Struggling skilled nursing facilities sell in Texas
We have seen a number of skilled nursing facilities sold this month that have seen better days, or at least hope to. The theme continued at the start of February, two SNF transactions in Texas were announced in succession involving struggling facilities. First up, The Ensign Group purchased a facility in San Antonio that was just 34% occupied. The campus, which features 124 skilled nursing and 17 assisted living beds, is subject to a long-term ground lease. There is some promise however, as the facility is adjacent to a 400-unit independent living community, a population for which it hopes to provide care and services. Ensign acquired both the real estate and operations, which it added to... Read More »CareTrust REIT’s Wisconsin senior care strategy
CareTrust REIT just doubled down on its Wisconsin senior care strategy. Almost a year after acquiring an assisted living community in West Allis, Wisconsin from Priority Life Care (and then leasing it back), CareTrust is acquiring two more memory care communities in the Milwaukee MSA for approximately $26.1 million, or $296,591 per unit. The communities were well occupied (both at 97%) and relatively recently built (one property was built in 1997 and 2011 and the other was in 2013). Added to a master lease with Premier Senior Living for the remaining initial term of 14 years (with two five-year renewal options and CPI-based rent escalators), the communities are expected to generate annual... Read More »
Vacancy in Dade City
Birchwood Health Care Properties just added the 21st property to its seniors housing portfolio, but with one catch: the community is vacant. Located in Dade City, Florida (about 30 miles inland between Tampa and Orlando), the target was originally built as a hotel and converted to include 230 units of seniors housing. As recently as early 2015, it served over 200 residents but ran into clinical and operational challenges under its previous management. So in comes Birchwood, which along with operator Priority Life Care will invest $750,000 in renovations. Plus, pre-marketing and construction planning was initiated well before this transaction’s closing in early January in anticipation of a... Read More »A value-add opportunity in Whitehouse?
As our former President jetted off to California on Inauguration Day, a California-based public REIT moved out of Whitehouse, Texas, with the sale of its 120-bed skilled nursing facility. Located in the Tyler MSA, this facility was 88% occupied at the time of the sale with a 24.5% quality mix. But the REIT seller considered the property non-core (the previous operator was also looking to exit), and the buyer, a New York-based owner/operator with a notable presence in East Texas, saw a value-add opportunity. It paid $6.42 million, or $53,500 per licensed bed, and Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors handled the transaction. Read More »
Welcome, Wardman Group
A boutique real estate investment firm, having just been founded in 2016, is making its first acquisition in seniors housing. The Wardman Group, based in Washington, D.C., plans to invest in value-add opportunities in the hospitality and seniors housing sectors, starting with a 92-unit independent living/assisted living/memory care community in Columbia, South Carolina. Bringing in Integral Senior Living to manage the property (its first in the state), Wardman will begin a $1.4 million renovation to the common areas, exterior and dining room, along with an expansion of its memory care offering from 14 units to 22. Post-renovation, the community will feature 38 IL, 32 AL and 22 MC... Read More »Schedule a demo
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