Meridian’s $650 Million Year, So Far
Meridian Capital Group is on track for a strong year, to say the least. After seven months, the seniors housing and healthcare team has already arranged $650 million in financing across skilled nursing, independent living and assisted living properties. Most recently, the team of Ari Adlerstein, Ari Dobkin and Josh Simpson arranged an $18.75 million refinance of two skilled nursing facilities (and 318 total beds) in Rhode Island, as well as a $2 million revolving line of credit on behalf of a 120-bed skilled nursing facility in Arizona. Other recent highlights include a $69 million loan for four skilled nursing facilities with 654 beds and two home care licenses in New Jersey, a $34... Read More »
Publicly-Traded REIT Sells In Ohio
A publicly-traded REIT decided to divest (that’s a phrase we’ve heard a lot this year) its 50-unit assisted living community in the Youngstown, Ohio suburb of Boardman. Originally built in 1996 adjacent to a skilled nursing facility owned by the seller, the community was operated by a national skilled nursing operator. It was opened to partly act as a referral source for the SNF. However, as newer communities opened in the area, census fell below average and operational cash flow dropped, prompting the sale. A property management firm, Boardman-based EDM Management, Inc., acquired the community for an undisclosed price and plans to invest in a series of capital improvements and a potential... Read More »
SentosaCare Refinances in Staten Island
Following up on a bridge loan it closed a couple of years ago, Greystone successfully refinanced a 238-bed skilled nursing facility in Staten Island, New York. Owned by SentosaCare, the facility has a five-star rating from CMS and offers services that include long-term care, physical therapy, occupational and speech therapy, and neuro and orthopedic rehabilitation. Two years prior, Greystone had arranged a bridge loan for the facility, which it will take out with a $20.66 million, 35-year HUD loan. Fred Levine originated the transaction. Read More »
Cohen Financial Closes Michigan Financing
In northern Michigan, Cohen Financial, a division of SunTrust Bank, arranged more than $4.1 million in HUD financing for an assisted living community in the town of Alma. The 41-unit community is owned and operated by Grand Rapids-based Leisure Living Management, and as recently as 2013, it added a 12-bed memory care unit to its services. On behalf of the community, Cathy Bronkema, managing director of Cohen Financial’s Grand Rapids office, and Joshua Hausfeld, managing director of SunTrust CRE Seniors Housing & Healthcare Finance, secured a fixed-rate $4.116 million loan, with a 35-year term and 35-year amortization schedule. Read More »
Greystone Soars in Upstate New York Sale
A publicly traded REIT divested two of its seniors housing assets in upstate New York, hiring Mike Garbers and Cody Tremper of Greystone Real Estate Advisors to facilitate the transaction. Located in the towns of Clifton Park (Albany MSA) and Orchard Park (Buffalo MSA), the communities each feature 46 memory care units on roughly five acres. The twin properties were also both built in 1998. Operated by Peregrine Senior Living (which will stay on as operator after the acquisition), they reported strong occupancy, combining for about 94%. A private equity firm paid $17 million, $184,800 per unit, for the pair. Read More »
$196 Million HUD Refinance Closed By Harborview Capital Partners
Harborview Capital Partners arranged a $196 million HUD refinance for a portfolio of 13 skilled nursing facilities and assisted living communities. Comprising 1,700 licensed beds, the portfolio is owned by a large regional operator. To replace the existing short-term debt, Ephraim and Jonathan Kutner of Harborview arranged multiple loans with 30 and 35-year terms, adding up to the $196 million. Read More »
Occupancy And Active Adult Communities
Seniors housing occupancy hits a low because of new supply, while active adult communities begin to take off. As you know, occupancy in seniors housing now stands at a low point since the Great Recession, especially on the assisted living side. Eighteen months ago, “the market” was looking for a turn around by the second half of 2018. Not happening. Now it is the second half of 2019, with some looking at 2020. Maybe happening. New supply has obviously had its impact, and people keep on developing. But some developers are moving into what is variously called the 55+ market or “active adult” communities. They are easier to zone, cheaper to build and don’t require much staff, all important... Read More »
IPA Ratifies Constitution State Sale
Charlie Hilding, along with Mark Myers, Joshua Jandris and Alex Vice, of IPA Seniors Housing handled the sale of a skilled nursing facility in rural Ohio. Representing the seller, IPA sold the facility, which features over 150 beds and several specialized care services (including a designated ventilator unit), for nearly $165,000 per occupied bed and approximately $116,000 per licensed bed, which is especially high for a rural location. The buyer is a growing regional owner/operator that is entering the Ohio market with this purchase. They recently purchased their first facility, an 80+ bed skilled nursing facility in northern Kentucky, with IPA also representing the seller in that... Read More »
Rock-Solid Relationship Leads to Lancaster Pollard’s Latest Financing
Three years after acquiring a 48-unit assisted living community in Shawnee, Kansas, Granite Investment Group is refinancing it. Ross Holland of Lancaster Pollard led the way on the transaction (not LP’s first with Granite), securing a $6.9 million Fannie Mae loan with a seven-year term and a variable interest rate. Granite had bought the community in February 2015 from a local partnership that had originally developed the community in 2000. It was 90% occupied and operated at a 25% margin on approximately $2.4 million of revenues at the time of the transaction. It sold for $7.2 million, or $150,000 per unit, with an all-in cap rate of 8.4%. HUD bridge financing provided by GE Capital,... Read More »
Medicaid to the Rescue
The time came for a private equity firm to exit their investment in Shaker Heights, Ohio (Cleveland MSA), only after investing in substantial renovations and stabilizing the census. Situated downtown near a brand-new commercial development, the community was built in 1995 and features 122 assisted living and 50 licensed skilled nursing beds. It was originally acquired by the PE firm in 2012 as a value-add opportunity and has since improved its operations, with occupancy climbing from around 70% to 85%. Operations at the assisted living community in particular improved dramatically, as a steadier stream of residents who were enrolled in Ohio’s Assisted Living Waiver Program (now... Read More »Schedule a demo
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