Build or buy…or both
Employing a two-pronged growth strategy, The MacIntosh Company is adding its sixth and seventh properties though both acquisition and development opportunities. First, the company acquired a 100-bed skilled nursing facility in Columbus for an undisclosed price. Built in 1984, the facility had been under family ownership since 1992 and featured separate wings for Alzheimer’s care and hospice services. Plus, there is additional land included within the purchase for future expansion projects. Chad Elliott and Steve Kennedy of Lancaster Pollard’s M&A group served as the sell-side advisor on the sale, while Chris Mauger and Brendan Healy of Lancaster Pollard Finance Company led the way in... Read More »CCRC in the Sooner State
A CCRC in Stillwater, Oklahoma is full steam ahead, having just received approximately $111 million in tax-exempt fixed-rate bond financing from Ziegler. The project has been 20 years in the making in the local community, which is home to Oklahoma State University and many of its retired faculty, staff and alumni. Located on 55 acres, the 380,000-square foot building will feature 114 independent living units, 23 IL villas, 48 assisted living units, 20 memory care units and 40 skilled nursing beds. Sponsored by Epworth Living, it broke ground in the summer of 2015, and was already 70% presold at the time of pricing the bond issuance. The Series 2016 bonds will be used to fund the... Read More »
A couple more closings for Cambridge
A month after refinancing two skilled nursing facilities in the Chicago area owned and operated by Alden Management Services, Cambridge Realty Capital Companies did it again, but for two other facilities. The first, a 217-bed facility in Hoffman Estates, Illinois, received a $9.155 million HUD loan with a 29-3/4-year term. A 207-bed facility in Bloomingdale, Illinois was the second, and received an $8.35 million HUD loan with the same 29-3/4-year term. Cambridge Realty Capital Ltd. underwrote both transactions. Read More »Buyers pass on premium pricing
We discussed earlier this week the two different assisted living markets, separated by “A” and “B” properties, but the difference was even starker in the independent living market. In 2014, a record year by all accounts for independent living, “A” properties sold on average for $277,900 per unit (boosted by a number of very high quality communities), while “B” properties averaged $155,200 per unit, a difference of $122,700. In 2015, the difference jumped to $170,400, with “A” properties selling on average for $243,300 per unit and “B” properties for just $72,900 per unit, which is low even compared to 2013’s average of $99,600 per unit. What accounted for this shift? In 2014, investors... Read More »
Buying and Selling CCRCs and IL Communities
Independent living is riding high and CCRCs have successfully emerged from the Great Recession. We know the independent living acquisition market has been hot, setting records in the past two years. And we know that occupancy levels are among the highest in the seniors housing sector, perhaps because there has not been a lot of new IL development, as least compared with assisted living and memory care. But CCRCs, or Life Plan Communities as some people would prefer to call them, have been making a strong comeback from the Great Recession and housing crisis. Who is buying these CCRCs and how are they valuing them? And how is the acquisition of a CCRC different from that of an independent... Read More »Another Recession-hit CCRC sells
Nearly a decade on from the housing market collapse in 2007 and despite a relatively strong comeback in the sector, we are still writing about CCRCs just recovering from a drastic drop in entrance fee receipts in the throes of the Great Recession. That being said, three years after filing for Chapter 11 bankruptcy protection, a 223-unit CCRC located in the World Golf Village of St. Augustine, Florida, recently sold in auction to a partnership between LCS and HCP. Operated by LCPS Management, the not-for-profit CCRC opened in 2001 and reached 99% occupancy in 2006 and was 94% occupied in 2008 following a 15-cottage independent living expansion. However, during the Great Recession, more... Read More »
MidCap acquires HUD lender Pineview
With HUD transaction volume expected to rise in the senior care industry, following the recent debt-seasoning requirement (among other) changes, it’s no wonder MidCap Financial wants to establish a presence there in acquiring Pineview Capital Group, an experienced Denver-based HUD lender. With the benefit of its balance sheet, MidCap already boasts an array of services, including life sciences loans, first mortgage financing and mezzanine debt, ranging in size from $5 million to $100 million. This is also an opportunity to expand Pineview’s lending capabilities to a larger client base. The goal of the transaction is for both teams to become the single point of contact for borrowers through... Read More »
The two Assisted Living markets
We first separated out the “A” properties from the “B” properties in 2012, based on the properties’ age, size and location. While there will likely be some “A” communities mixed in with the “B” communities (and the other way around), it all evens out. And when looking at the numbers, these are clearly two different markets. In 2015, “A” properties sold for an average of $248,500 per unit, while “B” properties sold for an average of $138,300 per unit, a difference of $110,200. That means that “A” properties were worth almost double the value of “B” properties. The previous year (2014) the difference was amplified even more. “A” properties in 2014 sold for an average of $244,800 per unit and... Read More »
Blueprint in Brookings
The team at Blueprint Healthcare Real Estate Advisors, including Ben Firestone, Jacob Gehl and Trent Gherardini, worked on behalf of a national owner-operator to strategically divest one of its non-core assets. The property being sold is a 36-unit assisted living community in the coastal town of Brookings, Oregon (near the California border). Built 20 years ago, the all-private pay community was struggling a bit with census but could probably benefit from a little more attention, which should come from its new owner, an Oregon-based regional operator/developer familiar with the local market. The buyer also plans on converting the community to higher levels of care, including memory care... Read More »
Green Court buys Arbour Square
A fund sponsored by Green Courte Partners bought Arbour Square of Harleysville, a 276-unit independent living community located about 35 miles north of downtown Philadelphia. The first phase of the property was built in the affluent, high barrier-to-entry market in 2006 (with 151 units), while the remaining 125 units were added in 2014. The newest units were already coming out of lease-up by the time acquisition financing was originated for Green Courte. Through Freddie Mac’s seller servicer direct lending program, Aron Will of CBRE secured a $39.9 million fixed-rate loan with a 10-year term and 72 months of interest-only payments. Heritage Senior Living stayed on to operate the... Read More »Schedule a demo
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