IDB Bank Assists In Renovation Refi
An assisted living community in West Palm Beach, Florida is getting renovated and repositioned thanks to financing provided by Israel Discount Bank of New York (IDB Bank). Lisa Silvers structured the $11.0 million loan to also include a future advance of $2 million upon completion of the renovation and subsequent stabilization. With the financing, the borrower, Florida-based Gold Standard of Care, plans to consolidate a number of units into larger floorplans (with higher rents, of course). Of the total loan amount, about $2.0 million will be for renovations and the remainder will pay off the previous loan on the property. The five-year loan has an interest-only period, and the LIBOR-based... Read More »
Active Adult Community Gets Freddie Mac Financing
A high-end active adult community located in an affluent Denver, Colorado suburb successfully refinanced with the help of Leon McBroom of HFF. Working through Freddie Mac’s CME Program, Mr. McBroom secured $21.4 million in 10-year fixed-rate financing, which will be serviced by HFF. The property was developed in 2014 by McBroom Company and managed by The Avenues Company. It features 70 units and 20 cottages (combining for 98% occupancy), along with a host of luxury amenities like an outdoor kitchen, fitness center with a yoga space and a billiard lounge. Read More »
Lancaster Pollard Secures HUD Construction Debt
Jason Dopoulos of Lancaster Pollard secured construction financing through HUD on behalf of Sunshine Retirement Living to expand its presence in southern California. Already with two senior living communities in the San Diego area, the Oregon-based Sunshine, along with Welbrook Senior Living, is working on building its first in the Los Angeles MSA. The Fountain Valley community will feature 106 assisted living and 39 memory care units when it opens in 2020. Situated about 35 miles southeast of Los Angeles, it is also ideally located next to Fountain Valley Regional Hospital, which certainly adds to the property’s appeal. With its low interest rate, the $36 million HUD loan should help... Read More »
What’s In A Bridge Loan?
On December 6, 2018, we hosted the webinar “Bridge Loans: The Hottest Lending Product for Seniors Housing & Care.” In the wide-ranging 90-minute discussion, our panelists touched on some of the key details anyone interested in obtaining bridge financing should know. Here they are, exclusively for The SeniorCare Investor subscribers: Read More »
The Battle For The Post-Acute Patient
LTACs did not look too good in a recent OIG report, but SNFs fared better. Last month we hosted a timely webinar on who was going to win the battle for the post-acute patient, when and how. The “when” is still a subject of debate, but the “who” and “how” much less so. The who is definitely leaning towards skilled nursing facilities. But part of the problem is the name, which is just one reason why providers are changing their names to transitional care, post-acute care, rehab care…anything to get the reference to “nursing home” out of the equation. How many 35-year old’s would go to a nursing home for their post-op rehab? Not many. Transitional care? No problem. The “how” is a no-brainer:... Read More »
Brookdale Activist Saga Goes On
Here we go again. Land & Buildings Investment Management LLC is stirring up the pot with shareholders yet again after meeting with several members of Brookdale Senior Living’s board in what appears to be a very friendly meeting. Everyone would like Brookdale’s share price to be much higher than it is, and Land and Buildings is still pursuing the concept of spinning out the owned real estate assets into a new REIT using the RIDEA structure. But in a new twist, they want the best properties spun out into this REIT. They claim that it would produce $1.00 per share of cash flow (adjusted funds from operations), and that the market multiple on that would be in the mid to high teens,... Read More »
A Sign To Come?
Here’s something we may be hearing more of next year. Increased competition, lowered census and staffing issues prompted one owner of an assisted living/personal care community in Southwest Pennsylvania to retire early from the business. Built in 1965 and renovated in 1997, the 58-unit community had a history of strong profits and high occupancy until 2015 when the aforementioned trifecta of issues hit the business. Working on behalf of the seller, Joe and Jim Knapp of Marcus & Millichap’s Knapp Group and Robert Villeneuve of M&M’s Washington, D.C. office found a buyer with experience in value-add projects in western Pennsylvania. They paid $3.6 million, or $62,000 per unit, in... Read More »
BMO Secures Two Acquisition Financings
As joint venture partners TH Real Estate (an affiliate of Nuveen, the investment management arm of TIAA) and LCS continue their acquisition activity, BMO Harris Bank’s Healthcare Real Estate Finance group got in on the action and arranged acquisition financing for two of the deals. First, the firm acted as sole lender for a $14.4 million term facility for a CCRC in Palm City, Florida with 225 independent living units, 20 assisted living units and 36 skilled nursing beds. They again acted as sold lender for another $12.3 million term facility arranged for a CCRC in Essex, Connecticut with 189 independent living units (including 13 cottages) and 45 skilled nursing beds. Read More »Recent Senior Care M&A Deals, Week Ending December 7, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Hamister Real Estate Equity Fund III, LPNorthshore Senior Living$16.8 million Threestones CapitalSkilled nursing facilityN/A Not disclosed3 skilled nursing facilities$18.7... Read More »
HFF’s Sizzling Skilled Nursing Month
HFF showed its strength in the skilled nursing M&A market, closing three transactions at the end of last month. Dave Fasano sold four Florida SNFs currently in receivership to New York-based TL Management for $24 million, or $66,850 per bed. Built between 1965 and 1996, the facilities averaged 87% occupancy but operated at just a 5.7% margin on about $26 million of combined revenues. However, TL Management believes EBITDA could be increased to $3.5 million, which if true would yield a very conservative cap rate of 14.6% on the purchase price. TL, with its over-100 SNF portfolio across 10 states, will have to use all of its experience to get the job done. Mr. Fasano then teamed up... Read More »Schedule a demo
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