Buying Big In The CCRC Market
In case you haven’t noticed, there has been an ad for the past several weeks on these pages for the sale of a large CCRC in Michigan. When we say large, we mean 852 IL units, 96 AL/MC units and 89 skilled nursing beds. The community was substantially constructed between 1993 and 1998 and sits on 35 acres. This is Erickson Living big, and that is because the original Erickson Retirement was the developer and manager back in the 1990s. The CCRC, known as Henry Ford Village, filed for Chapter 11 bankruptcy protection in October 2020. The reason, we assume, was the low occupancy. The IL units as of November were at 69.0% and the healthcare units combined were at... Read More »
Carnegie Capital Finances Western Seniors Housing Deal
JD Stettin of Carnegie Capital announced a couple of loan closings that funded the acquisition of two senior living communities in Montana and Wyoming. If that deal sounds familiar, it’s because we covered Senior Living Investment Brokerage’s involvement in it earlier this week. Totaling a combined 107 units, split between 61 independent living and 46 assisted living units, the deal included a community built in 1995 in Cody, Wyoming and one in Great Falls, Montana that opened in 2003. They’re in good condition and reported positive cash flow, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. Both... Read More »
Senior Living Investment Brokerage Closes Rocky Mountain Transaction
An institutional owner engaged Brad Clousing, Jason Punzel and Jeff Binder of Senior Living Investment Brokerage to sell two senior living communities in two western states. Totaling a combined 107 units, split between 61 independent living and 46 assisted living units, the deal included a community built in 1995 in Cody, Wyoming and one in Great Falls, Montana that opened in 2003. Both were former Emeritus properties that have since been operated by Brookdale Senior Living. They’re in good condition, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. An Oregon-based regional owner/operator believes its... Read More »
Marcus & Millichap Duo Sell Tucson Community
Alex Snyder and Hamid Panahi of Marcus & Millichap’s Tucson, Arizona office didn’t have to go far for their latest seniors housing deal, selling an 80-unit assisted living community in their hometown of Tucson. They represented both the merchant developer seller and regional owner/operator buyer (both also based in Tucson), the latter of which paid $5.6 million, or $70,000 per unit, for the property. The buyer utilized a combination of a seller carryback, bridge debt and conventional debt to finance the acquisition. Opening in 2018 and still leasing up when the pandemic hit, the community was just 42.5% occupied at the time of the sale. However, new ownership made their... Read More »
JLL Announces Seniors Housing Portfolio Deal
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... Read More »Schedule a demo
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