Who’s building in St. Augustine?
Having just purchased nine acres in St. Augustine, Florida at the end of last year, Baltimore, Maryland-based Capital Health Group (CHG), an affiliate of Capital Funding Group that purchases and operates seniors housing and care facilities, is poised to break ground early in the second quarter of 2015 on a 64-unit memory care community. Although the development cost was not disclosed, CHG is responsible for finding the debt (which will cover about 65% of the total development cost and come from an existing relationship) and will provide the bulk of the equity, with its partner, Fortress Ventures, providing a smaller percentage of equity. Capital Health will bring in its affiliated... Read More »New “household” SNF under construction in Connecticut
A not-for-profit provider of long-term care in southern Connecticut, Jewish Senior Services (JSS) is planning on moving its 360-bed skilled nursing facility in Fairfield, Connecticut across the city line to Bridgeport where the company is building a new senior care campus, to be called Harry and Jeanette Weinberg Campus at Park Avenue. In Connecticut, you cannot move skilled nursing beds unless they are in the new “household” format, where you have groups of 14 private rooms in an area that all share a kitchen and other common areas (known also around the country as Green House Communities). Plus, the new SNFs can only have a maximum of 280 beds. So, in April 2014, JSS broke ground on a... Read More »Kindred Completes Gentiva Acquisition
With $7.2 billion in annual revenues, Kindred Healthcare is the largest post-acute provider in the country, but now the hard work begins. This past Monday, Kindred Healthcare closed on its $1.8 billion acquisition of home health and hospice provider Gentiva Health Services. With this completed, Kindred is entering a pivotal period in its corporate life because it has all the parts to run a true nationwide post-acute company, from hospital discharge to the home. It is the largest LTAC and inpatient rehab operator in the country, the largest provider of rehab, home health and hospice services in the country, and one of the largest subacute and skilled nursing providers. You might think that... Read More »Seniors Housing Portfolio in New England Sells For Top Price
Nine properties in three states sell for over $500,000 per unit, more than doubling in value in 10 years. Patient capital in seniors housing can certainly reap its rewards. Take the case of Boston-based Intercontinental Real Estate, which purchased nine senior living communities in New England from BayNorth Capital in 2005 for approximately $225,000 per unit. The one constant in the portfolio was Benchmark Senior Living, which was a minority co-investor with BayNorth and managed the portfolio. With the sale in 2005, they remained as the manager, and also stayed in as a co-investor. The portfolio has now been sold again, but for about $521,000 per unit. Individual properties have sold at a... Read More »Double duty financing
We wrote last year that Virtus Real Estate Capital and PNC Bank had partnered to provide acquisition financing for LCB Senior Living to acquire two Vermont senior living communities with a total of 297 units for $80 million, or $269,400 per unit. Virtus provided $23 million in equity and PNC provided debt for the remaining $57 million. But, in that acquisition, LCB also purchased a 2.7 acre site just outside of Burlington, Vermont. And who did they turn to finance the construction of a new 102-unit IL, AL and MC community? Why, Virtus and PNC, of course. Arranged by Cushman & Wakefield, PNC provided $18.4 million in construction financing, while Virtus supplied $8.5 million in equity.... Read More »Southwest Florida booming
REDICO, a Michigan-based real estate development and investment company, announced its next American House project, called Coconut Point, in Estero, Florida. The project is the second for REDICO in southwest Florida and will include 54 independent living units, 76 assisted living units and 64 memory care units. It’s in a prime location, as across the street is a 140-store mall, and just north of Coconut Point will be Lee Memorial Health System’s planned $140 million Estero healthcare village, which is scheduled to open in 2017. American House is based in Michigan and currently has over 40 communities open in that state, mostly in the Detroit metro area, and after it became an affiliate of... Read More »EB-5 helps SummerPlace expand into Sacramento area
A joint venture between PDC Capital Group, a private equity group specializing in EB-5 investments for different areas of real estate including seniors housing, and FCM Capital Partners, a seniors housing developer, is soon starting construction on two more assisted living communities under the SummerPlace brand. Roseville, California-based FCM Capital Partners created SummerPlace Living (which is also headed by FCM CEO, Chris Miller) to develop the pipeline and brought in Salem, Oregon-based Mosaic Management to operate the communities. The development pipeline is valued over $750 million and in the next two years will fund the construction of 25 AL/MC communities, mostly in California... Read More »Ventas Closes ARC Deal
American Realty Capital Healthcare Trust shareholders trade their shares for Ventas shares. At the end of last week, Ventas closed on its acquisition of American Realty Capital Healthcare Trust. The deal was first announced last June 2 as a stock-for-stock transaction valued at about $2.6 billion, with up to 10% of the ARC shares redeemable for cash. At the time, Ventas was trading at about $66 per share, but its shares have increased by almost 17% to $77 since then. Fewer than one million shares of ARC took the cash option, with almost all shareholders taking the Ventas stock. And why not? The shares had appreciated, Ventas has a growing dividend, interest rates aren’t going anywhere... Read More »Occupancy Increases in 4th Quarter
Assisted living and independent living occupancy rates continue to increase. It’s always nice to start the New Year with a little good news, and the good news I am talking about is the sequential and year-over-year increases in occupancy rates across seniors housing. The NIC MAP data has shown the largest increases to be in independent living, which makes sense since there are fewer new units coming on stream. The odd thing from the data is that occupancy levels in the primary 31 markets averages about 40 to 50 basis points lower than the other 68 markets covered by NIC MAP. A similar phenomenon exists with construction starts as a percentage of supply. In the top 31 markets, trailing... Read More »The Village at Orchard Ridge gets bond financing
The Village at Orchard Ridge, a National Lutheran Community in Winchester, Virginia, is a CCRC that is ready to undergo Phase II of construction with the help of a $67.8 million tax-exempt bond issue. Phase I, which opened in 2013, featured 51 IL cottages, 127 AL units, 18 AL/MC units and 10 private skilled nursing units. With Phase I’s success, National Lutheran Communities & Services (NLCS) is ready to start construction on Phase II this month, which will include an additional 104 IL units, 10 private SN suites, a 15,000 square foot wellness center with an indoor pool and a 150-seat dining expansion. The financing, which will also partially fund 18 IL cottages set to open this month,... Read More »Schedule a demo
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