ALF with upside sells
A 60-unit assisted living community in Columbus, Georgia that was not fulfilling its revenue potential sold to a private investment group for $4.85 million, or $80,800 per unit. Built and owned by the not-for-profit St. Francis Hospital since 1999, the community had historically struggled with occupancy, until in 2006, it leased a wing of 14 units on the second floor to VistaCare, Inc., an unaffiliated hospice company. That move helped bring occupancy up to 97%, but at the same time it was tough to turn a profit, with an average rent received from VistaCare of $2,150 per unit per month based on a base rent plus a PPD reimbursement. At the time of the sale, the community was operating at... Read More »California CCRC in the works
Life Care Services (LCS), together with local companies Villaggio Communities, John Madonna Construction and RRM Design Group, announced plans to build a 350-unit entrance fee CCRC in San Luis Obispo, California (located about halfway between Los Angeles and San Francisco) as part of a $500 million mixed-use project that would cater to seniors. In addition to the CCRC, which would be the first in its county, the project will include between 150,000 and 350,000 square feet of commercial retail space, 200 apartments and 60-100 single-family detached homes. Villaggio Communities, a seniors housing developer, is in the process of acquiring 111 acres from John Madonna Construction. The proposed... Read More »Market Turmoil And The Senior Care Market
With stock prices plunging, the impact on the senior care market will be mixed. Well, it’s been a rather interesting past week or so, with more volatility likely in the days ahead. But what does it all really mean, at least for the senior care market? Other than share prices tanking for the few remaining publicly traded providers, as well as the REITs which, at least until recently, were supposed to trade more like bonds, the one takeaway can be summed up in a word: caution. But we had sort of sensed this about two months ago, given the nature of the transactions in the market. But will a sense of caution curtail the vast development pipelines that we hear about? Too early to tell, and... Read More »Sold before reaching the mountaintop
An assisted living community with an improving census and reputation sold to a regional operator before fully realizing its potential. As rough starts go, this community in East Stroudsburg, Pennsylvania may take the cake. Built in 1984 as a skilled nursing facility, it never opened as such because the developer defaulted on the bond financing the project. A Lutheran senior housing group then bought it and operated it as an assisted living community until January 2013, when a group of doctors bought the community with just 12 residents occupying it. After remodeling the third floor to add 29 memory care units and an adult day care program, the doctors brought the census up to 66 residents... Read More »Schedule a demo
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