HHC Finance Capital Advisory Group’s Billion-Dollar Year
It was quite the year for Housing & Healthcare Finance’s Capital Advisory Group, which just about doubled its loan volume from about $510 million in 2017 (just its first full year in business) to over $1 billion in 2018. That impressive haul came from more than 60 bridge loans and credit facilities closing for skilled nursing and assisted living properties across 22 states. Isaac Haas and Neil Gamss (who was a panelist on our recent webinar about, you guessed it, bridge loans) have led the group since its inception in late-2016. Not only has their growing volume been impressive, but their transaction speed too, closing one $12 million bridge loan for a skilled nursing facility in... Read More »
What Did the Experts Say on Seniors Housing’s Occupancy Woes?
Occupancy issues have spared few senior living operators in the past year, and signs are not good for the next year either. An overactive development market and declining absorption rate made for a relatively abysmal year for census figures in seniors housing and care. With that increased competition, sales and marketing are even more crucial to the success of every community. New communities have to fill their units without the aid of resident reviews and an established local reputation. Older communities have to convince seniors why their communities are better than the shiny new competitor down the street. But how do you reach those potential residents? How do train your sales staff to... Read More »Recent Senior Care M&A Deals, Week Ending January 18, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Mainstay Senior LivingAshton Senior Living$15.75 million National Health Investors, Inc.Wingate at Silver Lake$50.3 million Agemark Acquisition, LLCWestminster Cullman & Westminster Decatur$14.5 million Partnership buyerChapel Hill & Smithfield... Read More »
Berkadia Finds a Way in Federal Way
Tim Cobb of Berkadia Senior Housing Investment Sales sold an assisted living/memory care community in Federal Way, Washington, working on behalf of the seller, Columbia Pacific Advisors. Built in 1997, the target comprises 87 units and 104 beds. It will be taken over by a joint venture involving Harrison Street Real Estate Capital and Gencare PMB. The latter is a new partnership between Gencare Lifestyle (founded by co-founder of Merrill Gardens, Leon Grundstein) and Pacific Medical Buildings (a medical office building developer based in San Diego). PMB had an existing relationship with Harrison Street, which provided 90% of the equity for both the Federal Way acquisition and a new... Read More »
KeyBank Refinances Citadel Acquisition Loan
KeyBank Real Estate Capital headed back to the Bronx to take out a previous financing they had closed for a 199-bed skilled nursing facility. Built in 1994, this facility is subject to a ground lease with an unrelated third party. It was acquired a number of years ago by the borrower, Citadel Care Centers, thanks to a term loan arranged by KeyBank. Now, John Randolph, Henry Alonso and Brandon Taseff have arranged a $33 million HUD refinance, which includes $500,000 for repairs and improvements to the property. The loan came with a 35-year, fully amortizing term. Read More »
Greystone Goes Big on Long Island
A huge skilled nursing facility on Long Island, New York just refinanced through HUD, with the help of Fred Levine of Greystone. Totaling 588 beds, this facility provides clinical care, physical, occupational and speech therapies, amputee rehabilitation, and pulmonary, ventilator, cardiac and memory care. It also received multiple significant renovations to its five inter-connected buildings. In June 2016, the borrower had obtained a high-leveraged bridge loan also from Greystone to finance its purchase of the facility. To take out that loan, Mr. Levine arranged $78.53 million in HUD financing, with a 30-year term and amortization schedule. Read More »
BMO Harris Bank Finances Watercrest’s Latest Senior Living Development
Watercrest Senior Living Group’s latest development in Florida just obtained a construction loan courtesy of BMO Harris Bank’s Healthcare Real Estate Finance group. The community just broke ground last August and is anticipated to open in Summer 2020 with 72 independent living, 96 assisted living and 30 memory care units. Watercrest is developing the community in partnership with United Properties, after previously collaborating on a senior living development down the coast in Naples, Florida (expected to open this year). BMO arranged a $46.5 million loan to fund the Sarasota construction. Read More »
REIT Buys Boston Senior Care Property
National Health Investors picked up a senior care campus outside of Boston, Massachusetts for a purchase price over $50 million. The REIT also immediately leased it back to the previous operator, Wingate Healthcare, for a 10-year term with three 5-year renewal options and an initial annual lease rate of 7.5% plus annual fixed escalators. Located in Kingston, this campus features three separate buildings with 34 independent living units, 69 assisted living units and 164 skilled nursing beds. Funding the acquisition with a draw on its revolving credit facility, NHI plans to spend up to $1.9 million in capital improvements over the next two years, which will be added to the lease... Read More »
The Good and the Bad of NIC’s Latest Occupancy Numbers
Fourth quarter occupancy may have been flat, but it is sure to decline in the early part of this year. We need to find new ways to deal with it. What great timing, with NIC’s occupancy and construction numbers just released for the fourth quarter, given our webinar tomorrow. Here’s the good news. Occupancy was stable in the fourth quarter, and new construction as a share of existing inventory, while still high at 6.0%, is 130 basis points off its recent high in the fourth quarter of 2017. And, at long last we seem to be reaching equilibrium between new supply and demand. The bad news is that assisted living occupancy is still low at 85.4%, and while unchanged from the third quarter, was... Read More »
Capital Senior Living’s New CEO
The day after it was announced that Kim Lody had been appointed as the new CEO of Capital Senior Living, we had the opportunity for a little one on one with her. Since she has been a director for the past four years, she was obviously well versed in the company’s issues and opportunities. But when asked why shareholders should be confident in her moving forward as CEO when she was a director during the largest collapse in shareholder value ever for the company, she had a decent response: “I wasn’t the CEO, so I had limited influence.” Well, now she is, and the buck will stop with her. The good news for shareholders is that she has a very strong background in sales and marketing, which is... Read More »Schedule a demo
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