Going, going, Greystone
A senior living community in Jacksonville, Florida with an unusual set-up traded hands with the help of Greystone. Owned by a publicly traded REIT, the 245-unit community was built 30 years ago on 14 acres, and provides independent living, assisted living and memory care. The Brookdale-operated campus is spread out among 12 residential buildings and one common area building. Despite upgrades made to the resident units, common areas and building exteriors in recent years, the community sold for $21.5 million, or $87,755 per unit, to a private equity firm. Cary Tremper of Greystone arranged the nonrecourse acquisition financing through a regional bank, while Cody Tremper and Mike Garbers... Read More »Doherty does it again
About a month after closing the sale of a healthcare campus in Toledo, Connor Doherty of Blueprint Healthcare Real Estate Advisors headed a bit east to sell a 37-unit assisted living community in Olmsted Falls, Ohio, with support from Jacob Gehl and Brian Payant. The property was developed in 2000 about 10 miles from downtown Cleveland. A well respected Ohio-based owner/operator ended up buying the community, paying $5.8 million, or $156,757 per unit. Read More »
Lining up in Massachusetts
It was just a matter of time when Skyline Healthcare would enter the Massachusetts skilled nursing market. The Wood Ridge, New Jersey-based owner/operator of facilities in New Jersey and Pennsylvania had been leasing a trio of small dually-certified facilities from a family operator for a year, before closing on the real estate this month. Included in the portfolio was a 30-bed facility in North Dighton, a 26-bed facility in Fall River and a larger 73-bed facility in New Bedford. The smaller buildings were well occupied in the 90s, but the larger one was lagging slightly, with occupancy in the mid-80s. Census mix was heavy Medicaid (about 82%), with the remainder split evenly between... Read More »Wait, there’s more
After announcing its seventh fiscal year in a row when it led all other HUD LEAN lenders in terms of total loan amount, Lancaster Pollard showed it was not a one-trick pony, closing two Fannie Mae refinances for clients in California. First, Jason Dopoulos arranged a $19 million loan for a 115-bed assisted living/memory care community in Oregon. The transaction refinanced an existing $10.5 million HUD loan as well as $8.2 million of previously incurred capital expenditures. And second, Grant Goodman closed a $14.5 million Fannie Mae loan for a 110-bed assisted living community in northern California, which refunded $9.6 million in existing debt and $4 million of incurred capex. Doug Harper... Read More »
SunTrust Bank and Seniors Housing
Despite an apparent tightening in the seniors housing financing world (a topic which we will discuss in detail in our webinar at 1PM on October 27), borrowers may soon have a new name to choose from. SunTrust Bank announced it intends to acquire substantially all assets of the operating subsidiaries of Pillar Financial, LLC, along with its multi-family, affordable housing, healthcare property, senior housing, and manufactured housing lending platforms. Pillar’s HUD, Fannie Mae and Freddie Mac licenses also enticed SunTrust, which would be able to offer agency lending options to its clients. In return, Pillar would gain access to a number of expanded products including bridge loans, equity... Read More »
Financing Seniors Housing and Care Today
The M&A market has peaked, but will the lending market soon follow? Find out from the experts. Have you noticed that it is getting just a little bit harder to obtain financing for your acquisition or new development? We have heard that it is getting more difficult to get to the closing table for acquisitions, and we have wondered if the lending market has been one of the reasons. Financing has been abundant and cheap for several years, with many alternatives. But after a six-year bull market, and people talking about a real estate bubble propped up by historically low interest rates, some lenders may be getting a little pickier about who and what they finance, and how they structure... Read More »
And the vote is in…
On October 13, our editor Steve Monroe moderated a webinar called “Skilled Nursing: Buying, Selling & Valuing,” with panelists Ben Atkins, Chairman of Traditions Senior Management, Charles Bissell, Executive Director of Integra Realty Resources, Ben Firestone, Senior Managing Director & Founding Partner of Blueprint Healthcare Real Estate Advisors, and Stephen Graham, SVP/Director of Post-Acute Acquisition & Development of MedEquities Realty Trust. During the 90 minutes, we posed two poll questions to our listeners and got some interesting results. First, in response to “Should high acuity, subacute SNFs sell with a higher or lower cap rate than more traditional SNFs?,” 55% of... Read More »2016 HUD Rankings
For the seventh fiscal year in a row, Lancaster Pollard has topped the HUD LEAN rankings, and closed 521 loans and nearly $4 billion through the program in the past seven years. In FY2016, Lancaster Pollard accounted for 19.5% of total activity, and led all other lenders in transactions closed and total loan amount, with 60 and $554.4 million, respectively. The transaction number is actually down from FY2015 (when LP closed 65 loans), but the loan amount grew by 4% from $531 million. Overall, the HUD LEAN program saw a 5% increase in total loan volume to $2.84 billion. Read More »Minnesota Building Boom
Construction of seniors housing communities seems to be speeding up in Minnesota, with a slew of groundbreakings announced in the last month. Two developments in the Minneapolis/St. Paul MSA will be managed by Ebenezer Management Services upon completion. The first, a 105-unit community with 80 independent/assisted living and 25 memory care units, is being developed by Oppidan Investment Company. The second is an 84-unit community (with 60 IL/AL and 24 MC units) which is being built at a cost of $16 million, or $190,500 per unit. That is about $27,000 less than the state average for seniors housing ($217,200 per unit), according to our database, which includes developments since late 2013.... Read More »
The Battle for Five Star Continues
Here we go again. Just after Barry Portnoy received Five Star Quality Care Board approval to make a tender offer for up to 10 million shares of Five Star’s common stock at $3.00 per share, Senior Star Management has announced its intention to purchase up to 10 million shares in a tender offer, but for $3.45 per share. They already control 3.36 million shares, or 6.8% of the shares outstanding, so they would like the Board to waive the same ownership restrictions for Five Star that Mr. Portnoy received. Seems fair in love and war. The stock jumped by more than 10%, but it is still shy of the $3.00 mark. This may get very interesting. Read More »Schedule a demo
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