Greystone Refinances Queens Facilities
Greystone seems to have specialized in Queens financings, as the firm went back to the New York borough to close two more HUD loans for a couple of large skilled nursing facilities. This summer, Fred Levine, working out of the firm’s Monsey, New York office, arranged a $60 million HUD refinance for a 302-bed SNF and a $29 million HUD loan to refinance a 227-bed facility. He didn’t stop there, however, and originated nearly $55 million in HUD financing for two other SNFs. First, Mr. Levine originated a $21.92 million loan for a 298-bed facility that offers short-term rehab, long-term care, bariatric weight loss services (a specialized 90-day in-patient program with both counseling and... Read More »
Love Funding Lends a Hand
Love Funding and a family-owned care provider continued their successful partnership together, with Love helping the business refinance their assisted living community in Toms River, New Jersey. With 35 years of experience developing and operating senior care communities in New Jersey, the family has worked with Love for some 15 years. It opened its 79-unit Toms River community in 2002 and first refinanced it through HUD in 2006. Now, the community has refinanced again, with Love’s Laura Saull-Smith originating an $8.05 million loan that features a 35-year term and lower interest rate. Read More »Recent Senior Care M&A Deals, Week Ending October 16, 2017
Check out our recent senior care transactions! Long-Term Care AcquirerTargetPrice Investment GroupCherrywood Pointe of Savage$22.25 million Pyramid Healthcare ManagementEtowah Landing & River Towne Center$12.73 million ImmanuelClark JearyN/A Green Courte PartnersVerena at the Reserve$24... Read More »NIC MAP Q3 Occupancy Results Fall Short Of Expectations
In more normal times, whatever that may be, the third quarter is supposed to be a good one for occupancy increases, perhaps the best quarter of the year. Not so in the past three years, however. NIC MAP has reported yet another slow month for seniors housing occupancy, which does not bode well for the rest of the year or for early 2018. The modest (10 basis points) increase in assisted living occupancy, combined with the modest decrease (-10 basis points) for independent living, does not bode well for the fourth quarter, when recent weather-related events will surely have a negative impact. Following that will be the first quarter flu season problems, which in 2017 lasted well into the... Read More »Room To Expand In Port St. Lucie
Senior Living Investment Brokerage’s Brad Clousing successfully sold a 36-unit assisted living community in Port St. Lucie, Florida, that has plenty of room for expansion. Seizing that opportunity was a South Florida-based owner/operator, which acquired the community for $3.18 million, or $88,300 per unit, with an 8.0% cap rate. The seller was a developer who was looking to exit operations after relocating to Minnesota. That said, they left the 17-year old community in fine shape, with 97% occupancy and a 23.5% operating margin on about $1.075 million of revenues, which could still be improved. There is the opportunity to expand with an additional 24 units (36 beds) of memory care, as well... Read More »
Capital One In Oak Brook
A skilled nursing facility in Oak Brook, Illinois (Chicago MSA) that has undergone several changes in recent years refinanced its debt with Capital One. Built in stages from 1971 to 1989, with a therapy gym constructed in 2007, the facility is currently owned by a private owner/operator with other properties in the state. A number of semi-private units were recently converted to privates in order to attract Medicare and private pay patients, and as a result, the facility currently operates at 114 beds, despite being licensed for 156 beds. To refinance its debt, as well as fund project-related costs, capital expenditures and working capital related to lease-up and stabilization, the owner... Read More »
Pyramid Healthcare Management Enters the Skilled Nursing Market
There’s a new entrant to the skilled nursing market. Northeast-based Pyramid Healthcare Management is a recently formed provider, run by two principals in New York and a Tennessee-based principal with operating experience. That will come in handy with the company’s first acquisition for two skilled nursing facilities in Georgia. Both built around 1970, these facilities are considered to be “value-add,” and are being strategically divested by the publicly traded REIT owner. The 100-bed facility in Rome and the 210-bed facility in Columbus combined for 81% occupancy (just below the national average), with a quality mix at about 20%. And while they brought in approximately $15 million in... Read More »MidCap Financial’s On A Mission
MidCap Financial is back in the news, having provided a $17.5 million bridge-to-HUD loan to an assisted living/memory care community in Reno, Nevada. The three-year, floating-rate loan will take out construction debt and recapture equity in the property, which was developed in 2016 with 116 total units. Lease-up was quick, reaching 88% occupancy within a year of opening. Mission Senior Living, based in nearby Carson City, owns and operates the community, along with four others in Oregon, Nevada and Arizona, and a couple more in the development pipeline. Read More »
Who Is Investing In Skilled Nursing Facilities?
Despite reimbursement pressures and dropping occupancy levels, investment demand for SNFs remains high. But why? Do you want to find out who is investing in skilled nursing facilities and why? Perhaps you may be asking, who would invest in the SNF sector today when reimbursement pressures are growing, labor shortages are hurting, occupancy levels are dropping, and costs in general are rising faster than reimbursement? Actually, a lot of companies are investing in the sector. In fact, in the third quarter, 46% of the targets in the M&A market were skilled nursing facilities or portfolios. And the third quarter was not particularly unusual in this regard. The market remains quite vibrant... Read More »
CBRE Sells A Second First Centrum Independent Living Community
CBRE sold another First Centrum independent living community in Virginia, a couple of years after selling the developer’s 118-unit Glen Allen (Richmond MSA) community for $25.88 million, or $219,280 per unit. The latest deal featured a 120-unit community in Williamsburg. Built in 2010 by First Centrum, it features a range of unit options, from 660- to 940-square foot one bedroom units to 880- to 1,267-SF two-bedroom suites. Current asking rents start at around $2,200 for the one-bedrooms and go up to about $2,900 for two bedrooms. Operations were strong, with a near-50% margin, and it was well-occupied, at 94%, which was certainly helped by the property’s location near historic Colonial... Read More »Schedule a demo
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