HHC Finance’s Capital Advisory Group Hits $1 Billion
Housing and Healthcare Finance’s (HHC Finance) Capital Advisory Group just crossed the $1 billion mark in loans closed since its inception a little over two years ago. Pushing the group over the edge were a couple of bridge loans arranged by Isaac Haas and Neil Gamss. The pair first structured a $12.2 million loan for two assisted living communities in Michigan, and then arranged a $6.0 million loan for a skilled nursing facility in Kentucky. The financings came with relatively low leverages and were arranged on behalf of a couple of experienced borrowers. Read More »
KeyBank Closes Largest Single-Asset HUD Loan
In the largest single-asset HUD closing in history, KeyBank Real Estate Capital secured $127 million in financing for a large 499-bed skilled nursing facility in New York City. Originally built in 1966, with renovations in the mid-1990s and early 2000s, the facility was operating at full occupancy. Its owner, a regional owner/operator, used the loan’s proceeds to pay off an interim acquisition bridge loan provided by KeyBank and a syndicate of lenders. The HUD financing also helps fund over $7 million in capital expenditure improvements made to the property. KeyBank’s John Randolph, Henry Alonso and Brandon Taseff led the way on the transaction. Read More »
Strawberry Fields Grows In Kentucky
Kentucky’s largest not-for-profit senior living and long-term care provider, Christian Care Communities, worked with Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors to sell its 92-bed skilled nursing facility in Louisville. Ideally located near multiple hospitals and other referral sources, the facility was originally built in 1962, but was recently renovated in both 2012 and 2014. Occupancy was around 81%, but trailing cash flows were negative, prompting Blueprint to position the asset as a value-add opportunity. For a purchase price of $6.5 million, the facility ultimately sold to Strawberry Fields REIT, which leased it to Landmark Group to operate. The deal... Read More »
Seniors Housing Cap Rate Spread Narrows
One would expect that in bull markets, the seniors housing (independent and assisted living) cap rate would fall, while the 10-year treasury rate would rise, making the spread between the two smaller, and vice versa for bear markets. But we have been in an historically low interest rate period throughout most of 2017, while at the same time in the midst of a continued bull market for seniors housing, highlighted by record-high prices and record-low cap rates. Per the 23rd Edition of The Senior Care Acquisition Report. The spread between the cap rate and 10-year Treasury Rate fell from 640 basis points in 2016 to 520 basis points in 2017, tied for the lowest seen in the last decade. That... Read More »
CBRE Closes Five Financings
Aron Will of CBRE showed off his strength and variety this month, closing five transactions so far in May. First was a $10.2 million Freddie Mac loan arranged on behalf of Chicago Pacific Founders to acquire a 100-unit independent living/assisted living community in Easley, South Carolina. The loan came with a seven-year floating-rate term and 42 months of interest only. Mr. Will also arranged acquisition financing for a global investment manager for its purchase of two assisted living/memory care communities in Cincinnati, Ohio and Salt Lake City, Utah. Both were originally developed by CA Ventures in partnership with another institutional equity partner and Senior Lifestyle Corporation.... Read More »
To Build, or To Buy
One thing on the minds of many is that in these heady times in senior care M&A and development, investors are faced with a dilemma: whether to build, or buy (or both). Ben Swett here filling in for Steve Monroe, who is currently wandering around the Argentum conference in San Diego. One thing on the minds of many there is that in these heady times in senior care M&A and development, investors are faced with a dilemma: whether to build, or buy (or both). Buying existing properties comes with its obvious benefits, like cash flow and local brand recognition. But, what a senior wants in a community has changed over the years, meaning that those properties built 10, 20 or 50 years ago... Read More »
Senior Living Investment Brokerage Notches North Carolina Closing
Its complex past didn’t stop an assisted living community in North Carolina from selling to an in-state operator, albeit for a price of $1.7 million, or just $13,900 per unit. The property’s owner, a regional operator based in the Tar Heel State, originally built it as a skilled nursing facility in 1984. However, when they decided to build a replacement SNF within the county in 2016, the existing facility switched to an adult care home licensed and operated with 92 assisted living and 30 special care (memory care) beds in 90 total units. After a couple of years, the owner decided to close the facility but kept the license and CON active. An assisted living operator also based in North... Read More »
Myers & Jandris Close South Florida Sale
Mark Myers and Josh Jandris of IPA Seniors Housing headed to sunny South Florida to sell a large 230-bed skilled nursing facility on behalf of the not-for-profit owner. Operations were solid at the property, with some room for improvement, with occupancy at around 79%, a quality mix of 14% and an operating margin of 10% on approximately $15.6 million of revenues. The deal was the Northeast-based private investor buyer’s first purchase in Florida. They paid $30.75 million, or $133,700 per bed, for the opportunity. Read More »
Blake Management Group’s Back At It
Construction has begun at a brand-new senior living community in Fort Mill, South Carolina (Charlotte MSA). Mississippi-based Cardinal Ventures is developing the $15 million project, which will be called The Blake at Baxter Village. Frampton Construction Company, based in South Carolina, will be building the facility, and Blake Management Group will manage the property. Between these companies, this is their fourth senior living community they will have completed together, the others being The Blake at Edgewater, The Blake at Carnes Crossroads, and The Blake at Woodcreek Forest, all in South Carolina. The Baxter Village community is expected to have 68 assisted living units, 33 memory care... Read More »
Contemporary Healthcare Capital Does Mezz
Contemporary Healthcare Capital (CHC) completed two mezzanine loans to help buyers fund the purchase of skilled nursing facilities. The Portopiccolo Group, based in New Jersey, bought a 165-bed facility in Covington, Tennessee and borrowed a combined $8.755 million. CoastalStates Bank of Hilton Head provided the senior loan and CHC provided a $2.25 million mezzanine loan. In addition to funding the acquisition, proceeds were also used for about $600,000 in capital improvements. In a larger deal, Citadel Care Centers bought a 246-bed skilled nursing facility in the Miami area of South Beach, Florida. New York City-based Valley National Bank provided the senior debt of the total $33.9... Read More »Schedule a demo
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