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 »
Lancaster Pollard Refinances Texas SNFs
Four years on from their acquisition, four skilled nursing facilities owned by Summit Healthcare REIT refinanced through HUD, thanks to Jason Dopoulos of Lancaster Pollard. Located in Granbury, Woodville, Jacksonville, and Longview, Texas, Summit and its joint venture partner, Best Years, LLC, acquired the facilities in 2015 for $27 million, or $55,900 per bed. They were then leased back to the seller, a third-party operator. Fast forward to today, and Lancaster Pollard Mortgage Company provided $20.7 million in total HUD financing, the 17th completed deal closed for Summit by Lancaster Pollard. Totaling $120 million in par value, that’s a productive relationship. Read More »
Greystone Finances Southeast SNF Portfolio Acquisition
Fred Levine of Greystone successfully arranged bridge financing for the acquisition of seven skilled nursing facilities in the Southeast. Totaling 874 beds, the facilities are located in North Carolina (6) and Kentucky. Their new owner obtained a $71.92 million bridge loan with a 24-month term, two six-month extensions and no prepayment penalty. Greystone expects to eventually refinance the loan through HUD. Read More »
Merchants Capital Finances New Middle-Income Communities
A Midwestern developer of affordable and middle-income senior living communities, Wallick Communities, recently opened three assisted living communities in Ohio and obtained bridge financing to fund them through lease-up towards an eventual refinance with HUD. Merchants Capital, a division of Merchants Bank, arranged the nearly $50 million in bridge loans for the three developments. They include a 124-unit community in Cincinnati (which got a $13 million loan at a 24-month term), a 131-unit property in Columbus (with a 36-month $16 million loan) and a 124-unit community on the campus of another Wallick affordable senior living community in Hilliard (which obtained a $20 million loan for a... Read More »Schedule a demo
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