Behavioral Skilled Nursing Facility Sells In Tucson
A unique skilled nursing facility with a sizable behavioral health census sold in Tucson, Arizona, in a deal handled by Evans Senior Investments. Those behavioral beds proved to be quite the boon to cash flow, with their Medicaid rate nearing $300 per day. Apart from them, the facility had several areas to improve on, including its 71% census, 16% quality mix and operational capacity (just 211 of 240 total licensed beds were functional). Operated by Avalon Health Care Group, the 35-year old facility did have the advantage of being located 500 feet away from a 227-bed hospital. Its independent ownership group elected to sell to reinvest their capital. A Chicago-based owner/operator,... Read More »
Dekel Capital Refinances New Development
As a newly developed assisted living/memory care community in Fresno, California, continues its march towards stabilization, its owners refinanced the existing construction loan with the help of Dekel Capital. The Los Angeles-based real estate merchant bank placed a $14.1 million bridge loan, with a 25-month interest-only term, at approximately 65% loan-to-value to provide funding through the lease-up of the remaining units. Mountain Capital Partners and Willis Development opened the community in 2016 with 83 assisted living and 24 memory care units. Read More »
SunTrust Secures HUD Loan For Lynchburg Senior Living Community
Family-owned senior living operator Runk & Pratt secured a $13.2 million HUD loan to refinance its assisted living community in Lynchburg, Virginia. Thanks to a connection to the owners through David Wilt, market president of SunTrust Corporate & Commercial Banking in Roanoke, Virginia, Joshua Hausfeld of SunTrust CRE Seniors Housing & Healthcare Finance originated the loan, which came with a 35-year term and 35-year amortization schedule. The community was originally built 40 years ago but converted to assisted living in 1996 and now features 57 units and 81 beds, including some for memory care. It also underwent extensive renovations in 1998, 2003 and 2016, and has... Read More »
Monticello Offers Its Services In The Volunteer State
With $10.38 million in financing secured by two of Monticello Asset Management’s investment vehicles, an experienced borrower acquired a 139-bed skilled nursing facility in Tennessee. The target consists of a 50-bed short-term rehabilitation unit in addition to an 81-bed long-term care unit on approximately 10.43 acres. Ancillary services like physical, occupational and speech therapy are also provided at the facility. The borrower, Madison Due West Property, LLC, obtained $8.88 million in first lien debt, while the operating company received a $1.5 million working capital loan. Read More »
Record Sale Price
Brookdale Senior Living has agreed to sell its trophy community in New York City at a record price to Ventas, but will keep the management. Anyone who heard former Brookdale Senior Living CEO Mark Schulte address the ASHA annual meeting in the aftermath of 9/11 will never forget it. He talked about their newest project in lower Manhattan. There was nary a dry eye in the room. The community, called The Hallmark at Battery Park at the time, was still in fill-up, covered in inches of dust and debris, and had to be evacuated. The industry at other communities pulled together, took in as many Brookdale residents as possible, not knowing how long they would stay, not knowing how they would get... Read More »
Going Out On Top
We’ve been saying this since 2014, but it seems to be a good time to sell a seniors housing property. Prices are still near record highs in the assisted living market, at $221,250 per unit in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. The M&A market, even during the normally quiet summer months, is as frothy as ever, with 52 deals announced in the third quarter, so far. But even these reasons aside, a local partnership in Wisconsin is truly exiting the market on top, with its 60-unit assisted living community fully occupied (with a 100% private pay census) and operating at a 31% margin. Built in stages in 2007, 2009 and 2014 in the affluent Green Bay... Read More »
The Walk to End Alzheimer’s
Alzheimer’s is a terrible disease. No one can argue with that. And if we live long enough, without a cure, many of us will also succumb to Alzheimer’s. They say health care is local, but Alzheimer’s is global. It does not spare any race, income level or geography. While I would like to say it is only a disease that afflicts older people, many of us have known people in their 40’s, 50’s or 60’s who have suffered from early-onset Alzheimer’s. It is a disease that does not discriminate. That is why at Levin Associates we have dedicated our 70th anniversary to finding a cure for Alzheimer’s. It started with The Longest Day on June 21 with various activities in our office that raised awareness... Read More »
Oregon Operator Refinances Bond Debt
The long-term owner of an assisted living/memory care community in Oregon went to MidCap Financial to help recapture equity for its other development projects and to fund property improvements. Caring Places, an operator of 11 communities in Washington and Oregon, secured a $4.65 million floating-rate loan, with a three-year term, to refinance bond debt on its 66-unit community in Forest Grove (Portland MSA). Featuring 44 assisted living and 22 memory care units, the property was originally developed by Caring Places in 1991. That long-term vision will continue, as Caring Places looks to eventually refinance this first mortgage through HUD. Read More »
Cushman & Wakefield Sells CCRC Portfolio
It is amazing what patience, capital, expertise and desire can do to change things around for a few bankrupt entrance-fee CCRCs. We are referring to Sedgebrook in Lincolnshire, Illinois and Monarch Landing in Naperville, Illinois that fell into bankruptcy in 2010 and were sold in an auction process for a combined total of about $39.25 million. They had been built by the former Erickson Retirement Communities, which itself filed for bankruptcy protection after problems with too much debt and too many new units to fill during the Great Recession, although these two CCRCs were outside the corporate bankruptcy. Monarch Landing was supposed to be built with 1,498 IL units, 84 AL units and 132... Read More »
In-Place Operator Steps In As Buyer
A successful bidding process for a portfolio of four assisted living/memory care communities ultimately yielded a familiar buyer: the portfolio’s existing operator. Located in Oregon and Washington, the 152-unit portfolio was owned by a partnership among four seniors housing industry veterans, who were looking to retire from the business. Averaging over 20 years old, the properties included two well-performing locations and two that would be considered value-add. They actually are part of a larger portfolio disposition by the partner owners, as a 65-unit AL/IL community in Wenatchee, Washington already sold earlier this year. Two others are in escrow and are scheduled to close in the... Read More »Schedule a demo
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