Meridian Capital Group Nearing $1 Billion Senior Care Year
Meridian Capital Group is fast approaching the $1 billion mark for deals closed in the seniors housing and senior care market and just added four more transactions (and over $73 million) to its total. First, the firm sourced $8.3 million in equity capital on behalf of The Calida Group (a multifamily/seniors housing developer) for a 103-unit assisted living/memory care construction project in Fallbrook, California. Staying in California, Meridian also arranged a $25 million loan, provided by a balance sheet lender, for a 181-bed skilled nursing facility in Santa Rosa, California. The three-year loan, which includes a LIBOR-based interest rate and 12 months of interest-only payments,... Read More »
Atria Senior Living Heads To High-Income Fairfield County, Again
Hoping that success will breed more success, Atria Senior Living just broke ground on an 86-unit assisted living/memory care community in Ridgefield, Connecticut, which will be its fourth in the high-income, highly desirable Fairfield County. Average rents are especially high in the county (often surpassing $10,000 per month for memory care services), and already with locations in Darien, Stamford and Stratford, Atria has successfully established its brand there. Now, to Ridgefield, where Atria and its development partner Formation Development Group broke ground on an 86-unit assisted living/memory care community. Located on a four-acre site that was purchased for $3.2 million, the... Read More »
Senior Housing Innovation Coming Your Way
As the boomers age, and look at alternatives for housing, many seem to be popping up. There has been a lot of noise in the media about the hot new living arrangements for the elderly, or more specifically, the boomers who are soon to be the elderly. Whether it is co-living arrangements in urban environments or Bill (Green House) Thomas’ new idea called a Minka tiny house, which is about 325 to 400 square feet and is modular, or the new active adult communities being developed as 100 to 200-unit apartment buildings for the pre-retirement housing crowd, all these concepts may be giving senior living providers the jitters. They shouldn’t. As far as I can tell, these are all targeting a... Read More »
KeyBank Refinances Portion of Welltower/Chinese Deal
Welltower’s sale of a 75% ownership interest in a 39-property senior care portfolio to Chinese firms Cindat Capital Management and Union Life Insurance Co, Ltd. is back in the news, with KeyBank Real Estate Capital refinancing a portion of the original acquisition financing. In what was the fourth-largest long-term care transaction (by purchase price) of 2016, at $930 million, the Chinese joint venture took over ownership of 11 seniors housing communities master leased to Brookdale Senior Living and 28 skilled nursing/post-acute care facilities leased to Genesis Healthcare. Welltower retained a 25% interest in the portfolio, and both operators stayed on to manage. KeyBank originally... Read More »
HJ Sims Underwrites Large Bond Issue For Massachusetts CCRC
In the largest fixed-rate public bond issue for a single-site CCRC, HJ Sims served as underwriter with Bank of America Merrill Lynch on a $239.97 million financing on behalf of Hebrew SeniorLife. Located about 10 miles southwest of Boston in Dedham, Massachusetts, the CCRC was founded in 2009 and features 256 independent living units (including villas and cottages), 91 assisted living/memory care units and 268 skilled nursing beds. Sims has had a relationship with Hebrew SeniorLife since 1992 and also with the CCRC since its initial financing back in 2007. The new bonds will refund the CCRC’s outstanding debt and pay issuance costs, and are secured by a mortgage on the retirement... Read More »
Greystone Heads North
Greystone Real Estate Advisors headed north of the border for its latest transaction, where along with TD Securities, they represented an owner in its sale of five retirement communities in the Edmonton, Alberta area to Canadian REIT Chartwell Retirement Residences. With a weighted average age of six years, the portfolio consists of four existing communities with 450 independent living, 237 assisted living and 88 memory care units (plus a 52-unit addition at one community expected to finish in the first half of 2018) and a 256-unit community currently under development and expected to open in late 2019. There is a 58% private pay census across the portfolio, with 42% being funded by the... Read More »
Thank You for 31 Wonderful Years
Happy Thanksgiving! First of all, I hope you all have a Happy Thanksgiving tomorrow. It is a great time to be with family and friends, and to be thankful for all that you have. As a company, we are entering our 70th year, which means we have been dedicated to the seniors housing and healthcare business for a very long time. You might think seniors housing didn’t exist 70 years ago, but it did, and the reality is, you would not recognize it, both physically and the quality of care. It was very different, which means you have come a long way. I want to thank you for sticking with us through all these years. I know you may not agree with me all the time, and I may have offended a few of you... Read More »
Aron Will Closes Two More Financings
Heading into the Thanksgiving holiday, Aron Will of CBRE certainly had a bountiful month, closing nearly $80 million in two transactions. First, working on behalf of joint venture partners Harrison Street Real Estate Capital and The Springs Living®, Mr. Will arranged a $66.4 million construction loan to fund the construction of a 216-unit senior living community in Lake Oswego, Oregon (Portland MSA). A pair of national banks provided the floating rate loan, which came with a four-year term and 48 months of interest only. Using a conservative loan-to-value for the project, that would result in a per-unit value most likely above $400,000. The property’s location in one of the most affluent... Read More »
Moving Forward In Moberly
An assisted living community in Moberly, Missouri is getting a fresh start, following its acquisition by a Pacific-Northwest operator with a growing presence in the Midwest. Originally built as an independent living community in 2005, the community struggled with census during the Great Recession. That prompted the owner, a regional operator, to convert a portion of the building to assisted living, and while census eventually stabilized (at 93%), the operating margin remained relatively low (at 16%). So, the decision was made to convert the entire building to assisted living. However, the regional operator’s investors were looking to exit the troublesome asset, and as the conversion... Read More »
National Healthcare Corporation Holding Its Own
With all the media attention on financial problems within the skilled nursing sector (and we are guilty of this as well), there are some companies which are doing okay in this environment. One is National HealthCare Corporation, a publicly traded company that keeps very quiet but, with a market cap of $989 million, is one of the largest public senior care companies. For the three months ended September 30, 2017, its average Medicare rate has increased by $6.00 to $459.63 year over year, while its Medicare patient days increased marginally. Meanwhile, it managed care average daily rate (which we assume to be mostly Medicare Advantage) remained flat while the total managed care patient days... Read More »Schedule a demo
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