Soft landing for SNF
A not-for-profit owner/operator of skilled nursing and senior care facilities in New Jersey recently acquired a 120-bed facility in Somerset for $12 million, or $100,000 per bed. The buyer, Francis E. Parker Memorial Home Inc., already owns and operates three other skilled nursing facilities in New Brunswick, Monroe Township and Piscataway (the latter two also including memory care services), as well as an assisted living community in Highland Park. The seller was the not-for-profit Saint Peter Healthcare System, which has long had a relationship with Parker. That should make for a smooth transition. Read More »Big bucks back for SNFs
After a month during which we saw no publicly announced skilled nursing acquisition valued higher than $63,000 per bed (well below the average price of $79,900 per bed in the 12 months ending September 30, 2015), here comes two announced in quick succession early this month valued over $100,000 per bed. First, California-based REIT, LTC Properties, acquired a 126-bed facility in the Fort Worth-Dallas area for $16 million, or $126,984 per bed. What attributed to the high price? The facility was brand new, opening in mid-2015. LTC added the property to an existing master lease with an affiliate of Fundamental Administrative Services LLC at an incremental initial cash yield of 8.5% and annual... Read More »Refinancing with a TIF
When a 57-unit senior living community in Princeton, Minnesota looked to refinance their debt through HUD, but had an existing TIF (Tax Increment Financing) bank loan, which can be incompatible with HUD financing, the borrowers turned to Lancaster Pollard for a solution. The LP team, led by Quintin Harris, communicated to HUD that paying off the TIF loan, which was collateralized and serviced by the TIF development agreement, would benefit the senior living community because the cash flow received from the City of Princeton due the TIF Agreement would flow directly to the borrower. That cash flow could then be included in the project value. So Mr. Harris secured a $6 million loan, with a... Read More »
Civitas firing on all cylinders
A seniors housing developer active in Texas, after already opening five assisted living/memory care communities in the state last year, with three more currently under construction, is jumping back into the acquisition market to grow its portfolio. Civitas Senior Living purchased two former Brookdale Senior Living communities (with 58 independent living, 65 assisted living and 36 memory care units) in Harlingen, Texas (Brownsville MSA) for an undisclosed price. Civitas will take over operations and commence renovations to the common areas early this year. This is not the first acquisition for the fast-growing developer, however, which last September announced a new post-acute care... Read More »Where You Live Matters
The American Seniors Housing Association just launched its www.whereyoulivematters.org website. Last week, the American Seniors Housing Association launched its “Where You Live Matters” campaign (www.whereyoulivematters.org). The website offers an incredible menu of information to help guide seniors and their families to make the right decision for them with regards to senior living options. Independent living, assisted living, memory care, CCRCs? It’s all covered, plus a resource guide with 75 links to other helpful websites. To many of us, seniors housing options are second nature, because we live and breathe it. But for potential residents and their families, it is often a confusing... Read More »Back to HUD
Just weeks after closing HUD’s largest ever SNF loan (an $80.7 million loan to refinance the existing conventional bank debt at a 520-bed skilled nursing facility in Manhattan, New York), Housing & Healthcare Finance was at it again, closing on a portfolio of 5 HUD loans totaling $68.5 million in January. The loans, which featured 30-year terms and fixed rates in the mid-3% range, were used to finance the acquisition of 5 skilled nursing facilities in New Jersey with a total of 703 beds in 345 units. Read More »Keeping the pace
Aron Will of CBRE had yet another prolific month (after an already busy 2015), closing four transactions. Included in his totals were two acquisition financings (for the MorningStar Senior Living Colorado portfolio and Capitol Seniors Housing’s Seattle-area acquisition) already detailed in previous weeks. Mr. Will also recently arranged a $32.3 million 10-year Fannie Mae loan, with a fixed interest rate and 54 months of interest-only. The borrower, Westmont Living, will use the funds to refinance its 138-unit independent/assisted living community in Chico, California. Already with a 94% occupancy rate at the community, Westmont may look to convert a number of units to memory care in order... Read More »
CareTrust eyes Iowa
Just before Iowans gathered to caucus and politicians readied to leave the Hawkeye State, CareTrust REIT closed on its major move into Iowa, acquiring a nine-facility skilled nursing portfolio that included 518 operating beds for $32.7 million, or $63,127 per bed. CareTrust will lease the facilities to operator Trillium Healthcare Group through an amendment to their existing master lease, which carries an initial term of 14.5 years, two five-year renewal options and CPI-based rent escalators. Initial annual rental revenue is approximately $3.16 million, for a cash yield of 9.7%. On the same day in a separate transaction, CareTrust acquired a 30-unit assisted living/memory care community in... Read More »New opportunity for shuttered SNF
Tampa, Florida-based real estate investor Liberty Group acquired a shuttered 120-bed skilled nursing facility in Nashville, Tennessee, with plans to convert it to a 90-unit assisted living community. Formerly owned by Signature HealthCARE, which operates some 30 long-term care facilities in the state, the facility closed in July 2015 following the loss of its Medicaid funding. The buyer, which owns and operates hotels and assisted living communities primarily in the Southeast, paid $1.8 million, or $15,000 per bed, and will rename the facility Bristol Terrace Assisted Living. Read More »Back in the game
The Carlyle Group is jumping back into the seniors housing acquisition market with the announcement of two deals. First, the private equity firm purchased a 226-unit seniors housing community in Tampa, Florida with the help of a $28.7 million loan arranged by Jay Wagner and Timothy Hosmer of Cushman & Wakefield and procured from a regional bank. Carlyle plans to use some of those funds to also significantly renovate the property, enhance its amenities and reposition the independent living, assisted living and memory care into separate buildings. The company, teaming with Greystar, also acquired a 101-unit independent living community in Fort Worth, Texas for $22 million, or $217,822... Read More »Schedule a demo
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