Capital One Closes HUD Refinance of Large Illinois SNF
One of the largest skilled nursing facilities in Illinois just received a $16.8 million 35-year HUD refinance, courtesy of Joshua Rosen of Capital One. Located in the town of Joliet (about 40 miles outside of Chicago), the facility serves both Medicaid and Medicare patients in either private or semi-private rooms. In addition to long-term care, it also offers respite care and sub-acute/short-term rehab care (to Medicare patients), encompassing physical/occupational/speech therapy, wound care management, cardiac rehab, trach care and post-stroke management. The facility was built in 1975, but improvements have been made since then. The owning principals, which have operated it since 1998,... Read More »
Public REITs can sell seniors housing assets too
We’ve read a lot about public REITs shedding their skilled nursing assets, but that’s not all they’re selling. A publicly traded REIT sold a pair of West Coast assisted living communities for $23 million, or $365,079 per unit. There is a 48-bed/24-unit assisted living/memory care community in Corvallis, Oregon, and a 78-bed/39-unit AL community in Citrus Heights, California. Over 93% occupied, the communities earned around $6.5 million in annualized revenues. The buyer, Summit Healthcare REIT, triple-net leased the properties for a term of 10 years to an affiliate of Compass Senior Living. Acquisition financing was arranged by Capital One, and Tim Cobb of Blueprint Healthcare Real Estate... Read More »
No community left behind
Capital One went back to a former client to close a HUD loan modification, taking advantage of the low-interest rate environment while they can (looking at you Mr. President-elect). A few years ago, the team at Capital One refinanced a portfolio of properties owned by Terrace Communities, which included a 15-year old, 71-unit assisted living/memory care community in Tequesta, Florida. However, because of a timing difference, that property closed with a higher interest rate than the rest of the portfolio. So Carolyn Whatley of Capital One went through HUD’s loan modification program to reduce the community’s interest rate. The non-recourse fixed-rate loan has over 32 years remaining on the... Read More »
CommuniCare grows
CommuniCare Health Services is growing its portfolio yet again, purchasing nine skilled nursing facilities in Ohio and Maryland, after earlier this year acquiring six Maryland facilities and one in West Virginia. The seller was a publicly traded REIT. To finance the acquisition, Capital One served as sole lead arranger and administrative agent for a $61 million syndicated term loan and a $12 million syndicated revolving credit facility to affiliates of CommuniCare. The company seems to be priming itself to grow in the next year, as it received also in June a $13.7 million loan secured by the cash flow of seven of its skilled nursing facilities (and originated by Craig Casagrande of Capital... Read More »Schedule a demo
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