EAGLE, Idaho — The Pennant Group Inc. (NASDAQ: PNTG), the Eagle-based parent company of the Pennant group of affiliated home health, hospice and senior living companies, has initiated a search for a new chief financial officer. Pennant’s current CFO, Jennifer Freeman, will serve as interim CFO during the search process, after which Freeman will continue to play an important leadership role on the Pennant finance team. The reason for her role changing was not disclosed. The organization also announced that Derek Bunker, who serves as Pennant’s chief investment officer, executive …
OHIO and PENNSYLVANIA — VIUM Capital has arranged $26.3 million in debt fund financing and $63.1 million in balance sheet financing for the acquisition of nine assisted living communities in Ohio and Pennsylvania. The borrower is a Minnesota-based owner-operator, which has planned capital improvements at the 580-unit portfolio. Further details were not disclosed.
RHODE ISLAND — Nixon Peabody LLP has advised Providence Realty Investment (PRI) in seven separate transactions that refinance debt on nine affordable housing properties across Rhode Island. The portfolio totals 708 units of mostly age-restricted affordable housing. All seven of the transactions, totaling more than $104 million in financing, were completed in conjunction with Rhode Island Housing and Mortgage Finance Corp. (RIHousing). Proceeds from the refinancings will be used for upgrades and repairs at each of the properties. The deals involve new HUD risk-sharing loans from RIHousing under the Treasury-HUD …
MICHIGAN — VIUM Capital has arranged a $16.4 million bridge loan for the acquisition of a 64-unit assisted living community in Michigan. Approximately $3.2 million of the initial $4.0 million earnout was released at closing. Further details were not disclosed.
INDIANA — VIUM Capital has arranged $136.8 million in bridge financing for a portfolio of 17 skilled nursing facilities in Indiana. The first-mortgage loan was made to fund the acquisition of the properties, which total 1,470 beds. Most of the buildings are stabilized with a strong credit tenant and manager in place, according to VIUM. The borrower plans to refinance as many of the properties as possible with HUD loans. Further details were not disclosed.
ILLINOIS — VIUM Capital has provided a $7.8 million HUD refinancing for a 130-bed skilled nursing facility in Illinois. The refinancing will achieve debt-service savings and create a permanent debt structure for the stabilized project. Further details were not disclosed.
By Matt Valley The seniors housing industry can’t seem to catch a break in the wake of the COVID-19 pandemic, says Aron Will of CBRE Capital Markets. While operational performance has improved the past several months due to a gradual rise in occupancy and less reliance on temporary workers, the capital markets have become increasingly difficult to navigate due to a spike in interest rates. This juxtaposition isn’t lost on Will. “The debt markets are about as choppy as we’ve seen since 2008 and 2009. The bank market has really …
NASHVILLE, Tenn. — Lument has hired Justin Elshire as a managing director to lead its new office in Nashville. Elshire is responsible for originating and structuring commercial mortgage loans for seniors housing and healthcare clients across the country, focusing primarily on Fannie Mae, Freddie Mac, Federal Housing Administration (FHA) and U.S. Department of Agriculture loan programs, as well Lument’s proprietary lending products. He will report to Aaron Becker, Lument’s head of seniors housing and healthcare production. Elshire has over 20 years of financial and commercial real estate experience, most recently …
NEW YORK CITY — Berkadia Seniors Housing & Healthcare, a New York-based financial services firm, has arranged $177 million in financing across seven deals completed from July 15 through the end of October. Bianca Andujo, Ed Williams, Jay Healy, Rafael Nobo and Chris Cain of Berkadia Seniors Housing & Healthcare completed the financings. In mid-July, Williams arranged a $13.7 million loan for a 100-unit assisted living and memory care property in Arizona through HUD’s 232/223(f) refinance program. The HUD loan was limited to 70 percent of value to qualify for …
Macroeconomic conditions are slowing the pace of seniors housing transactions and squeezing the availability of capital. Inflation and rising interest rates are making deals more expensive to finance. Debt providers are tightening their underwriting terms, while equity investors sit on the sidelines worried about shrinking margins. Overall, the outlook for the upcoming year looks choppy, according to investors and lenders speaking at France Media’s sixth annual Interface Seniors Housing Midwest conference. But they’re still bullish on the long-term prospects of the seniors housing market, with demand set to pick up …