Reposition then refinance
After purchasing an 84-bed/49-unit memory care community in Phoenix, Arizona in 2013, the new ownership invested significant capital to reposition the community and make it more competitive. It also helped that an experienced local operator was in the ownership group and could capture significant market share by improving both quality of care and the physical plant. The community is built in the cottage style, with seven single story buildings each with dining rooms and common areas. The concept is designed to help promote socialization and create a more “home-like” environment. Now, ownership was looking to refinance its existing debt while simultaneously funding capital improvements and... Read More »Changes to the 5-star rating system?
David Friend is a Managing Director and CTO at BDO Center for Healthcare Excellence & Innovation. He has more than 35 years of global healthcare experience and provides advice on mergers and acquisitions, strategy, clinical integration, physician engagement, and enhancing shareholder value. He received his BA from Brandeis University, his MBA from The Wharton School of The University of Pennsylvania and his PhD from The University of Connecticut. Steve Monroe I’m lucky to have here with us David Friend. He’s a managing director and chief transformational officer for BDO. David, we all know, and you’re obviously on top of all this, that the skilled nursing facilities... Read More »Merry Commissions
A year-end tribute to the seniors housing and care brokers. Twas the night before Christmas and all through the building Not a broker was stirring, not even Brad Clousing The listings were hung by Mike with care In hopes that Chris Brogdon soon would be there. Myers and Jandris were all snuggled in their beds While visions of commissions danced in their heads And Knapp in his kerchief, and Gianinni in his cap Had just settled their brains for a long winter’s nap. When out on the lawn, there arose such a clatter Bruce Gibson sprang into action to see what was the matter The PE firms were in the hunt, the REITs were still hungry It looked like it was all up to Allen McMurtry.... Read More »Trio of transactions
The Healthcare Lending group of Congressional Bank recently announced that it closed three separate transactions (with five loans) totaling $11.6 million, which all helped facilitate acquisitions for the borrowers. First, Congressional provided a $3 million bridge-to-HUD loan and a $1.5 million revolving line of credit, both with three year terms, to fund the purchase and ongoing capital needs of a 107-bed skilled nursing facility in New Bedford, Massachusetts. The buyer, a regional owner/operator, paid $3.21 million for the 40-year old facility, which was losing money and was 82% occupied. Second, Birchwood Health Care Properties received a $2.6 million bridge-to-HUD loan and a $500,000... Read More »Freddie Mac comes to Silicon Valley
On behalf of Kisco Senior Living, Jessica Wolters of JLL Capital Markets led the way in originating a $32.5 million refinance, with a 10-year fixed-rate term, provided by Freddie Mac’s Capital Markets Execution program. The community being refinanced, a 133-unit independent/assisted living community in Los Altos, California, was built in 1973 but was bought for $16 million, or $106,700 per unit (when it had 150 units), and renovated in 1998 by TransAmerica Senior Living (which was itself bought by Kisco in 2001). Considering today’s $244,400 per unit refinance, it’s clear that Kisco has significantly increased the value of the property. Read More »Get while the going’s good
In the last year, we have heard of many single-asset owner/operators suddenly getting the bug to retire. And who wouldn’t? While pricing may have peaked at the end of last year and beginning of 2015, per bed values are still high and cap rates may continue to sink even further. So when the owners of a family-owned business reached retirement age, they decided to sell their 106-bed skilled nursing facility in Oswego, Illinois for $13.37 million, or $126,200 per bed. Originally built in 1972, with a 16-bed addition in 1985 and an interior renovation in 2009, the skilled nursing facility was 93% occupied on 100 functional beds. Also included at the facility were a rehab company, in-house... Read More »Reposition and refinance
HJ Sims recently helped Cross Keys Village, the ninth-largest single-site not-for-profit CCRC in the country, obtain two bank loans, totaling $42.5 million, in order to both refinance a bridge line of credit and fund an expansion of its campus. Founded in 1908, the CCRC currently features 444 independent living units (in apartments, cottages and country homes), 91 assisted living units and 270 skilled nursing beds. The sponsor, the Southern District of the Pennsylvania Church of the Bretheren, together with architectural firm SFCS, Greenbrier Development and Sims, decided on a campus expansion project, which would include expanding its health center facilities (particularly its skilled... Read More »Improving senior care facility sells
With a stable occupancy and rising Medicare revenues, a 94-bed skilled nursing and memory care facility in Lawrenceburg, Indiana represented a good opportunity for a local undisclosed buyer to both cash in on the 19% operating margin, and improve it. Originally built in 1984 with 35 semi-private and 12 private units, the facility provides a wide array of services, including physical therapy, nursing complex care, dementia care and social services. In 2010, it underwent a $395,000 renovation mainly to the private-room wing in order to attract Medicare rehab patients. Thanks in part to the facility’s relationship with the local hospital (which had 1,779 Medicare patients with a mean length... Read More »The Santa Stock Rally Is Stalling
We were supposed to see stocks rise this month, but so far the market is down as are seniors housing stocks. So what happened to the Santa rally? While we still have a few weeks to go before the end of the year, the markets have been sinking, and almost all seniors housing and care stocks have dropped, with Brookdale Senior Living falling the most, with a loss in value of 12% since November 30. It has now dropped below the psychologically important $20 threshold, and any bad news could add insult to injury. The others are closer to a mid-single-digit decline this month, but with one glaring exception. That is The Ensign Group, which is up just over 2% this month as it keeps chugging along... Read More »Greystone closes over $210 million
Greystone has been relatively quiet in the press over the last few months, but the lender was of course hard at work. Across 11 transactions (all previously unannounced since August 2015), the lender closed over $210 million in seniors housing lending transactions. The financings were for properties located across the country, ranging in size and services offered, from age-restricted housing to memory care. The loan amounts were as small as a $2 million bank loan to finance a land acquisition for seniors housing in Waldwick, New Jersey, to as large as a $46 million Freddie Mac refinance on a 209-unit independent living/assisted living/memory care community in Anaheim, California. There... Read More »Schedule a demo
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