Berkadia Closes First Freddie Mac Structured Pool Transaction For Seniors Housing
Berkadia combined both fixed and variable rate debt in their latest transaction closed on behalf of Brookdale Senior Living. Using Freddie Mac’s new Structured Pool Transaction program, Heidi Brunet and Lisa Lautner secured 10-year, non-recourse financing with a 30-year amortization schedule split between a $213 million fixed-rate component and a $114 million variable-rate component. Some 28 properties and 2,200 units were refinanced with the loans, and through Freddie Mac’s Green Advantage program they will be able to make environmental upgrades. This is the first Structured Pool Transaction in the seniors housing industry, but with the interest rate risk diversification it provides, look... Read More »
Pennsylvania Provider Finances for the Future
HJ Sims met Phoebe Ministries’ capital needs with a taxable financing provided by Citizens Bank. A not-for-profit senior care provider with locations in seven Pennsylvania counties, Phoebe Ministries recently purchased a 38-acre property in Emmaus (near Allentown) to convert the existing office building there into seniors housing. That came to a cost of $12 million. Phoebe Ministries also planned about $4.5 million of capital improvements at its Berks location. To cover those combined costs, plus about $1.5 million in funded interest and financing costs, HJ Sims arranged $18 million in interim financing which will be repaid with permanent financing in 12 to 24 months. Read More »Recent Senior Care M&A Deals, Week Ending December 14, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Mozart Healthcare7 skilled nursing facilities$32 million Local owner/operatorPittsburgh-area assisted living community$3.6 million Housing & Care 2120 Bupa care... Read More »
Big Rock Partners’ Next Big Project
No stranger to big senior living projects, Big Rock Partners (BRP) announced it will be building its second senior living community in Palm Beach County, Florida, at an estimated cost of $150 million, or over $530,000 per unit. BRP kicked it off with the $9 million acquisition of a 15-acre site in Delray Beach, where it will build 185 independent living, 50 assisted living and 44 memory care units. LCS will operate the community upon completion in 2021. Trez Forman Capital financed the land acquisition, and Al Rex of Walker & Dunlop is the project’s financing advisor. Last year, BRP opened a 320-unit community in Lake Worth at a cost of $106 million, which means the company’s total... Read More »
IDB Bank Assists In Renovation Refi
An assisted living community in West Palm Beach, Florida is getting renovated and repositioned thanks to financing provided by Israel Discount Bank of New York (IDB Bank). Lisa Silvers structured the $11.0 million loan to also include a future advance of $2 million upon completion of the renovation and subsequent stabilization. With the financing, the borrower, Florida-based Gold Standard of Care, plans to consolidate a number of units into larger floorplans (with higher rents, of course). Of the total loan amount, about $2.0 million will be for renovations and the remainder will pay off the previous loan on the property. The five-year loan has an interest-only period, and the LIBOR-based... Read More »
Active Adult Community Gets Freddie Mac Financing
A high-end active adult community located in an affluent Denver, Colorado suburb successfully refinanced with the help of Leon McBroom of HFF. Working through Freddie Mac’s CME Program, Mr. McBroom secured $21.4 million in 10-year fixed-rate financing, which will be serviced by HFF. The property was developed in 2014 by McBroom Company and managed by The Avenues Company. It features 70 units and 20 cottages (combining for 98% occupancy), along with a host of luxury amenities like an outdoor kitchen, fitness center with a yoga space and a billiard lounge. Read More »
Lancaster Pollard Secures HUD Construction Debt
Jason Dopoulos of Lancaster Pollard secured construction financing through HUD on behalf of Sunshine Retirement Living to expand its presence in southern California. Already with two senior living communities in the San Diego area, the Oregon-based Sunshine, along with Welbrook Senior Living, is working on building its first in the Los Angeles MSA. The Fountain Valley community will feature 106 assisted living and 39 memory care units when it opens in 2020. Situated about 35 miles southeast of Los Angeles, it is also ideally located next to Fountain Valley Regional Hospital, which certainly adds to the property’s appeal. With its low interest rate, the $36 million HUD loan should help... Read More »
What’s In A Bridge Loan?
On December 6, 2018, we hosted the webinar “Bridge Loans: The Hottest Lending Product for Seniors Housing & Care.” In the wide-ranging 90-minute discussion, our panelists touched on some of the key details anyone interested in obtaining bridge financing should know. Here they are, exclusively for The SeniorCare Investor subscribers: Read More »
The Battle For The Post-Acute Patient
LTACs did not look too good in a recent OIG report, but SNFs fared better. Last month we hosted a timely webinar on who was going to win the battle for the post-acute patient, when and how. The “when” is still a subject of debate, but the “who” and “how” much less so. The who is definitely leaning towards skilled nursing facilities. But part of the problem is the name, which is just one reason why providers are changing their names to transitional care, post-acute care, rehab care…anything to get the reference to “nursing home” out of the equation. How many 35-year old’s would go to a nursing home for their post-op rehab? Not many. Transitional care? No problem. The “how” is a no-brainer:... Read More »
Brookdale Activist Saga Goes On
Here we go again. Land & Buildings Investment Management LLC is stirring up the pot with shareholders yet again after meeting with several members of Brookdale Senior Living’s board in what appears to be a very friendly meeting. Everyone would like Brookdale’s share price to be much higher than it is, and Land and Buildings is still pursuing the concept of spinning out the owned real estate assets into a new REIT using the RIDEA structure. But in a new twist, they want the best properties spun out into this REIT. They claim that it would produce $1.00 per share of cash flow (adjusted funds from operations), and that the market multiple on that would be in the mid to high teens,... Read More »Schedule a demo
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