Senior Living Investment Brokerage Shows Its Strength
Starting his year off strong, Dave Balow of Senior Living Investment Brokerage sold an Assisted Living Program (ALP) community in western New York for $3.0 million, or $125,000 per unit, at a 10.2% cap rate. Introduced in the state around 30 years ago, the ALP program essentially provides a higher level of care (close to skilled nursing) in an assisted living setting for Medicaid residents. It’s proven to be a win for the state, which can reimburse nearly skilled nursing level care at a lower rate, and for the providers, which can take in Medicaid residents at a significantly higher rate. Even with the higher care and staffing costs, those all-Medicaid facilities can often boast 30%... Read More »
Giannini Gets It Done in Wisconsin
Ray Giannini of Marcus & Millichap sold a senior care campus in Wisconsin for $14 million, or about $80,500 per bed. Located on the Illinois border in Beloit, the property features 120 skilled nursing and 54 assisted living beds. The SNF was well occupied but with a high Medicaid census, while the assisted living was all private pay. It benefits from a good local reputation and its proximity to retail shopping areas. The new owner was not disclosed. Read More »Recent Senior Care M&A Deals, Week Ending February 1, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice AXA Investment Managers - Real Assets10 care homesN/A Athena Care HomesAvocet CourtN/A Private investor2 NM skilled nursing facilitiesN/A Not disclosedPremier Rehab Skilled Nursing and Pioneer Court AL$14... Read More »
Not-For-Profit Exits Two Non-Core New Mexico Assets
Blueprint’s next skilled nursing transaction came from out West, in New Mexico, and featured two facilities formerly owned by the largest not-for-profit senior care provider in the country, Sioux Falls, South Dakota-based Evangelical Lutheran Good Samaritan Society, which merged with another Sioux Falls-based healthcare company, Sanford Health, in June 2018 to create a $6 billion entity. Considered to be non-core by the nonprofit, the rural facilities totaled 150 skilled nursing beds and 25 independent/assisted living units but were located on opposite sides of the state in Aztec and Lovington. They were well maintained, with one facility recently undergoing a major renovation. Amy Sitzman... Read More »
Dekel Capital Funds Latest California Construction Project
Who says construction is slowing down? It may very well be, but we keep seeing an active market for construction loans. Dekel Capital arranged one of those totaling $38.7 million for a to-be-built assisted living/memory care community in Glendale, California. East West Bank originated the four-year loan, which came with 36 months of interest-only payments, at 65% loan-to-cost for the developer, Willis Development. Dekel, through its proprietary equity fund Dekel Strategic Investors, also provided $20.7 million in JV equity for the development. Read More »
Recently Rebranded Senior Living Community Refinances
Having just undergone a renovation and a rebranding, an assisted living/memory care community in Dallas, Texas obtained a first mortgage loan, courtesy of MidCap Financial. The borrower for the $6.25 million floating-rate loan was a joint venture between private equity firm Artemis Real Estate Partners and Fort Worth-based operator Civitas Senior Living. Read More »
Capital Funding Refinances Baltimore Skilled Nursing Facility
Over four years after acquiring a 105-bed skilled nursing facility in Baltimore, Maryland, its owner decided to refinance with the help of Tim Eberhardt and Erik Howard of Capital Funding. Part of a three-property portfolio, this facility was built in 1976 and enjoyed consistently strong operating results. The owner had built up equity at the property, and through the refinance was able to deleverage the other two assets in the portfolio, including the repayment of “non-project” debt. The Capital Funding team also converted a short-term, non-agency loan into permanent, fixed-rate HUD financing that totaled $12.3 million. Read More »
Cain Brothers Closes Bonds For Affordable Assisted Living Acquisition
An affordable assisted living community is going up in Mishawaka, Indiana, thanks in large part to a tax-exempt bond issue managed by Cain Brothers. Developed at a cost of approximately $28 million, or $205,900 per unit, the community will feature 55 studios and 81 one-bedroom units for residents whose household income does not exceed 60% of the area median income. The going Medicaid waiver rates range from $2,881 for a studio to $3,378 for a one-bedroom unit through Indiana’s Home and Community-Based Services Medicaid Waiver Program. In addition to the $18.5 million bond issuance at a fixed rate of 5.75%, the project received $9.3 million in Low-Income Housing Tax Credit equity from NDC,... Read More »
Thank Wayne Kaplan
Offering free meals to federal workers without a paycheck is the way to go. For all of you who have descended on Los Angeles for the annual ASHA meeting this week, please thank Wayne Kaplan of Premier Senior Living for their generosity, and smarts. At the company’s 23 assisted living and memory care communities located in six states, they have been offering federal workers going without a paycheck free meals at their communities. It can be breakfast, lunch and dinner. While we don’t know how many people took them up on this offer, think of the goodwill it will generate across their locations, especially when the word gets out. We are making the assumption, of course, that the food is good.... Read More »
The Freddie Mac/Fannie Mae 2018 Rankings Are In
Fannie Mae and Freddie Mac came out with their 2018 multifamily loan production rankings, showing more than $143 billion in volume was closed across the two agencies. Compared with last year, that resulted in a 3% decrease for Fannie Mae but a 7% increase for Freddie Mac. That’s a lot of capital injected into multifamily assets. Wells Fargo Multifamily Capital placed first for the Fannie Mae list with $8.1 billion in closings, followed by Walker & Dunlop ($6.9 billion) and Berkadia Commercial Mortgage ($6.6 billion). On the Freddie Mac rankings, CBRE came out on top with $13.7 billion in loans closed, with Berkadia ($9.9 billion) and HFF ($7.2 billion) taking second and third.... Read More »Schedule a demo
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