Walker & Dunlop’s $172M Skilled Nursing Financing; Aspen Skilled Healthcare Picks Up CCRCs

Walker & Dunlop this week announced the completion of $172 million in financing for a seven-building skilled nursing portfolio across the Northeast and the Midwest.

Four of the properties were refinanced through the Department of Housing and Urban Development’s (HUD) 232/233 program, with the remaining three undergoing HUD 232 loan modification.

The portfolio consisted of:

  • Baypointe Rehabilitation and Skilled Care Center in Brockton, Mass.
  • Eastpointe Rehabilitation and Skilled Care Center in Chelsea, Mass.
  • Southpointe Rehabilitation and Skilled Care Center in Fall River, Mass.
  • Elevate Care Chicago North in Chicago
  • Elevate Care Niles in Niles, Ill.
  • Elevate Care Northbrook of Northbrook, Ill.
  • Wellbridge of Romeo in Romeo, Mich.

The loan terms range from 30 to 34 years with declining prepayment schedules and fixed rates; federal lending programs for nursing homes and other institutional care facilities generally offer lower rates and extended terms, with non-recourse backing from HUD.

Managing director Joshua Rosen led the origination team for Walker & Dunlop, a Bethesda, Md.-based lender that generated $600 million in senior housing and care transactions in 2020.

“Our team continues to successfully execute on transactions in the face of the challenges presented by the pandemic,” Rosen said in a statement announcing the deal. “This level of acuity enables our clients to execute on new business plans and improve their skilled nursing properties, which are vital to keeping vulnerable populations safe.”


CareTrust Expands Skilled, Senior Living Portfolio

CareTrust REIT (Nasdaq: CTRE) picked up four continuing care retirement communities (CCRCs) in Southern California with a total of 180 skilled nursing beds and 457 senior housing units in a deal valued at $125 million.

The Chicago- and Denver-based Evans Senior Investments served as broker on the deal, which covered facilities in Camarillo, Carlsbad, Rancho Mirage, and San Juan Capistrano, Calif.

CareTrust will lease the Camarillo and San Juan Capistrano facilities to Aspen Skilled Healthcare, while Bayshire Senior Communities will run the Carlsbad and Rancho Mirage properties.

All four were originally developed by Marriott International between 1999 and 2000.

“We continue to see how regional operators can operate communities like these in high-profile markets from a position of local strength,” Evans Senior Investments CEO Jeremy Stroiman said in a statement. “Project Golden State presented a great opportunity for a new ownership group to pair together a seniors housing operator and skilled nursing operator to build off their operational expertise and synergies in the markets to stabilize occupancy and improve on the expense structure of the portfolio.”

ESI reported $408 million in closed deals since last March 31, with post-COVID pricing sitting at 99.4% of pre-pandemic figures.

ProMedica, MetroHealth Develop New Skilled Nursing Facility

ProMedica is teaming up with fellow health system MetroHealth to build a new 96-bed skilled nursing facility in Cleveland, the two entities announced last week.

The facility, ProMedica Skilled Nursing and Rehabilitation at MetroHealth, will open on MetroHealth’s Old Brooklyn campus later this year, focusing on transitional rehab and 24-hour skilled nursing services.

The “multimillion-dollar” project will feature amenities such as private rooms, flat-screen TVs, and WiFi, according to the companies.

“ProMedica has a strong skilled nursing care presence in Cleveland, and we are excited to partner with another forward-thinking Ohio-based health care organization to provide the community with enhanced post-hospital services,” ProMedica CEO Randy Oostra said in a statement. “Working with MetroHealth to bring innovative approaches to care that combines high tech with high touch, we seek to enhance the patient experience and improve health outcomes.”

The location on MetroHealth’s existing campus will allow easy access to the geriatricians who work at the center, as well as higher-level inpatient rehab if necessary.

“The need for high quality skilled nursing and rehabilitation care continues to grow,” MetroHealth CEO Akram Boutros said in the same statement. “This partnership will benefit our patients as we focus on their entire care continuum.”

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