Skilled Nursing: Is There A Market Disconnect?

by Ben Swett | Sep 30, 2022 10:39 am | Opinion | 0 comments

On September 29th, 2022, our Editor Ben Swett discussed the skilled nursing M&A market with a couple of industry experts that included Laca Wong-Hammond of Lument and Toby Siefert of Senior Living Investment Brokerage. The conversation ran over an hour and covered SNF values, the current buyer’s mindset, what sellers are thinking and how the deal process has changed in recent months. Read More »

Skilled Nursing Facility Sells in Indiana

by Zach Alexander | Sep 30, 2022 9:19 am | Acquisitions | 0 comments

A skilled nursing facility in Spencer, Indiana (Bloomington MSA) sold to a group of skilled nursing operators based in Indiana and the Midwest for an undisclosed price. The facility will be renamed Owen Valley Rehabilitation and Healthcare Center. Built in 2006, it has 113 beds, including a 31-bed memory care unit, sitting on 3.52 acres. Occupancy as of July 2022 was just below 70%. Kentucky-based Trilogy Healthcare Services was the seller. While the buyers have significant experience overseeing operations at similar-sized SNFs in rural and suburban communities around the Midwest, they hired Indiana-based Castle Healthcare to run the day-to-day operations of the facility. Read More »

CBRE Refinances Coastal California Community

by Ben Swett | Sep 30, 2022 9:16 am | Financings | 0 comments

California-based owner/operator Westmont and a group of individual investors refinanced their senior living community on the central California coast. Located near San Luis Obispo, The Oaks at Nipomo opened in 2017 with 97 units of independent living, assisted living and memory care. Westmont has operated the community since its opening, and occupancy is currently above 95%, with improving operational metrics too. The CBRE National Senior Housing team of Aron Will and Adam Mincberg and the CBRE Multifamily team of Andrew Behrens and Jesse Weber arranged a $16.2 million loan through CBRE’s Freddie Mac Optigo lending platform. The fixed-rate loan came with a 10-year term and five years of... Read More »

Orange County AL Community Finds New Owner

by Zach Alexander | Sep 30, 2022 9:13 am | Acquisitions | 0 comments

Scott Frazier of Blueprint Healthcare Real Estate Advisors helped an independent owner/operator exit the seniors housing business with the sale of their only asset in Orange County, California. Built in 1970 and renovated in 2008, the community comprises approximately 70 units of assisted living and memory care. The current owner bought the property from Wells Fargo Bank in January 2011 for around $70,000 per unit. Investing in more upgrades to the community in 2011, the owner kept resident monthly rates below market. Occupancy was historically near 100%, but during the pandemic, census had declined steadily due to continued lockdowns to ensure the safety of its residents. Mr. Frazier... Read More »

Newmark Sells SNF Portfolio, and a Florida Community Too

by Ben Swett | Sep 30, 2022 9:11 am | Acquisitions | 0 comments

Newmark announced a couple of closings this week. First and most notably, the team sold a portfolio of skilled nursing facilities in New England. Including five facilities in Massachusetts and two in New Hampshire, the portfolio totaled 771 beds, with an average age of more than 50 years. The deal closed at the start of the month. Next, Newmark sold Grand Villa of Dunedin, a 119-unit assisted living/memory care community in Dunedin, Florida (Tampa MSA). Built in 1987, this former Emeritus property traded multiple times over the years, mostly recently in 2016 when Brookdale Senior Living sold it as part of a larger portfolio deal to ValStone Partners. ValStone invested in substantial... Read More »

Condor Health Gets Bank Refinance

by Zach Alexander | Sep 28, 2022 9:15 am | Financings | 0 comments

Northland Networks served as exclusive placement agent for the bank refinance of Condor Health, a 181-bed skilled nursing facility in Anderson, South Carolina. The facility opened in 1965 and was expanded in 1974 and 1980. It sold in September 2019 for $11.5 million, or $64,000 per bed, when it was losing money, despite boasting an occupancy around 90%. The borrower, The Portopiccolo Group, obtained a loan that represented a 65% loan-to-“as is” value. Seth Kahn, Anthony Budniak and Derek LaSota of Northland Securities facilitated the financing. Read More »

SLIB Facilitates Florida Sale

by Zach Alexander | Sep 28, 2022 9:12 am | Acquisitions | 0 comments

Senior Living Investment Brokerage announced the sale of an assisted living community in Dade City, Florida. Built in 1912 as a hotel and converted to seniors housing in 1988, the community was then substantially renovated in 2016 and 2017. Sitting in between Tampa and Orlando, the community comprises 243 total units, including 116 independent living, 66 assisted living and 61 memory care units. The community also participates in the Florida Diversion (Medicaid) program, and just under 50% of the residents participate. The seller is an established seniors housing operator with a portfolio of over 30 communities. The Dade City asset was sold to a regional operator which partnered with a... Read More »

Active Adult Developments Stay Active Across America

by Zach Alexander | Sep 28, 2022 9:08 am | Developments | 0 comments

Active adult new construction activity continued apace this past week with multiple developers breaking ground on communities throughout the country. We are sure rising interest rates have stopped a number of projects, but many developers surely see plenty of opportunity in the emerging sector. As covered in our active adult webinar in June, one question that arose was whether it’s better to build or buy active adult communities right now. Back then, the answer was a resounding “Both.” However, in light of the high capital costs these days, purchasing a community at a 4% cap rate when the 10-Year Treasury Yield is approaching 4% may not make as much sense right now. In Northampton,... Read More »

Marcus & Millichap San Francisco Sale

by Ben Swett | Sep 28, 2022 9:04 am | Acquisitions | 0 comments

A senior living community in the San Francisco Bay area is heading in a different direction under new ownership, after Rob Reis of Marcus & Millichap arranged the property’s sale. Family-owned and -operated for over 40 years, the 158-unit community featured independent living, assisted living and memory care services, with a total of 194 beds. Built in phases from 1961 to 1980, it was producing substantial cash flow and operated efficiently, but the building was in need of substantial renovations. Set in the city of Hayward, the community was about to face some new high-quality competition from local developments by MorningStar Senior Living and SRM Development. Occupancy was also low... Read More »

60 Seconds With Swett: SNF Values Have Hit Their Peak

by Ben Swett | Sep 28, 2022 8:58 am | 60 Seconds | 0 comments

We have hit a valuation peak for skilled nursing facilities, and we do not feel like we are going out on a limb in saying it. That is because soaring interest rates have made acquiring facilities at extremely high prices much more expensive. The realities of a difficult operating environment concerning labor and inflation must also be top of mind for lenders, which are probing deals very deliberately, as they should. Regulatory issues have also made deals tougher, and longer, to close, and delays can be especially costly as the Fed keeps increasing rates. That being said, we have also heard of more than several cases of renegotiations, final bids coming in lower than the initial bids, and... Read More »

Houston-Area Assisted Living Communities Sell

by Zach Alexander | Sep 26, 2022 10:22 am | Acquisitions | 0 comments

Oklahoma-based Plains Commercial announced the sale of a vacant assisted living portfolio in Copperfield and Pearland, Texas (Houston MSA). The Glen Hope Portfolio comprises two communities built in 2005 and 2009, respectively. Both communities offered well maintained physical plants with little need of immediate capital expenditure.  Plains Commercial represented the stalking horse bidder in a bankruptcy auction of a defaulted bond portfolio. The buyer is a local owner/operator with a growing footprint in the state of Texas which also has a strong operational track record with struggling communities. It plans to implement its operational model immediately and begin lease-up. Daniel Morris... Read More »