Berkadia’s Banner Year Continues
Berkadia is already having a banner year for its Seniors Housing and Healthcare team, led by Chris Honn. So far in 2017, the firm has closed over $300 million in financings, the largest being a $98 million seven-year Fannie Mae loan for a 605-unit entrance-fee CCRC in Florida. Berkadia just announced its latest transaction, also with Fannie Mae. On behalf of a new client, Heidi Brunet of Berkadia arranged a $19.5 million, seven-year loan to pay off existing construction debt. The recently leased up property in question is located in Washington State and features 120 units of independent living, assisted living and memory care. This financing will also help the new client fund upcoming... Read More »Occupancy’s Impact on Skilled Nursing Facility Prices
The skilled nursing industry has experienced consistent declines in average occupancy over the past few years, sinking to a new low of 81.8% in the fourth quarter of 2016, according to NIC’s latest Skilled Nursing Data Report. It should be said that the actual level of occupancy has become less important for skilled nursing facilities because the focus has been centered on short-term-stay patients. Almost by definition, because of the high level of turnover with these patients, and the inability to consistently and constantly fill those beds on discharge, overall occupancy tends to suffer. But since these patients are more profitable than longer stay patients, providers have not worried as... Read More »A New Institutional Buyer Lands in Plymouth, Minnesota
A joint venture between The Waters Senior Living and an institutional partner has acquired a recently built assisted living/memory care community in Plymouth, Minnesota, with the help of financing arranged by Aron Will of CBRE. The Waters originally developed and has operated the property in Plymouth, a high-income suburb of Minneapolis. With 61 assisted living and 28 memory care units, the community will still be managed by The Waters. To fund the deal, CBRE secured a $16.25 million floating rate loan from a national bank, with a three-year term that is interest only. That structure seems to be the sweet spot for the prolific Mr. Will. Read More »
Seniors Housing Sentiment on Eve of NIC Conference
As we ready ourselves for attending the NIC Conference, it should be interesting from a sentiment perspective. Good morning San Diego! For those of you attending the NIC Conference I hope to be able to chat a little with you, maybe later tonight or Thursday night. You know where to find me. This will be an interesting conference from a sentiment perspective. Are people still on a high from some of the record pricing in the acquisition market of the past few years? Or will we be seeing continued caution from those worried about occupancy, labor, rising interest rates and the new community openings this year? The party is definitely not over, but if you were to balance out the positives with... Read More »
Pyms Capital Resources Joins Blueprint Healthcare Real Estate Advisors
On the eve of NIC’s Spring Investment Forum in San Diego, Blueprint Healthcare Real Estate Advisors announced the joining of its firm with Pamela Pyms and Hayden Behnke of Pyms Capital Resources. Working together since 2011 out of Denver, Colorado, Ms. Pyms and Ms. Behnke not only bring their talent for deal making to Blueprint, but local market expertise of Colorado and the surrounding region. Pyms Capital Resources also helps developers source equity and debt, in addition to arranging partnerships among institutional investors and national operators. In Blueprint, Ms. Pyms and Ms. Behnke are joining a fast-growing brokerage firm with 45 transactions and $554 million in business closed in... Read More »
National Health Investors Growing Yet Again
Continuing its buying streak, National Health Investors added five new memory care communities and a new tenant relationship to its growing portfolio. The LaSalle Group developed these communities, located in Texas and Illinois with 223 total units, under the Autumn Leaves brand of stand-alone memory care communities. This isn’t the first time we’ve heard that name, as Autumn Leaves seemed to open a new community every other week in 2014/2015, concentrating in the Texas and Illinois markets. The openings keep coming too. Just this month, the operator opened its first South Carolina community in Greenville. There are two more projects scheduled to open in that state in the next two years,... Read More »
The Highs and Lows of Seniors Housing Prices
Last week, we examined the difference in price between the low and high ends of the skilled nursing M&A market. As opposed to just using the average or median, breaking down the market by quartile allows us to separate the higher end of the market from the lower end, since many sellers think the average has no meaning to their particular properties that may be newer, in better locations or just more profitable (and often all three). So, what about the seniors housing (independent and assisted living combined) market? Like the overall average seniors housing price in 2016, the upper quartile price in 2016 of $241,500 per unit rose from its 2015 level ($227,900 per unit) and was just off... Read More »Recent Senior Care M&A Deals, Week Ending March 17, 2017
Check out our recent transactions! Long-Term Care AcquirerTargetPrice Regional Owner/OperatorSkilled Nursing Facility$16 million Civitas Senior LivingThe Hampton's Senior Living CommunityN/A Mainstreet Health Investments2 skilled nursing facilitiesN/A National Health Investors, Inc.Assisted living/memory care community$26.2... Read More »Assisted Living Acquisition in Acworth
An undisclosed institutional buyer purchased a 92-unit assisted living/memory care community in Acworth, Georgia, with the help of an acquisition loan arranged by Aron Will of CBRE. A life insurance company provided the $22.5 million financing, which came with a five-year term, a fixed interest rate and 24 months of interest only. This community has had a brief but strong operating history. Owned by CNL Healthcare Trust, it was developed by Solomon Development for about $2.8 million under budget (altogether, approximately $19 million, or $206,500 per unit). When it opened in July 2014 with 68 assisted living and 24 memory care units, it was already 50% preleased and reached 100% occupancy... Read More »Meridian Capital Group’s Strong 2017 Start
Meridian Capital Group shot out of the gates in 2017, already with $175 million in closings to date. In addition to its impressive volume, the firm’s healthcare division, led by Ari Adlerstein, Ari Dobkin and Josh Simpson, showed off its variety, closing construction, mezzanine, bridge, balance sheet and asset-based loans for its clients. The largest of the financings was a $93 million loan to facilitate the acquisition of a 900-bed skilled nursing portfolio in the Northeast. Meridian arranged three other acquisition financings, including $9.9 million for a 120-bed skilled nursing facility in Maryland, $3 million for a 230-unit senior living community (with independent living, assisted... Read More »Schedule a demo
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