The JLL team got off to a prolific start this January, already handling a couple of transactions across 17 seniors housing properties. The big one involved the sale of 16 seniors housing communities previously owned by a publicly traded REIT. Totaling more than 1,800 units, these communities were located in three states and consisted of a mix between independent living, assisted living and memory care units, with some skilled nursing beds too.
They were not new, averaging more than 20 years in age, and did not escape the effects of COVID-19. Occupancy dropped from around the mid-80% range to the mid-70s, and we imagine cash flow was affected too. A non-traded REIT bought the communities for an undisclosed price and brought in a new operator to manage the entire portfolio, which was previously managed by three different operators.
JLL also closed the sale of a 97-unit assisted living/memory care community in San Antonio, Texas. Built in 2000, the community was considered a “value-add” opportunity. It was purchased two years ago by a not-for-profit, but a local individual is now taking over in what is his first seniors housing acquisition. However, he does have operating experience as a regional manager at a well-known provider.
This is not the last we will hear from JLL, as we expect more Q1 announcements to be made in the coming weeks, and one quite large one.