Capital One’s Tucson Transaction
A large healthcare campus in Tucson, Arizona recently refinanced through HUD, with the help of Joshua Rosen at Capital One. After originally opening in 1964, the campus has since expanded in 1977 and 1990 to currently feature 24 independent living, 19 assisted living and 270 skilled nursing beds (across 132 units). Its experienced owner/operator had also invested in a newly redesigned therapy center and is currently installing LED lighting to reduce energy consumption. Wanting to replace their bank debt, recoup their capital expenditures and retire partner debt, the owners received a $20.8 million HUD loan, provided by Capital One. Read More »
The CCRC Market
CCRCs are thriving in today’s market when so many other providers are struggling for census. But why? How many times have you heard that the CCRC market is a thing of the past? About as many times as you have heard that skilled nursing is dead? Well, I’ve got some news for you, neither is dead and they aren’t going anywhere. While so many providers are struggling with today’s occupancy or reimbursement issues, CCRCs are actually outperforming the entire senior housing and care sector, at least when it comes to occupancy. In addition, values in the CCRC acquisition market have been on an upward trend for the past four years. But what has changed since the Great Recession when people... Read More »
Two New Communities Trade In Arkansas
Evans Senior Investments closed out May by closing the sale of two private pay senior living communities in Arkansas for a combined $37.965 million, or $183,000 per unit. Located in the towns of Rogers and Bentonville (about 10 miles apart), the communities totaled 56 independent living cottages, 116 assisted living units and 36 memory care units, all with private bathrooms and modern finishes. Built a few years ago, the Rogers community was 77% occupied, with a 24% EBITDAR margin over the previous 12 months, while the Bentonville community had only just opened in 2017 and was still leasing up. The seller was a regional owner/operator (represented by ESI). A joint venture between... Read More »
Knapp Sells Specialty Assisted Living Community
It wasn’t the most straightforward of transactions, but Jim Knapp of Marcus & Millichap successfully sold an assisted living/memory care community in southeast Michigan for $6.5 million, or about $162,500 per bed, with an approximate cap rate between 9% and 10%. Built in 1991 and 1996, the community was owned by a family trust until the current sale. About 25% of its census (occupancy was in the high 90s) was derived from residents with traumatic brain injuries who were funded through catastrophic claims. Part of Michigan’s mandatory no-fault insurance, that particular income stream had to be underwritten differently and would also appeal to a unique set of buyers. They turned out to... Read More »
Austin-Area Assisted Living Gets HUD Financing
An experienced ownership group went through Housing and Healthcare Finance (HHC Finance) to refinance its conventional debt on its 32-unit assisted living/memory care community in Kyle, Texas. Located about 15 miles south of Austin, the community was built in 2014 (around when development was especially heating up in certain markets in Texas) and currently operates at occupancy in the mid-90s. It had in-place, higher rate and shorter term conventional and subordinated debt but was able to replace it with a $4.86 million HUD loan, arranged by HHC Finance. Read More »
Holliday Fenoglio Fowler Handles Atlanta-Area Sale
Ryan Maconachy, Chad Lavender and Jason Nettles of Holliday Fenoglio Fowler (HFF) sold a brand-new senior living community in the Atlanta MSA, working on behalf of the previous owner, Village Park Senior Living. Built in 2017, the community features 66 independent living, 43 assisted living and 18 memory care units, with four housing options available for residents, including cottages, bungalows, flat-style apartments and dedicated memory care units. Its location is superb, within 20 miles of downtown Atlanta (in the suburb of Alpahretta), five miles of two medical centers and near a mixed-use, 86-acre development. Harbert Management Corp. acquired the community for an undisclosed price,... Read More »
Seniors Housing Expense Ratios Rise
With seniors housing (which includes independent living and assisted living) prices rising and cap rates shrinking in 2017, we would accordingly expect a decrease in the average expense ratio. That was not the case, as we recorded a 30-basis point increase from 72.1% in 2016 to 72.4% in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. We are now approaching the average expense ratio seen during the Great Recession, when it averaged 73%. The industry has certainly improved significantly operationally since the Great Recession, but what has changed has been the increased acuity at both assisted living and independent living communities. Increased care costs, and... Read More »
Meridian Capital Group’s Impressive Spring
It’s been a sizzling Spring so far for Meridian Capital Group, which has so far closed $121.5 million in financing since mid-March. The most recent financings were arranged by the trio of Ari Adlerstein, Ari Dobkin and Josh Simpson on behalf of eight skilled nursing facilities in Florida, New Jersey, Connecticut and Maryland. The largest featured both a $42.4 million acquisition financing and a line of credit for a 230-bed facility in Miami Beach. The trio arranged two other acquisition loans, including a $9.2 million loan for a 106-bed SNF in Baltimore, Maryland, and $10.2 million in financing for two facilities with 120 total licensed beds in Deland, Florida. Finally, Meridian arranged... Read More »
Affordable Housing Complex To Get A Make-Over
Cambridge Realty Capital left its comfort zone of financing skilled nursing facilities, arranging a $32.7 million HUD-insured loan that was funded by tax-exempt bonds, with owner’s equity facilitated by low-income housing tax credits. The combination refinanced a 211-unit affordable elderly housing complex in Baltimore, Maryland. The extra funds are to be used to modernize the 40-year old physical plant. We suspect there are many more of these types of buildings that need updating, in addition to more of these buildings in general to help low-income elderly as they age. Read More »
Senior Living and Veterans
Are we really doing enough for our veterans in senior living? I hope you all had a relaxing and enjoyable Memorial Day weekend. I was able to get away for a bit, but senior living is never far from my mind. With Memorial Day just two days ago, I thought it would be appropriate to mention who I ran into at the Argentum conference two weeks ago. Taking time out from retirement and sailing the world, Rick Grimes (former CEO of ALFA/Argentum and a veteran) was helping man the exhibit booth for Patriot Angels, an organization that helps veterans get the benefits they deserve. One benefit, which was new to me, is called the Aid and Attendance benefit through the Department of Veterans Affairs.... Read More »Schedule a demo
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