People on the Move
The former San Diego office of CBRE’s national senior housing group has departed and joined forces with DTZ. Executive Managing Director Dave Rothschild and Senior Managing Director Mary Christian, together with their team of Scott Belz, Mariflor Bernal and Tina Climon, will complement DTZ’s east coast efforts led by industry veteran Allen McMurtry in Tampa, Florida. This will double DTZ’s seniors housing team, which will be even larger when the merger with Cushman & Wakefield is completed. It should be a good fit with decades of experience from both offices, with the west coast team staying in San Diego. Good luck to all. Read More »Cain Bros. arranges two HUD loans
Cain Brothers Funding, the mortgage banking affiliate of Cain Brothers, arranged $31.5 million in HUD financing for two clients in California and New York. The first was a $13.67 million HUD mortgage loan for Eskaton Senior Living Communities to refinance a 105-bed non-profit assisted living community in Northern California. The proceeds of the loan retired existing bank debt and an interest rate swap, to replace it with a 35-year fully amortizing term and a fixed interest rate of 3.07%. The second loan was a $17.8 million HUD mortgage for Catholic Charities of Brooklyn and Queens to refinance existing commercial bank and tax-exempt bond indebtedness on a 200-bed skilled nursing facility... Read More »Arbor Commercial Funding adds Fannie Mae program
Already having been one of the Top 10 Fannie Mae DUS Multifamily lenders by volume for some time (with over $1.6 billion in transactions in 2014) and the Top Fannie Mae Small Loan Lender in 2014, Arbor Commercial Funding, a subsidiary of Arbor Commercial Mortgage, was just approved as a Fannie Mae Seniors Housing DUS Lender. Under the new program, which will be headed by COO, John Caulfield, Arbor will look to provide non-recourse financing from Fannie Mae for independent living, assisted living and memory care communities. With the program in its infancy, there have been no transactions yet, but the pipeline is building. Since fully developing their Seniors Housing and Healthcare Finance... Read More »Chartwell pays big bucks for Toronto community
Less than a week after completing the sale of its entire U.S. portfolio comprised of 5,025 suites in 35 communities, the net proceeds from which amounted to USD $333.0 million, Chartwell Retirement Residences decided to put that money to use in acquiring a high-end, 257-unit independent living community in Toronto, Ontario for $85 million, or $330,700 per unit (compared to the average price per unit for IL in the US in 2014 of $246,800). Located in four towers across from Toronto’s High Park, the community was built in 1985, but recently underwent a significant renovation to the units and common areas. The property also includes 66,880 square feet of commercial space that is 100% occupied.... Read More »High-end in Hawaii
The master planned, pedestrian-oriented city of Kapolei, near Honolulu, Hawaii, will soon see the opening of a luxury senior living community. Developed by Carlsbad, California-based Kisco Senior Living, ‘Ilima at Leihano will feature 84 units of independent living, assisted living and memory care on 3.8 acres of the 40-acre that Kisco purchased to develop a mixed-use community called Leihano. The Leihano project has been in the works since before the Great Recession, with the company closing on the land only in the last four years, including selling two parcels to First Hawaiian Bank and home furnishings company C.S. Wo & Sons. Monthly rents at the senior living community will... Read More »Hospital-owned entrance-fee community sells to non-profit
A 122-unit entrance-fee independent/assisted living community in Marietta, Ohio sold to a faith-based not-for-profit for a net purchase price of $4.4 million, which excludes the assumption of about $6.8 million of entrance fee liabilities. Built in 1997, the community features 60 IL units, 9 IL villas, 48 assisted living units and five IL units that are used for guests. The property was cash flow positive during the Recession (a difficult ask for any entrance fee community) and today operates on a 27% margin, which may improve if the buyer can increase occupancy. The villas are fully occupied, with the IL units at about 87% occupancy and the AL units at about 85% occupancy, for a combined... Read More »More Troubles For HCP
Financial problems at the UK’s largest care provider results in a write-down by HCP. HCP just can’t get a break. While the problems with its major tenant HCR ManorCare have been in the spotlight for a while, in late June the REIT announced that it will be taking another write-down. This time it relates to a $215 million investment made three years ago in senior notes issued by Four Seasons Health Care, the largest elderly care provider in the UK with about 470 care homes. Well, it looks like Four Seasons is having financial difficulties from increased labor and corporate costs, lower occupancy from above-average winter death rates and an increase in care home embargoes. The non-cash... Read More »Capital Funding Group funds two SNF acquisitions
Capital Funding Group recently completed two bridge-to-HUD loans for the acquisition of three skilled nursing facilities. The first, an $18.29 million loan arranged by Craig Casagrande, financed the acquisition of two SNFs in Pennsylvania, totaling 256 beds. If this sounds familiar, you would be right, as the transaction, between buyer, Vita Healthcare Group and seller, a regional senior living operator, was featured in the June issue of The SeniorCare Investor. The two facilities, a 173-bed SNF (90% occupied) built in 1978 and a facility with 45 skilled nursing beds (75% occupied) and 38 personal care beds (85% occupied) built in 1968, with the skilled nursing beds added in 1996, were the... Read More »Ensign grows…again…and again
The Ensign Group continues its pace of acquisitions this year with the three recently announced transactions. First, after operating a 162-bed skilled nursing facility in Whittier, California since January 2006 under a sublease arrangement, a subsidiary of Ensign continued the company’s strong growth this year by acquiring the ground lease, which has a remaining term of 20 years. This isn’t Ensign’s entry into the Whittier market, having previously acquired a 160-bed facility in the town. Similar to the recent transaction, the company had operated the facility under a lease since July 2000, only to exercise its purchase option, for an undisclosed cash amount. Ensign also acquired a 215-bed... Read More »Impact of higher acuity patients in skilled nursing
With skilled nursing facilities on average selling for a record price per bed of $76,600 in 2014, surely the quality of the facilities sold was higher than in previous years. Probably the best measure of quality (and consequently the best explanation for the record-high prices) is the trend in average net operating income per bed. Since 2011, this figure has risen steadily, going from $6,500 per bed in 2011 to $8,950 per bed in 2014, which is a new record and 33% higher than the last peak in the skilled nursing market in 2007. Why this increased cash flow? For one, the industry is taking on higher acuity patients, with higher daily rates, and while the margins may not be expanding, the... Read More »Schedule a demo
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