Knapp Group Closes Maryland and Michigan Transactions
The Knapp Group of Marcus & Millichap, led by Jim and Justin Knapp, closed two deals in succession, one in Maryland and one in Michigan. First, after yielding five offers that pushed the selling price $1.75 million over list, Messrs. Knapp sold a 145-bed skilled nursing facility in Burtonsville, Maryland, for around $17.25 million, or just under $119,000 per bed. That price is impressive, considering the 20-year old facility was losing over $500,000 annually. Occupancy was actually above average at 85%, but given that the current average of the national skilled nursing census just plunged to a new record-low of 81.7%, according to NIC, “above average” doesn’t mean what it once did. The... Read More »
Blueprint Sells Boutique Memory Care Community In Orange County
A boutique 12-unit memory care community in Orange County, California sold to a local owner/operator in a transaction facilitated by Jacob Gehl, Ben Firestone and Scott Frazier of Blueprint Healthcare Real Estate Advisors. Its owners, a joint venture between a REIT and a national operator decided to sell as a part of a larger portfolio disposition strategy. Originally opened in 1983, the community will be substantially renovated by its new owner, which is looking to expand its Southern California presence and is making its first Orange County acquisition. Read More »
HHC Finance Finishing HUD Year Strong
The HUD fiscal year is about to end, and Housing & Healthcare Finance (HHC Finance) is finishing with a flourish, closing a $19 million refinance for a 90-bed skilled nursing facility located in central Pennsylvania. The facility was built in 2014 with state-of the-art components, making it the most modern SNF in the general area. The 35-year, fixed rate HUD loan took out the original construction financing. Read More »
Another Civitas Development in the Lone Star State
Civitas Senior Living may have already expanded outside its home state of Texas, with three existing communities and four more on the way in Florida, Kentucky, Colorado and Arizona, but the Fort Worth-based company is coming home for its latest development. The 188-unit community, located in the Red Oak suburb of Dallas, will feature independent living, assisted living and memory care services and will join the 32 other properties currently owned and operated by Civitas. To finance the development, HJ Sims invested $5.85 million of preferred equity, which it funded by placing corporate taxable bonds. The subordinate financing was structured to meet the requirements of the senior lenders... Read More »
We Can All Help To End Alzheimer’s
Alzheimer’s is a terrible disease, but everyone can help find a cure. We participated in our first Walk To End Alzheimer’s yesterday, along with about 2,000 other walkers in Norwalk, CT. While we raised $3,500 so far, it is only 50% of our goal, or $100 for each of the 70 years we have been in business. But there is still time to join our team, as the deadline is December 15. Check out our team page to make a donation to this very worthy cause. Kudos to Bill and Bob Thomas of Senior Star, who ranked second and third, respectively, for top walkers nationally, raising $108,558 (Bill) and $107,558 (Bob). Nothing like a family competition. Five of the top 10 walkers were from Oklahoma,... Read More »
Chicago Assisted Living Community In Lease-Up Sells To Joint Venture
A newly-opened and quickly-stabilizing assisted living community in the affluent Chicago suburb of Prospect Heights, Illinois sold with the help of Richard Swartz, Jay Wagner and Timothy Hosmer of Cushman & Wakefield. Developed in May 2017 by a joint venture between Oz Real Estate, Grandbrier Senior Living and Pathway to Living (the operator), the community features 69 assisted living and 32 memory care units. Three of the MC units featured a shared shower space between two residents, with each resident having their own bathroom and vanity. Lease-up was strong (averaging over five net move-ins per month), and by the time of the sale it was just under 70% occupied. With the current... Read More »
Regions Bank Finances Ohio Assisted Living Acquisition
The Regions Bank Healthcare Real Estate Group arranged a $17.57 million five-year term loan on behalf of a joint venture to acquire a 100-unit assisted living/memory care community in northeast Ohio. Developed three years ago by a local family, the community was improving operationally but was still considered a value-add opportunity for the buyer, a joint venture between an operator and a private equity firm. Proceeds of the loan will also help fund upgrades to the property operations and physical plant. Regions’ maximum loan-to-value for this type of transaction is 70%, so we can estimate the purchase price to be somewhere between $235,000 per unit and $250,000 per unit. Read More »
Contemporary Healthcare Capital’s Latest Mezz Closings
Contemporary Healthcare Capital (CHC) closed two more mezzanine financings, working with bank partners to round out the capital stacks in the two transactions. CHC first returned to Wenatchee, Washington, where it had originally closed a $6.8 million construction loan and a $1.35 million mezzanine loan in December 2014 to fund Regency Pacific Management’s development of a 55-bed skilled nursing facility. After opening in 2016, the time has now come to refinance, and CHC was tapped to provide a $2.4 million mezzanine loan. CoastalStates Bank of Hilton Head, South Carolina provided the senior portion of the total $8.4 million uni-tranche loan. Then, in Mesquite, Nevada, CHC closed a $2.5... Read More »
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 »Schedule a demo
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