Welltower Announces Big Census Gains
Welltower released its second quarter earnings results, and its growth strategy was on full display with $1.5 billion in pro-rata gross investments from April to June, at an initial yield of 8.8%. That does not even include the largest deal, which was its proposed $1.58 billion acquisition of 86 independent living communities owned by Holiday Retirement (and Holiday’s owner, Fortress Investment Group). That deal is set to close in the third quarter at a 6.2% initial cash cap rate. Welltower will also enter into a RIDEA-based management contract with Atria Senior Living, which acquired Holiday’s operating business. Welltower completed another notable... Read More »
The Mogharebi Group Closes Its Second Sale in a Week
The Mogharebi Group (TMG) has closed its second seniors housing sale in a week, despite being mostly focused on the multifamily investment sales market. Last week, the firm arranged the sale of an independent living community in San Bernardino, California. This week, Otto Ozen and Alex Mogharebi represented a Los Angeles-based private investment group, Crystal Asset Management, in its $18 million sale of Country Club Apartments, a 79-unit seniors housing community, also in San Bernardino. Built in 1986, the two-story community features two-bedroom apartments with floor plans averaging 903 square feet. Schuler Investment Corp. bought the property from Crystal and secured $9.8 million in... Read More »
Kandu Capital Can Do It Again
Last month we reported on the sale of two senior living communities in South Carolina by Kandu Capital and its operating affiliate Bloom Senior Living. They did well on the sale, especially at the tail end of COVID, and we referred to it as maybe a triple based on the price compared with the original cost basis. It looks like they have done it again, but this time with a property in St. Petersburg, Florida. This 94-unit assisted living and memory care community was operating at breakeven when Bloom purchased it in 2017 from a local owner/operator. It didn’t do much better the next year, but finally made it into reasonable positive territory by 2019, and then doubled... Read More »
Newmark Reports Active Summer So Far
Newmark announced a slew of seniors housing closings, a couple of which we have already profiled this month. In total, the firm’s closings for June and July surpassed $580 million in volume. First was the sale of two active adult communities in Texas. Multifamily development and investment firm Cortland sold the properties to Livingston Street Capital for a combined $73.5 million, or $182,800 per unit, at a cap rate in the low 4s. Next, the Newmark team handled the sale of a 94-unit assisted living/memory care community in St. Petersburg, Florida. The seller, Kandu Capital, had purchased the 2014-vintage property in 2017 for $5.5 million, or just under $60,000 per unit. Now, Kandu... Read More »
Berkshire Seniors Housing Fund I Makes First Acquisition
In addition to its active investment in development, Berkshire Residential Investments, through its Berkshire Seniors Housing Fund I, has made its first purchase of an existing seniors housing community. The Senior Housing Investments Group, which Matthew Whitlock joined as Chief Investment Officer in May 2019, currently has six projects currently under construction and two others that have recently opened. But this is its first acquisition of an open community, and likely not the last. Set on 11.4 acres in Clearwater, Florida, the community has 57 assisted living and 25 memory care units. A not-for-profit organization built it in 2012 and included an impressive array of... Read More »Schedule a demo
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