IPA Ratifies Constitution State Sale
Charlie Hilding, along with Mark Myers, Joshua Jandris and Alex Vice, of IPA Seniors Housing handled the sale of a skilled nursing facility in rural Ohio. Representing the seller, IPA sold the facility, which features over 150 beds and several specialized care services (including a designated ventilator unit), for nearly $165,000 per occupied bed and approximately $116,000 per licensed bed, which is especially high for a rural location. The buyer is a growing regional owner/operator that is entering the Ohio market with this purchase. They recently purchased their first facility, an 80+ bed skilled nursing facility in northern Kentucky, with IPA also representing the seller in that... Read More »
Rock-Solid Relationship Leads to Lancaster Pollard’s Latest Financing
Three years after acquiring a 48-unit assisted living community in Shawnee, Kansas, Granite Investment Group is refinancing it. Ross Holland of Lancaster Pollard led the way on the transaction (not LP’s first with Granite), securing a $6.9 million Fannie Mae loan with a seven-year term and a variable interest rate. Granite had bought the community in February 2015 from a local partnership that had originally developed the community in 2000. It was 90% occupied and operated at a 25% margin on approximately $2.4 million of revenues at the time of the transaction. It sold for $7.2 million, or $150,000 per unit, with an all-in cap rate of 8.4%. HUD bridge financing provided by GE Capital,... Read More »
Medicaid to the Rescue
The time came for a private equity firm to exit their investment in Shaker Heights, Ohio (Cleveland MSA), only after investing in substantial renovations and stabilizing the census. Situated downtown near a brand-new commercial development, the community was built in 1995 and features 122 assisted living and 50 licensed skilled nursing beds. It was originally acquired by the PE firm in 2012 as a value-add opportunity and has since improved its operations, with occupancy climbing from around 70% to 85%. Operations at the assisted living community in particular improved dramatically, as a steadier stream of residents who were enrolled in Ohio’s Assisted Living Waiver Program (now... Read More »
Cambridge Realty Capital Completes Illinois HUD Refinance
After Cambridge Realty Capital Companies announced that it funded a $32.75 million acquisition loan through HUD for a 211-unit affordable seniors housing property in Baltimore, Maryland, the firm followed up by refinancing a 162-bed skilled nursing facility in Glenwood, Illinois, also going through HUD. The owner, an Illinois limited liability company, obtained an $11.6 million loan, with a fully amortizing 30-year term. Located about 30 minutes outside of Chicago, the facility features a short-term rehab unit for Medicare and private insurance patients, and dialysis services, in addition to providing long-term care. Read More »
The Warning Signs Were There
With assisted living occupancy now at an eight-year low, the reasons seemed very obvious a few years ago. I am a hoarder. I like to keep reports, articles, magazines and anything else of interest pertaining to seniors housing and care. So, last night I was cleaning up some papers stacked in my office and came across one of Jerry Doctrow’s first blogs since retiring from Stifel Nicolaus in 2015. Dated January 6, 2016, it was called, “Why Near-Term Trends Could Spell Trouble for Senior Housing.” As I re-read it, all I thought was, why didn’t more people see the problem back then? NIC MAP had just come out with its most recent quarterly data on occupancy and construction, and while not... Read More »
Live Oak Bank Growing Its Senior Care Business
Still just less than a year after forming its senior care lending division (and hiring Adam Sherman of Blueprint Healthcare Real Estate Advisors as the new division’s industry expert), Live Oak Bank closed two more loans for seniors housing properties. First, working on behalf of a local owner/operator in Georgia, Live Oak provided a $5 million SBA 7a loan and a companion balance sheet loan to fund the construction of a 60-unit assisted living/memory care community in the town of Cartersville. The loans came with floating rates and fully amortize over 25 years, with no balloon payments. For the developer, this isn’t their first rodeo in northwest Atlanta (a market we have heard has seen... Read More »
HHC Finance Sizzles This Summer
The Capital Advisory Group at Housing & Healthcare Finance (HHC Finance) has impressed so far this summer, closing $157 million across eight loans in the last two months. Isaac Haas and Neil Gamss, who lead the group, went to Pennsylvania to close the largest transaction. Vita Healthcare Group was the borrower, after acquiring eight skilled nursing facilities and 1,050 total beds that were deemed to be non-core by the undisclosed seller, in a transaction handled by Ben Firestone, Christopher Hyldahl, Michael Segal and Gideon Orion of Blueprint Healthcare Real Estate Advisors. HHC Finance closed a $100.3 million bridge loan to fund the purchase. For another skilled nursing portfolio... Read More »
Capital One Refinances Massachusetts Skilled Nursing Portfolio
Just 18 months after they were purchased, three skilled nursing facilities in Massachusetts refinanced through HUD, with the help of Joshua Rosen of Capital One. The 2016 transaction involved these three facilities in Chelsea (195 beds), Fall River (152 beds) and Brockton (169 beds). There was a fourth facility involved in the sale that is not being refinanced in this transaction. Two principals who are experienced owner/operators of SNFs mainly in the Midwest ended up as the buyers, financing that deal with bank debt. Now, through Capital One, they received three fixed-rate loans, each with a 35-year term, totaling $47.2 million through HUD to refinance the portfolio. Read More »
Despite Declining Operations, Minnesota Skilled Nursing Facility Sells
It looks like Ray Giannini (of Marcus & Millichap) isn’t taking a vacation this summer, as he just closed the sales of a skilled nursing facility in Minnesota and a senior living community in Iowa. The Caledonia, Minnesota facility has a long history serving the health care needs of the area. Originally opened in the early 1900s as a hospital, the building expanded in 1962 and 1976, and now features 50 skilled beds, as well as a 16-unit assisted living community (added in 1987). Plus, the SNF was extensively renovated in 2012 at a cost of $1.4 million. Services there include physical, occupational and speech therapy programs, along with respite and hospice care. However, while the AL... Read More »
Continuum of Care Sells in Washington, D.C.
Healthcare Transactions Group managed to sell not only the operations of a 230-bed skilled nursing facility in Washington, D.C., but also a home health agency and a nursing school too. Annual revenues for the combined business totaled about $25 million, and census at the SNF was nearly full, at 98%. Also based in D.C., the home health agency is licensed for both Medicare and Medicaid patients, and the nursing school primarily trains CNAs and home health aides. That must help with staffing, which in turn may help in maintaining that 98% occupancy. The buyer, a Brooklyn, New York-based regional operator with several other skilled nursing facilities in Washington, D.C., did not purchase the... Read More »Schedule a demo
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