Debt Financing for Real Estate and Cash Flow Business Lines€¦ · Avalon Health Care Group....
Transcript of Debt Financing for Real Estate and Cash Flow Business Lines€¦ · Avalon Health Care Group....
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Debt Financing for Real Estate and Cash Flow Business Lines
Thursday, March 8, 201811:15 AM – 12:30 PM
Dallas Ballroom F
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Kathryn Burton GrayHunt Companies
Isaac DoleBirchwood Healthcare Partners
William DouglassCIT Bank
Don HusiZiegler
Jeff MuchmoreCapital One
Anne StuartAvalon Health Care
Panelists
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Hunt Companies• Seniors Housing & Healthcare team members have been successfully delivering financial solutions
for decades.
• The team has a combined experience of more than 60 years.
• During their careers they have provided billions of dollars of capital through HUD/FHA, Fannie Mae, Freddie Mac, and balance sheet loans.
• Hunt’s Seniors Housing & Healthcare team has experience through the continuum of care fromfull service CCRC’s (entrance fee and rental) to private pay independent, assisted living and memory care to skilled nursing.
• In addition to HUD/FHA, Hunt Mortgage Group has a dedicated balance sheet lending platform for healthcare borrowers. Bridge loans are available to experienced owners and operators in need of quick turn refinancing, acquisition, equity extraction, or turn-around scenario.
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Overview: Founded 2014 23 Nursing Homes and Senior Housing Communities 9 States (KS, OK, TX, AL, GA, FL, NC, WV, MD) 10 Management Companies and 2 Ancillary Companies (Hospice and Home Health)
Deal Structure: We own the operations and real estate of our communities We form JV relationships with our management companies Raise debt on a deal by deal basis Syndicate equity from approximately 20-30 private investors per transaction
Currently have approximately 130 active investors
Pipeline: 2 more nursing homes (MO and OK) Portfolio of multiple businesses
Nursing home management company Approximately 10 leasehold interests 3 ancillary companies
Birchwood Healthcare Partners
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Avalon Health Care GroupPremier Regional Healthcare Services Company:
Mature platform with executive and board leadership comprised of industry veterans 54 nursing and rehabilitative facilities and senior housing communities 8 additional contracts pending Portfolio includes owned, leased, and managed facilities 7 states in western United States, including AZ, CA, HI, ID, OR, UT, and WA. Historic and current ancillary subsidiaries include hospice, home health, rehabilitation services,
and pharmacy.
Recent Financing Requirements, Include:
Asset based lending Conventional and HUD-insured mortgages Bridge financing to HUD, 1st and 2nd mortgages Cash flow based, mezzanine (senior subordinate) Equipment financing Credit facility working capital line
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Pipeline:
CIT Healthcare Finance provides comprehensive financing and banking solutions to middle market healthcare companies and investors across multiple sectors throughout the U.S.
Operate three primary business segments: RE: primarily targeted at skilled nursing, assisted living, and medical office buildings ABL: sponsor and non-sponsor backed multi-sector focus Cash Flow / Leveraged Finance: primarily sponsor-backed multi-sector focus
Established middle market healthcare lending franchise spanning 15+ years with over $16B of cumulative loan commitments
Multi-vertical practice (Cash Flow, RE, ABL) housed under one roof provides a unique perspective and expertise across the entirehealthcare ecosystem and provides clients with multiple products through their life cycle
Dedicated healthcare capital markets capabilities with the ability to fully underwrite and syndicate transactions
CIT Healthcare Finance
Outpatient & Healthcare Services
16%Pharma / Pharma Services
12%
Med Device / Supplies
13%
Other18%
Inpatient Services
39%
Portfolio by sector
Cash Flow50%
ABL14%
Real Estate36%
Portfolio by product
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Capital One Healthcare
7
Leading Healthcare Real Estate Lender With Over $8 Billion in Assets
Loan sizes range from $5 million to over $500 million
Customer-centric approach including balance sheet and agency financing for long-term care, seniors housing, medical properties and acute care
Customized solutions include interim financing, acquisition financing, bridge-to-agency, andreal estate based revolving lines of credit
Capital Market execution for a wide range of healthcare operators, real estate developers and investors
Real estate team closed over 86 transactions, representing $3.4 billion in total commitments
Corporate Finance A leading healthcare lender for financings up to
$1,000MM Focus on senior secured debt Sponsored originations Direct originations
Strong capital markets execution
Real Estate A leader in healthcare balance sheet financings for
operators, developers and investors Focus on senior mortgages Senior housing Skilled nursing facilities Medical properties
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Ziegler Investment Banking
Full service financial services firm headquartered in Chicago, IL Founded in 1902 with a focus on healthcare since 1928 National presence, demonstrated execution expertise and broad-based experience Providing clients with debt and equity capital, strategic advisory services (e.g. M&A), equity and fixed-income
sales & trading, research, while specializing in multifamily, healthcare, senior living, education & religion sectors Strong underwriting, advisory and sales & trading capabilities.
• Over $35 billion of new issue debt since 2000• With the exception of 1994, ranked #1 in senior living financing as a lead manager since 1990 - 2017• Ranked #4 in healthcare/senior living financing for 2016 par amounts• Top 3 Healthcare M&A Advisor in 2015 as ranked by Thomson Reuters• Approved HUD Lender (and GNMA Issuer) since 1970
MULTIFAMILY HEALTHCARE SENIOR LIVING EDUCATION RELIGION
Clients: Owners, Operators, Institutional & Individual Investors
Ziegler is a boutique investment bank focused on the senior living & healthcare industries
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Audience Poll Question #1Please Identify Your Professional Category
1.SH Operator/Provider
2.SNF Operator/Provider
3.Both SH and SNF Operator/Provider
4. Equity Investor (Private or Public) or Debt Provider
5.Developer
6. Other
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1. Assisted Living
2. Skilled Nursing
3. Both
What Property Type is Your Primary Area of Focus?
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1. Home Health Care
2. Hospice
3. Dialysis
4. Pharmacy
5. More Than the Services Listed
If You Are an Operator/Provider, What Ancillary Services Do You Currently Have?
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Audience Questions
Please Take a Few Minutes to Complete Today’s Session
Evaluation
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Debt Financing for Real Estate and Cash Flow Business Lines
Kathryn Burton GrayHunt Companies
Senior Managing Director | Head of Seniors Housing & Healthcare
Isaac DoleFounder/CEO
Birchwood Healthcare [email protected]
312-520-6863
William DouglassManaging Director & Group Head
212-771-9632
Don HusiManaging Director
615-982-7562
Jeff MuchmoreHealthcare Real Estate Credit Executive
Capital One [email protected]
312-292-0744
Anne StuartEVP and CFO
Avalon Health Careanne.stuart@ avalonhealthcare.com
801-325-0179