RED funds Avanti’s growth
Avanti Senior Living, which is developing five senior living communities in the Southeast (three in Texas and two in Louisiana) turned to RED Capital Partners to help fuel its construction pipeline, receiving a second $13.8 million balance sheet construction loan to build a 90-unit assisted living/memory care community in Flower Mound, Texas. The community will feature 50 units of assisted living and 40 units devoted to memory care, and represents Avanti’s third project to break ground under its joint venture with an affiliate of real estate fund manager, Iron Point Partners. Last December, RED also arranged a $13.5 million balance sheet construction loan for Avanti to construct a 90-unit... Read More »High-quality IL properties drive prices
In 2014, we saw record-high average prices paid for seniors housing communities (which includes both assisted living and independent living). One observation was that those records were largely driven by a higher number of quality, well-run (and thus, high-priced) independent living communities coming onto the market, presumably by owners who wondered if there will ever be a better time to sell. One tell-tale sign of the high-quality independent living sales driving up average prices was the average net-operating income per unit when compared to that of purely assisted living. Based on 2014 sales, the average net-operating income per unit for independent living communities was $17,100,... Read More »Seniors Housing Weekly Update – Another Holiday Sale For Fortress
June 23, 2015. 60 Seconds with Steve Monroe. New Senior Investment Group pays $640 million for 28 Holiday Retirement Communities… It has been eight years since Fortress Investment Group closed on its acquisition of Holiday Retirement Corporation for $6.6 billion, or $188,500 per unit. It saw occupancy drop from around 90% to well below 80% in less than three years. There was high turnover among the staff. There were some debt extensions to give it more time. Did we mention the Great Recession hit a year after closing the deal? A lot can happen in eight years, including continued low interest rates which help keep valuations up. This week, they announced another portfolio sale, this... Read More »High-quality property opening in high-income area
One of the wealthiest neighborhoods in the country will soon open its first seniors housing community. River Oaks (in Houston, Texas), the most affluent community in the state of Texas, and among the top ten in the United States, with real estate values ranging from $1 million to over $20 million, is the home to The Village of River Oaks, a 195-unit independent living/assisted living/memory care community to be built by a joint venture between Bridgewood Property Company and Harrison Street Real Estate Capital. The property, featuring 99 IL, 68 AL and 28 MC units, will be managed by an affiliate of Bridgewood, Retirement Center Management, which manages senior living communities in Texas... Read More »Schedule a demo
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