CIT Funds CommuniCare Acquisition
CIT’s Healthcare Finance business closed on a $136.9 million senior secured credit facility on behalf of CommuniCare Health Services. An active skilled nursing facility acquirer in recent years, with large portfolio purchases in Maryland, Ohio, West Virginia and Virginia, CommuniCare currently operates 73 facilities in seven states. It’s looking to expand further, however, and acquired 10 skilled nursing facilities in Ohio, with the help of the $121.9 million term loan secured by CIT. Making up the rest of the credit facility was a $15 million revolving asset-based line of credit, which provides CommuniCare ongoing working capital financing. CIT served as the administrative agent on the... Read More »
Seniors Housing Construction and Take-Out Financing: Slowing Down or Just Getting Started?
On January 18, 2018, we hosted a webinar titled “Seniors Housing Construction and Take-Out Financing: Slowing Down or Just Getting Started?” Our editor, Steve Monroe, moderated a 90-minute discussion among panelists Chris Fenton of Berkadia, Rich Malloy of BBVA Compass and Cary Tremper of Greystone, covering a range of topics from the current pace of seniors housing construction today to best practices in the current construction lending environment, and from take-out financing to their thoughts on the 2018 market, and beyond. But we also wanted to hear from our audience and posed three questions: Have you seen new development slowing down? Yes 35% No 65% Have you... Read More »
MidCap Financial Finances Georgia Portfolio Acquisition
Lawrence “Lory” Brin of MidCap Financial recently helped facilitate Artemis Real Estate Partners and Allegro Senior Living’s acquisition of three Atlanta-area assisted living communities by arranging an $18.25 million loan. The floating rate first mortgage will also enable the buyers to reposition the communities and invest $7 million of capital improvements to renovate the exteriors, common areas and unit interiors. Built from 1998 to 2000, the communities are located in Buckhead (46 assisted living and 22 memory care units), Alpharetta (48 AL and 24 MC units) and Marietta (28 AL and 27 MC units). The deal marks Allegro Senior Living’s entry into the state, and the company will also... Read More »
Solvere Senior Living Builds In Its Own Backyard
Solvere Senior Living is following up on a busy 2017 with a new 195-unit seniors housing development in Hamilton Township, New Jersey, at a cost of nearly $60 million, or just over $300,000 per unit. Opening next month, the community will feature 96 independent living, 75 assisted living and 24 memory care units, with a host of amenities and dining options. Despite Solvere’s being based in nearby Princeton, this will actually be the company’s first foray into the Garden State, with communities already in Virginia, West Virginia, New York, Maryland and Indiana. The opening comes on the heels of several other projects that Solvere has in its pipeline with a number of development partners. It... Read More »
Another Texas SNF For National Health Investors
National Health Investors added another Texas skilled nursing facility to its portfolio with the purchase of a 121-bed facility in Waxahachie for $14.4 million, or about $119,000 per bed. The acquisition is the second of four that NHI had previously committed to and will be added to the existing master lease with The Ensign Group at an initial rate of 8.2%, plus annual escalators based on inflation. This brings Ensign’s Texas total to 16 skilled nursing facilities. Explaining the high per-bed price is the facility’s age, having just opened in November 2016. NHI funded the deal with proceeds from its revolving credit facility. Read More »
Greystone Refinances Upstate New York Skilled Nursing Facility
A 112-bed skilled nursing facility in Niskayuna, New York (near Schenectady) will have the funds to upgrade its services and amenities thanks to a $27.05 million HUD refinance arranged by Fred Levine of Greystone. Current amenities already include an on-site salon, private dining space and a newly renovated dining area, and the facility provides sub-acute rehab, ventilator therapy, respiratory care, traumatic brain injury treatment and pediatric rehab and respite services. However, Sentosa Care, the owner, has plans to invest significant capital in upgrading the facility’s existing spaces and amenities, in addition to building a new ventilator unit and upgrading the pediatric unit. The... Read More »
Occupancy Woes Continue For Seniors Housing
Fourth quarter NIC MAP data for seniors housing occupancy had little good news before the flu season may decimate again. We are going to have to wait until mid-February or so to start hearing how individual seniors housing companies fared with occupancy in the fourth quarter. Our guess, however, is that it will only go downhill from there. According to NIC MAP, occupancy basically remained flat from the third quarter to the fourth, which was expected. But that means, given the bad flu season this year, the first half of 2018 could be pretty bad for occupancy. Without an increase in the fourth quarter, there may be a lot of ground that will need to be made up in the second half of 2018,... Read More »
Update On Consulate Healthcare’s Legal Affair
In major news for the skilled nursing industry, the $347.86 million judgment against affiliates of Consulate Healthcare was vacated in its entirety by the United States District Court, Middle District of Florida earlier this week. This was basically a Medicare “fraud” case. The judge ruled that the plaintiff’s assertions that a “handful of paperwork defects (for example, unsigned or undated documents) compel the decisive inference that the defendants never provided the therapy evidenced by the paperwork and billed to Medicare” was just plain wrong. To boot, the government continued to pay the defendant even though the government knew there were some disputes between the two sides regarding... Read More »
Sinking Supportive Living Facility Sells In Chicagoland
The time had finally come for the Village of Dolton (a suburb south of Chicago) to sell its 126-bed supportive living facility, as the town handed over the keys to an experienced private owner. Built in 1970, the five-story facility had undergone an extensive renovation in 2008 to accommodate the SLF license. However, years of hiring third-party managers had not improved operations at the facility. Occupancy stood at just 33%, with a 51% Medicaid and 49% private pay census, and the facility lost around $700,000 per year in EBITDAR on approximately $1.4 million of revenues. The facility also went years without capital improvements, which certainly did not help occupancy nor its... Read More »
Heavenrich & Company’s Heavenly Start
Starting 2018 off strong, Brian Clark of Heavenrich & Company sold two small memory care communities in Loveland, Colorado. This wasn’t the first deal Heavenrich & Company has handled on behalf of the family-run seller, having previously sold their communities in New Mexico. This Loveland deal featured two adjacent communities purpose built in 2010 and 2015. Each operated as a stand-alone family-run community and featured 20 units and 40 beds, combining for 80% occupancy based on units. Madison Realty Companies emerged as the buyer, paying $8.44 million, or about $210,000 per unit, for the communities, with an 8.9% cap rate. Read More »Schedule a demo
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