NHI Primes For Investments
It looks like National Health Investors may be in the buying mood again, as the REIT just entered into a $300 million bank term loan with a five-year maturity from a syndicate of banks. Proceeds from the new loan were used to reduce the outstanding balance on NHI’s $550 million revolving credit facility and to increase NHI’s available liquidity for making new investments. The terms of the loan are substantially consistent with the REIT’s existing credit facility and term loan dated August 3, 2017, and comes with an initial variable interest rate of 30-day LIBOR plus 125 bps. Wells Fargo Bank acted as Administrative Agent, while Bank of America, N.A., KeyBank National Association and... Read More »
New Details On Locust Point Capital Fund
Newly formed Locust Point Capital closed out its first debt fund with $312 million invested, or $62 million more than what was originally targeted. Three of the four founders came from Contemporary Healthcare Capital, a well-known group that provides all sorts of debt options to the seniors housing and care sector. But unlike CHC, Locust Point has raised its funds from institutions, primarily pension funds, insurance companies and endowments, among others, with a smattering of high-net worth investors. The new fund, Locust Point Private Credit Fund, L.P., will be investing across the spectrum, including skilled nursing, assisted living, memory care, independent living (as long as it... Read More »
Tryko Partners Picks Up HCR ManorCare Facility
Quality Care Properties divested one of its HCR ManorCare-operated skilled nursing facilities in New Jersey, with Tryko Partners stepping in as the buyer. Built in 1974, the 106-bed facility is located in New Providence (Newark MSA), which will complement Tryko’s existing strong presence in central and northern New Jersey. The facility is located close to six area hospitals, but currently just two providers refer about 90% of admitted patients. With services that include post-acute, short-term rehab and long-term residential care, it also maintains a five-star rating from CMS. Even with the already-high rating, Tryko will still immediately launch into a multi-million-dollar upgrade of the... Read More »
Healthcare Transactions Group’s Home-Field Advantage
Maryland-based Healthcare Transactions Group just closed the 23rd senior care transaction in its home state. For an undisclosed price, the firm arranged the sale of a 118-bed skilled nursing facility in Sykesville (about 20 miles northwest of Baltimore). Formerly owned by a New Jersey-based private owner, the target was previously leased to Transitions Healthcare and operated under the Transitions brand. It was an older building, but the new owner plans to invest in major physical plant upgrades. That new owner turned out to be a Maryland-based owner/operator that operates seven other buildings in the state. Read More »
CCRC Expands With Help From HJ Sims Financing
A not-for-profit CCRC in Sandy Spring, Maryland that has been in business since 1962 was looking to expand and obtained financing from HJ Sims to fund the project. On a 62-acre campus, the community (called Friends House) features 32 independent living units and 75 low-income rental apartments, 82 comprehensive care beds and 21 assisted living units. However, ownership saw the need to replace the low-income apartments with a new 80-unit low-income housing building in a joint venture with Homes For America (HFA). But that’s not where the future changes stop. The CCRC will also renovate and expand the existing communal building, remove two vacant cottage units, and develop 14 new cottage... Read More »
Atrium Health Suffers
The New Jersey-based skilled nursing and assisted living operator puts 33 of its properties into receivership. Not good for the lenders. I am sure you have heard by now about Atrium Health and Senior Living placing 33 of its properties into receivership this week. This includes all their Wisconsin properties and one Michigan facility, but appears to leave out its 12 buildings in New Jersey. Atrium operates both skilled nursing and assisted living, and only nine assisted living communities in Wisconsin were placed in receivership; the remainder were SNFs. The receiver has hired Health Dimensions Consulting to operate them during the receivership until it is decided whether to split them up... Read More »
Mini Memory Care Community Sells Outside Richmond, Virginia
A small memory care community in the Houston, Texas area sold to Capital Square 1031, a national real estate investment and management company based in Glen Allen, Virginia. With only 16 beds and 10,000 square feet, the newly constructed community was previously owned by Verdad Real Estate, a national single-tenant real estate development company, and is 100% leased for 15 years to Texas operator Village Green Alzheimer’s Care Home. No purchase price was disclosed, but Bill Pyle of Edge Realty Capital Markets represented the seller, and Bear Real Estate Advisors represented the buyer in the transaction. Read More »
Friendly Sale Followed By HUD Financing
Cambridge Realty Capital Companies arranged $28.4 million in HUD financing for a portfolio of three skilled nursing facilities in Ohio, but the road to closing was more complicated than usual. Located in the towns of Niles and Milan, these facilities were put up for sale by their long-time real estate owner/operator. However, during the marketing period, operations declined, and the owner brought in a new operator under a long-term lease. It was the lessee’s goal to eventually own the facilities, and through its ongoing relationship with them, Cambridge helped arrange a friendly sale. Now, with two 35-year terms and one 33-year term, Cambridge structured a $6.08 million loan, a $6.4... Read More »
Family Finds Freddie Mac Financing Through CBRE
Working on behalf of The Powell Family, an active developer/operator of single family, multifamily, retail/commercial and seniors housing in the Seattle, Washington area, Mark Capeloto and Aron Will of CBRE arranged Freddie Mac financing for their 167-unit senior living community in Federal Way. Situated on 12.87 acres, the community offers independent living and assisted living services in two main buildings and 30 cottages that feature one- and two-car garages. The property is also located less than one mile from St. Francis Hospital, part of one of the largest health care systems in the Puget Sound area. CBRE structured a $21.6 million floating-rate loan, with a seven-year term and 36... Read More »
Strawberry Fields REIT Enters Arkansas Market
Strawberry Fields REIT entered the state of Arkansas in a big way, acquiring nine skilled nursing facilities in the state from one seller, plus one Kentucky facility from another. Totaling 1,004 beds, the facilities were owned by The Skyline Group, which acquired them from AdCare Health Systems, Inc. in October 2016 for $55 million, or 54,780 per bed, after leasing them for several months at a rate of $450,000 per month. The facilities are currently profitable, but report occupancy in the low-70s, with a 15-20% quality mix, and they are now being sold for $37.975 million, or $37,800 per bed. Strawberry Fields REIT will brand these facilities under the “Waters” brand and will add them to a... Read More »Schedule a demo
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