The Portopiccolo Group Makes Another Virginia Purchase
Many skilled nursing owners are exiting the business these days, but family-owned private equity firm The Portopiccolo Group has been actively buying in the last couple of years. Its latest acquisition was the third Virginia property to join its portfolio so far this year, after purchases in Roanoke (February) and Dunn Loring (August). Portopiccolo’s latest target was a 120-bed skilled nursing facility in the rural, southern Virigina town of Emporia. Built in 1971, this facility seems to have been a part of every major SNF deal between institutional investors over the years. Before Portopiccolo’s acquisition, it was acquired by Sabra Health Care REIT in 2017 in the REIT’s takeover of Care... Read More »
More SNFs Add In-House Dialysis
The new PDPM reimbursement system is making its impact known in the skilled nursing market beyond drastically reducing therapy minutes. It is also changing the way SNFs provide care to higher acuity and medically complex patients, now that CMS has recognized (and will pay for) the added care that goes with them. Well, six skilled nursing facilities in Indiana clearly have an eye towards maximizing that reimbursement, while providing a better care experience too, by partnering with Dialyze Direct to provide in-facility dialysis services. This is not the first such agreement made by Dialyze Direct with other SNFs, and we suspect it won’t be the last. This service seems like a no-brainer for... Read More »
Lancaster Pollard Arranges Two Financings
Lancaster Pollard keeps the closings coming, arranging two transactions for senior care facilities in Georgia and California and showing some variety in the process. First, Conner Girdley led the way on a construction financing for a to-be-built community with 131 units of assisted living and memory care in Cobb County, Georgia. The borrower, Brickmont Assisted Living, obtained $24.5 million in tax-exempt bond financing though the Section 142(d) program, which provides financing to assisted living communities that set aside at least 20% of their units for residents whose income is 50% or less of the area median gross income. The Cobb County Board of Commissioners unanimously approved the... Read More »
Seniors Housing Rates: Actual vs. Asking
For years, NIC MAP has been presenting quarterly changes in seniors housing asking rates, but it is now trying to get beyond that and get the actual rental rates. That will add a lot more needed transparency. As many of you know, NIC is working hard to develop its database of actual rents in seniors housing as opposed to the “asking” rents that have been used in their NIC Map numbers for years. This is very important because not until the market sees the actual rents communities are getting will we have a better understanding of the extent of price discounting in various markets. We have been a little vocal about the asking rent number because when times are tough, like they... Read More »
CBRE’s Recent Deal Haul
CBRE had quite the month in November, with its National Senior Housing team announcing four separate sales totaling about $400 million, and its Senior Housing Debt and Structured Finance team closing over $215 million in debt in November. Aron Will and Austin Sacco facilitated the debt transactions, while Lisa Widmier represented the three different sellers in the four transactions. The acquisitions involved eight properties in five states, with more than 960 units comprising independent living, assisted living and memory care services. They sold for an average price per unit of about $411,000. All of the properties, except for one, were in different stages of initial lease-up, making that... Read More »
Another Rural SNF Owner on the Way Out
It’s getting tougher and tougher for operators of rural skilled nursing facilities, particularly those single-asset owners. It’s a more complex and expensive business to operate these days, and with lengths of stays dwindling and acuities rising, it’s not getting any simpler. There were a lot of these deals this year, and we can’t blame any of these owners for exiting the industry altogether. One such transaction saw a not-for-profit board made up of local community members sell their only senior care campus in Marshall, Illinois (just over the border from Terre Haute, Indiana). Ryan Saul of Senior Living Investment Brokerage led the deal. Originally built in 1963 with additions and... Read More »
Cadence Living Expands in the Southeast
Cadence Living is certainly in growth mode. Earlier this year, the Scottsdale, Arizona-based operator announced a major expansion into its own state with the acquisition of land in the Phoenix suburb of Chandler to build a 191-unit, $46 million senior living development to join its three other brand-new or nearly-open communities in the area. Then, late last month, the operator announced that it teamed up with Sabra Health Care REIT to acquire an assisted living/memory care community in Poway, California (San Diego MSA). Now, Cadence Living was just selected as manager of seven assisted living/memory care communities and 402 total units across North Carolina, marking its entry in the... Read More »
Harborview Capital Partners Arranges HUD Refinances
Harborview Capital Partners, a commercial real estate finance, equity and advisory firm, recently announced a few HUD transactions. First, on behalf of a repeat client, Ephraim Kutner and Jonathan Kutner arranged a $7 million HUD loan for a 96-bed skilled nursing facility in Lake County, Illinois. The non-recourse loan came with a 35-year amortization schedule. Then, Harborview took advantage of the low-interest rate environment to refinance several previously placed HUD loans for their clients. The Harborview team achieved substantial rate reductions on loans exceeding $53 million for skilled nursing facilities totaling more than 450 beds in Illinois and New Jersey. That reduced annual... Read More »
Long Island 55+ Developer Gets Equity Investment
A brand-new age-restricted town home community is going up in the Long Island hamlet of Mount Sinai, thanks in part to $18 million of joint venture equity secured by Evan Pariser, Rob Hinckley, Nicco Lupo and Sophie Cohen of JLL Capital Markets. Sculptor Capital Management Inc., formerly known as Och-Ziff Capital Management Group, provided the equity. Ornstein Leyton Company (OLC) is developing the community, which will feature 91 for-sale homes. It is OLC’s fifth active adult community branded under “The Vineyards.” In 2018, Messrs. Pariser and Hinckley (when they were with HFF) also helped raise equity for the development of another community in Center Moriches, New York (also Long... Read More »
M&T Realty Refinances Seattle-Area Senior Living
M&T Realty Capital Corporation closed the refinance of an 87-unit seniors housing community in the Seattle suburb of Bothell, Washington. Managing Director Steve Muth, in collaboration with Christopher Tesla in M&T’s Seattle office, went through Freddie Mac’s OptigoSM program, which provides cash loans, bond credit enhancements, tax-exempt loans, and other financing options to affordable housing properties. The $12.3 million loan was structured with a 10-year term and fixed rate, with a full term of interest-only payments. It closed at 49% loan-to-value, putting the value of the community above $25.1 million, or $288,500 per unit. Read More »Schedule a demo
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