• “Going Concern” Problem For Capital Senior Living

    Perhaps in an effort not to rattle the market, Capital Senior Living filed its first quarter 2021 10-Q after the markets closed on Friday, May 14. Perhaps they thought no one would notice as many were out celebrating the removal of their masks. Not that it should have been a surprise, but in the filing the company issued the dreaded... Read More »
  • Canadian Seniors Housing Market

    The Canadian seniors housing market has fared a bit better than its U.S. counterpart during the past year or so, but it also started in a better place. Take the Canadian SHOP portfolio of Ventas. It currently has 74 communities that operated in the first quarter 2021 with net operating income of $171.8 million, or just over $2.3 million per... Read More »
  • SavaSeniorCare Sells a Couple of Illinois SNFs

    SavaSeniorCare sold a couple of its Illinois properties, part of its plan to transfer the operations of some 48 facilities in its portfolio by the end of 2021. The deal represents the company’s last two properties in the Land of Lincoln.  First, it is handing over the keys of its 74-bed subacute/skilled nursing facility in Mount Vernon, Illinois,... Read More »
  • Monarch Advisors Secures Revolving Line of Credit

    Alec Blanc of Monarch Advisors closed a revolving line of credit for the operator of five skilled nursing facilities in southern Illinois, the purpose being to fund working capital costs across the portfolio. The borrower is based in Chicago and has operated the buildings for more than 10 years. They total about 600 beds and tended to be older,... Read More »
  • Recent Senior Care M&A Deals, Week Ending May 14, 2021

    Senior care M&A activity seems to have picked up a bit this month. Here is our latest deal chart. Long-Term Care   AcquirerTargetPrice Bickford Senior Living6 seniors housing communities$52.9 million Fortress Investment Group, LLC5 assisted living communities$64 million Crest Healthcare GroupNature Trail Health Care Center &... Read More »
Welltower Acquires Philly-Area Community

Welltower Acquires Philly-Area Community

The Newmark team was busy in the Mid-Atlantic last month, having earlier closed the sale of a seniors housing community in Chesapeake, Virginia (Virginia Beach MSA). Newmark also headed up the coast to sell a 76-unit assisted living/memory care community in a suburb of Philadelphia.   A private equity fund had purchased the property several years before but experienced slightly declining census before the pandemic caused occupancy to drop to 71%. Built in 2013, the community was bringing in no positive NOI at the time of the sale to Welltower for a purchase price of $19.5 million, or $256,600 per unit. Sunrise Senior Living will take over... Read More »
American Senior Communities Acquires Terre Haute Community

American Senior Communities Acquires Terre Haute Community

Dan Revie and Tedd Van Gorden of Ziegler handled Bethesda Senior Living Communities’ sale of its community of 20 years in Terre Haute, Indiana, to the largest senior care operator in that state, American Senior Communities. In April 2019, ownership agreed to discontinue its memory care units for the next two years to resolve a civil complaint filed by the Indiana State Department of Health following the death of a memory care resident. According to the new community website, there are still no memory care services. No price was disclosed in the ownership transition.  Read More »
Merrill Commercial Real Estate Handles Two-Community Deal in California

Merrill Commercial Real Estate Handles Two-Community Deal in California

It took over a year, but Tyler Merrill of Merrill Commercial Real Estate successfully closed the sale of two assisted living communities in Redding, California. One of the communities in particular was hit hard by COVID-19, and occupancy dropped by a combined 20% across the two properties. Despite that, the same private equity buyer remained interested throughout the difficult year and kept to the same agreed-upon purchase price of $18 million, albeit with an approximate $1 million holdback in escrow until the new owner reaches pre-COVID NOI levels and 75% occupancy. Before the pandemic, the communities maintained around 88% occupancy, but there is a lot of upside in expense management.... Read More »
Blueprint Sells Down East

Blueprint Sells Down East

Steve Thomes and Ben Firestone of Blueprint Healthcare Real Estate Advisors sold an assisted living/memory care community on the scenic Maine coast. Located just south of Portland, the property consists of a 57-unit assisted living and a 41-unit memory care building developed in 1996 and 1997, respectively. They were owned by a REIT and endured fluctuations in their occupancy throughout the pandemic. Eventually, a Massachusetts-based owner/operator with communities throughout New England emerged as the buyer, paying an undisclosed sum.  Read More »
Welltower Announces New Investments

Welltower Announces New Investments

At the same time it released first quarter earnings results, Welltower announced a major recapitalization of HC-One, the largest UK-based seniors housing platform, where it previously had a mezzanine loan investment with one of the owners. Formation Capital has been a 50-50 owner in HC-One, along with partner Safanad. Formation rolled most of its capital into the recapped company.  Welltower has provided a $750 million secured loan and a $76 million equity investment into HC-One. The loan will refinance existing debt and will help to simplify the company’s capital structure. It has a five-year term and is fully collateralized by HC-One’s real... Read More »