VIUM Capital Closes Over $320 Million in Senior Housing, Care Deals to End 2021

VIUM Capital closed out 2021 by completing transactions totaling more than $320 million in November and December.

That brought the firm’s yearly total to 42 deals representing about $700 million, according to a press release issued this week.

VIUM was founded in 2020 by former leaders in Lancaster Pollard’s senior housing and care practice, and has rapidly grown its book of business and its team, including hiring Scott Tittle, former leader of the National Center for Assisted Living (NCAL).

A few factors explain the strong activity in Q4 2021, VIUM Executive Managing Directors Steve Kennedy and Kass Matt told Senior Housing News.

Firstly, in a “fairly typical” pattern, several sponsors were pushing to get deals across the finish line before year-end.

Also, Q4 saw a confluence in the timelines on FHA/HUD transactions and bridge lending.

“That is driven by the time to underwrite, process and close HUD LEAN loans, which is currently about eight or so months (depending on loan type),” Kennedy said. “That’s in contrast to bridge loan closings which tend to be two to three months.”

In 2020, VIUM mostly executed bridge loans, enabled by its partnership with a niche bank based in the Midwest. Now, the roughly even mix of permanent and bridge loans is closer to what VIUM will be targeting as the firm grows, Matt said.

The 18 deals that closed in Q4 involved both senior living and skilled nursing clients, funding 24 projects in 10 states from coast to coast. They included:

— A $14 million bridge loan involving an $11 million initial advance and $3 million earn-out to recapitalize two assisted living/memory care facilities in Washington state.

— A $15.15 million bridge loan for a skilled nursing/assisted living client, to enable the value-add acquisition of a SNF within the sponsor’s regional footprint.

— A $17.3 million transaction for an Ohio-based skilled nursing and assisted living provider to refinance existing first and second FHA mortgages through the a7 program for existing HUD borrowers.

VIUM’s 2021 deal volume came amid increased activity across the senior living and care space. Closed transactions totaled about $14 billion for the year, up dramatically from the $9 billion executed during the pandemic’s first year in 2020, according to data from NIC MAP Vision and Real Capital Analytics.

And the VIUM team is encouraged by early signs of activity in 2022.

“January and February of 2022 looks very robust and balanced, so we’re hopeful Q4 2021 is more indicative of our volume going forward,” Kennedy said.

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