CareTrust REIT Doubles Down in Texas
CareTrust REIT just keeps on growing, adding its 212th net-leased property to its portfolio. The target, a 118-bed skilled nursing facility in Dallas, Texas, sold for approximately $10.0 million, or about $84,750 per bed, inclusive of transaction costs. The land it sits on is subject to a long-term ground lease in favor of the Dallas Housing Authority. CareTrust funded the deal with cash on hand, and leased the facility to Next Gen P, LLC under a master lease with an initial lease term of 15 years, two five-year renewal options and CPI-based rent escalators. The deal follows CareTrust’s larger acquisition of 12 former Senior Care Centers skilled nursing facilities in Texas and Louisiana... Read More »
Oxford Finance Funds Sterling Senior Care Acquisition
Maryland-based operator of senior care facilities across the Mid-Atlantic, Sterling Senior Care, acquired another Maryland skilled nursing facility, following its 2018 acquisition of a 129-bed Boonsboro facility for $15.55 million. The most recent transaction featured a 129-bed facility in Belkamp, located in northeast Maryland. To fund the deal, Sterling turned to Oxford Finance, which closed a term loan and a revolving line of credit for the company. With that financial flexibility going forward, we expect to hear of more acquisitions from Sterling Senior Care. Read More »
Ensign Adds Arizona and California Campuses
The Ensign Group added to its expanding portfolio with two large acquisitions in Arizona and California. First, the company purchased two large senior care campuses in Peoria and Mesa, both in the Phoenix MSA. The Peoria campus includes a 150-bed skilled nursing facility and a 70-unit independent living community, while the Mesa property features a 58-bed SNF and a senior living community with 88 independent living and 18 assisted living units. They were both previously operated by a faith-based not-for-profit, so we imagine some expense controls are in store. Ensign’s Arizona-based subsidiary Bandera Healthcare will take over operations. Then, to California, where Ensign acquired the... Read More »
Flashback Friday: The Seniors Housing Development Boom Begins
Seven years ago, this month, the first signs of life in the seniors housing development market showed themselves after a barren few years following the depths of the Great Recession. We’re sure none of you want to get back in the recession mindset, but the myriad economic issues facing the industry meant that a construction comeback was by no means a sure thing that soon into the recovery. We detailed some of those issues too in the May issue of The SeniorCare Investor: “After all, what lender would want to take on the risk of the unknown in an uncertain economy with a still weak housing market? In addition, feasibility studies may have been able to pinpoint market demand six years... Read More »
Clousing and Byrne Close Pair of Peach State Sales
Senior Living Investment Brokerage’s Bradley Clousing and Patrick Byrne sold a pair of personal care facilities in the Peach State. Both communities were losing money, largely as a result of heavy competition. It didn’t help that they were both built in the late-1990s, which is now considered to be old. The seller, MedProperties, even invested in updates over the years, but in the end decided to exit the operational outliers. The first transaction featured a 64-unit assisted living/memory care community in Sandy Springs, an affluent suburb north of Atlanta, a notoriously overdeveloped market. MedProperties had acquired the community in 2012 for $6.6 million when it was operating at a 21%... Read More »
Dwight Capital Provides Two Bridge Loans
Dwight Capital closed a couple of bridge loans for skilled nursing clients in the Midwest. First up, the firm arranged a $3.77 million loan for a senior care facility in Beloit, Kansas. Built in multiple stages from 1971 to 2004, the campus includes 110 units and 116 beds of assisted living and skilled nursing. Then, in Gary, Indiana, Dwight Capital secured a $4.02 million bridge loan for a 100-bed SNF to pay off existing bank and partnership debt. It was originally built in 1969 and renovated in between 1973 and 1980. Perhaps another renovation is in store? Read More »
HJ Sims In It for the Long Haul
When a CCRC in Norfolk, Virginia wanted to launch a major $200 million expansion of its campus, it turned to its long-time partner HJ Sims to finance the project. The two go way back (to the early 2000s), with Sims structuring, placing or underwriting the initial seed capital transaction, the first phase of development financing, a refinancing in 2014 and finally, the current development financing. This transaction saw Sims arrange a $100 million draw-down bank loan, coordinating with SunTrust Bank and TD Bank. SunTrust served as administrative agent and provided $65 million of the financing. Then, Sims underwrote $101.1 million of fixed-rate bonds, resulting in over $500,000 in savings on... Read More »
Class Act for Washington State?
Washington has passed its version of a long-term care insurance bill, sort of, using a payroll tax to fund it. Unlike the misconceived Class Act that was originally part of the Affordable Care Act, which was designed to rob Peter to pay Paul, Washington State has just passed its own version, The Long-Term Care Trust Act. While the intent is worthy, I don’t think it will accomplish its goals. As now passed, the Act will be funded by a payroll tax of 58 cents for every $100 of salary. For someone making $20 per hour, that comes to about $240 per year, and they can least afford it. I have seen no mention of an employer match, but I am sure that is coming. The sponsors claim that family... Read More »
Brunet and Lautner Move to Newmark Knight
Just a few months after announcing the hiring of the HFF seniors housing team to its ranks, Newmark Knight Frank (NKF) just announced that it snagged industry veterans Heidi Brunet and Lisa Lautner from Berkadia. They will join NKF as executive managing directors and will work with Sarah Anderson on the firm’s seniors housing debt and structured finance team. The duo has a combined 40 years of experience and has originated more than $8 billion in seniors housing related financings in the past seven years through Fannie Mae, Freddie Mac, HUD and balance sheet lenders. With the combination of the top brokerage team last year, in terms of dollar value of sales transactions, the NKF platform... Read More »
KeyBank Refinances Western New York Properties
A couple of seniors housing communities in western New York received Freddie Mac financing courtesy of KeyBank Real Estate Capital. Carolyn Nazdin of the firm’s Healthcare Group arranged two fixed-rate loans with 15-year terms and five-year interest-only periods. The first, at $45.8 million, was secured by a 162-unit community in Orchard Park. Built in 1992 and renovated in 2016, it consists of 114 assisted living, 32 independent living and 16 memory care units. The other $20.1 million loan went to a 96-unit assisted living/memory care community in Pittsford that was built 20 years ago. Both loans refinanced existing debt on the properties. Read More »Schedule a demo
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