60 Seconds with Swett: Another Year Down, and A Lot To Be Thankful For
It was another chaotic year, as has been the norm post-COVID, but we still have a lot to be thankful for. The seniors housing and care industry continues to show remarkable resiliency in the face of inflation, staffing crises, and countless negative attention in the media and among politicians. We are thankful for the thousands of caregivers furthering the mission every day of serving our seniors and making the last years of their lives fruitful, happy and well-spent. We are thankful to the capital providers who stuck with the industry through the bad times, injecting much-needed funds into aging physical plants and financing as many acquisitions as they did, giving us plenty to... Read More »
Stride Bank’s Recent Activity
We learned of a number of recent financings provided by Stride Bank for senior care facilities across the country. First, the bank refinanced multiple assets in New Mexico and West Texas. The relationship with this particular borrower began in June 2023 (through Clint Miller of Ziegler) when it was looking to execute a bridge-to-HUD strategy and its prior, larger regional bank was unwilling to entertain. The portfolio features a mix of HUD-qualified and non-HUD-qualified assets, and the borrower needed an institution that allowed a multi-step process to release the HUD-qualified assets slowly. The senior credit facility will fully retire once the HUD-qualified assets are refinanced,... Read More »
Owner/Operator Acquires AL/MC Portfolio in Ohio
A northeastern Ohio portfolio of assisted living/memory care communities sold out of receivership, with the help of Ryan Saul of Senior Living Investment Brokerage. Dubbed “The Lantern Group Portfolio,” the three communities feature a combined 220 units, split between 135 assisted living and 85 memory care units. Built in 1960, Lantern of Madison is located about 40 miles northeast of Cleveland, Lantern of Chagrin Valley (built in 1976) is just 15 miles southeast of Cleveland, and Lantern of Saybrook (built in 2015 in the town of Ashtabula) is halfway between Cleveland and Erie, Pennsylvania. Mike Flanagan was brought in as the receiver of the portfolio, who then hired Everest... Read More »
Spyglass Healthcare Secures Financing
A growing skilled nursing owner/operator is priming itself for further growth with a new revolving credit facility structured by Grant Goodman of G Capital. Bay Area-based Spyglass Healthcare currently has six facilities in its Northern California portfolio, and it obtained the financing to fund working capital, future acquisitions and general corporate purposes. Texas Capital Bank provided the $15 million ABL financing with a SOFR-based rate and an attractive spread. In 2024, the $31 billion-dollar bank significantly expanded its healthcare business, with industry veteran Shane Passarelli leading the charge. We expect to hear more soon from all parties. Read More »
Joint Venture Secures Refinancing
Harrison Street and Dial Retirement Communities secured a refinance for their seniors housing property in Batavia, Illinois (Chicagoland), thanks to the team at Newmark. The Landings, which opened in Spring 2021, features 142 units of independent living, assisted living and memory care. It was very well occupied, at 96% with a waitlist. The borrowers wished to refinance the construction loan on the property and obtained a new bank loan with a three-year term, full term of interest only and amortization. It was also a non-recourse loan, but the amount was not disclosed. There was a competitive interest rate. Read More »
Change Coming To Life Care Centers of America
What is happening at Life Care Centers of America is a great example of how not to establish a succession plan, especially when it involves one of the largest privately owned senior care companies in the country. The company was founded by Forest Preston nearly 75 years ago, and he remains the CEO and sole shareholder of a company that is purported to be worth close to $1.2 billion. But he really has not run it for years. I sat down with Forest about 15 years ago, when he agreed to do a long interview with me about his entire life and career. I could tell something was off, and he had a “minder” constantly by his side. But he was agreeable to do this with me, and seemed to look forward to... Read More »
Tennessee Buyer Purchases Wisconsin Assets
Senior Living Investment Brokerage sold The Sage Meadow Portfolio, which included a Residential Care Apartment Complex (RCAC) and a Community-Based Residential Facility in eastern Wisconsin, approximately 60 miles from each other. Sage Meadow of Fond du Lac features 40 units and was built in 1997 and 2001. Sage Meadow of De Pere (near Green Bay) also has 40 units and was built in 2002. Combined, the communities were 92% occupied and operated at a 20% margin on $4.14 million of estimated revenues. A private equity group with holdings across the Midwest sold the assets to a Tennessee-based group with other holdings in Wisconsin for $8.5 million, or $106,250 per unit, at a 9.7% cap... Read More »
Inland Acquires Two Communities in Minnesota
The Inland Real Estate Group of Companies, Inc. acquired two seniors housing communities in Minnesota from Axial Real Estate Advisors LLC in an off-market transaction. Built in 2013, Kingsley Shores Independent Senior Living is in Lakeville and comprises 83 independent living, 49 assisted living and 22 memory care units. Occupancy was 91% at the time of closing. The community includes Kingsley Place, an active adult community with 55 units. Built in 2015, Savage Senior Living at Fen Pointe is in Savage and features 69 independent living, 30 assisted living and 24 memory care units. Occupancy was 98% at the time of closing. The Waters Senior Living will manage these communities moving... Read More »
In Memoriam: Jim Moore, 1934 – 2024
I was saddened to hear of the passing of my old friend Jim Moore, the founder of Moore Diversified Services. I had known Jim for nearly 40 years, and we always enjoyed catching up on the latest industry trends, and a little gossip thrown in as well, when we would see each other at the various industry conferences throughout the years. One of the first things he would say to me was, “How do you get away with saying the things you say?” but always with a little twinkle in his eye. I always thought he was a little jealous of that. Jim was an industry icon, spending nearly 50 years analyzing the industry, its operations, its financial feasibility and, of course, its people. He literally lived... Read More »
60 Seconds with Swett: Dr. Oz to Lead CMS?
Here is a sentence we never expected to say. Dr. Mehmet Oz will in all likelihood be the next head of the Centers for Medicare and Medicaid Services. He was tapped by President-elect Trump, who said in a statement that Oz would “cut waste and fraud within our Country’s most expensive Government Agency” and would see that “we get the best results in the world for every dollar we spend on healthcare in our Great Country.” At this point, we are not sure what “cutting waste in fraud” could mean within CMS, and who would be at the other end of those cuts, or how operators in the senior care world might have to change their way of business. But Dr. Oz also represents a sort of blank slate... Read More »Schedule a demo
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