Grandbridge hits the Town…Village
It was recently announced that Grandbridge Real Estate Capital closed $125 million in financing to assist in the acquisition of four Town Village-brand independent living communities in four states. A joint venture between Chicago Pacific Founders and Grand Park Capital Management (owned by former Brookdale Senior Living executives John Rijos and Bill Doniger, respectively) was the buyer. According to some media outlets, the properties sold for $180 million, or approximately $220,000 per unit. Grandbridge provided $25 million in supplemental loans and also closed $100 million in assumption loans for existing Fannie Mae debt that Grandbridge had previously originated. Read More »
Divest in Dallas
A West Coast-based private equity group is divesting itself of a 30-year old independent living community in Garland, Texas (Dallas MSA). Built in 1984, the 111-unit community had received numerous renovations over the years and was in good shape. Its occupancy (around 83%) and operating margin (approximately 18% on $1.7 million of revenues) however could be improved. Rod Llanos and Heidi Castiglione of Marcus & Millichap represented the buyer, a regional Texas owner/operator looking to add to their holdings in the area. The seller will maintain a handful of properties in the state despite this sale. Mark Myers, Ryan Fleming and Joshua Jandris of Marcus & Millichap represented the... Read More »From the rumor mill
We have heard that a joint venture between Capitol Seniors Housing and Formation-Shelbourne Partners may have sold an assisted living and memory care community outside of Philadelphia to a private equity firm. Pricing has not been disclosed yet, but we understand that it could have been close to $400,000 per unit for the newly built community. Lisa Widmier and Matthew Whitlock of CBRE represented the seller, and Aron Will of CBRE arranged a five-year floating rate loan for the buyer, with three years of interest only. It looks like this is a case of buying a state-of-the-art community in a good market. Details to follow. Read More »
Majority rules
Merrill Gardens found a new majority partner for a small portfolio of four senior living communities on the West Coast it had either developed or acquired in the last couple of years. Previously a minority owner with an affiliate of Heitman (a real estate investment management company based in Chicago), the Seattle-based operator had developed three of the communities in the Orange County, San Francisco and Silicon Valley markets of California in 2014/15, and had acquired the fourth community in Seattle back in 2014 after already operating it for a couple of years. Featuring a combination of independent living, assisted living and memory care, the California properties were all stabilized... Read More »
Acquiring in the Acela Corridor
As we are about to travel from the New York City area to Washington, D.C. for the upcoming NIC Fall Conference, we must take note of two teams that did that trek probably a number of times recently. Grandbridge Real Estate Capital provided through its proprietary lending platform, BB&T Real Estate Funding, a $43.5 million non-recourse acquisition/bridge loan for a joint venture between Blue Vista Capital Management and Meridian Senior Living. Owned by Holladay Corp., a D.C.-based real estate developer/owner, the targets included an 88-unit assisted living/independent living/respite care community built in 1976 in Yorktown Heights, New York and a 131-unit (147 units post-renovation)... Read More »
Only in Oregon
Evans Senior Investments sold a portfolio of three seniors housing properties in McMinnville, Oregon, for $36.5 million, or $272,388 per unit. Built in 2008, 2014 and 2015 all within four miles of each other, the properties consist of 134 total units and 181 beds of independent living, assisted living and memory care. The two stabilized communities have occupancies in the mid- to high-80s, while the third is currently in lease-up. All three have majority Medicaid censuses. National Health Investors (NYSE: NHI) acquired the portfolio from FirCrest Community Living. Chancellor Health Care will operate the communities under a lease with NHI. Read More »Summit Healthcare buys at peak pricing
We write in the September issue of The SeniorCare Investor that after a four-year surge, skilled nursing valuations may be at a peak. We give many reasons why the sector is currently valued so high (rightfully so) but also why it probably won’t rise any higher. But in the meantime, high-valued deals are still closing, including Summit Healthcare REIT’s acquisition of an interest in two Delaware skilled nursing facilities for a total purchase price of $54.1 million, or $162,952 per bed. The REIT made the acquisition through a joint venture between its wholly owned subsidiary, Summit Healthcare Operating Partnership, LP and Best Years, LLC, a wholly owned subsidiary of the Chinese... Read More »KeyBank goes big with HUD
Formation Capital went to KeyBank Real Estate Capital to refinance a 22-property skilled nursing portfolio located in Florida (17 facilities) and Mississippi (five). With a total of 2,682 beds, the facilities were purchased in February from GE Capital. John Randolph and Paul Di Vito of KeyBank arranged $249 million in HUD financing, which will help pay down an existing bridge loan that funded a 66-facility acquisition. Read More »Out with a bang
In an otherwise quiet month, August was bookended by two large seniors housing deals. Starting the month, of course, was Welltower’s $1.15 billion acquisition of 19 Vintage Senior Living properties. And ending it was Investors Real Estate Trust’s (IRET) exit from the industry with the sale of 26 seniors housing properties located throughout the Upper Midwest. Totaling 1,751 rentable units, these properties were located in Wyoming, Minnesota, Montana, Nebraska, North Dakota and South Dakota. Affiliates of the current tenant of 25 of the 26 properties, Edgewood Senior Living, are the buyers. Also included in the $236 million, or $134,780 per unit, price was one multifamily property in... Read More »
Closing in Cordele
The sole assisted living community in Cordele, Georgia, sold to Omega Healthcare Investors when its Florida-based partnership owner decided to exit the Georgia market. Built in 1987 and 1996, the community features 38 personal care and eight independent living units, and has historically been well occupied, currently standing at 93%. Its 20% operating margin on approximately $1.4 million of revenues could be improved, and the buyer, with Fellowship Senior Living (its existing South Georgia operating partner), is planning on $500,000 in capital improvements. The purchase price comes in at $2.5 million, or $54,348 per unit, with a 12% cap rate. Brad Clousing and Patrick Burke of Senior... Read More »Schedule a demo
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