Long-Time Lessee Acquires SNF Portfolio

Long-Time Lessee Acquires SNF Portfolio

To say that the buyer of a portfolio of nine skilled nursing facilities located across the eastern United States was familiar with the properties may be an understatement. That is because the Tennessee-based operator has leased the buildings since 2004 and finally jumped on the opportunity to purchase the real estate. Located in Florida, Maryland, Michigan, Tennessee and Virginia, the portfolio totals 1,167 operating beds with an average occupancy of 85.8%. To fund the acquisition, the buyer turned to Berkadia, which served as lead lender for a $52.2 million bridge-to-HUD loan for seven of the properties. The other two properties received a $24.6 million mini-perm loan through a bank... Read More »
Busy Berkadia Closes Two Transactions

Busy Berkadia Closes Two Transactions

Berkadia has been busy this August, closing the sale of one senior living community and arranging financing for the development of another one. Joe Leon and Michael Thagard handled the sale, which featured a 310-unit independent living community in Westminster, California. The seller was the Zinn Group, controlled by the Zinngrabe family which had owned the community for over 30 years. The local market around Westminster and Huntington Beach is strong, with occupancies averaging above 98%. So the buyer, an experienced owner/operator, will be able to hit the ground running. Then, to the development, for which Monica Newman originated a $31.76 million construction loan through HUD for a... Read More »
The Tale of Two SNFs

The Tale of Two SNFs

Every now and then, there is a transaction that really highlights the two diverging skilled nursing markets. On the one side are the older, traditional SNFs that struggle with high Medicaid censuses, rising physical plant costs and shrinking operating margins, and often end up selling for under $50,000 per bed, or lower. Then, there are the newer, transitional care facilities that accept almost exclusively Medicare or private pay patients and feature more home- or even resort-like amenities. Two of these kinds of facilities just secured bridge financing from Berkadia valued at over $285,500 per bed. Imagine what price they would command in the M&A market. Jay Healy of Berkadia’s... Read More »
Brunet and Lautner Move to Newmark Knight

Brunet and Lautner Move to Newmark Knight

Just a few months after announcing the hiring of the HFF seniors housing team to its ranks, Newmark Knight Frank (NKF) just announced that it snagged industry veterans Heidi Brunet and Lisa Lautner from Berkadia. They will join NKF as executive managing directors and will work with Sarah Anderson on the firm’s seniors housing debt and structured finance team. The duo has a combined 40 years of experience and has originated more than $8 billion in seniors housing related financings in the past seven years through Fannie Mae, Freddie Mac, HUD and balance sheet lenders. With the combination of the top brokerage team last year, in terms of dollar value of sales transactions, the NKF platform... Read More »
Berkadia Finds a Way in Federal Way

Berkadia Finds a Way in Federal Way

Tim Cobb of Berkadia Senior Housing Investment Sales sold an assisted living/memory care community in Federal Way, Washington, working on behalf of the seller, Columbia Pacific Advisors. Built in 1997, the target comprises 87 units and 104 beds. It will be taken over by a joint venture involving Harrison Street Real Estate Capital and Gencare PMB. The latter is a new partnership between Gencare Lifestyle (founded by co-founder of Merrill Gardens, Leon Grundstein) and Pacific Medical Buildings (a medical office building developer based in San Diego). PMB had an existing relationship with Harrison Street, which provided 90% of the equity for both the Federal Way acquisition and a new... Read More »