


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
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
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 »