Generations Senior Living Gets Green to Go Green
Walker & Dunlop successfully structured an $82.077 million loan under Fannie Mae’s Green Rewards loan program, the first for a seniors housing property in the program’s history. Jeff Ringwald and Bill Jackson led the Walker & Dunlop team to structure a 10-year loan with two years of interest only and a 30-year amortization schedule to enable the repeat W&D borrower, Generations Senior Living, to refinance a previous construction loan and obtain cash-out for the financing of an adjacent newly developed memory care community when stabilized. Also, by utilizing the Green Rewards program, the 394-unit community in National City, California (San Diego MSA) received a lower interest... Read More »
Hunt Mortgage Group Finances With Freddie Mac
A 57-unit age-restricted senior apartment community recently refinanced with the help of Hunt Mortgage Group. Located in Boise, Idaho, the property was developed in 1973 and expanded in 2000. It sits on three acres and features four one- and two-story buildings, along with a clubhouse, but has no services that would be found in an independent living community. A multifamily owner/operator with over four decades of operating in the Boise area had acquired this property more than 12 years ago and leveraged that long-term ownership to utilize Freddie Mac’s Small Balance Loan program to obtain a $1.8 million loan with a 10-year, fixed rate term, 30-year amortization and a yield maintenance... Read More »
Congress Building Corp. Builds In Fairfield County
Congress Building Corp. has been named construction manager at Formation Development Group and Atria Senior Living’s latest senior living project in Ridgefield, Connecticut. The project commenced in November 2017, with Congress guiding the project through the pre-construction and construction phases. The company will also coordinate the subcontractor and supplier pricing, as well as the procurement process. Being developed in the high-income, highly desirable Fairfield County, where average rents can often surpass $10,000 per month for memory care services, the 86-unit community will be Atria Senior Living’s fourth in the county, with locations already in Darien, Stamford and Stratford. It... Read More »
Senior Living Investment Brokerage Closes Two Southeast Sales
Toby Siefert and Brad Clousing of Senior Living Investment Brokerage teamed up to sell a 183-bed Washington, D.C. skilled nursing facility for $30 million, or a well above average $163,900 per bed. Built over 35 years ago adjacent to a local medical center, the facility had recently undergone $1.0 million in capital improvements, certainly lowering its effective age. It features a mix of private and semi-private units and was 94% occupied. Its regional owner/operator sought to reduce its exposure in the D.C market, and sold the facility to a partnership between a private New York-based investment group and an East Coast regional operator at a 10.4% cap rate. Mr. Clousing followed the D.C.... Read More »
Capital, Capital Everywhere
After attending two conferences focusing on two different healthcare real estate sectors, it is all about capital. Having just returned from two different conferences in Florida, the one conclusion I can draw from both of them is that there still is way too much capital looking for yield. One, the Revista-sponsored medical real estate conference, was mostly focused on the medical office building market, which transacted more than $13 billion in investments last year. Who would have thought? The other was the American Seniors Housing Association’s annual meeting, which had record attendance with a lot of “deal talk” going on. One industry veteran told me he was only talking to architects... Read More »
Evans Senior Investments Lands A Triple
Evans Senior Investments (ESI) showed its range in closing three transactions across the country, totaling over $20 million. First, in its home state of Illinois, ESI represented the seller, an independent owner/operator, in the sale/leaseback of its 30-unit assisted living community in Winnebago (near Rockford, Illinois) for $4 million, or $133,300 per unit. Just 10 years old, the community was operating well, with 97% occupancy, 100% private pay census, and a 33% operating margin on about $1.225 million of revenues. A publicly traded REIT added the property into a master lease in which the seller already managed other communities on behalf of the REIT. Moving South, ESI handled the sale... Read More »
TIC Investor Sells California Memory Care Community
A Southern California-based regional operator is heading north, to Petaluma (about 40 miles northwest of San Francisco), to acquire and take over management of a 40-unit memory care community. Previously owned by a TIC investor, who decided to divest the asset to realize their investment objectives, the community was built in 1996 on a 1.68-acre plot. Recent minimum wage requirements and increased competition caused the community to raise wages. Adding to its woes, community leadership was unstable, leading the community to expend significant overtime to deal with the vacant positions. These issues combined to affect its financial performance, with the operating margin at just 14% on over... Read More »
Two HUD Loans From Lancaster Pollard
Lancaster Pollard announced two HUD refinances it closed on behalf of clients in Illinois and Oregon. First, Brett Murphy arranged an $11.2 million HUD loan for a 100-unit supportive living facility in McHenry, Illinois (Chicago MSA), which refinanced the original tax-exempt bond construction financing structured in 2007 and cut the ownership group’s debt cost of capital in half. Then, Matt Lindsay and Casey Moore led the way on an $8.8 million HUD refinance of a 48-bed memory care community in Woodburn, Oregon. After successfully opening the community in 2014, ownership decided to refinance its senior and mezzanine construction debt into a non-recourse, 35-year fixed rate... Read More »
Monticello In Music City
One of Monticello Asset Management’s investment vehicles originated $16.48 million in first lien debt to finance the acquisition of a 119-bed skilled nursing facility in Nashville, Tennessee, with the experienced owner/operator buyer looking to refinance through HUD in the coming years. Built in 1970 and completely renovated and expanded in 2013, this facility has a 48-bed short-term care unit, made up of all private rooms, and the remaining 71 beds are dedicated to long-term care patients. There is also a 4,000-square foot therapy gym that, along with the state-of-the-art upgrades received in 2013, helps the facility compete in the area. It was acquired by a public REIT as part of a large... Read More »
LTC Properties, Affinity Living Group & Sunwest Management
The story of Sunwest Management keeps creeping up in the news, although not in a bad way this time, as a former Sunwest assisted living/memory care community in Spartanburg, South Carolina, just sold to a joint venture between LTC Properties and Affinity Living Group. Originally built by the former Manorhouse Retirement Communities in 1999, the 87-unit community was sold to Sunwest in 2005 for approximately $6 million, or about $69,000 per unit. The lender, however, foreclosed on the property when the community was just 50% occupied and sold it to private investor Chris Brogdon in 2010 for $4.95 million, or about $57,000 per unit. Average monthly rents fell to $2,400, from $2,625 per month... Read More »Schedule a demo
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