Evans Senior Investments (ESI) arranged the sale of a 138-bed skilled nursing facility in Anaheim, Calif. for $25 million or $181,159 per bed.
The buyer, an East Coast real estate holding company, structured the lease with a local owner/operator in the state, according to the real estate brokerage firm.
Operating long-term care assets in today’s marketplace continues to be difficult, according to ESI, when considering climbing labor costs, the pandemic, rising interest rates and the increasing need for compliance oversight.
The SNF was 96% occupied at the time of marketing and made more than $2 million in net operating income.
The facility also has a contract for 50-plus therapeutic residential care beds and the community overall has strong surrounding demographics, according to ESI.
Interest held strong as well despite the heavily regulated health care environment in California. The property received seven offers after just 25 days on the market.
“The Evans Senior Investments’ team was able to showcase to buyers the expense saving opportunity for a new regional operator in excess of $750,000,” Hank Fuller, senior associate at ESI, said in a statement. “The owner received full value for it, as if they were operating the community with an additional $750,000 of net operating income.”
Matt Jassak with Foley & Lardner represented the sellers in the transaction.
Blueprint Advises Sale of Pennsylvania SNF to Tryko Partners
Blueprint advised a joint venture owner on the sale of a 180-bed nursing home in West Chester, Penn. to real estate investment group Tryko Partners.
The deal capitalized on a significant Medicaid rate increase in the state that was announced back in July.
“Blueprint’s marketing efforts and financial projections highlighted the state’s July 2022 announcement to significantly increase Medicaid reimbursements effective Jan. 1, 2023, with over $500 million allocated to long-term care facilities,” Blueprint said in a statement.
Pennsylvania Health Care Association (PHCA) President Zach Shamberg has said the funding increase marks the single largest Medicaid reimbursement bump for nursing home resident care during a single Pennsylvania budget-cycle in the modern reimbursement era.
After procuring several offers from regional investors and care providers, Blueprint closed the transaction with Tryko in less than 90 days.
Dwight Capital Closes Q3 With $192.29M Financing
Dwight Capital and its affiliate real estate investment trust (REIT) Dwight Mortgage Trust financed $192.29 million in seniors and health care financing during its third financial quarter.
Among the financings was a $42 million bridge loan that facilitated the acquisition of three SNFs in New Hampshire: Epsom Healthcare Center; Maple Leaf Healthcare Center; and Villa Crest Nursing and Retirement Center. The portfolio offers 387 beds and approximately 195,860 square feet, according to Dwight Capital.
Managing Director Josh Sturm originated the transaction.
Other SNF financings included a $50 million bridge acquisition loan for a 404-bed portfolio in Texas; a $14 million bridge refinance for Massachusetts properties Regal Care at Harwich and Foremost at Sharon, a total of 201 beds; a $12.43 million bridge acquisition loan for a 314-bed portfolio in Connecticut; an $11 million bridge refinance for another 124-bed property in Connecticut; a $9.2 million bridge acquisition loan for 114-bed Forest Park Healthcare and Rehabilitation Center in Pennsylvania; and two HUD loans for 110-bed and 80-bed properties in Wisconsin at $7.6 million and $5.28 million respectively.
CIBC Bank Provides $17.5M Mortgage Facility for California Portfolio
CIBC Bank USA provided a California lessor with a $17.5 million mortgage facility in connection with the refinance of a skilled nursing and assisted living portfolio.
The portfolio includes 100 SNF beds and 180 assisted living units, according to CIBC, and has an effective age of 25 years. Historically, occupancy for the properties has hovered around 70%; EBITDAR margin has been approximately 13%.
CIBC’s Matthew Tyler and Neal Netzel handled financing.
Companies featured in this article:
Blueprint, CIBC Bank USA, Dwight Capital, Dwight Mortgage Trust, Evans Senior Investments, Foley & Lardner, Pennsylvania Health Care Association, Tryko Partners
