KeyBank Arranges Financing for Foundations Health Solutions
KeyBank Real Estate Capital secured an $11 million HUD loan for Foundations Health Solutions to pay down acquisition debt it used to buy a 150-bed skilled nursing facility in Columbus, Ohio. KeyBank had provided the original $87.5 million bridge loan, which supported the acquisition of this Columbus facility plus eight other facilities previously owned by Welltower. The facility was originally built in 1968, with renovations in 1995 and 2007. To this point, KeyBank has closed $47 million of HUD loans for the portfolio, including a $36.3 million loan for four facilities totaling 442 licensed beds located throughout Ohio. As with that transaction, John Randolph of KeyBank’s Commercial... Read More »
Contemporary Secures Another Mezz Loan
Contemporary Healthcare Capital helped finance another acquisition this month for a 50-bed skilled nursing facility in Gastonia, North Carolina. Ivy Senior Living was the borrower, obtaining both a senior loan from Millennium Bank and Alliance Bank, and a $504,750 mezzanine loan from Contemporary. The combined loans will fund the acquisition, a $200,000 working capital line of credit and $200,000 for facility renovations. This is the second acquisition mezzanine financing Contemporary has closed in the last month. In September, the firm helped affiliates of Opal Senior Living acquire a 115-bed assisted living/memory care community in Nashville, Tennessee. Opal received a $500,000 mezzanine... Read More »
Recent Senior Care M&A Deals, Week Ending September 27, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice WellQuest LivingThe Landing at Elk Grove$29.6 million CareTrust REIT, Inc.Vista del Lago$12.5 million Azria Health15 skilled nursing facilities$8 million Covenant Living Communities and ServicesInverness Village$41... Read More »
Lancaster Pollard Refinances Denver-Area Portfolio
Applewood Our House worked with Lancaster Pollard to refinance its entire portfolio of memory care communities in the Denver, Colorado market. The five memory care communities are all on the smaller side, totaling 76 units across the portfolio. They were built between 2007 and 2018 and range in size from 10 to 16 units with a mix of private and shared rooms. Applewood’s rent structure is something we don’t always see in assisted living or memory care, in that it offers a flat rate, all inclusive, pricing structure for private and shared rooms with no “add on” fees. Those extra care charges, while sometimes necessary to keep the community profitable, can often be an unwelcome surprise to... Read More »
Dwight Capital Closes Cash-Out Loan
Dwight Capital arranged a cash-out refinance for the owners of a 106-bed skilled nursing facility in Pikeville, Kentucky, paying off an acquisition loan that Dwight financed in 2018. Built in 1970 less than a mile from the 250-bed Pikeville Medical Center, the facility was previously owned by a publicly traded REIT and operated by Signature HealthCARE. It was well-maintained and over 90% occupied, but escalating liability insurance costs caused cash flow problems. A partnership between an investor and an operator emerged as the buyer, and both entered the Kentucky market with the acquisition. The facility also was subject to a ground lease owned by a group of local investors. Blueprint... Read More »
Brookdale Expands Dialysis Services at Four Texas CCRCs
Brookdale Senior Living announced that the company would be partnering with Dialyze Direct to provide on-site dialysis at four of its CCRC campuses in Texas. Two of the locations began offering the service earlier this year, but one campus in Houston will open a Dialyze Direct suite with eight chairs this week, and the other property in Austin will start the service soon. This is just one of several expansions of on-site dialysis into senior care facilities that we have seen recently. Azria Health, which just bought a portfolio of 15 skilled nursing facilities in the Midwest from Senior Housing Properties Trust, also recently partnered with Concerto Renal Services to offer dialysis to its... Read More »
Spectrum Retirement Communities Gets New Investment Partner
We heard many at the NIC Conference earlier this month talking about the abundance of capital and new capital providers in the senior living market. Some were optimistic, while others were lamenting it. Well, another alternative investment management firm has entered the senior living market. Oak Brook, Illinois-based Inland Private Capital Corporation (IPC) announced it has entered into a strategic relationship with Spectrum Retirement Communities, LLC to acquire, own and manage senior living communities across the country. Phil Shapiro Senior Living, LLC serves as IPC’s senior living advisor and was key in initiating and cultivating the relationship between them and Spectrum. IPC, which... Read More »
CareTrust REIT Adds Escondido Community to Portfolio
San Clemente, California-based CareTrust REIT acquired a memory care community in nearby Escondido (located about 20 miles north of San Diego) and retained the in-place operator Bayshire, LLC, which has managed the property for the seller since 2016. Originally built in 1981 as a skilled nursing facility, the property was converted to memory care and extensively renovated in 2015. It now includes 96 licensed beds in 52 units. Including about $100,000 in transaction costs, the REIT paid $12.6 million, or $242,300 per unit, for the recently-renovated community. Cushman & Wakefield’s team that includes Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker, Tim Hosmer and Bailey Nygard... Read More »
SunTrust Bank Refinances Runk & Pratt Community
Runk & Pratt, a family-owned operator of senior living communities in western Virginia, refinanced its 171-unit independent/assisted living community in Lynchburg with the help of SunTrust Bank. This isn’t the first transaction between the two. SunTrust had funded Runk & Pratt’s acquisition of the property in 2016 with a short-term bridge loan. Built in 2014, the community has been historically well occupied and generates strong cash flow. Taking out the acquisition debt, it received a $30.9 million Fannie Mae loan, with no recourse, a fixed rate for 10 years and a 30-year amortization schedule. Joshua Hausfeld handled the transaction for SunTrust. Just a year earlier, SunTrust... Read More »
Acquisition Market Remains Strong
Transaction volume is still running ahead of last year’s record, fueled by liquidity and low interest rates. As of yesterday, seniors housing and care acquisition volume was still running ahead of last year’s record-setting pace. We are well over 300 transactions so far in 2019, and September is already looking to beat last year’s September, with several days to go. The question still remains, how long can this go on? The simple answer is as long as liquidity in the market remains at current levels. And that liquidity will remain as long as returns stay higher than alternative investments. They have, and low interest rates have not hurt. The other question is, when will the slow... Read More »Schedule a demo
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