CareTrust REIT Acquires Catholic Health Care Campus In California
CareTrust REIT bought a California senior care campus and brought on a new tenant in its latest transaction. Formerly owned by the Catholic not-for-profit Our Lady of Fatima, the Saratoga campus consists of 85 skilled nursing beds and 37 assisted living units, with both components well occupied. It sold for $19.0 million (which includes transaction costs), or $152,500 per bed/unit, with a roughly 12.8% cap rate. Under the management of CareTrust’s new lessee, Kalesta Healthcare, it is expected to bring in approximately $1.7 million in cash rent for each of the next two years, which thereafter escalates based on CPI. The lease term comes with an initial term of 15 years and two five-year... Read More »
Love Funding in the Last Frontier
Love Funding secured financing for the Last Frontier’s newest assisted living community. Located in Anchorage’s U-Med district (and less than two miles from three hospitals), the community is being purpose-built by Baxter Senior Living as a high-end assisted living option for Alaskans. Along with 63 private AL and 33 private and semi-private memory care units, the private pay community will feature amenities including a theater, café and pub, fitness studio and art center, with Portland, Oregon-based Paradigm Senior Living as its manager. Love Funding’s Holly Bray secured a $20.1 million bridge loan provided by Love’s parent company, Midland States Bank, with First National Bank Alaska... Read More »
Frontier Moving Forward With Financing From Columbia Pacific Advisors
Fresh off of Frontier Management’s ownership restructuring, it was business as usual for the firm, which obtained financing for its newly opened standalone memory care community in Tucson, Arizona. Columbia Pacific Advisors, though its bridge lending platform, CPIF Lending, provided the $6.225 million loan, with a 24-month interest only term and a 12-month extension, to refinance the original construction financing on the 48-unit community. The transaction allows Frontier to continue stabilizing the community and pursue its next development project. The loan, which Frontier expects to pay off within 18 months, was underwritten at a loan-to-value of 66%, but that goes down to 56% upon... Read More »
The Latino Factor
Latinos are the fastest growing worker cohort, but like all workers, they need more education and training. So do seniors housing workers, if we want to keep them. I read an interesting article from the Wall Street Journal over Labor Day Weekend titled “The ‘Latino Factor’ Will Save America’s Economy.” The gist of it was that the Latino population in the U.S. is the fastest growing cohort in the labor market and will play an increasingly important role in the economy as the baby boomers age. Seniors housing providers would probably agree, as many Latinos are care providers in their communities, and they would like to hire more of them. But the article argued that what is needed is... Read More »
Saul Closes Two Midwest SNF Sales
Ryan Saul of Senior Living Investment Brokerage closed out the month with two Midwest transactions. First, he sold a struggling SNF in St. Charles, Illinois. At 40-years old, the 120-bed facility struggled with cash flow (losing over $1 million in EBITDAR), while occupancy stood at just 58%, with a 55% Medicaid, 28% private pay/insurance and 17% Medicare census. Its Wisconsin-based private owner (who is retired and elected to sell for estate planning purposes) had leased the facility for many years to a not-for-profit. But after the recent affiliation with another not-for-profit health system, they did not want to operate long-term and decided to terminate the lease and transfer operations... Read More »
Blueprint Ends Active August With Corpus Christi Closing
Trent Gherardini wrapped up a busy month for Blueprint Healthcare Real Estate Advisors with the sale of a 204-bed skilled nursing facility in Corpus Christi, Texas. It was owned by a Florida-based owner for generations, but its lease with the existing tenant was coming to an end. Because the owner did not operate in Texas, the facility was deemed to be non-core. In addition, the facility was negatively affected by recent hurricanes, although with no major damage. It sold to a private owner/operator with a growing Texas portfolio. Read More »
Clousing Sells In The Southeast
Senior Living Investment Brokerage’s Brad Clousing helped a private fund divest an assisted living/memory care community in Marietta, Georgia that did not fit into its geographic criteria. Built in 1995, the 56-unit community was just 59% occupied and operated at a 2.5% margin on under $2.2 million of revenues. Paying $7.06 million, or $126,100 per unit, a regional operator based in Atlanta is the new owner. Then with Daniel Geraghty, Mr. Clousing sold a 96-unit independent/assisted living community in Due West, South Carolina. It too struggled with occupancy, at just 72%, and it didn’t help that its not-for-profit owner was in financial distress. However, the new owner, a partnership... Read More »
CBRE’s Two Latest Transactions
The CBRE team showed their strength in their latest two transactions. First, it was announced that not only did Lisa Widmier represent a publicly-traded REIT in its sale of a 120-unit assisted living community in Sterling Heights, Michigan to Chicago Pacific Founders, but Aron Will arranged the acquisition financing too. Through CBRE’s Freddie Mac Seller Servicer direct lending program, Mr. Will secured a $15.5 million, floating rate loan, with a 10-year term and 60 months of interest only. Chicago Pacific Founders’ wholly owned subsidiary Grace Management will take over operations. Separately, Mr. Will was joined by Kevin Randles to arrange a fixed-rate Fannie Mae loan in another deal.... Read More »
Live Oak Bank Flourishes This Summer
Showing off its versatility, Live Oak Bank facilitated acquisition financing for two separate, and very different, transactions. First, the bank provided a cash flow balance sheet loan to support a partner buy-out at Frontier Management. Formation Capital had owned a 50% stake in the senior living operator, but with this transaction, Frontier’s founder and CEO, Greg Roderick, became the sole owner. Established in 2000, Frontier now operates 80 communities with over 6,000 independent living, assisted living and memory care units across 12 states. Second, Live Oak Bank provided a $5 million SBA 7a loan for local operator in Utah to acquire two small assisted living communities in the town of... Read More »
County-Owned SNF Gets New Private Owner
A county-owned skilled nursing facility in Fremont, Ohio may see a brighter future under its new private owner, which acquired the property for $2 million, or just $24,400 per bed. The three-story, 82-bed facility was built in 1965 and expanded in 1989. But age was not its only issue. Occupancy was 56% at the time the property went to market, but actually dipped below 50% during the process. It also had a high Medicaid census (at 81%) and operated at just a 3% margin on approximately $4.16 million of revenues. When the previous operator/tenant, Pristine Senior Living, decided to exit the Ohio market at the end of the lease, the county elected to sell and exit the long-term care business.... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
