NHI/Bickford continuing to grow
As many of you may know, National Health Investors and Bickford Senior Living are in the middle of their joint venture to build 36 assisted living/memory care communities in eight states. The joint venture is mostly funded with borrowings on NHI’s unsecured bank credit facility, but KeyBank National Association recently announced that it secured $78 million in Fannie Mae financing for 13 of the joint venture’s properties, consisting of interest-only payments at 3.79% and a 10-year maturity. The proceeds of the loan will go towards reducing borrowings on NHI’s credit facility. Read More »Valuation and construction
According to the just-published 2015 Senior Care Acquisition Report, valuations of assisted living and independent living communities are reaching unprecedented heights. In seniors housing, we saw a deal in 2015 valued over $500,000 per unit, two deals with prices over $400,000 per unit and a whopping 15 sold over $300,000 per unit. As valuations continue to rise due to the availability of capital, increasing investment demand and sellers with higher quality properties being attracted to sell in this hot market, more and more may look to construction to get into or grow in the seniors housing market. Of course, new development comes with its risks, but as prices continue to rise, buyers... Read More »Cap Rates And Reality
There appears to be a feeding frenzy on where cap rates should be, and the frenzy is only taking them lower. Did you read about the fully stabilized assisted living community that sold for a 3.5% cap rate on first year numbers? You didn’t? April fools, neither did I. But don’t be surprised if it happens given the way the market is going. Two months ago, while attending a seniors housing conference, we heard a rather matter-of-fact statement that cap rates for “A” properties were in the range of 5.5% to 6.0%, and “B” properties were in the broad 6% range. While our annual statistics do not bear this out, we do know that there are transactions done with cap rates between 5% and 6%, with a... Read More »The Battle For Brookdale
Shareholders are taking it up a notch to raise the value of Brookdale Senior Living. In World War II we had the Battle of the Bulge, and in seniors housing, we now have the Battle for Brookdale. Sandell Management, which owns about 2 million Brookdale shares, has nominated three directors, including Tommy Sandell himself, to help the company maximize shareholder value, claiming current directors have little real estate expertise, and in one case seem in imply that one current director, who they want to replace, is too old by stating his age (77). Tell that to Jim Moore. Now, Glenview Capital Management, which has upped its ownership from 8.75 million shares three months ago to 11.59... Read More »Schedule a demo
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