Back to HUD
Just weeks after closing HUD’s largest ever SNF loan (an $80.7 million loan to refinance the existing conventional bank debt at a 520-bed skilled nursing facility in Manhattan, New York), Housing & Healthcare Finance was at it again, closing on a portfolio of 5 HUD loans totaling $68.5 million in January. The loans, which featured 30-year terms and fixed rates in the mid-3% range, were used to finance the acquisition of 5 skilled nursing facilities in New Jersey with a total of 703 beds in 345 units. Read More »Keeping the pace
Aron Will of CBRE had yet another prolific month (after an already busy 2015), closing four transactions. Included in his totals were two acquisition financings (for the MorningStar Senior Living Colorado portfolio and Capitol Seniors Housing’s Seattle-area acquisition) already detailed in previous weeks. Mr. Will also recently arranged a $32.3 million 10-year Fannie Mae loan, with a fixed interest rate and 54 months of interest-only. The borrower, Westmont Living, will use the funds to refinance its 138-unit independent/assisted living community in Chico, California. Already with a 94% occupancy rate at the community, Westmont may look to convert a number of units to memory care in order... Read More »
CareTrust eyes Iowa
Just before Iowans gathered to caucus and politicians readied to leave the Hawkeye State, CareTrust REIT closed on its major move into Iowa, acquiring a nine-facility skilled nursing portfolio that included 518 operating beds for $32.7 million, or $63,127 per bed. CareTrust will lease the facilities to operator Trillium Healthcare Group through an amendment to their existing master lease, which carries an initial term of 14.5 years, two five-year renewal options and CPI-based rent escalators. Initial annual rental revenue is approximately $3.16 million, for a cash yield of 9.7%. On the same day in a separate transaction, CareTrust acquired a 30-unit assisted living/memory care community in... Read More »New opportunity for shuttered SNF
Tampa, Florida-based real estate investor Liberty Group acquired a shuttered 120-bed skilled nursing facility in Nashville, Tennessee, with plans to convert it to a 90-unit assisted living community. Formerly owned by Signature HealthCARE, which operates some 30 long-term care facilities in the state, the facility closed in July 2015 following the loss of its Medicaid funding. The buyer, which owns and operates hotels and assisted living communities primarily in the Southeast, paid $1.8 million, or $15,000 per bed, and will rename the facility Bristol Terrace Assisted Living. Read More »Back in the game
The Carlyle Group is jumping back into the seniors housing acquisition market with the announcement of two deals. First, the private equity firm purchased a 226-unit seniors housing community in Tampa, Florida with the help of a $28.7 million loan arranged by Jay Wagner and Timothy Hosmer of Cushman & Wakefield and procured from a regional bank. Carlyle plans to use some of those funds to also significantly renovate the property, enhance its amenities and reposition the independent living, assisted living and memory care into separate buildings. The company, teaming with Greystar, also acquired a 101-unit independent living community in Fort Worth, Texas for $22 million, or $217,822... Read More »HJ Sims finances a good start
A project already with a few false starts recently received bond financing to fund pre-development costs for a new 182-unit CCRC in Greenville, North Carolina. Back in 2005, not-for-profit developer Retirement Living Associates (RLA) began marketing its impending development, an entrance fee CCRC with 150 independent living units, 12 IL cottages, eight assisted living units and 12 skilled nursing beds. In fact, the company obtained over 280 depositors, 47 of which submitted 10% deposits, by 2007. However, the Great Recession threw a rather large wrench in those plans, and the project was only revived at the end of last year. Now, to fund the start of this development, HJ Sims sold $14.825... Read More »Genesis HealthCare Plunges
After falling by 60% in 2015, Genesis shares plunge on revised revenue and earnings forecasts. Talk about a disaster. Just when we thought all senior care stocks had bottomed out, Genesis HealthCare wasn’t done. All the others are now well above their recent lows, but Genesis plunged 32% on Monday and late yesterday was down another 12% when the overall market was up over 200 points. Why? Management revised downward its revenue and EBITDA estimates for 2015, and also revised downward their forecast for 2016. This was the second negative earnings surprise in less than a year, for which values get crucified. But here’s the rub. The share price had already dropped by 31% in December, and had... Read More »
Blue Moon teams with LCS
After announcing two large development projects funded by Hawkeye Partners’s Scout Fund II last year, Boston-based Blue Moon Capital Partners will go to the well once more to build another large senior living community, this time in Katy, Texas. The project, which will cost $51.23 million, or $247,500 per unit, features 207 units of independent living, assisted living and memory care, and will be the first with joint venture partner LCS. Previously, Blue Moon teamed up with Gerald H. Phipps, Inc. and Ascent Living Communities to build a $56 million, 156-unit senior living community in Lakewood, Colorado, and with The Damone Group and Cedarbrook Senior Living to develop a 180-unit senior... Read More »
Knapp hits a double
Jim Knapp of Marcus & Millichap has been busy in the state of Michigan lately, closing two transactions in the last few weeks, totaling over $12 million. Starting in the town of Flushing (located just upriver from Flint), Mr. Knapp sold a 52-unit assisted living community that included two buildings with 40 assisted living/memory care beds and a separate 20-bed advanced memory care community located about a mile away. This was the last owned seniors housing property by the seller, a local partnership that still currently operates a small memory care community within a hospital. Built in 2001, the two AL/MC buildings were well occupied at 90%, but experienced higher than normal... Read More »Bridge to success
Capital Funding Group closed three bridge-to-HUD loans for three turnaround opportunities totaling over $25 million, all of which helped finance acquisitions. First, Gary Sever originated a $10.8 million loan, provided by Capital Lending and Mortgage Group, to facilitate the acquisition of two skilled nursing facilities (with 151 and 64 beds, respectively) by affiliates of the ARBA Group for $9.5 million. The funds also allow ARBA to renovate both facilities. Next, Mr. Sever originated an $8.16 million loan from Capital Funding, LLC for ARBA to acquire a 365-bed (though with 265 functional beds) skilled nursing facility in Fort Worth, Texas for $9.6 million. Built in 1974, the facility was... Read More »Schedule a demo
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