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 »
CIBC Closes Acquisition Financing for Skilled Nursing Portfolio
It has been a busy last couple of weeks at CIBC. After closing two cash-out refinances for five skilled nursing facilities, totaling over $43 million in loans, the bank arranged acquisition financing for another three skilled nursing facilities. Daniela Miranda and Matthew Tyler secured the $7.5 million loan for the buyer to complete a purchase option on the portfolio. Located in Illinois, the three facilities total 280 beds and had an effective age of 25 years. They had been run by a local operator, and occupancy was historically in the 60s. The operating margin was around 10%. CIBC arranged a five-year loan on the real estate and also closed a $2.0 million revolving line of credit to... Read More »
KeyBank Secures Financing For To-Be-Built Community
KeyBank Real Estate Capital arranged construction financing for an affordable seniors housing community in Austin, Texas, which is expected to open in 2022. Being developed by Dallas-based Generation Housing Development and Hill Tide Partners, the project will comprise two four-story buildings and 174 total units, split between 102 one-bedroom and 72 two-bedroom apartments. Each unit will have a bathroom and range in size from 614 to 1,131 square feet. There will also be a community garden, swimming pool, community center, theater room, business center and fitness center. Ownership will reserve 17 units for residents earning 40% of the area median income, 148 units for those earning 60%... Read More »
Federal Oversight Coming To Assisted Living?
Congressional report on assisted living and COVID-19 looks more like a hatchet job than really trying to help. Senators Warren and Markey’s report is in, and try counting how many times the word “federal” was used, as in there are no “federal” reporting requirements, data should be regularly reported to the “federal” government, assisted living facilities should receive support through “federal” programs, and on and on. They had sent a very detailed questionnaire to the 11 largest assisted living operators, and found that 24% of the communities operated by them had at least one positive COVID-19 test, and 8% had outbreaks of at least 10 residents, with positive cases coming in at more... Read More »
Capital Funding Group Reports Impressive First Half of 2020
We’re not sure how, but Capital Funding Group announced a record-setting first half of 2020 with more than $600 million in financings closed for skilled nursing and assisted living clients. We’re sure that not only made those at Capital Funding Group happy, but also their clients, who were able to access capital during the liquidity crunch at the start of the pandemic. Getting to that impressive volume, CFG closed 27 bridge loans totaling more than $400 million, 23 HUD loans totaling about $200 million and six A/R lines of credit that reached over $30 million in combined capital. In February, CFG also launched a new off-balance sheet financing program that significantly... Read More »Schedule a demo
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