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 »
Bank It, With KeyBank
John Randolph and Laura Conway of KeyBank Real Estate Capital’s Healthcare Group closed a couple of transactions, both involving HUD refinances. Trilogy Health Services was the borrower in both of the transactions. It first refinanced its 132-bed healthcare campus in Noblesville, Indiana with a $9.6 million loan. The facility was built in 2010 and features 49 skilled nursing, 33 assisted living and 29 memory care units. Trilogy also received a $5.7 million loan to refinance its Lafayette, Indiana skilled nursing facility. With 71 beds, it was originally built in 1969 but recently renovated in 2010. Both loans (which have 35-year amortization schedules) will also fund some repairs at the... Read More »Recent Senior Care M&A Deals, Week Ending May 26, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice The Tanbic CompanyParsons House FriscoN/A Berkshire Health SystemsLoomis HouseN/A Omega Healthcare Investors, Inc.18 care homes$113... Read More »Maplewood Grows Its Fairfield County Portfolio
A few weeks ago, we wrote of LCB Senior Living’s latest investments in the high-income Fairfield County, Connecticut, with developments going up in Stamford and Darien. We have wondered whether the demand is there for those projects, and others that have finished in recent years. We know that some of them are operating very well, with full occupancy at $10,000+ per month rents. But now Maplewood Senior Living, headquartered in nearby Westport and already established in the area with five communities in the county, just closed on a 27-acre site in Southport where it plans to build a 98-unit assisted living/memory care community. Construction is expected to begin this summer and will include... Read More »Erik Howard’s Transaction Trio
Baltimore-based Capital Funding Group recently closed three HUD transactions totaling nearly $25 million for a repeat borrower. Erik Howard, Managing Director of Real Estate Finance, facilitated the loans, which included a $9.06 million mortgage for a Colorado skilled nursing facility, a $9.96 million loan for a Washington facility and $5.75 in financing for another Washington SNF. All three loans refinanced existing term loans from conventional lenders, and Mr. Howard executed a no-lockout, five-year prepayment penalty structure that gave the borrower, a national operator of SNFs and assisted living communities, greater flexibility in the medium term. Read More »Schedule a demo
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