Cambridge Realty Capital has released its fourth-quarter closings report for 2020 of 13 transactions valued at $100 million, and Cambridge President Jeffrey Davis is happy, considering the current circumstances. “It has been anything but a so-called ‘normal’ year,” he stated, “so the fact that we are able to report the numbers we have is both humbling and gratifying.” In fact, pandemic notwithstanding, Cambridge reports a total of $415 million for 2020, with 40 closings, the second-highest number of annual closings in Cambridge’s history. “It’s remarkable,” Davis commented, “and it speaks to the relative stability of the senior living industry, as well as its importance and necessity.”
Davis reported that Cambridge Realty Capital closed a total of 13 transactions in the fourth quarter of 2020. The closings represent $100 million dollars in funding.
The fourth quarter numbers bring Cambridge’s year-to-date total closings to $415,000,000 which includes 40 senior housing facilities, primarily nursing homes, totalling 5,254 beds or units. These units are in several states across the US.
The largest fourth-quarter closing in terms of dollars was Manor Care of Peru with a total of $16,900,000. Manor Care is in Peru, IL and represents 94 skilled care beds, 68 assisted living beds, and 36 sheltered care beds. Other noteworthy fourth quarter closings include Orchard Villa of Oregon, Ohio, totaling $9,700,000 (164 skilled care beds), and Hawthorn Inn of Danville located in Danville, IL totaling $10,588,778 (76 skilled care beds).
“This had been an unprecedented year in terms of what senior living operators have had to face,” Davis commented. The pandemic put an undue strain on skilled nursing homes because of the various additional issues caused by COVID. They include hazard pay, the costs associated with extra PPE equipment, lack of census, and additional staffing. “These significantly increased operating costs,” Davis stated. “HUD’s ability to pass on the interest rate savings to its clients has provided the runway necessary to keep doing business and taking care of the neediest population, America’s seniors. We at Cambridge are pleased to have been able to be a small part of that solution.” He went on: “We suggest every senior borrower, whether borrowing on a conventional basis or, borrowing on a HUD basis relevant to Cambridge, communicate with their lender and see what