X-Caliber Closes Four Financings
The team at X-Caliber Capital has been putting in the hours lately, with three bridge loans and a HUD refinance to show for the hard work. First, the firm closed a $40 million bridge loan, with a three-year term, for an undisclosed borrower to acquire a 10-facility, 700-bed skilled nursing/assisted living portfolio in Illinois. Next, X-Caliber arranged $32 million in four-year financing to support the acquisition of seven assisted living/independent living communities in four states, with over 650 units across the portfolio. The third bridge loan totaled $1.6 million and came with a three-year term. That was also arranged for an acquisition, this time for a 39-unit assisted living... Read More »
Truist Announces Construction Financing for Charleston CCRC
SunTrust Bank, now Truist, just announced its first loan under its new name. The bank provided $50 million in financing to support the renovation and expansion of a large, not-for-profit CCRC in Charleston, South Carolina, which is affiliated with the Episcopal Church. Originally developed in 1987, with a skilled nursing center added in 1992 and independent living, assisted living and memory care units built in 1999 and 2015, the campus is located on James Island, just south of downtown Charleston. The planned renovation to the assisted living portion will result in 81 one- and two-bedroom units being refurbished. The larger project will see the CCRC add a new 156,000-square foot... Read More »
Recent Senior Care M&A Deals, Week Ended January 31, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Experienced owner/operatorSkilled nursing facility in Rural Retreat, VAN/A Illinois-based SNF operatorSt. Pauls HouseN/A Private equity owner/operatorSkilled nursing/assisted living facility in OH$8.5 million Not disclosedElmcroft of... Read More »
Newmark Sells Sarasota Senior Living Community
The Newmark Knight Frank team of Ryan Maconachy, Chad Lavender, David Fasano and Ross Sanders handled the sale of an assisted living community in southwest Florida. Featuring 108 assisted living and 39 memory care units, the community was built in 1994 in downtown Sarasota. More than 20 years ago, the property sold to Merrill Gardens for nearly $13 million, or $75,000 per unit. But back then, it featured 170 independent living and assisted living units. So, we assume a number of units have been combined to make larger ones, in addition to converting some to memory care. Although it is situated in the heart of Sarasota just blocks away from Sarasota Bay and two miles from St. Armands... Read More »
Ohio Owner/Operator Exits the Senior Care Industry
After more than 30 years in the business, a local owner/operator in Ohio exited the senior care industry with the help of Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors. Located in the northeast part of the state, the property features 152 total units, with 99 for skilled nursing and 53 for assisted living. It was built in 1976, with a major renovation in 2002. Operations had been declining during the due diligence period, with occupancy falling 15% from the time it was put under LOI. So, Blueprint worked with the incoming owner, a private equity owner/operator with extensive operating experience in the local market, to limit those declines. In the end, the... Read More »
Monticello Refinances New SNF in Virginia
Monticello Asset Management headed to Rural Retreat, Virginia in the southwest part of the state to arrange first lien debt financing for a 120-bed skilled nursing facility. Working on behalf of the experienced owner/operator, which currently operates 26 facilities in five states (including seven facilities and 915 total licensed beds in Virginia), Monticello and its affiliates provided a $13.5 million loan. It came with a five-year term. The facility was built in 2014, which is quite new for skilled nursing, especially in rural communities. Assuming a standard 70% loan-to-value, that means the per-bed value of the facility surpasses $110,000 per bed. Given its age, that makes... Read More »
ASHA and Stifel Nicolaus Meetings
What we heard about industry trends 3,000 miles from home. After spending three days at the American Seniors Housing Association meeting and the Stifel Nicolaus “2020 Seniors Housing & Healthcare Real Estate Conference, other than jet lag, there were a few takeaways. First off, on a few panels stand-alone memory care communities came up, and not in a good way. Because they tend to be small, a few resident deaths can have an outsized impact, the former over-development has still left a bad taste, and stand-alone anything is viewed by many as too risky. Speakers believed cap rates were at least 100 basis points higher than for assisted living. One thing we did hear is that... Read More »
JLL Sells Chicago Senior Care Campus
Mike Garbers and Cody Tremper of JLL Seniors Housing Capital Markets represented Lutheran Life Communities in its sale of a 171-licensed bed senior care campus in Chicago, Illinois. Originally built in 1921 with additions of the East Wing in 1956 and the West Wing 1970, the property features 55 sheltered care units and a skilled nursing portion that operates with 96 beds. It is situated on a 2.38-acre site in Chicago’s Irving Park neighborhood just northwest of downtown. The buyer ended up being an experienced operator of long-term care facilities in Illinois. They paid an undisclosed price and have renamed the building to Paul House and Healthcare Center. After the deal, Lutheran Life... Read More »
PM Advisors Refinances Oregon AL Community
KC Peterson of PM Advisors successfully closed a HUD refinance of a 30-unit/36-bed assisted living community in Sutherlin, Oregon. Built in 1996 and in good condition, the community was owned and operated by an established group in the state. They had originally financed the community with bonds that contained an affordability period for 20% of the resident population through 2032. Those units could be occupied by Medicaid residents as well as private pay residents who had spent down their wealth. In addition, ownership had two additional layers of IOI promissory notes on the property. However, the bonds came with a high interest rate of 7.375%, leaving the owners to look for a refinancing... Read More »
Cambridge Closes Slew of HUD Financings
Cambridge Realty Capital Companies has been quite prolific this month in the HUD market. Just last week, the firm closed two loans totaling $24 million for two senior care campuses in Ohio. Then, in Merced, California, Cambridge provided a $16.3 million HUD loan to refinance a 72-bed transitional care facility. The property offers units with private restrooms, nutrition services, therapy, and physical therapy services, a physical therapy center, two restaurant-style dining venues, courtyard dining facilities plus an on-site beauty salon. The California limited partnership borrower received a fully amortizing 35-year loan. Finally, Cambridge headed across the country to refinance a 104-bed... Read More »Schedule a demo
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