PGIM Arranges Refinance of Watercrest Community
One of Watercrest Senior Living Group’s success stories just reached stabilization and refinanced with the help of Chris Fenton of PGIM Real Estate Finance. Developed at an approximate cost of $17 million, or $191,000 per unit, in Sebastian, Florida, the 89-unit property opened in May 2016 and shot out of the gates in its lease-up, reaching 62% occupancy by August of that year. Since then, the community has fully stabilized and became eligible for permanent financing. To refinance an existing bank loan from Community & Southern Bank (now Bank of the Ozarks), PGIM originated a $10 million Freddie Mac loan, with a variable rate, seven-year term and 20 years of amortization at... Read More »
Foundations Health Solutions Refinances SNF Portfolio
KeyBank Real Estate Capital is not slowing down after they claimed the top spot for HUD Lean volume in FY2018, going back to a portfolio of four skilled nursing facilities to arrange a HUD refinance. The facilities were part of a nine-SNF portfolio acquired by Foundations Health Solutions with the help of an $87.5 million bridge loan arranged by KeyBank. These four facilities are located in Ohio and were built between 1961 and 1984 with 442 total licensed beds. The $36.3 million HUD loan, which was facilitated by John Randolph, Henry Alonso and Brandon Taseff, will pay down a portion of that debt. Read More »
The Ensign Energizer Bunny
We are always looking for a glimmer of optimism in the quarterly earnings reports for publicly traded seniors housing and care companies, and sometimes we find it. One only has to look at The Ensign Group, which has a mix of skilled nursing and seniors housing. Everything seems to be moving up at Ensign. GAAP earnings per share up 40.7% year over year. GAAP net income up 46.8%. Skilled nursing occupancy up 165 basis points. Same-facility SNF occupancy up 50 basis points. They are buying, they are turning around properties. They are the counter argument to those who say you should not be publicly traded in this sector. They seem to be thriving (most of the time), and nobody quite... Read More »
Capitol Seniors Housing’s Premium Sale
Only three years after buying a senior living community in Park Ridge, Illinois (Chicago MSA), Capitol Seniors Housing (CSH) is selling at a premium. Originally built as a hotel in 1962 but converted to senior living in 1986, this property includes 154 units of independent living, assisted living and memory care. CSH had purchased it in September 2015 from a local family for a price of $32 million, or about $220,700 per unit, at a cap rate of 7.2%. Occupancy was in the mid-90s at the time, and the community operated at a 25% margin on $9.2 million of revenues. CSH planned to invest up to $5.5 million in renovations and complete a memory care conversion previously started by the seller.... Read More »
Greystone’s Bridge to HUD
Greystone’s Fred Levine successfully refinanced two skilled nursing facilities in Jackson, Tennessee. Greystone had actually provided the bridge loans used to fund the facilities’ acquisition in 2016 by a private Tennessee-based individual. The buyer had been leasing the facilities but exercised their right of first refusal to snap up the properties. The 160-bed facility sold in 2016 for $14.6 million, while the 64-bed facility was $4.6 million. Two years later, the owner refinanced the properties with $20.9 million in fixed-rate HUD financing, with a 30-year term and amortization period. Read More »
Skilled Nursing Portfolio Acquisitions Financed by KeyBank
KeyBank Real Estate Capital arranged acquisition financing for two skilled nursing portfolios in Nevada and Texas. A joint venture between Capital Senior Ventures and BlueMountain Capital Management was the buyer in both transactions. In the larger deal, Grant Saunders and Peter Trazzera provided a $105.8 million bridge loan to fund the purchase of 12 skilled nursing facilities and to refinance the existing debt of four SNFs located throughout Texas. In total, the 16 facilities have 1,924 beds. Then, Messrs. Saunders and Trazzera arranged a $21.9 million loan for the acquisition of three skilled nursing facilities and 359 beds in Las Vegas and Carson City, Nevada. Read More »
Lancaster Pollard Rocks Refinance for SanStone
Lancaster Pollard was brought in by North Carolina skilled nursing provider SanStone Health & Rehabilitation to reorganize its capital stack. Kevin Oakley acted as lead banker and, with the help of Gerald Swiacki and Joe Munhall, helped close a series of transactions resulting in more than $120 million in financing for the borrower. That included arranging a new commercial banking relationship as the syndication agent and structuring HUD debt. All of this will help address future capital needs, including funding acquisitions, modifying ownership interests and increasing borrowing capacity to mitigate risk. Read More »
Does The Election Matter?
With Tuesday’s mid-terms, will there be any impact on seniors housing and care? First of all, this mid-term election matters in many ways. But I keep on getting asked whether it will have much of an impact on the seniors housing and care sector. My gut response is no, at least on the federal level. Over 30 years, I have never really heard that the sector has performed better or worse depending on which party controlled Congress. On the local level, however, it is a different story, where local voting and referendums can really have an impact on the sector. Take Maine, for instance. They had a vote yesterday to tax Mainers with income above $128,400 (apparently, 1.6% of the... Read More »
Evans Senior Investments Shows Variety In Latest Closings
Evans Senior Investments displayed some variety in its two latest transactions. First, the firm closed the sale of a 30-unit/60-bed memory care community located about five miles southwest of Las Vegas, Nevada. Built in 2010, the community was formerly owned and operated by Genesis Healthcare, and although it had 100% private pay residents, occupancy was just 61% at the time of listing. A private equity firm with a local footprint around Sin City saw the opportunity to add value ended up buying the community for $2.1 million, or $70,000 per unit, bringing in Pacifica Senior Living to operate. Switching gears slightly, Evans Senior Investments then worked to procure a new tenant for an... Read More »
HHC Finance’s Bridge Lending Program Takes Off
Housing and Healthcare Finance’s (HHC Finance) Capital Advisory Group closed an impressive number of bridge loans lately, totaling $185 million across 12 transactions in the last several months. The team, led by Isaac Haas and Neil Gamss, spread out across the country to get the deals done in North Carolina, California, Ohio, Pennsylvania, Maryland, Florida, New York and Alabama. The largest transaction involved a two-skilled nursing facility portfolio in California receiving a $50 million loan. HHC Finance’s Elan Magence joined Messrs. Haas and Gamss to arrange the transaction. On top of that busy period of bridge lending, HHC Finance closed an $11 million HUD refinance of a 100-bed... Read More »Schedule a demo
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