The last six weeks has been slow, to say the least, but Meridian Capital Group’s seniors housing and healthcare team closed over $470 million in transaction volume during that period. That’s an impressive figure considering the hurdles to get all parties involved across the finish line in the last several months. Well done to Ari Adlerstein, Ari Dobkin and Josh Simpson for getting the deals done. There were a number of acquisition financings, the largest being closed to support the purchase of nine skilled nursing facilities and 921 total beds in West Virginia and Pennsylvania. That loan came to $183.5 million and was provided by a finance company. Then, two New Jersey facilities... Read More »
HHC Finance’s Busy HUD Month
Summer vacation didn’t start at Housing & Healthcare Finance (HHC Finance), we suppose, as the firm closed seven HUD loans totaling $119 million in the month of June. The largest deal was a $61 million refinance of a 360-bed skilled nursing facility in New York. Built in the early-1970s but recently renovated, the facility was occupied in the mid-90s. HHC Finance followed that up with a $22 million HUD refinance of a 120-bed skilled nursing facility in Florida that was built in 2015 and occupied in the high-80s. Both loans were closed with interest rates in the mid-2s. That makes for some happy long-term clients. HHC Finance rounded out its June activity with five HUD loan... Read More »
Ziegler Secures Construction Financing for Michigan CCRC
A not-for-profit CCRC in Michigan is embarking on an independent living expansion and worked with the team at Ziegler to secure a bank bond financing to fund it. Located in the affluent suburb of East Grand Rapids, the CCRC was originally built in 1960 on a 20-acre campus. It currently consists of 170 entrance-fee independent living units, 20 rental IL units, 46 assisted living units, 35 memory care units and 29 skilled nursing beds. Recently, ownership purchased a medical office building on the northeast corner of the campus but has plans to demolish it and build 26 new independent living units with underground parking, communal areas on each floor and an outdoor patio/entertaining space.... Read More »
MedCore Partners Acquires Seniors Housing Portfolio
MedCore Partners and The National Realty Group announced their purchase of a seven-property senior living portfolio on the West Coast. The deal included five senior living communities in Washington State and two in California. Among the Washington properties were the 60-unit Birchview Memory Care in Sedro-Wooley, the 55-unit Discovery Memory Care in Sequim, The Sequoia in Olympia with 92 units, the 72-unit Cooks Hill Manor in Centralia and lastly, and the largest, The Village in Tacoma with 136 units. In California, there was Del Obispo Terrace in San Juan Capistrano with 91 units and the 76-unit Westminster Terrace in Westminster. Their operator,... Read More »
National Health Investors Secures Big Bank Financing
Utilizing its bank relationships, National Health Investors boosted its liquidity with a $100 million term loan provided by a syndicate of eight banks. The one-year loan came with an interest rate of 30-day LIBOR + 1.85%, with a 0.50% floor. NHI also has the right to extend the maturity date by another year. Wells Fargo Bank acted as the administrative agent, while KeyBank, Bank of Montreal and Regions Bank acted as the syndication agents. The documentation agents were Bank of America, Capital One and Goldman Sachs Bank, which arranged the eight-bank syndicate including Pinnacle National Bank. Total commitments... Read More »
Walker & Dunlop Lands HUD Financing For Two Senior Care Properties
Two senior care properties obtained permanent HUD financing courtesy of Walker & Dunlop to replace their original acquisition debt. Joshua Rosen led the origination team on the transactions. Cascade Capital Group acquired the 136-bed supportive living facility in Aurora, Illinois earlier this year, thanks in part to an $11.03 million nine-month bridge loan arranged by Mr. Rosen from W&D’s balance sheet, which covered 100% of the acquisition costs. Built in 1964, the community is located adjacent to a 156-bed skilled nursing facility. It is being refinanced by a $14.65 million HUD loan, so Cascade must have added some significant value to the... Read More »
Recent Senior Care M&A Deals, Week Ending July 10, 2020
The start of the third quarter came with a flurry of deals. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Not disclosed3 skilled nursing facilities in IL$7.5 million MedCore Partners7 senior living communities in WA and CAN/A National Church ResidencesThe Villas at Water's EdgeN/A Primovie8 German senior care facilities$164.44... Read More »
Average Seniors Housing Occupancy Falls To Record-Low
The latest occupancy figures are out from NIC, and we suppose it could have been worse. Seniors housing communities reported that their census dropped on average by 280 basis points in the second quarter of 2020, from 87.7% to 84.5%. That is the lowest level ever recorded since NIC started reporting this data 14 years ago. Separating the market out, assisted living communities experienced a steeper decline, from 85.3% to 82.1% during the quarter, while independent living, which was in better health as a sector going into the pandemic, fell 240 basis points to 87.4%. Given the longer lengths of stay and the younger, healthier residents in independent living, that makes sense. Being a more... Read More »
Blueprint Healthcare Real Estate Advisors Closes Six Deals
With all the difficulties in securing debt, visiting properties and obtaining third-party approvals, let alone the financial uncertainty of purchasing a senior care property right now, deals are still getting done, and Blueprint Healthcare Real Estate Advisors announced the closing of six senior care transactions in a three-day span. Those transactions totaled more than $76.6 million too. We’re sure it took a lot of creativity and some long nights to get over the finish line, so well done. The deals closed at the end of the second quarter and into the third, a typically busy time for dealmaking normally, but this represented a 50% increase over Blueprint activity during the same... Read More »Schedule a demo
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