Ziegler Closes Integrace Bond Financing
Ziegler secured a revenue bond series for its client, Integrace, Inc., an affiliate of Acts Retirement-Life Communities as of April 1, 2019, to restructure and refinance its debt, which was held with multiple banks and other investors, and to take advantage of low borrowing costs at the time. So, with the help of Ziegler, Integrace issued $99.3 million in bonds, consisting of a tax-exempt series that were priced to yield 2.84% and a taxable series priced to yield 3.3%. The taxable bonds were structured with a 15-year commitment from a large institutional investor, while the tax-exempt bonds came with a seven-year commitment. Neither series had a debt service reserve fund and were not... Read More »
REITs Start To Cut Dividends
The healthcare Real Estate Investment Trusts have been the hardest hit in our sector during the recent stock market plunge. Many are worried about their own liquidity and drew down on their credit facilities, even if they didn’t need the funds now. Some just went and raised new debt to bolster their liquidity. They are obviously worried about their tenants’ future financial performance, and they know that wages, utilities and food bills have to be paid before rent. One REIT, Ventas (NYSE: VTR), has already offered to defer 25% of April’s rent until October. They had the largest credit facility drawdown of $2.7 billion. May is just a month away, and the environment will surely be... Read More »
Evans Senior Investments Closes Two Seattle-Area SNF Sales
Selling a SNF in Washington State (let alone near Seattle) these days seems like a fruitless task, yet Evans Senior Investments sold two of them (yes, two) in early April. First, in Seattle itself, an East Coast capital group formed a joint venture with a Los Angeles-based operator to acquire a 165-bed facility for $10.5 million, or $64,000 per bed. To add to the deal’s complexity, the facility was placed into receivership in June 2019 after the local not-for-profit owner defaulted on their existing HUD loan. At the time of the sale, the facility, which was built in 1974, was 77% occupied and was losing over $500,000 in annual NOI. An abundance of contracted staff at the facility... Read More »
Blueprint’s April Activity Continues
Continuing Blueprint Healthcare Real Estate Advisors’ busy deal activity in the last week, which included three skilled nursing closings on April 1st, the team of Amy Sitzman, Dan Mahoney and Blake Bozett sold a 36-unit assisted living community in Kennewick, Washington, in the eastern part of the state. Built in 1995 and featuring all private rooms, the private pay community recently struggled with occupancy because of key leadership turnover. The seller did work to increase census to over 90% throughout the transaction process, which created some good faith between parties that almost surely allowed for a smooth closing in the middle of the COVID-19... Read More »
Recent Senior Care M&A Deals, Week Ending April 3, 2020
Yes, deals are still getting done during these times. Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Regional owner/operatorMurray Highland Memory Care$5.2 million Not disclosedWelbrook ArlingtonN/A East Coast capital group/Los Angeles-based operatorof Washington Care Services$10.5 million East Coast capital group/Los Angeles-based operatorHeartwood Extended Healthcare$8 million Regional owner/operatorHallmark House Nursing Center$1.5... Read More »
April Rules for Blueprint Healthcare Real Estate Advisors
Shout out to Blueprint Healthcare Real Estate Advisors, which closed four deals this week. The deals were likely all but closed in the last month, but buyers and lenders have every reason to hit the pause button. So, to get a deal across the finish line is a feat. We’ll start with the skilled nursing deals. The team of Christopher Hyldahl, Gideon Orion, Michael Segal and Ben Firestone first sold a 150-bed skilled nursing facility in Kerrville, a central Texas town. It was built in 2006 and enrolled in the Texas Quality Incentive Payment Program (QIPP). Occupancy was in the low-50% range, but cash flow (before the QIPP revenue) was near-stable and trending upwards. After... Read More »
Senwell Facilitates Two SNF Bed License Sales
Ben Bohland of Senwell Senior Investment Advisors arranged a couple of skilled nursing bed license sales in the second half of Q1. First in Hamilton County, Ohio, Mr. Bohland sourced beds from two sellers in the area for one of the country’s largest SNF operators that was looking to increase capacity at one of its facilities in the region. The sellers were both downsizing their bed counts, one to repurpose a wing and the other to address low occupancy. Then in Franklin County, Ohio, Mr. Bohland represented a national seniors housing and care operator in its sale of a number of skilled nursing bed licenses due to a planned repurposing of its building. A regional... Read More »
SLIB Succeeds With Two Recent Closings
Senior Living Investment Brokerage announced two closings this week, one seniors housing and one skilled nursing. Starting with the SNF, Ryan Saul represented a private California-based owner in the sale of their 71-bed facility in Pekin, Illinois. A regional owner/operator with other facilities in Illinois paid $1.5 million or $21,100 per bed, for the property. Originally built in 1964, the facility was just 62% occupied at the time of the sale but boasted a 57% quality mix, including a 52% private pay census. Cash flow was negative at the time of the sale on nearly $4.24 million of revenues. The seller had inherited the day-to-day management of the facility from her late... Read More »
Two Industry Veterans Launch New Finance Firm
Seniors housing industry veterans Kass Matt and Steve Kennedy, formerly of Lancaster Pollard, have launched a new finance venture, VIUM Capital. It probably wasn’t the timing they were picturing, but a new lender in the senior care world can only help right now. The company is an independent financial service firm that will be exclusively focused on providing capital to the seniors housing and healthcare sectors, offering HUD/GNMA financing, bridge loans, Fannie Mae/Freddie Mac loans (as a corresponding lender) and advisory services. The business is up and running across all product lines, and their bank partner will support VIUM’s bridge loan offering. Municipal advisory services for... Read More »
Dwight Capital Closes Two HUD Refinances
At the end of March, Dwight Capital announced a HUD refinance of a senior care campus in Andover, Kansas. Built in 2004 and 2010, respectively, the assisted living and skilled nursing buildings feature 164 total beds on 7.2 acres. Clint Miller of Dwight Capital originated a $14 million loan with a 35-year term and amortization to refinance the facility. Earlier in the month, Dwight Capital’s Kevin Lifshitz also got a HUD financing closed in West Jordan, Utah (Salt Lake City MSA). The target was a Beehive Homes community built in 1996 and 2007 on over 1.5 acres. It currently consists of 50 beds in 50 units and is located less than a mile from Jordan Valley Medical Center. The license... Read More »Schedule a demo
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