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 »Here’s hoping for smooth sailing
A 50-unit memory care community in Costa Mesa, California is hoping for a more stable, and successful, future following its recent sale to Pacifica Senior Living. Built in 1992, the community underwent a substantial $1.72 million renovation to its common areas and units in 2011. However, in the past five years, a number of operational changes damaged the facility’s brand name as each operator had different visions of how to run the property. Occupancy ultimately suffered, falling to 70% early this summer, and the community was losing money. But for Pacifica, there is plenty of upside. Rents are currently below market rates at nearby competitors, and with nearly all semi-private units... Read More »Kaukauna closing
Ray Giannini of Marcus & Millichap went to Kaukauna, Wisconsin to close his latest transaction, when a private individual sold their 46-unit assisted living community to a confidential buyer for $8.5 million, or 184,783 per unit. The community features two buildings that were built in 2009 and 2012, respectively, on nearly four acres near a retail shopping area. With 95% occupancy, about 70% of the census was private pay, and the remaining 30% was Family Care, which is a Medicaid managed long-term care program in Wisconsin. Rates were solid too, with an average of $4,420 per month for private pay and $3,451 per month for Family Care. As a result, the community operated at about a 40%... Read More »
What happens when 100 is the new 65?
With technological advances, people will be setting records in aging, passing the current record of 122 years old. A recently published article in the journal Nature has created some interesting discussion. The conclusion of the authors is that the human race has hit its maximum life span, with future people never surpassing the eldest living person who died at the age of 122 in 1997. They concluded that the maximum average life span going forward would be 115 years. Not so fast. What these researchers are ignoring is changes in gene therapy, better organ transplant capabilities, and how about a future of artificial organs, all organs? What happens when, and not if, but when you can remove... Read More »
HHC Finance works in Yonkers
The team at Housing & Healthcare Finance (HHC) went through HUD to successfully refinance an independent living/assisted living community in Yonkers, New York. Located on 10 acres in a park-like setting, the community was recently renovated/upgraded in 2010. It also is the only provider in the area with the Medicaid Assisted Living Program. Occupancy at the 195-bed property has always been close to full. Working through a PILOT issue with HUD and the local municipality, HHC was able to close a $27 million refinance with an interest rate below 3%. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
