60 Seconds with Swett: M&A Activity Heats Up in May
We have said this before, but the seniors housing and care M&A market is on pace to record its best-ever year in terms of transaction activity, and by some margin. Already by this point in May, we are closing in on 250 transactions for the year, so far, which puts us on track for more than 600 publicly announced deals when we close out 2024. The split between skilled nursing and seniors housing activity followed historical norms, at 42% of the deals being for SNFs. And over $2.5 billion of transaction volume has been publicly disclosed, not including scores of deals with confidential prices, including large portfolios. How could volume be so high despite a challenging lending and... Read More »
National REIT Re-Tenants Vacant Oklahoma Seniors Housing Asset
Blueprint’s behavioral healthcare team advised a national REIT to re-tenant a vacant seniors housing asset in the Tulsa, Oklahoma MSA. The existing asset was vacant at the time of engagement and identified as a great candidate for a behavioral healthcare provider due to strong demand and referral networks for inpatient substance abuse and mental health care within the market. So, Blueprint identified and negotiated lease and credit terms with behavioral healthcare-focused operators. Ultimately, a large regional substance abuse and inpatient mental healthcare operator was selected based on lease terms and execution capability. In addition to identifying appealing lease terms, credit... Read More »
Atlas Healthcare Makes CCRC Purchase in Massachusetts
Evans Senior Investments was engaged by an independent owner/operator in its divestment of a CCRC in Shrewsbury, Massachusetts. Shrewsbury Campus is made up of three components: Southgate at Shrewsbury (senior living), Shrewsbury Nursing & Rehabilitation (skilled nursing) and Shrewsbury Medical Center (medical office buildings). ESI ran a competitive and confidential marketing process, engaging with a select group of prospective buyers. The Atlas Healthcare Group was ultimately selected as the buyer, for an undisclosed price. Built between 1969 and 1986, Southgate and Shrewsbury Nursing total 171 independent living units, 60 assisted living units and 99 skilled nursing beds. The IL and... Read More »
HutsonWood at Spring Hill Secures Funding
Ziegler announced the closing of HutsonWood at Spring Hill, Inc.’s Series 2024 revenue bond anticipation notes. The notes are comprised of $14.67 million of Series 2024A tax-exempt notes sold publicly to institutional investors and $3.0 million of Series 2024B subordinate taxable notes purchased by an affiliate of the borrower. HutsonWood (dba Belle Springs), is a Tennessee not-for-profit organization that will use the proceeds of the notes to acquire approximately 20 acres of land and to finance certain pre-construction development costs related to an expansion and repositioning of an existing skilled nursing and assisted living community located in Spring Hill, Tennessee. Emerald Spring... Read More »
Novellus Divests in Colorado
Evans Senior Investments arranged the sale of an assisted living community in Denver, Colorado, representing Novellus Living in the transaction. ESI previously facilitated the sale of the community less than two years ago. Originally built in 2002, Novellus Cherry Creek comprises 66 units and operates on a 59% private pay basis. In 2022, occupancy was in the high-70s by the time of the previous sale, but the community was losing money. However, occupancy had dropped to around 36% more recently, and cash flow remained negative, prompting Novellus to execute on a strategic redirection. That included divesting the Colorado asset to focus on its successful California and Arizona... Read More »
CBRE Secures Financing for Washington Asset
CBRE secured financing for a seniors housing community in Tacoma, Washington, on behalf of a joint venture between Harrison Street, PMB and GenCare Lifestyle. Built in 2020, GenCare Lifestyle Tacoma at Point Ruston comprises 159 independent living, assisted living and memory care units. The community fully opened in the fourth quarter of 2020 and leased up to 90% in 36 months, averaging four net move-in’s per month. Occupancy is currently hovering around 98%. Aron Will and Tim Root secured a three-year loan for this transaction. Read More »
Live Oak Bank Returns to Santee Seniors Housing Campus
Live Oak Bank closed a $27.0 million refinance with a repeat client for an assisted living/memory care community, The Ridge at Lantern Crest, situated on a larger campus, Lantern Crest, in Santee, California. Lantern Crest, operated by Lantern Crest Senior Living, is a 34-acre seniors housing campus developed by The Grant Companies. It offers independent living, assisted living and memory care. Development occurred in three phases, with Phase I being The Ridge at Lantern Crest, Phase II being The Pointe at Lantern Crest and Phase III being The Plaza at Lantern Crest. The Ridge, which opened in 2012, was originally built with 80 assisted living and memory care units. It was expanded... Read More »
The Current Lending Environment for Senior Care Properties
The financing process has killed dozens (and hundreds) of deals in the last couple of years, and yet M&A activity is near record levels in the seniors housing and care industry. So deals are getting done, and not just with cash. Who has been lending and at what cost to the borrower? What hurdles have to be overcome? And when capital costs do lower, how can owners and operators best prepare to finance the oncoming wave of deals and demographics? Read More »
Lument Arranges Tennessee SNF Sale (& Loan Assumption)
A skilled nursing facility in Tennessee that was struggling to maintain debt service and other loan obligations sold with the help of Laca Wong-Hammond and Isabel Carta of Lument Securities serving as exclusive financial advisor to the seller. Located in Rocky Top, about 25 miles from Knoxville, Summit View of Rocky Top is a 117-bed skilled nursing facility that offers short-term rehab and traditional nursing care, along with an 18-bed behavioral health hospital. It also carried an attractive, assumable loan. Like many facilities, it had experienced financial and operational difficulties since the pandemic, and so the local owner/operator engaged Lument Securities and Lument’s asset... Read More »
W&D Facilitates Three Seniors Housing Deals
Walker & Dunlop Investment Sales facilitated the sale of three separate seniors housing assets. First, W&D announced the sale of Legacy Living Florence, a 128-unit senior living community just south of Cincinnati, Ohio. Built in 2022, Legacy Living offers independent living, assisted living and memory care. After receiving multiple offers, a REIT was selected as the buyer. Alex Vice, Joshua Jandris, Brett Gardner and W&D’s Seniors Housing Team handled the transaction. Next, W&D facilitated the sale of Lakeview Senior Living. Built in 2008, the community comprises 125 independent living units in Lakewood, Colorado. The buyer was Livingston Street Capital. Joshua Jandris and... Read More »Schedule a demo
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