CCRCs Are Not Dead, and Happy New Year

Two recent CCRC sales prove the point that this market can thrive.

You know one of my favorite refrains by now. CCRCs are not dead. And two recent transactions prove my point. At the end of December, David Reis and his Senior Care Development, together with their equity partner Fundamental Advisors, closed on the sale of The Clare in downtown Chicago. This 338 unit/bed CCRC opened during the Great Recession and was forced to sell for 20 cents on the dollar with occupancy at 34%. Today, occupancy is at 98%, average entrance fees are back to $740,000, and they just sold it to LCS for about $320,000 per unit/bed. Talk about a great return on investment. LCS had been a minority investor and was the manager since 2012. Full details are in this month’s SeniorCare Investor.

And then kicking off the New Year, National Health Investors just signed an agreement to purchase a 401-unit/bed CCRC in the greater Seattle, Washington area, joint venturing with LCS in the deal. It just so happens that LCS was also part of the selling group with Westminster Capital, something that seems to work for them. Occupancy at this community is over 95%, and the purchase price is $133 million, or just over $331,000 per unit/bed.

Not too shabby for a market that is dead.

 

One thought on “CCRCs Are Not Dead, and Happy New Year

  1. Hi Steve. Your column on Billy Joel makes it timely to point out that one of the early and great CCRC’s is just across the Bay from his home in Greenport/Southold/Peconic.; I won’t mention their name but watched the initial development and subsequent evolution and tweaking of the mix of properties and levels of care. It’s not a stretch to imagine him retiring from MSG but becoming the house pianist for “Happy Hour with Billy.” Imagine the bad plaid, sensible shoes and soup stains on their Ivy League rep ties as Brenda and Eddie swing and sway the Long Island way.

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