JLL Capital Markets Does Double Duty
JLL Capital Markets successfully sold and arranged acquisition financing for a large independent living community in the northern Detroit suburb of Southfield, Michigan. Featuring 298 units, the community is also primed to be converted into active adult, but we will wait and see if the new regional owner/operator (who is focused on that market) will do that. They paid $17 million, or $57,000 per unit, for the property and received $25.35 million in non-recourse financing to cover both the purchase and planned renovations. JLL’s David Gaines, Joel Mendes and Dav Macdonald worked on behalf of a private investor seller to complete the sale, while Trent Niederberger and Stephen Van Leer... Read More »
Newmark Sells Chesapeake, Virginia Community
The Newmark team has closed the sale of a seniors housing community in Chesapeake, Virginia (Virginia Beach MSA). Opened in 2000, the community features 47 assisted living and 26 memory care units. It averaged occupancy of 77% in 2020, which provided moderate cash flow for ownership. But that level could be improved, so a new regional owner/operator stepped in to acquire the property for $12 million, or $165,000 per unit. They expect to invest capex into the community and improve the physical plant. Their regional presence should also help provide scale to increase the operating margin. Read More »
Blueprint Arranges Another Ohio Transaction
Blueprint Healthcare Real Estate Advisors has closed another senior care transaction in the state of Ohio. Connor Doherty, Michael Segal and Ryan Kelly arranged the deal, which consisted of a 61-bed skilled nursing facility in Hicksville, Ohio, about 40 minutes northeast of Fort Wayne, Indiana. Built in 1966, the facility is the only licensed provider in the area and features mostly semi-private units. Services include post-acute care, respite care, wound care, respiratory and oxygen therapy, adult day care, hospice care, IV therapy and tracheostomy care, among others. There are also extensive on-site services, including a portable x-ray, laboratory work, a pharmacy, a mental health... Read More »
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
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 »