Five Star Exits Skilled Nursing Sector in Portfolio Restructuring

Five Star Exits Skilled Nursing Sector in Portfolio Restructuring

Five Star Senior Living is making a complete exit from the skilled nursing sector and restructuring its portfolio to focus more on larger, lower acuity seniors housing properties. It looks like an acknowledgement of the company’s weakness, and its strengths, to focus on what it does best, at a smaller, more manageable size. Its landlord, Diversified Healthcare Trust, agreed to amend its management agreements and transition 108 smaller senior living communities totaling approximately 7,500 units to other operators by the end of the year. DHC will not have to pay a termination fee and will also no longer have the right to sell up to $682 million worth of senior living communities... Read More »
Monarch Advisors Finances Kansas SNF Acquisition

Monarch Advisors Finances Kansas SNF Acquisition

A local owner/operator purchased a small skilled nursing facility in rural Kansas with an acquisition loan in hand, secured by Alec Blanc of Monarch Advisors. An active, national SBA lender provided the financing, which totaled $721,500 and came with a 25-year, fully amortizing term. It came with an interest rate of Prime + 2.25%, and there was also a five-year declining prepayment penalty.  Built in the 1950s, but well maintained, the 45-bed facility was around 86% occupied by the end of 2020. Given where national average census is for the industry, most operators would happily take that. Including working capital and closing costs, the buyer expects to spend around $800,000, or... Read More »
Blueprint Sells Birmingham-Area Community

Blueprint Sells Birmingham-Area Community

Brooks Blackmon of Blueprint Healthcare Real Estate Advisors sold a well-run senior living community in Birmingham, Alabama. The Alabama-based developer seller originally purchased the property in 2016 when it was just a small assisted living community. It has since grown to include around 55 units, the majority of which are independent living. The IL sector has held up relatively well during the pandemic, and occupancy was over 90% at the time of the sale. Plus, there is some upside with the AL rents. The developer also fully renovated the community in addition to adding the three-story IL building.   Inspired Healthcare Capital emerged as the winning bidder and... Read More »
Plains Commercial Real Estate Sells Texas SNF

Plains Commercial Real Estate Sells Texas SNF

Daniel Morris of Plains Commercial Real Estate successfully sold a 123-bed skilled nursing facility in Fort Worth, Texas. Built in 1973, the facility was owned by a regional operator that had decided to trim its portfolio. This facility didn’t fit into its portfolio but did for another regional owner/operator, which is seeking to grow its portfolio.   Mr. Morris had the facility under contract during the pandemic and worked with both the buyer and seller to get the deal across the finish line. The seller was able to keep the facility free of any major COVID outbreaks throughout the contract period, which certainly helped get the deal across the finish... Read More »
Innovative Senior Living Adds To Arizona Portfolio

Innovative Senior Living Adds To Arizona Portfolio

It took about five years, but an assisted living community in Tucson, Arizona finally found a new owner. Opened in 2015 with 70 private units, the community consists of seven separate 10-unit buildings. The developer decided to sell the property almost immediately after opening it and worked with Mark Biery of Berkshire Hathaway to find a buyer.   The property went under escrow several times but to mostly unsophisticated, out-of-state investors. It was difficult for a lender to get aboard, especially when the potential buyers don’t have any experience operating in the assisted living sector. Also complicating things was the fact that four separate mom & pop operators leased the... Read More »
Monarch Advisors Finances Indiana Senior Living Development

Monarch Advisors Finances Indiana Senior Living Development

Alec Blanc of Monarch Advisors, the capital advisory affiliate of Senior Living Investment Brokerage, has closed construction financing for the development of a 130-unit senior living community in Jeffersonville, Indiana (Louisville MSA). Denton Floyd Real Estate Group broke ground on the project in December and has brought on Vitality Senior Services to manage it upon completion. They will provide a mix of independent living, assisted living and memory care services for only private-pay residents. Rents are expected to range from $3,970 per month for one-bedroom units, $5,000 per month for two-bedroom units, and $5,138 per month for memory... Read More »
Ziegler and M&T Partner To Refinance Illinois Community

Ziegler and M&T Partner To Refinance Illinois Community

Ziegler and M&T Realty Capital Corporation partnered to secure a Fannie Mae refinance on an independent living community in St. Charles, Illinois. Owned by Essex Communities, the community obtained a $15.145 million loan with a 10-year term and fixed interest rate of 3.99%. There are five years of interest-only payments, followed by a 30-year amortization. Essex also benefits from a declining prepayment schedule.   Essex originally developed the 80-unit community in 1999 under a not-for-profit, entrance fee model sponsored by the City and Township of St. Charles. But Essex decided to purchase the building in 2019 for approximately $12.8 million,... Read More »
Ensign Acquires Colorado SNF Portfolio

Ensign Acquires Colorado SNF Portfolio

The Ensign Group made its second acquisition of the year, adding the operations of three skilled nursing facilities in Colorado to its growing portfolio. The deal included a 140-bed facility in Boulder, a 76-bed in Berthoud and a 106-bed facility in Denver. Ensign entered into a long-term, triple net lease through its Colorado-based subsidiary, Endura Healthcare, effective April 1. That brings Ensign’s portfolio to 235 healthcare operations, 22 of which also include assisted living operations, across 13 states. Ensign also owns the real estate at 94 locations.  Earlier this year, the provider acquired the operations of a skilled nursing facility in San Antonio, Texas.... Read More »
Regional Owner/Operator Settles On Ohio SNF

Regional Owner/Operator Settles On Ohio SNF

Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors handled the sale of a 99-bed skilled nursing facility in northeastern Ohio. The property, which is located near Youngstown, faced occupancy issues, prompting the regional owner/operator to strategically divest.   Blueprint put the property under contract earlier in 2020, but uncertainty stemming from the pandemic caused the initial buyer to pause the process. They forfeited their exclusivity to do so, and Blueprint took the property back out to market, generating three new competitive offers. Ultimately, however, the initial buyer was the best fit. Nothing wrong with a bit of caution, we suppose.... Read More »