Sugar Hill Sale Saga
What do you do with a nine-story, 169,410-square foot distressed senior care home? You sell it for about $500 per square foot to a real estate investment firm with plans to convert the building to luxury apartments, of course. That was the case for Haysha Deitsch, who purchased a Brooklyn building in 2006 for $40 million and just closed this Fall on an $84 million sale to New York City-based Sugar Hill Capital Partners. However, things were not all smooth in Mr. Deitsch’s 10-year ownership, especially since 2014 when he and Sugar Hill initially agreed on the sale. Following that agreement and a 90-day notice to residents to vacate, tenants’ families sued Deitsch for allegedly trying to... Read More »Riverside Refinance
Three years after buying a 207-unit independent living community in Riverside, California, Capitol Seniors Housing (CSH) is refinancing it, at a much higher value. The private investment firm bought Olive Grove (now Welbrook Arlington) in August 2013 for $16.25 million, or $76,651 per unit. Back then, the property consisted of two independent living buildings that were built in 1980 and 1984. Occupancy was only in the high-60% range, with average IL monthly rates of about $1,600. CSH clearly saw potential in the property, and invested between $5.5 and $6.0 million to convert one building to assisted living and memory care and add a separate dining room to that building (to be serviced by... Read More »Greystone gets it done
We’ve written plenty on the memory care (and assisted living) development boom going on in Texas, especially in the markets of Houston, Dallas-Fort Worth and San Antonio. And we have wondered how, if everyone and their neighbor is building memory care in those areas, the communities would fill up. That will be the challenge for a private investor who just bought four recently-built stand-alone memory care communities previously owned and operated by U.S. Memory Care. Located in Cedar Park (Austin MSA), Houston, Plano (Dallas MSA) and Colleyville (also Dallas), these communities were built between 2013 and 2015 with 70 units and 75 beds. U.S. Memory Care also included a beauty/barber shop,... Read More »Quality Care Properties Cuts Rent
Within weeks of being spun out of HCP, Inc. (NYSE: HCP), Quality Care Properties (NYSE: QCP) announced that it had agreed to a two-month temporary rent reduction for its major client, HCR ManorCare. December’s rent was reduced by $15.0 million, or nearly 40% below what it should have been, and January 2017’s rent will be reduced by $10.0 million, or 25% below what it should have been. Quality Care Properties agreed to these reductions in response to a request from HCR ManorCare because of the “continuing financial deterioration” at the company. QCP believes this partial and temporary relief with give it time to “perform due diligence and gather information about the Lessee in advance of a... Read More »Schedule a demo
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