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 »