60 Seconds with Swett: HUD’s Express Lane and M&A
We’re not used to sensible reforms coming out of Washington, D.C., but HUD has just come out with a new “Express Lane” for the Section 232 Residential Care Facilities program. Obviously, we don’t want any facilities or borrowers that shouldn’t receive a loan to slip through the cracks, not that you can always predict a future disaster. But so many HUD loan processes sought by repeat-borrowers are a foregone conclusion, and we think with the guardrails in place, this is a great idea. Those guardrails apply to the loan terms, the facility quality and the borrower itself. Also, all of the criteria have to be met to qualify. Some of the highlights include a maximum 70% loan-to-value, minimum... Read More »
PruittHealth Acquires Again in the Southeast
PruittHealth recently announced that it acquired a community in Winston-Salem, North Carolina. Built in 1997, Forest Heights Senior Living (now known as PruittPlace – Winston Salem) features 99 units with 104 beds of AL, MC and respite care services. Residents can choose between AL services in private studios or one-bedroom suites, and MC in private or shared studios. With the addition of this community, PruittHealth now owns or operates 13 AL communities in the Southeast. Blueprint facilitated the sale on behalf of a national, REIT-affiliated owner/operator seeking to strengthen its portfolio by divesting certain challenged properties. Kyle Hallion, Kory Buzin and Steve Thomes... Read More »
Tremper Capital Group Takes Out Two Construction Loans
The closings from Tremper Capital Group kept on coming, with a couple more refinances of construction loans on seniors housing properties. The first was closed for a 124-unit assisted living/memory care community on the Florida panhandle. Built in 2021, the community experienced a strong lease-up, with occupancy exceeding 90%. This community is part of an ongoing, programmatic development joint venture between the regional owner/operator, a prominent private equity firm and several high-net-worth individuals. Their eventual goal is to sell the panhandle property, but they needed more time for operations to fully stabilize. So, the JV took out the previous bank construction loan with... Read More »
New Tenant Secured for New Hampshire Nursing Home
Evans Senior Investments was engaged by an institutional owner to facilitate the lease of a large nursing home in New Hampshire. At the time of marketing, the facility was performing well. However, a large-scale renovation was just completed, which took 40 beds offline, offering the opportunity for a strong regional operator to significantly improve performance. There was strong interest in the asset, with ESI ultimately securing a tenant aligned with the seller’s strategic goals. Read More »
Willow Valley Communities’ New President and CEO
Willow Valley Communities appointed Lisa Hawthorne (formerly known professionally as Lisa Legeer) as its new President and Chief Executive Officer. Following a comprehensive national search, Hawthorne was selected for her leadership, industry experience, and vision for the future of senior living. Hawthorne brings more than 28 years of expertise in senior living and health care, spanning development, operations, marketing and finance. She played a pivotal role in more than 100 senior living community developments nationwide, including startups, expansions, repositioning projects, and related financing transactions. Throughout her career, Hawthorne has collaborated closely with executive... Read More »
Diversified Closes Revolving Credit Facility
Diversified Healthcare Trust announced the closing of a new $150 million secured revolving credit facility. The facility is secured by 14 seniors housing communities with 2,632 living units managed by Five Star Senior Living, the operating division of AlerisLife Inc. DHC has already paid its 2025 notes in full with refinancing and asset sale proceeds, so this revolving credit facility provides the company with enhanced liquidity and financial flexibility to support its general business needs. The revolving credit facility has an initial term of four years, with two six-month extension options, subject to certain conditions, and bears interest at a rate equal to SOFR plus a spread of 250 to... Read More »Kandu Capital Recaps Indiana Purchase
Bloom Senior Living and Kandu Capital recently refinanced an Indianapolis, Indiana property that it acquired in October 2023 and already added value to it. Formerly owned and operated by Enlivant, Bloom at Kessler was in a distressed state when Bloom took over operations, with occupancy at 39% and an annual loss of around $1 million. It was purchased for $2.135 million, or just $35,000 per unit. Since the purchase, Kandu and Bloom have spent just over $200,000 in capex and $600,000 in working capital, bringing occupancy to 84% and raising rates to $5,100 per unit. Revenues and EBITDA keep improving, as well, with stabilized EBITDA estimated between $1.0 million and $1.2 million. Using a... Read More »
Tremper Capital Group Secures Multiple Financings
Tremper Capital Group has hit a rich vein of activity, with four closings since the start of May and several more planned in June. The firm kicked things off with an agency refinance closed for a 133-unit seniors housing community in the Pacific Northwest. Opened in 2022, the community featured independent living, assisted living and memory care services and was a strong performer, with nearly 100% occupancy. The operator, Merrill Gardens, has clearly done a great job at the location. The borrower wished to take out the original construction debt and had received quotes from life insurance companies and banks. But Freddie Mac offered the best combination of terms and provided a $42.9... Read More »
Canyon Partners Provides Refinance
Canyon Partners Real Estate provided a $47 million senior loan to refinance American House Oak Park, a 174-unit seniors housing community in Chicago. Affiliates of AEW Capital Management and REDICO were the joint venture borrowers. Newmark arranged the financing. Located in the Oak Park neighborhood, the property comprises 74 independent living, 65 assisted living and 35 memory care units. Amenities at the community include a rooftop lounge, roof terraces, a fitness center, salon, game room, art studio and theater. Read More »
CIBC Bank Funds Illinois Acquisition
CIBC Bank USA provided a $3.4 million loan for the acquisition and capital improvements of an assisted living community in Illinois, along with a $1 million working capital revolving line of credit. The seller is exiting the industry, and the borrower sees significant room for improvement upon completion of renovations and adjustments to the resident mix, which will help grow occupancy and operating margins. Read More »Schedule a demo
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