San Diego Solution
Aron Will of CBRE closed his latest transactions for two separate borrowers in the San Diego area. First, Mr. Will and Kevin Randles arranged a fixed rate Fannie Mae loan to refinance an 84-unit independent living community in San Diego. The owner/operator, Ray Stone Inc., had managed the community since 2005. Then, The Grant Companies refinanced the recently stabilized 102-unit independent/assisted living Phase II of its Ridge at Lantern Crest campus. Mr. Will worked with Bill Chiles and Scott Peterson on this transaction. CBRE also refinanced Phase I with a Freddie Mac loan back in 2014. Read More »
Iowa outta here
An owner/operator is exiting the industry, selling its last seniors housing property in Burlington, Iowa, with the help of Ryan Fleming, Eric Bell, Mark Myers, Joshua Jandris and Charles Hilding of Marcus & Millichap. Located on the Mississippi River about 80 miles southwest of Davenport, this 36-unit assisted living community was built in 1999 on 3.2 acres. It was 83% occupied at the time of the sale, and sold for $3.7 million, or $102,778 per unit, to a private regional owner/operator. Read More »Living large on Long Island
Typically, you see assisted living communities number between 50 and 100 units, and only rarely over 150 units. Those large facilities are usually reserved for independent living. But a 200-unit assisted living community on Long Island in Lake Ronkonkoma, New York recently went through HUD to refinance its variable-rate bank debt. Ken Gould of Lancaster Pollard arranged a 30-year HUD loan for the community, which also enabled it to set aside a large initial deposit on its replacement reserves while still keeping the loan-to-value low. That reduces the community’s annual contribution and improves its debt service coverage. Read More »
A financing fit for a Queen
A CCRC in the Queen Anne neighborhood of Seattle has plans to add more independent living units as well as a two-story assisted living/memory care building, and is partnering with Ziegler to help finance it. The not-for-profit community opened in 1961 and currently features 124 IL units, 45 AL units and 50 skilled nursing beds, in addition to an intergenerational childcare center. To expand their efforts, Ziegler closed a $57.46 million un-rated, fixed rate bond issue for the CCRC. The financing will also fund additional capital improvements at the community, refund the outstanding Series 1994 bonds, pay a portion of interest on the bonds, fund subaccounts of a debt service reserve fund,... Read More »CareTrust’s California buying spree
California-based CareTrust REIT didn’t travel far to close its last couple of deals, adding five in-state senior care facilities to its portfolio in just a week. First, the REIT acquired a 59-bed skilled nursing facility in Petaluma for $6.9 million, or $116,949 per bed, bringing in a new tenant in West Harbor Healthcare to operate. CareTrust expects the acquisition will generate initial annual rental revenue of approximately $670,000, under an initial 15-year lease, with two five-year extension options and CPI-based rent escalators. Then, CareTrust bought a senior care portfolio in Northern California, with a skilled nursing facility and an assisted living community each in the towns of... Read More »
Consistent Cambridge
Cambridge Realty Capital Companies has specialized in the small- to mid-sized loan in the first half of 2016. The lender closed a total of $61.6 million in six HUD financings in the six-month period. In that time, the largest closing was a $13.5 million loan for a 121-bed assisted living community in Aurora, Illinois, and the smallest was a $7.6 million loan to refinance a Chicago skilled nursing facility. That consistency has led to more than $5.0 billion in closed transactions for the firm since the 1980s. Read More »
The Key to success
A life insurance company provided an $85 million permanent loan to Tradition Senior Living for its 311-unit senior living community in Dallas, Texas. Opened in 2014, the community includes 202 independent living units, 85 assisted living units and 24 memory care units. Monique Bimler of KeyBank Real Estate Capital’s Healthcare Mortgage Banking Group arranged the 10-year fixed-rate loan, which amounted to more than $273,000 per unit. This is not the first time Tradition has relied on KeyBank. Since 2012, KeyBank has worked with Tradition on its capital raising efforts, including originating (led by Grant Saunders and Peter Trazzera) the initial construction loan and agenting the syndication... Read More »
HFF in Port St. Lucie
We wrote earlier this week of Watercrest Senior Living Group’s latest development activity, with more than $80 million in its immediate pipeline across the state of Florida. Its largest project, a 128-unit senior living community in Port St. Lucie set to open in the fall of 2017, recently received construction financing with the help of Holliday Fenoglio Fowler, L.P. (HFF). The $32 million, or $250,000 per unit, development should feature 102 assisted living and 26 memory care units on its 5.3-acre campus located about 50 miles north of West Palm Beach. HFF arranged $11.15 million in joint venture equity capital from a third party, in addition to securing a $21 million construction loan... Read More »
Seattle calls, again
Washington D.C.-based Capitol Seniors Housing has been quite active in Washington State, announcing its fourth acquisition there in less than a year. The private equity firm acquired some 368 units of assisted and independent living across four communities located in the Seattle area. These properties were built from 1989 to 2005, with various additions in that time, and Capitol Seniors Housing plans to make significant capital investments at the communities while converting a number of units to assisted living and memory care. MBK Senior Living will manage. The purchase price came to $78 million, or $211,957 per unit, and Jason Punzel of Senior Living Investment Brokerage handled the... Read More »Summer of the Big Deal
We had been talking about how 2016 was the “year of the small deal,” with near-record transaction levels but few mega deals. That changed at the end of July and certainly at the start of August, when several large deals were announced. Welltower caused the biggest stir in acquiring 19 seniors housing properties operated by Vintage Senior Living for a total of $1.15 billion, making it the largest long-term care transaction in 2016 by more than double (Welltower’s February acquisition of the Aston Gardens portfolio for $569 million came in second). The portfolio, which includes independent living, assisted living and memory care, is concentrated in high income markets in Southern and... Read More »Schedule a demo
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