Capital One Closes A Big One
Capital One flexed its banking muscles when it provided just over $551 million in financing to Kayne Anderson Real Estate Advisors (KAREA) for its purchase of Sentio Healthcare Properties. Announced back in May, the high-profile acquisition included all 34 of Sentio’s seniors housing and medical office properties, and was valued around $825 million. To fund the deal, Capital One provided KAREA a $251 million bridge loan and a $300 million Freddie Mac seniors housing revolving credit facility. We imagine a lot of time was spent on this large, complex transaction. Well done. Another Capital One deal came across the wires, albeit a little smaller than the KAREA deal. Joshua Rosen originated a... Read More »
Ray’s Latest Racine Closing
Ray Giannini of Marcus & Millichap facilitated the sale of a county-owned skilled nursing facility in Racine, Wisconsin (about 30 miles south of Milwaukee). Purpose-built in 1986, the 200-bed facility was 85% occupied, which is above average for the SNF industry, and features a good Medicare and private pay census. But, it was operating at a loss at the time of closing. The purchase price came to $10 million, or $50,000 per bed. For more information on this deal, check out the October issue of The SeniorCare Investor early next month. Read More »Go West, Young Broker
The team at Blueprint Healthcare Real Estate Advisors continued their successful year, completing two transactions on the West Coast. First up, Chris Hyldahl, Gideon Orion and Amy Sitzman represented a California-based regional owner/operator in its sale of two Arizona skilled nursing facilities to The Ensign Group. Included in the purchase was an 88-bed facility in Mesa built in 1978 and renovated in 2011, and a 115-bed facility in Tucson that was built in 1965 but expanded in 1974. Combined, they were approximately 68% occupied. Ensign ended up paying $15.25 million, or about $61,250 per licensed bed, for both the real estate and operations of the facilities. Its Arizona-based operating... Read More »
Monticello Asset Management’s Newest Faces
Monticello Asset Management had a productive summer, hiring three experienced professionals to its staff. First off, Steven Caligor will be joining the firm as a Senior Managing Director in charge of product development, expanding banking relationships and assisting with credit and risk management. With nearly 30 years of experience, Mr. Caligor comes to Monticello most recently from Bank Hapoalim, where he led the Commercial Real Estate, Food and Commodities, and Corporate Finance loan portfolio teams. He holds an MBA in Finance and Investments and a BA in Marketing and International Business from George Washington University. Monticello also hired Corley Audorff, an eight-year veteran of... Read More »HJ Sims and HUD Plus
Affinity Living Group recently purchased a 78-unit assisted living/memory care community in Winter Park, Florida (Orlando MSA), with the help of some extra funding arranged by HJ Sims. Sims utilized its HUD Plus program to arrange a $3 million subordinate loan, which supplements Affinity’s existing bridge loan, increases its leverage to 79% and will remain outstanding after the expected HUD take-out. The acquired community was built in 1999 originally with 60 units, but an 18-unit expansion was completed in 2008. It last sold in 2005 for $5.8 million to a financial buyer, who partnered with the existing manager. However, Affinity will take over operations, with a focus of improving... Read More »
REIT Financing: RIDEA or Sale/Leaseback
As healthcare REITs get ready to invest in 2018, it will be important for owners to know whether to go the traditional sale/leaseback route, or the newer RIDEA structure. Many of you have noticed that the volume of healthcare REIT financing has been lower the past couple of years, especially for those REITs that have been restructuring their portfolios. That is going to change. I suspect we will be seeing a turnaround in activity next year, and when that happens, it is best to be prepared. But prepared for what? Will customers want to continue with the traditional sale/leaseback structure that has been around for more than four decades? Or maybe a different twist on the old product? What... Read More »Cushman & Wakefield Has Banner Month
Last week we reported on the sale of a CCRC in North Carolina where Cushman & Wakefield represented the seller. Now, the C&W Boston office has closed on two additional senior living properties in high-value transactions. The first one involved the sale of a 290-unit retirement community in Lantana, Florida, known as Carlisle Palm Beach. It has 144 independent living units, 90 assisted living units and 56 memory care units with average occupancy above 90%. It was built in 1999 and converted in 2014 to a full continuum IL/AL/MC community. Over the past five years the sellers spent $10 million converting IL units to AL. The sellers were affiliates of Senior Lifestyle Corporation and... Read More »
Mozart Healthcare Hits a High Note
Mozart Healthcare is on the move in the Old Northwest. Last month, the company acquired a 145-unit mid-rise independent living community last month in Allen Park, Michigan (Detroit MSA), in a transaction led by Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors. Now, the firm, which is headed by Benjamin and Archie Shkop, has added two more skilled nursing facilities in Ohio to its portfolio. These recent deals were the fifth and sixth acquisitions for Skokie, Illinois-based Mozart, which was founded in 2016. The Ohio facilities were built in the 1990s in major metro areas and feature good physical plants. They were, however, deemed to be non-core by the... Read More »Where There’s a Will, There’s a Way…To Construction Financing
Aron Will of CBRE brought together a joint venture between Harrison Street Real Estate Capital and Belmont Village Senior Living, and a national bank to arrange construction financing for the development of a brand-new assisted living/memory care community in Lincoln Park, Illinois. The project got its start in 2016, when Cain Brothers arranged the sale of a property adjacent to the former Children’s Memorial Hospital campus, which is currently undergoing a $350 million redevelopment run by McCaffery Interests and Hines Interests. The massive project will include 540 apartments in two 11-story buildings, 60 luxury condos and 162,000 square feet of retail space. Across the street, however,... Read More »
Solvere’s Southeast Strategy
Through a number of partnerships, Solvere Senior Living expanded its presence in three states by taking over management of three to-be-built assisted living/memory care communities in Florida (2) and Texas, and two existing independent living communities in Virginia. New Jersey-based Solvere has steadily grown its portfolio since its launch in 2009, with five senior living communities in five states (Virginia, West Virginia, Maryland, New York and Indiana) that it operates as either a third-party manager or an equity partner. However, by the end of 2018, Solvere expects to add five more properties to its portfolio. Lindell Investments, Inc. partnered with Solvere to develop the communities... Read More »Schedule a demo
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