There’s a New Investor in the Skilled Nursing Market
Northwind Group, a Manhattan-based real estate owner/operator, entered the skilled nursing market in a major way, announcing its $182.5 million acquisition of eight skilled nursing and assisted living properties from a large institutional seller. All of the facilities, which include seven skilled nursing facilities (with 1,037 beds) and one 110-unit assisted living community in Ohio and northern Kentucky, are operated by Ohio-based Carespring Health Care under a new long-term triple-net lease. Occupancy averaged 92% across the portfolio, and revenues topped $100 million. To help fund the deal, KeyBank underwrote and closed a $132.7 million loan, in a transaction led by Henry Alonso and... Read More »
Another Missouri Purchase For Griffin-American Healthcare REIT IV
Griffin-American Healthcare REIT IV returned to Missouri yet again to acquire an assisted living community in the St. Louis suburb of Warrenton. The single-asset transaction follows two portfolio deals for the REIT in the Show Me State, which included eight skilled nursing facilities bought for $88.2 million and two skilled nursing facilities that were a part of a 24-property (the rest located in Illinois) acquisition for a combined $78.5 million. G-A IV acquired the Warrenton property in a RIDEA structure with the incoming operator, Meridian Senior Living, and will own 98% of the JV. Built in 2000, the 53-unit community was 91% occupied, with a 100% private pay census, and in the past... Read More »2017 HUD LEAN Rankings Are In
Total HUD LEAN loan volume hasn’t yet reached the heights of its FY2014, when the program closed over $4.2 billion in loans in 484 transactions, but it is getting there. In its FY2017, lenders closed just over $3.4 billion in 310 deals, up 20% from FY2016’s $2.84 billion volume (in 287 deals) and up 26% from FY2015’s $2.7 billion (in 291 deals). A total of 33 lenders closed at least one transaction, with Lancaster Pollard topping the list with 79 transactions. KeyBank came in second, with 33 loans, and Capital Funding was not far behind, closing 28 transactions. Housing & Healthcare Finance and First American Capital Group tied for fourth, each with 18 loans closed. Lancaster Pollard... Read More »High price for the Upper West Side
Seniors housing deals valued above $500,000 per unit are rare. In fact, in our M&A database dating back to 1993, only nine have been announced in the U.S. (all since 2015). And up until this month, we only had one domestic deal above $600,000 per unit, which was Health Care REIT’s acquisition of three senior living communities in the Boston area for $150 million, or $652,174 unit. Now, a single 239-unit independent living building in New York City’s Upper West Side is selling for approximately $150 million, and surpassing $625,000 per unit. The Esplanade had been owned by the Scharf family, an owner/operator of senior living communities in the New York City MSA, since they bought it... Read More »