Minnetonka mania
Three seniors housing developments are breaking ground this summer in the Minnetonka, Minnesota area. First, United Properties started construction on its 100-unit community, which will include 72 independent/assisted living units, 22 memory care units and six care units. Then, Oppidan Investment Company and Minnesota-based not-for-profit Ebenezer announced the expected September groundbreaking of their newest community, a 136,000-square foot, 105-unit community that will feature independent living, assisted living and memory care. Finally, The Waters plans to break ground in nearby Excelsior on its new 110-unit independent living community by the end of the year. We will see how these... Read More »
Development for Denver joint venture
A joint venture between three different parties enlisted the help of Aron Will from CBRE to help finance a to-be-built senior living community in Denver, Colorado. Blue Moon Capital Partners, MGL Partners and Leisure Care are set to break ground in September on a 163-unit independent living, assisted living and memory care community located near the heart of the Denver Tech Center. Mr. Will secured a $28.7 million, non-recourse floating rate loan, with a six-year term and 48 months of interest only, provided by a regional bank. The community is set to open in Spring 2017. Read More »
Propero: Part Two
For those owner/operators that wish to grow their portfolio by development, but also limit the capital needed to get the project started, there is an unconventional option. Launched in 2012, Lancaster Pollard’s first Propero Fund invests in seniors housing properties as the sole owner and then triple-net leases them to an operator, which will then choose from a predetermined purchase option schedule when to acquire the community at a price based on Propero’s investment basis rather than the current fair market value. The success of the product means Lancaster Pollard has moved on to its second Propero fund, which approximately doubles the size of the first in terms of equity commitments.... Read More »
HJ Sims’ successful partnership
HJ Sims announced that it has co-invested $15 million its Merrill Gardens’ recently formed investment fund RDM V, LLC, which will be the third Merrill fund in which Sims has participated. RDM V will acquire and develop new seniors housing and multifamily properties, which Merrill Gardens and its affiliates will manage. It currently has investments in three seniors housing properties and one multifamily, but has four other seniors housing communities lined up as potential investments. To fund the initial capital call of its 19% interest in RDM V, Sims placed $9.375 million of taxable bonds, and has committed to raising the additional capital as required. Read More »
No Summer Vacation From Deal Flow
August used to be the month for vacations, but for some, not this year. August is supposed to be a sleepy month. But as soon as I left on a summer vacation, the biggest deal of the year was announced, and we had a series of uneven earnings reports from the few remaining public companies. The large acquisition by Welltower was a bit of a surprise because we thought that deal had died late last year. And it did, a few times. And with a sub-6% in-place cap rate with occupancy for the portfolio so low, Welltower is obviously counting on a change in management to spruce up the cash flow. Great locations yes, but we thought the Big Three were taking a break from the high-priced portfolios. I... Read More »Meridian primes Continuum for HUD
Continuum Healthcare has been busy growing its portfolio and is now looking for permanent financing for the six of its skilled nursing facilities in New Jersey and Pennsylvania they acquired over the last three years. In the meantime, Meridian Capital Group has arranged $135.5 million in bridge financing for the facilities. The loan came with a four-year term, six months interest-only, under 15% recourse, and was provided by a balance sheet and mezzanine lender. Ari Adlerstein, Ari Dobkin and Josh Simpson of Meridian handled the transaction, and expect to take out the bridge financing with a HUD refinance in two years. Built between 1979 and 1999, the skilled nursing portfolio features 920... Read More »
A team effort
We wrote in the August issue of The SeniorCare Investor of Birchwood Health Care Properties’ acquisition of four skilled nursing facilities and a hospice care and home health company in Oklahoma, and that HJ Sims had financed a $5.25 million subordinate loan to fund the deal. Now, RED Capital Partners has just announced that it closed a $12.7 million balance sheet acquisition loan for Birchwood’s take-over of the 361-bed portfolio. The transaction was unique, in that the ancillary home health and hospice business provided credit support for the bridge-to-HUD loan. Read More »Leaving the Lone Star State
Civitas Senior Living is expanding its operations outside of Texas for the first time, as it is set to break ground on a senior living community in Louisville, Kentucky. Civitas has been one of the more active developers/acquirers in Texas (and that’s saying something). In 2015 alone, the company opened five new assisted living/memory care communities, and, after forming a new post-acute care division, also acquired two skilled nursing facilities plus an assisted living community in the town of Jefferson, Texas. Then, at the beginning of 2016, Civitas purchased two former Brookdale Senior Living properties in Harlingen, and currently has four communities set to open soon in Texas. After... Read More »Rocky Mountain Expansion
Legacy Retirement Communities is slowly expanding out of its home state of Utah, where it already operates nine senior living communities. After opening its first out-of-state community in 2009 in Arizona, the company plans to open its second this fall in Las Vegas, Nevada. Now, Legacy has its eye on another state, having just acquired 6.73 acres in Castle Pines, Colorado for $2.1 million, or nearly $7 per square foot. Legacy plans to build a 178-unit senior living community with independent living, assisted living and memory care services. Pamela Pyms of Pyms Capital Resources represented the seller, Pinark LLC, in this transaction. Read More »
Two Texas-sized SNFs sell
Blueprint Healthcare Real Estate Advisors’ most recent deal in Texas involved two large skilled nursing facilities, and some 438 beds, for a purchase price of $27.5 million, or $62,785 per bed. The facilities were owned by a well-known family in the Texas skilled nursing world that has been operating since the mid-1970s. The leads on this transaction, Tim Cobb, Steve Thomes and Joshua Salzman, Esq., faced some problems with the uncertainty of the Texas Minimum Payment Amount Program, but eventually sold the facilities to a Los Angeles-based real estate private equity firm with an operating partner. Read More »Schedule a demo
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