Carnegie Capital Closes Two Financings
Carnegie Capital showed its strength this month, announcing two loan closings in Georgia and Ohio. First, J.D. Stettin sourced and structured $10 million in bridge loans to fund the acquisition of two skilled nursing facilities and 177 beds in Macon and Warner Robins, Georgia (Atlanta MSA). The financing, which came with an interest-only term and no prepayment penalties, featured a loan-to-cost of 80%, so we have estimated the purchase price to be around $70,600 per bed. Then, Mr. Stettin refinanced a brand-new assisted living/memory care community in Cleveland, Ohio with a $16 million loan. A local community bank provided the original $9.5 million construction loan for the community,... Read More »
Thorofare Capital Rises Again In Phoenix Area
Thorofare Capital is expanding its seniors housing bridge lending program and recently closed a $13 million loan on behalf of a 277-unit assisted/independent living community in North Phoenix, Arizona. The floating-rate loan, with a two-year term of interest only payments, provides an initial advance of $10 million to repay the construction loan and also funds reserves while the community leases up. There was also $3 million withheld for the future renovations and performance-based earn-outs. The borrower, a Southern California-based real estate investor, acquired the property out of a bank’s REO portfolio in 2015 when it was an Embassy Suites Hotel. They then converted the building in... Read More »
Should Cap Rates Go Lower?
Two major REIT CEOs can see seniors cap rates moving below multifamily for the first time. The Big Two REITs have reported their second earnings, and while occupancy and labor costs certainly remain an issue for their operating partners, there was one funny comment that came out of the calls. Well, funny if you get your kicks from these sorts of things the way I do. Apparently, Welltower CEO Tom DeRosa and Ventas CEO Debbie Cafaro see eye to eye on at least one thing. As one analyst joked, they both apparently agree that seniors housing cap rates should be lower than multifamily, and I think they were even talking about assisted living. The reason? Because demand will do nothing but grow,... Read More »
Lancaster Pollard Closes $400 Million Bridge Financing
There’s no such thing as a summer lull for Lancaster Pollard, which recently announced the closing of $400 million in bridge financing for 27 skilled nursing facilities located throughout California. The borrower was a large skilled nursing operator based in California, Plum Healthcare, that previously had a corporate term loan credit facility on the portfolio. Grant Goodman, Jason Dopoulos, Joe Munhall and Elliot Kaple led the way for Lancaster Pollard, which served as syndication agent on the transaction, while Credit Suisse served as the lender. Upon the transaction’s closing, Lancaster Pollard immediately began work on refinancing through HUD. Meanwhile, Rob McAdams of Lancaster... Read More »
New Skilled Nursing Construction in Florida
Most of the attention in the Florida development market has gone to assisted living and memory care. Rightfully so. But a brand-new skilled nursing facility is going up in Lakeland, Florida, courtesy of Greystone Healthcare Management and Lake Gibson Village. The 120-bed facility will be located within the existing Lake Gibson Village independent living/assisted living community and will feature a mix of private and semi-private rooms, along with programs that range from orthopedic and cardiac to stroke rehabilitation. Lake Gibson Village is also undergoing a 64-bed memory care expansion on the 45-acre site in addition to massively expanding its independent living services. At a cost of... Read More »
Greystone’s Second Portfolio Transaction Of The Month
Mike Garbers and Cody Tremper of Greystone Real Estate Advisors followed up on their two-property sale in upstate New York (which sold to a private equity firm for $17 million, or $184,800 per unit) by also arranging the sale of four senior living communities in Nebraska and Oregon on behalf of a publicly-traded REIT owner. Built between 1986 and 2003, the communities feature 315 total units of independent living and assisted living. Hong Kong-based Chevalier International Holdings Ltd. acquired the properties and leased them to the Avamere Family of Companies to operate. Read More »
Sale of Quality Care Properties Approved
By a margin of 26-1, shareholders approved the sale of Quality Care Properties to Welltower for $20.75 per share in cash, with Welltower teaming up with ProMedica Health System, which will own the HCR ManorCare operating business, lease the facilities from Welltower, and also own the home health and hospice business. Shareholders also approved the compensation packages for QCP’s executives but at a much smaller margin of 1.14-1.0. Although we have not seen a closing date, we expect all the transactions to close in the next few weeks. We are sure Welltower would like to have it all wrapped up in time for the August 3 second quarter earnings calls. It will be interesting to see how the HCR... Read More »
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 »Schedule a demo
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