Evans Senior Investments Completes CareTrust’s Metron Michigan Exit
Evans Senior Investments has done it again, announcing the closing of a skilled nursing portfolio sale in the state of Michigan just a couple of days after another SNF sale in Rhode Island. The deal first rose to the surface in November 2019, when the seller, CareTrust REIT, announced the intended sale after the operator, Metron Integrated Health Systems, had stopped paying rent and decided to exit the buildings in the midst of Medicaid fraud allegations involving millions of dollars of improper payments. The news came as quite a shock to CareTrust at the time, and a sale was pursued. The portfolio was about 86% occupied across the 496 licensed beds at the time of marketing and was... Read More »
Harborview Capital Partners Announced Several Financings
Harborview Capital Partners announced a series of recent closings for several clients across the country. First, the firm worked with a national lending partner to arrange an $81 million loan to refinance a portfolio of four skilled nursing facilities and one assisted living community in Maryland. The loan featured aggressive LIBOR-based fixed interest rate and a four-year term with limited recourse. It resulted in a cash-out in excess of $20 million for the New Jersey-based owner. Ephraim Kutner, Jonathan Kutner and Eli Kutner originated the transaction. Then, Harborview arranged for the refinance of two senior care properties in Queens, New York. The 200-bed skilled nursing facility... Read More »
CIBC Closes Phoenix-Area Refinance
Chicago-based bank CIBC just completed a cash-out refinance of a 98-bed memory care community in the Phoenix, Arizona market. Originally built in 2000 and renovated in 2013, the community obtained a $21.5 million loan with a five-year term and a 25-year amortization schedule. There is also the possibility of an additional $2.1 million of debt which would be released based on certain performance achievements. Fritz Kieckhefer handled the transaction for CIBC. Read More »
Deal Flow Stalls…For Now
Seniors housing and care acquisitions came to a standstill, waiting for any positive news. So, I can’t remember the last time we went a full week without one seniors housing and care acquisition announcement. Perhaps in the depths of The Great Recession, but that was more than 10 years ago. Last week, there was nada, zippo, and it seemed to carry over into the start of this week. If you were not approaching the finish line by the end of March, for most deals, they just never crossed. There are a lot of disappointed sellers and brokers, but we have to assume the deals have just been put on hold until some degree of normalcy returns. But it may be a new normal, and lenders and buyers may... Read More »
Evans Senior Investments Closes SNF Sale in Rhode Island
The recent senior care deal drought mercifully ended with a closing from Evans Senior Investments, which seems to have figured out how to get a deal across the finish line these days, closing four SNF transactions so far since the onset of the pandemic. The most recent target was a 57-bed skilled nursing facility in East Providence, Rhode Island. Originally built in 1962, it was acquired by the seller, an East Coast owner/operator, with the intent of moving the licensed beds to another county in the state. However, regulatory hurdles prevented that plan from going forward, so an exit was pursued. At the time of the sale, the facility was 89% occupied, with a 14% quality mix, but was... Read More »
Cushman & Wakefield Arranges Construction Financing
Seniors housing construction may be slowing to a crawl, as is the lending market, but Cushman & Wakefield has bucked the trend and arranged both construction financing and joint venture equity for a development in South Portland, Maine. The team of Richard Swartz, Jay Wagner, Tim Hosmer and Sam Dylag advised the developer, Confluent Senior Living, on the deal. The project will feature 123 units of assisted living and memory care, with an array of amenities, at a cost of $40 million, or $325,000 per unit. Its operator, Harbor Retirement Associates, broke ground on the community last month, and its location is ideal near both the largest mall in the state and Old Port... Read More »
Housing & Healthcare Finance Handles HUD Refinance
The team at Housing & Healthcare Finance has closed a couple of HUD financings totaling $57 million. There was a $34.1 million loan for a portfolio of five skilled nursing facilities located throughout Minnesota. The experienced borrower was able to replace conventional debt on the portfolio with a substantially higher interest rate. They came with 30- and 35-year terms. The loan amount came in at about $120,000 per bed/unit. Built from 1958 to 2008, averaging 38 years old, the portfolio totals 464 total beds. Two of the facilities also feature assisted living units. Occupancies ranged from the low-80s to the high-90s. Finally, HHC Finance closed a $22.8 million rate modification... Read More »
Genesis HealthCare & Capital Senior Living Put On Notice By NYSE
So far, two of the publicly traded senior care companies have received notices from the New York Stock Exchange warning them that they are out of compliance with the continued listing standard that requires a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period: Capital Senior Living Corporation (April 10) and Genesis HealthCare (April 17). CSU dropped as low as $0.45 per share, while GEN fell to $0.78 per share. Genesis was still in compliance with the minimum market capitalization threshold of $50 million over a 30 trading-day period (at more than two times that level), but CSU’s average market cap did fall below the threshold. Both companies will... Read More »
Where Will Independent Living Values Go?
Here’s the good news and the bad news regarding the independent living market today. The good news is that the fundamentals of the sector were stronger than ever as recent as this March, with values nearing a peak, occupancy consistently above 90% nationally, rents staying strong, and the labor problems largely avoiding IL communities. The bad news is that move-ins may be delayed for months, a recession may make selling and moving out of one’s home (and into an IL community) less feasible, and the socialization benefit of these communities may change significantly for some time. Anecdotally, we do hear of move-ins continuing at a steady pace, depending on the locality and... Read More »
Recent Senior Care M&A Deals, Week Ending April 24, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Local partnershipTwin Cedars Senior Living$5.91 million Not disclosed6 senior living communitiesN/A Waypoint ResidentialSummer Vista & The Crossings at River View$48.85... Read More »Schedule a demo
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