Live Oak Bank Reports Lively Quarter
Live Oak Bank was hard at work in the third quarter, closing three loans on behalf of senior care clients across the country. First, on behalf of a joint venture between Smith/Packett and RSF Partners, the lender closed a $6.2 million commitment for a conventional refinance of a 136-bed skilled nursing facility in Parksley, Virginia (Eastern Shore). Smith/Packett had originally acquired the community from a local hospital in 2017, bringing in Saber Healthcare to operate the property under a lease agreement. In the last couple of years, the firm has invested millions in renovating the property. And now, the time has come to refinance. Live Oak then closed a $3.3 million SBA 7a construction... Read More »
Lancaster Pollard Continues Its HUD Lean Activity
Fresh off a frankly unbelievable year in the HUD LEAN program, with over $903 million in closings across 78 transactions, Lancaster Pollard wasted no time in arranging a refinance for a pair of Oregon senior care facilities. Jason Dopoulos led the way on the transaction on behalf of the borrower, Sapphire Health Services. The $15.2 million loan is taking out debt that was originally used to acquire the facilities, both of which treat patients with specialized brain injuries across 67 total units. In addition to refinancing all outstanding debt, the loan will also allow Sapphire to invest in some facility repairs. Read More »
Assisted Living M&A Market
Despite many headwinds, the assisted living acquisition market remains vibrant with high prices and no shortage of buyers. Find out how they are dealing with the issues of aging properties, census and labor in this dynamic webinar. Prices paid in the assisted living M&A market remain high, despite census, labor and demand headwinds. Obviously, low interest rates and plenty of equity capital have helped maintain current pricing levels. But buyers, and sellers, are facing many issues right now, and into the future. Despite all the new development during the past five or more years, the acquisition market is filled with older assisted living communities, and the ones built in the 1990s... Read More »
Brookdale Settling in for the Slog
Now that Land & Buildings has ended its proxy fight to get former HCP, Inc. CEO Jay Flaherty on Brookdale Senior Living’s board of directors, it is apparent that Brookdale management can now face the long, tough slog to enhance operations, census and cash flow, the old-fashioned way. Unfortunately for shareholders who invested at much higher prices than the current levels, the wait may be a long one to get back up to breakeven. It is those newcomers to the stock that may get impatient, again, for management to do something as the share price heads higher. Right now, at $8.48 per share, it is 41% higher than at the beginning of June, and 15% higher than three weeks ago. Progress. We... Read More »
CBRE Returns for Two More Financings
The closings keep on coming for the team of Aron Will, Austin Sacco and Tim Root from CBRE National Senior Housing, which just announced two financings totaling nearly $50 million. The team first arranged $4 million in supplemental financing on behalf of Chicago Pacific Founders (CPF) for its 160-unit senior living community in Las Vegas, Nevada. Two years ago, CBRE had originated the original $13.5 million in acquisition financing for the property. Featuring both independent living and assisted living services, the community has been operated by CPF’s subsidiary Grace Management since the deal. Provided through Fannie Mae, the non-recourse loan came with a seven-year, fixed-rate term and... Read More »
New York Owner Nabs Nashville-Area SNFs
A New York-based national owner hired Blueprint Healthcare Real Estate Advisors to successfully close the sale of two of its skilled nursing facilities in the Nashville, Tennessee market. Executing on a confidential marketing process, Christopher Hyldahl, Gideon Orion and Kendra Gonzalez sold the facilities to a regional owner/operator looking to expand its scale in the area. Both properties offered some operational upside, averaging around 78.5% occupancy. Not bad, but certainly not good. Combined, the facilities bring in about $16.1 million in revenues, so if the operating margin is improved, they can be a real money-maker for the new owner. Easy for us to say. Read More »
HHC Finance Wraps Up HUD Fiscal Year with Two Closings
Housing & Healthcare Finance (HHC Finance) had an impressive fiscal year for HUD LEAN closings, wrapping up 26 transactions that totaled $336.4 million in volume, good enough for fifth place in both categories. It got to that level with two last closings for skilled nursing clients. The first transaction saw the firm arrange $15.8 million for a 174-bed skilled nursing facility in Georgia. Originally built in the mid-1960s but thoroughly renovated over the years, the facility was occupied in the low- to mid-90s. Then, HHC Finance went to Missouri to close a $4.7 million HUD loan for a 99-bed SNF. Also on the older side (having been built in the early 1980s), this facility was around 80%... Read More »
Good Occupancy News From NIC
There was some good news on the occupancy front, according the data just released from NIC MAP, but the assisted living sector isn’t out of the woods yet. Sequentially, seniors housing (including independent living and assisted living) saw a 30-basis point increase in occupancy to 88.0% for properties in the top-31 primary metropolitan markets. For primary and secondary markets combined, the increase was slightly more moderate at 20 basis points, sequentially, to 87.8%. When separating out the community types, independent living saw a 20-basis point increase to 90.2%, while assisted living rose 30 basis points to 85.4%. For stabilized seniors housing properties, occupancy grew to 89.8%, a... Read More »
HUD Lean Volume Hits an All-Time High
The HUD LEAN program had quite a fiscal year 2019, topping $3.7 billion in transaction volume across 288 transactions. The transaction number may be 1% down from the 292 closings in FY2018, but the dollar volume is up 3.6% to reach a record high for the program. HUD used to be the “lender of last resort,” but given the attractiveness of the debt (where else can you get a sub-3% rate for a 30+ year term?), it’s no wonder the program is growing like gangbusters. ORIX Real Estate Capital/Lancaster Pollard put their combined resources to work this year, closing an impressive $903.8 million in HUD closings, with 78 total transactions. That kind of dollar volume hasn’t been seen before, even... Read More »
NorthMarq Closes Construction Financing in Cincinnati
When at first you don’t succeed, try again. That was one borrower’s motto when a financing placement attempt fell through with one lender, so they decided to go to Noah Juran of NorthMarq to get the deal done. To fund the construction of a senior care facility on the borrower’s existing senior living campus in Cincinnati, Ohio, Mr. Juran secured an $18.2 million construction loan through Stearns Bank, plus $5.5 million of equity from an undisclosed source. The debt, which features a three-year, interest-only term, comes in at 64% loan-to-cost. That puts the development cost at $28.4 million, or $346,300 per unit. Set to open in either late-2020 or early-2021, the project will include a mix... Read More »Schedule a demo
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