Greystone Refinances Queens Skilled Nursing Facility
A couple of years after Greystone financed the acquisition of a 302-bed skilled nursing facility in Queens, New York, the lender came full circle in refinancing it with a $59.8 million, or a whopping $198,000 per bed, HUD loan. Fred Levine of Greystone originated both the original bridge loan and the permanent financing on behalf of the borrower, Kennedy Management, a healthcare company owned and operated by the Fuchs family. Since the 2015 acquisition, the owners renovated and rebranded the facility, which now boasts many luxury features such as a dedicated concierge, resident lounges, bedside iPads and valet parking. The facility also offers a 40-bed ventilator unit and a 12-chair... Read More »Cash Flow Is King
Many buyers prize a community’s cash flow over other factors. If a community is already making money, and avoids any major missteps, it is probably a safe bet for investors. Neither 2015 nor 2016 reached the record average NOI per unit set in 2014 of $14,200 per unit, but in a year when the average price per unit for seniors housing (including both independent and assisted living) increased, it makes sense that NOI per unit would increase in turn, by $500 per unit from 2015 (11,700 per unit) to 2016 ($12,200 per unit). Separating it out by sector, one would think that if independent living prices rose by $35,300 per unit, or 18%, one would see a corresponding increase in the NOI per unit... Read More »Recent Senior Care M&A Deals, Week Ending June 2, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Omega Healthcare Investors, Inc.18 care homes$113 million Oppidan Investment Co.Highlands on Graham & River RoadN/A Capri Senior CommunitiesHeritage Place of Brookfield$11.2 million Agnesian HealthcareChristian Home and Rehab CenterN/A Joint ventureByron... Read More »
REITs Remained Active In May
A couple of REITs announced transactions at the end of May: a small one in North Dakota and one large deal abroad. First, North Dakota-based Edgewood Real Estate Investment Trust announced it plans to acquire a financially distressed senior living community in the town of Dickinson (western North Dakota). The seller was First International Bank and Trust, which foreclosed on the community in 2015. Dickinson State University owns the land the community sits on, and will continue to do so. Edgewood will lease the community to its operating subsidiary, Edgewood Healthcare, upon closing. Then across the pond, Omega Healthcare Investors vastly increased its holdings in the United Kingdom,... Read More »The REIT Price for Seniors Housing
Last week, we looked at the price REITs paid on average for skilled nursing facilities in 2016, according to the 22nd Edition of The Senior Care Acquisition Report, compared with other buyers in the industry. But what about in seniors housing? REITs have been far more active buyers in the space, with many of the private REITs getting involved in a sector with less stroke-of-the-pen risk (in fact, they bought five seniors housing properties to every one skilled nursing facility in 2016). Also, most of the revenue collected by assisted living or independent living communities comes from private payers, and REITs tend not to purchase those assisted living communities with significant, if any,... Read More »
Fannie Mae Origination in Oregon
Almost five years after taking over the operations of a 92-unit senior living community in the town of The Dalles in northern Oregon, family-owned The Springs Living has become its sole owner, thanks to a $17.5 million Fannie Mae refinance arranged by Capital One’s Dague Retzlaff and Mark Bultman. Harrison Street Real Estate Capital bought the community as part of a four-property, 419-unit portfolio in November 2012 for a total of $65 million, or $155,130 per unit, and brought in The Springs to operate. At the time, the portfolio was 89% occupied and operated at a 26% margin on $15.65 million of revenues. We believe Harrison Street has since added value to the property, as it typically... Read More »Pennsylvania CCRC Refinances 2008 Bonds With Help From HJ Sims
A large CCRC in Lititz, Pennsylvania (Lancaster area) that expanded in 2008 (tough time to do that…) recently refinanced $123 million of Series 2008 bonds, as well as $10 million of Series 2015 bonds, with the help of HJ Sims. Tracing its roots to 1897, the community now features 505 independent living units, 141 assisted living/personal care units, 120 skilled nursing beds and a 20-bed rehab center. In 2008 it expanded its IL offering and also reconfigured its healthcare services, which was funded by $123 million of bonds. Then in 2015, the CCRC opened its rehab center, in addition to upgrading its buildings and technology, with $10 million of bonds funding the project. The call date for... Read More »
New Senior Living Investment Fund
A new investment fund called Senior Living Fund is in the market and funding new developments with enticing promotional returns to investors. There is a new investment fund on the street, called Senior Living Fund, which is mostly investing in to-be-built private pay senior living communities. In their Senior Living Fund IV – USA, investments can range from as small as $50,000 with a preferred monthly cash return of 7.5%, to more than $1.0 million with a cash return of 10.75%. Or, investors can pay a discounted per-unit price and receive more of the return on the back end with the ultimate sale of the property. That is for investors less concerned about receiving a steady monthly check.... Read More »
Our Listeners Speak: Real Estate vs. Business Value
We recently hosted a webinar on a topic that has been on the minds of many as the healthcare real estate market hit record-high prices (in seniors housing and care) and deals with changing acuity and reimbursement environments. “Real Estate vs. Business Value For Healthcare Properties” featured moderator Steve Monroe of The SeniorCare Investor and speakers James Tellatin of Tellatin, Short & Hansen, and Chuck Herman of Charles Herman Consulting (formerly CIO of Welltower), and a 90-minute discussion on the valuation practices for skilled nursing facilities, assisted living communities, LTACs, behavioral healthcare and acute care hospitals. We also brought in our listeners to the... Read More »
Griffin American Gains St. Louis-Area Senior Living Communities
Griffin-American Healthcare REIT IV, Inc., is moving into the St. Louis MSA on a large scale, but on the other side of the Mississippi River. Featuring 221 units and five independent/assisted living properties in Columbia, Millstadt, Red Bud and Waterloo, Illinois, the portfolio is 100% private pay and will be operated by an affiliate of Compass Senior Living under a 15-year absolute net lease with two 10-year renewal options. Annual rent escalators are 5.5% after the first year and 2.5% thereafter. Compass now owns/operates 19 seniors housing communities in Arizona, California, Illinois, New Mexico, Oregon and Wisconsin. Griffin-American, which is co-sponsored by American Healthcare... Read More »Schedule a demo
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