Berkadia’s Big End-of-Year Closing
Berkadia headed out of 2018 with a bang, closing a credit facility that totaled more than $200 million. Secured by 19 senior living communities owned by Capital Senior Living Corporation, the facility came with both fixed and variable interest rates, a 10-year term and 30-year amortization schedule financed through Fannie Mae. Approximately $150.8 million of the debt had the fixed rate and over $50.2 million featured the variable rate. Berkadia’s Lisa Lautner originated the transaction, closing right before Christmas. Read More »
The Ensign Group Is At It Again
The Ensign Group started off 2019 with a skilled nursing acquisition right in its wheelhouse. Located in southwest Utah, in the town of Cedar City, this 120-bed skilled nursing facility was just 50% occupied at the time of sale. That kind of turnaround opportunity seems to be Ensign’s specialty. Indeed, occupancy at its last couple of skilled nursing acquisitions ranged from 67% to 70%. So, they’ll hope to use that experience turning operations around at the Utah facility. Read More »
Omega Healthcare Investors Snags Small REIT
Omega agrees to buy MedEquities Realty Trust in a cash and stock deal worth $632 million plus assumed debt. I hope everyone had a good break these past few days. Everyone, that is, except the folks at Omega Healthcare Investors and MedEquities Realty Trust (MRT). Omega announced today that it is buying MedEquities in a stock and cash transaction valued at about $633 million plus $265 million of net debt. Shareholders are receiving a very healthy 50% premium. MRT owns 34 facilities in seven states with 2,755 beds run by 10 different operators. About 75% of the beds are skilled nursing with some assisted living, and the remainder is a smattering of LTACs, IRFs, behavioral health and an MOB.... Read More »
REIT Buys Three Repositioned SNFs
Improving occupancy and operating margins at a portfolio of three Pennsylvania skilled nursing facilities caught the attention of a REIT buyer and their experienced operating partner, which purchased the portfolio from a private investor. Located in the Scranton/Wilkes-Barre market, the portfolio consists of 416 licensed beds. Things were looking up for the facilities, which were recently substantially renovated to attract a higher quality mix from six regional hospitals. Combined, they were 85% occupied and generated $34 million in revenues, with a continuously improving operating margin. An operator with a considerable presence in Pennsylvania took over the facilities’ operations and... Read More »
CBRE Secures HUD Construction Financing in Illinois
Illinois’ Lake County is getting a new post-acute/transitional care facility, helped by a $25.92 million HUD construction loan arranged by Aron Will and Mark Tran of CBRE. Innovative Health obtained the 40-year loan, which featured an 18-month construction period and was provided through CBRE’s HUD 232 direct lending program. Innovative’s new 185-bed facility will replace the previous county-owned skilled nursing facility, at a development cost of approximately $30 million, or $162,200 per bed. The new location (expected to open in mid-2020) sits within five miles of Advocate Condell Medical Center, a 215-bed medical campus that was named a “Best Hospital” by U.S. News & World... Read More »Cambridge Replaces Bridge Loan at Illinois Skilled Nursing Facility
Cambridge Realty Capital Companies returned to Glenview, Illinois to retire the original bridge loan it provided for a 144-bed skilled nursing facility with a HUD refinance. The previous financing, consisting of a $20 million bridge loan and a $1 million asset-based loan, was provided in November 2017 to an Illinois LLC to acquire the facility, which provides skilled nursing, wound, colorectal and respite care, along with a Progressive Supranuclear Palsy support group. Now, just 13 months later, Cambridge is refinancing the facility with a $21.2 million HUD loan, with a 35-year term. Read More »Recent Senior Care M&A Deals, Week Ending December 28, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice O&M Investments, LLCSanta Fe skilled nursing facilityN/A Private REITSkilled nursing facilityN/A Aedifica SA93 care homes$571.3... Read More »
Blueprint’s Latest Transaction Trio
It’s proving to be a banner year for Blueprint Healthcare Real Estate Advisors, which has already announced 63 transactions closed, and counting. That not only beats Blueprint’s 2017 total of 53 transactions but is just one off of the previous record-high (Marcus & Millichap’s 64 transactions closed in 2015), according to our yearly broker rankings. We still don’t know the final count, but after just five years in business, that is an impressive rise. The last three deals saw seven more properties sold on the year. First, Ben Firestone and Michael Segal helped Diversicare Healthcare Services sell three skilled nursing facilities in Kentucky for $18.7 million, or $74,200 per bed.... Read More »
MidCap Making Moves
More than a year after opening a 167-unit senior living community in Lexington, Kentucky, Atlas Senior Living executed on a purchase option for the property thanks to a $35 million floating-rate loan provided by MidCap Financial. David Sharp, working out of MidCap’s Chicago office, arranged the short-term loan and expects to take it to agency after a seasoning period. The purpose-built community is already near stabilization after opening in August 2017. Atlas had leased it from the developer/owner, DMK Development, which built the community for approximately $26 million, or $155,700 per unit. With the financing, Atlas received working capital for the continued stabilization and will be... Read More »
NHI Finances CCRC Expansion Project in Phoenix
The Phoenix, Arizona market has been a hotbed of senior living construction activity thanks to its rapidly growing retiree population, and a large CCRC catering to high-income residents is looking to capture part of that growth with an independent living expansion. Sagewood already has 316 independent living units, 44 assisted living units, 28 memory care units and 78 skilled nursing beds. Demand for independent living was strong (with the IL units fully occupied in 2018), so ownership decided to build a Phase II, which included 101 more units. It was clearly the right decision, as 96% of the new IL units are already presold, with entrance fees projected to average $700,000. Recently, the... Read More »Schedule a demo
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