MidCap Financial Finances Georgia Portfolio Acquisition
Lawrence “Lory” Brin of MidCap Financial recently helped facilitate Artemis Real Estate Partners and Allegro Senior Living’s acquisition of three Atlanta-area assisted living communities by arranging an $18.25 million loan. The floating rate first mortgage will also enable the buyers to reposition the communities and invest $7 million of capital improvements to renovate the exteriors, common areas and unit interiors. Built from 1998 to 2000, the communities are located in Buckhead (46 assisted living and 22 memory care units), Alpharetta (48 AL and 24 MC units) and Marietta (28 AL and 27 MC units). The deal marks Allegro Senior Living’s entry into the state, and the company will also... Read More »
Solvere Senior Living Builds In Its Own Backyard
Solvere Senior Living is following up on a busy 2017 with a new 195-unit seniors housing development in Hamilton Township, New Jersey, at a cost of nearly $60 million, or just over $300,000 per unit. Opening next month, the community will feature 96 independent living, 75 assisted living and 24 memory care units, with a host of amenities and dining options. Despite Solvere’s being based in nearby Princeton, this will actually be the company’s first foray into the Garden State, with communities already in Virginia, West Virginia, New York, Maryland and Indiana. The opening comes on the heels of several other projects that Solvere has in its pipeline with a number of development partners. It... Read More »
Another Texas SNF For National Health Investors
National Health Investors added another Texas skilled nursing facility to its portfolio with the purchase of a 121-bed facility in Waxahachie for $14.4 million, or about $119,000 per bed. The acquisition is the second of four that NHI had previously committed to and will be added to the existing master lease with The Ensign Group at an initial rate of 8.2%, plus annual escalators based on inflation. This brings Ensign’s Texas total to 16 skilled nursing facilities. Explaining the high per-bed price is the facility’s age, having just opened in November 2016. NHI funded the deal with proceeds from its revolving credit facility. Read More »
Greystone Refinances Upstate New York Skilled Nursing Facility
A 112-bed skilled nursing facility in Niskayuna, New York (near Schenectady) will have the funds to upgrade its services and amenities thanks to a $27.05 million HUD refinance arranged by Fred Levine of Greystone. Current amenities already include an on-site salon, private dining space and a newly renovated dining area, and the facility provides sub-acute rehab, ventilator therapy, respiratory care, traumatic brain injury treatment and pediatric rehab and respite services. However, Sentosa Care, the owner, has plans to invest significant capital in upgrading the facility’s existing spaces and amenities, in addition to building a new ventilator unit and upgrading the pediatric unit. The... Read More »
Occupancy Woes Continue For Seniors Housing
Fourth quarter NIC MAP data for seniors housing occupancy had little good news before the flu season may decimate again. We are going to have to wait until mid-February or so to start hearing how individual seniors housing companies fared with occupancy in the fourth quarter. Our guess, however, is that it will only go downhill from there. According to NIC MAP, occupancy basically remained flat from the third quarter to the fourth, which was expected. But that means, given the bad flu season this year, the first half of 2018 could be pretty bad for occupancy. Without an increase in the fourth quarter, there may be a lot of ground that will need to be made up in the second half of 2018,... Read More »
Update On Consulate Healthcare’s Legal Affair
In major news for the skilled nursing industry, the $347.86 million judgment against affiliates of Consulate Healthcare was vacated in its entirety by the United States District Court, Middle District of Florida earlier this week. This was basically a Medicare “fraud” case. The judge ruled that the plaintiff’s assertions that a “handful of paperwork defects (for example, unsigned or undated documents) compel the decisive inference that the defendants never provided the therapy evidenced by the paperwork and billed to Medicare” was just plain wrong. To boot, the government continued to pay the defendant even though the government knew there were some disputes between the two sides regarding... Read More »
Sinking Supportive Living Facility Sells In Chicagoland
The time had finally come for the Village of Dolton (a suburb south of Chicago) to sell its 126-bed supportive living facility, as the town handed over the keys to an experienced private owner. Built in 1970, the five-story facility had undergone an extensive renovation in 2008 to accommodate the SLF license. However, years of hiring third-party managers had not improved operations at the facility. Occupancy stood at just 33%, with a 51% Medicaid and 49% private pay census, and the facility lost around $700,000 per year in EBITDAR on approximately $1.4 million of revenues. The facility also went years without capital improvements, which certainly did not help occupancy nor its... Read More »
Heavenrich & Company’s Heavenly Start
Starting 2018 off strong, Brian Clark of Heavenrich & Company sold two small memory care communities in Loveland, Colorado. This wasn’t the first deal Heavenrich & Company has handled on behalf of the family-run seller, having previously sold their communities in New Mexico. This Loveland deal featured two adjacent communities purpose built in 2010 and 2015. Each operated as a stand-alone family-run community and featured 20 units and 40 beds, combining for 80% occupancy based on units. Madison Realty Companies emerged as the buyer, paying $8.44 million, or about $210,000 per unit, for the communities, with an 8.9% cap rate. Read More »
Ziegler Closes Two More Bond Financings
Ever prolific, Ziegler closed over $115 million in bond financings on behalf of two CCRC clients. The larger of the closings totaled $75 million and was arranged for a 483-unit CCRC in Seattle, Washington. Founded in 1961, the community is affiliated with the Pacific Northwest Conference of the United Church of Christ and features 378 independent living, 80 assisted living and 25 memory care units, with more than 540 residents. With the bond proceeds, the community was able to refund all of the $45.4 million of outstanding Series 2014A Bonds, refund all of the $11.1 million outstanding Series 2014B bonds, pay fees related to the termination of certain interest rate hedge agreements and... Read More »
New York Not-For-Profit Sells To Post Acute Partners
The IPA Seniors Housing team represented a not-for-profit health system in its sale of a 120-bed skilled nursing facility in Brockport, NY. Founded in 1944, the facility was part of the Lakeside Health System until, after years of financial distress, the system sold most of its assets and closed the 61-bed acute-care hospital adjacent to the Brockport SNF. The facility, whose current four-story building was constructed in 1997, remained a separate not-for-profit corporation without a union. It is composed of one floor of administrative offices, the kitchen and dining services, and the top three floors each containing six private rooms and 17 semi-private units, for a total of 120 beds.... Read More »Schedule a demo
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