Connecticut CCRC Changes Hands
A large for-profit CCRC in North Branford, Connecticut recently sold. Purchased in 2006 by a joint venture between The Shelter Group and Herbert J. Sims & Company for $72 million, 10 years later it sold for approximately $69.5 million. National Health Investors (NYSE: NHI) was the buyer, and its all-in acquisition cost was about $74 million, which included closing costs, various escrows/deposits, and other fees. The CCRC, which has 227 independent living units, 22 assisted living units and 50 skilled nursing beds, was originally developed in the early-1990s in two phases on 88 acres. Occupancy had been on an upward trend and was just over 88% in 2015. NHI will be leasing the community... Read More »
An Affinity for HUD
Affinity Living Group’s latest acquisition of two senior living communities in North Carolina was met with more complications than usual. Already with a senior lender on board, Affinity had to find supplemental debt that not only satisfied their own requirements, but also those of the senior lender and of a future HUD refinance. So, HJ Sims provided a $2.475 million mezzanine loan under its “HUD Plus” program, which allows a borrower to leverage up to 92.5% of the market value of a project with HUD-approved secondary financing. Sims funded the subordinate loan by placing $2.475 million of corporate taxable bonds. The communities included a total of 176 assisted living units and 40 memory... Read More »
HJ Sims’ successful partnership
HJ Sims announced that it has co-invested $15 million its Merrill Gardens’ recently formed investment fund RDM V, LLC, which will be the third Merrill fund in which Sims has participated. RDM V will acquire and develop new seniors housing and multifamily properties, which Merrill Gardens and its affiliates will manage. It currently has investments in three seniors housing properties and one multifamily, but has four other seniors housing communities lined up as potential investments. To fund the initial capital call of its 19% interest in RDM V, Sims placed $9.375 million of taxable bonds, and has committed to raising the additional capital as required. Read More »
A team effort
We wrote in the August issue of The SeniorCare Investor of Birchwood Health Care Properties’ acquisition of four skilled nursing facilities and a hospice care and home health company in Oklahoma, and that HJ Sims had financed a $5.25 million subordinate loan to fund the deal. Now, RED Capital Partners has just announced that it closed a $12.7 million balance sheet acquisition loan for Birchwood’s take-over of the 361-bed portfolio. The transaction was unique, in that the ancillary home health and hospice business provided credit support for the bridge-to-HUD loan. Read More »Schedule a demo
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