The All-in-One Deal
Valstone Properties brought in Walker & Dunlop to refinance their portfolio of 12 memory care properties located throughout New Jersey and also provide funding for the acquisition/refinancing of two additional communities. Working with HUD, Kevin Giusti and Michael Vaughn of W&D arranged a 35-year $28.38 million loan with an 80% loan-to-value. The financing reimbursed Valstone for their original acquisition costs, capital expenditures and various renovations. It also involves the largest number of individual properties, which total 215 units, to be included as one loan under HUD’s scattered site policy since the HUD 232 program’s inception, which allowed for significant... Read More »
Meridian in Massachusetts
New York City-based Meridian Capital Group is helping an undisclosed buyer with the purchase of three skilled nursing facilities and one assisted living community in Massachusetts. Led by Ari Adlerstein, Ari Dobkin and Josh Simpson, the firm arranged a two-year $64 million bridge-to-HUD loan, provided by a finance company, with a full-term of interest-only payments. Plus, with an additional $5 million earn-out feature, the financing comes to 90% loan-to-cost, pushing the acquisition cost up to an estimated $76.7 million. Read More »
The Keys to Success
At a time when seniors housing values are still around a record-high (averaging nearly $200,000 per unit for assisted living and over $230,000 per unit for independent living in the four quarters ended September 30, 2016), a group of local operators in Pennsylvania is exiting the market. Of course, owning four recently built, well performing assets helps with capitalizing on value. Developed by the selling group, the Keystone Villa Portfolio is located across three campuses between Harrisburg and Philadelphia and features 509 total units. The Douglassville location was built in two phases in 2004 and 2008 as a 123-unit independent living community, but has since added in 2009 and 2013, 124... Read More »
Carrieros’ close
Damien and Ken Carriero had their hands full, to say the least, in their latest closing. The duo from Collier’s International sold a 30-unit/50-bed assisted living community in Venice, Florida for $2.15 million, or $71,667 per unit, with an 11.79% cap rate. The deal was far from “straight-forward,” though. The current seller sold the community a few years ago as a lease with an option and then moved to California. However, the buyer/lessee apparently ran the operations into the ground, while leaving the building in a state of disrepair, and then promptly left the country. The seller, now an owner/operator in California, hired a management company to turn things around, but soon fell behind... Read More »
Lancaster Advises on Sale to Shepherd Health
A Miami Beach-based real estate developer/operator, Shepherd Health, is taking its services to Daytona Beach, Florida with the acquisition of a 146-unit senior living community that comes with a sterling reputation. Built in 1984, the fully occupied (and 100% private pay) community has 120 assisted living and 26 independent living units. In 2015, it was one of three Florida AL communities to have received a “Silver – Achievement in Quality” award from the American Health Care Association and the National Center for Assisted Living. That may have helped push the purchase price up to $30.5 million, or an above-average $208,904 per unit. Having been a long-term capital partner of the... Read More »
Cain Brothers and Pilgrim’s Place
Pilgrim’s Place, a not-for-profit CCRC in Claremont, California was originally established over 100 years ago, and now is planning a $9 million renovation with the help of a $36 million tax-exempt bond issuance from Cain Brothers. The community has grown over the years to feature 182 independent living units, 56 assisted living units and 62 skilled nursing beds on a 32-acre neighborhood campus. Cain Brothers structured the bonds with a 4.25% coupon priced at a discount, and an all-in total interest cost of 4.46% and net present value savings on the advanced refunding portion of more than $1.5 million, or 6.4% of refunded par. Read More »
Assisted Living Occupancy Woes….Again
According to NIC data, assisted living occupancy dropped in the fourth quarter, which was not a good way to end the year. I don’t like to start the new year off with an “I told you so,” but I will. Fourth quarter occupancy trends were just released by NIC, and let’s just say they were disappointing. Surprising? No, but disappointing? Yes. The fourth quarter is usually looked upon as a solid quarter, with occupancy increases that are necessary to fend off declines in census from what can be bad flu seasons in the first quarter. Until recently, some providers were denying that the jump in development was impacting their census. But privately, we knew there was a different story, even with... Read More »
Recap with MidCap
A few years after acquiring an independent living community in Payson, Arizona (located in the middle of the Tonto National Forest), Compass Senior Living is refinancing the property, with the help of MidCap Financial. Originally built in 2006 by a not-for-profit operator, this 50-unit community was eventually sold to Compass in 2014. Since then, occupancy and operating margin have improved, and the property’s value, thus, increased. The $4.5 million floating rate loan came with a three-year term and not only refinanced existing debt, but also recaptured equity that was originally committed to the 2014 acquisition. Read More »
Growth by Northwest
Cascadia Healthcare grew leaps and bounds in just one transaction announcement: its acquisition of three skilled nursing facilities in Idaho (2) and Montana. Since its start in 2015, Cascadia had been in operation at one location (a SNF in Boise, Idaho), and has been in the process of developing two transitional care facilities in Boise and Nampa, Idaho, which are expected to open later this year. Now, the company is adding a 117-bed facility in Coeur D’Alene, Idaho, a 60-bed facility in Orofino, Idaho and a 101-bed facility in Libby, Montana, marking its entry into Big Sky Country. Cascadia entered into a triple-net lease agreement with the real estate owner to assume operations of the... Read More »Big Changes for Transforming Age
The newly transformed Transforming Age, formerly Presbyterian Retirement Communities Northwest, is branching out of the West Coast for the first time in its 60-year history. Based in Bellevue, Washington and already with three communities in the Seattle area, the not-for-profit just announced it is acquiring eight (yes, eight) senior living communities in the Minneapolis, Minnesota area, at a price of approximately $138 million, according to local media. Built from 1969 to 2008, the communities range in size from 84 units to 181 units, and feature independent living, assisted living and memory care services. This represents a big jump in operational size for Transforming Age, so here’s... Read More »Schedule a demo
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