Genesis HealthCare Buys and Divests
As it continues to improve its capital structure and rationalize its lease exposure, Genesis HealthCare has joint ventured with Next Healthcare Capital to buy 15 skilled nursing facilities with 2,147 total beds previously leased from Welltower located in Pennsylvania (6), New Jersey (4), Connecticut (3), West Virginia and Massachusetts. Genesis will own a 46% stake in the venture, and lease the properties, at presumably a lower rate than with Welltower, and there will be no escalators for the first five years. Welltower’s lease had 2% annual escalators. Next Healthcare appears to be willing to wait for that extra return, since Genesis has a purchase option beginning in 2026 to buy out the... Read More »
Capital Funding Refinances Baltimore Skilled Nursing Facility
Over four years after acquiring a 105-bed skilled nursing facility in Baltimore, Maryland, its owner decided to refinance with the help of Tim Eberhardt and Erik Howard of Capital Funding. Part of a three-property portfolio, this facility was built in 1976 and enjoyed consistently strong operating results. The owner had built up equity at the property, and through the refinance was able to deleverage the other two assets in the portfolio, including the repayment of “non-project” debt. The Capital Funding team also converted a short-term, non-agency loan into permanent, fixed-rate HUD financing that totaled $12.3 million. Read More »
KeyBank Refinances Citadel Acquisition Loan
KeyBank Real Estate Capital headed back to the Bronx to take out a previous financing they had closed for a 199-bed skilled nursing facility. Built in 1994, this facility is subject to a ground lease with an unrelated third party. It was acquired a number of years ago by the borrower, Citadel Care Centers, thanks to a term loan arranged by KeyBank. Now, John Randolph, Henry Alonso and Brandon Taseff have arranged a $33 million HUD refinance, which includes $500,000 for repairs and improvements to the property. The loan came with a 35-year, fully amortizing term. Read More »
Greystone Goes Big on Long Island
A huge skilled nursing facility on Long Island, New York just refinanced through HUD, with the help of Fred Levine of Greystone. Totaling 588 beds, this facility provides clinical care, physical, occupational and speech therapies, amputee rehabilitation, and pulmonary, ventilator, cardiac and memory care. It also received multiple significant renovations to its five inter-connected buildings. In June 2016, the borrower had obtained a high-leveraged bridge loan also from Greystone to finance its purchase of the facility. To take out that loan, Mr. Levine arranged $78.53 million in HUD financing, with a 30-year term and amortization schedule. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
