Grandbridge Provides Permanent Refinancing
Speaking of backyards, Grandbridge Real Estate Capital arranged $35 million in Freddie Mac financing for a one-year old assisted living and memory care community in Norwalk, Connecticut. The 10-year, fixed-rate loan has a 30-year amortization. The community is located a mile from our main office. The property was developed by The Shelter Group and its affiliate, Brightview Senior Living, is the manager. We know it well because we had a tour when it opened and attended the first open house. It was built on a very tight piece of land, but they were able to take advantage of the topography for some unique outdoor areas. We assume it is at or close to stabilization otherwise Freddie Mac would... Read More »
Evans Senior Investments Closes One In Their Backyard
It is not often that a seniors housing brokerage firm can sell a community in their home town, but the Boulder, Colorado office of Evans Senior Investments was hired to sell a 54-unit independent living community in Boulder. The community, built in 2007, has been averaging an occupancy rate of 93% to 94%, but may have been slightly higher at closing. That high occupancy rate might have something to do with the fact that the majority of the units have two-bedrooms and the majority have more than 1,000 square feet inside the units. Rates range from about $3,000 to $4,500. With an operating margin close to 50%, this must be a very well-run community, since it is also quite small for... Read More »
Thoughts On NIC Dallas
The recent spring NIC conference in Dallas was a little more sober than recent conferences. Coming right after Brookdale Senior Living’s various announcements and stock plunge, plus the bankruptcy filing of HCR ManorCare, some people were a bit more circumspect about how the sector was doing. I did continue my poll of private company CEOs and the impact of the flu season on operations. Still batting 1,000, as everyone I asked said the flu was having minimal, if any, impact on census. It was the other factors we highlighted in the March issue. There was something else we noticed. The traditional sessions on things like private equity investing or lending to the senior care market were... Read More »
Florida Attracts Buyers
Florida continues to be a popular state for acquisitions, especially in the cold winter months. Krone Weidler of Marcus & Millichap’s National Seniors Housing Group recently sold a two-property portfolio. The first one was a 90-unit assisted living community in Venice which sold for $6.1 million, or about $67,800 per unit. The community was originally built in 1926 and then renovated in 1995. Occupancy stands at 92% and it is located in the historic section of Venice. It has a total of 40,440 square feet, and sold for $150.84 per square foot. The second property was a 100-unit assisted living community in New Port Richey which sold for $4.3 million, or $43,000 per unit. The... Read More »
Ziegler Closes Big HUD Deal
Most people think of the HUD 232 program as a financing tool used by for-profit entities. But not-for-profits can take advantage of the low rates as well. A case in point was the recent $94.3 million HUD loan arranged by Bill Mulligan and Ashley Wilkens of Ziegler for a senior living campus in North Central Florida. With more than 639 units, the loan came in around $147,500 per unit and had an interest rate just under 3.5%. The large campus has 511 unlicensed independent living/board and care units, plus 128 units licensed for assisted living and memory care. The Ziegler team was able to convince HUD that the large IL portion met the HUD parameters because although they were “independent... Read More »
Top Senior Care Facility Is Sold
Mark Davis of Healthcare Transactions Group sold a 128-bed/unit senior care facility in Maryland that is widely recognized as a preeminent facility of choice in the Washington, D.C. metro area. It has maintained a five-star rating ever since the rating system was started. The skilled nursing portion was originally built in 1958 with additions or renovations in 1965, 1986 and 2000, and currently has 66 beds. The overall occupancy averages 96% with a 48% private pay census, with 24% Medicare and 28% Medicaid. The 62-unit assisted living portion was built in 2000, and average occupancy is 90% and it is all private pay. There are two interconnected and distinct buildings, one for skilled... Read More »
HFF Closes $115 Million Financing For Seattle Senior Living High-Rise
Columbia Pacific Advisors just received about $115 million in financing for its to-be-built senior living high-rise in Seattle’s First Hill neighborhood. David Fasano, Sarah Anderson, Casey Davison, Ryan Maconachy and Chad Lavender of Holliday Fenoglio Fowler (HFF) represented CPA in the transaction, with HCP, Inc. providing the loan. Location is key for this development, as the community is located within five blocks of three major hospitals and less than a mile away from downtown Seattle. The 24-story building will consist of 194 independent living, 21 assisted living and 28 memory care units, along with an auditorium, full-service restaurant, bistro/café, two bars, a top-level clubroom,... Read More »
Griffin American Goes To Wisconsin
Griffin-American Healthcare REIT IV gained a foothold in the state of Wisconsin by acquiring two senior care facilities that include independent living, assisted living and also skilled nursing beds. Located in the Madison suburbs of Waunakee and Sun Prairie, the facilities total 254 beds, with the seniors housing portion featuring 100% private pay, and the skilled nursing portion having a 67% quality mix. In addition, nearly $10 million in renovations have been completed at the properties since 2006. Griffin-American purchased the facilities for $22.6 million, or about $89,000 per bed, and leased them to Integro Healthcare Consulting under an absolute net master lease structure through... Read More »
The Price of Age in Skilled Nursing
As most of you know, skilled nursing prices plummeted 18% in 2017 to $81,350 per bed, according to the 23rd Edition of The Senior Care Acquisition Report. But with that decline, did the age of the properties sold throughout the year have a significant impact? For obvious reasons, older skilled nursing facilities sell, on average, for a lower price than newer facilities. In 2016, there was a nearly perfect correlation between age and the price paid per bed. This did not occur in 2017, as the oldest group, those facilities more than 40 years old, sold for an average price per bed ($79,750) that was 26% higher than the next age group of 20 to 40 years ($63,000). Some of the older facilities... Read More »
Fast HUD Financing From Lancaster Pollard
Aaron Becker of Lancaster Pollard led the way in arranging an $11.9 million HUD refinance of a 54-bed skilled nursing facility in Pittsfield, Massachusetts. Owned and operated by long-standing Pittsfield-area not-for-profit organization, Berkshire Retirement Home, Inc., the facility was built in 2014 to replace Berkshire’s original SNF. Conventional bank financing, with a floating interest rate, funded the construction, but ownership decided to refinance through HUD. Lancaster Pollard worked to obtain a firm commitment from HUD less than two weeks after formal submission, allowing the borrower to lock in the interest rate in December, before rates increased. We’re sure more than a few late... Read More »Schedule a demo
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