The Market of Lafayette
In the heart of Cajun country, Cushman & Wakefield’s Robert Black and Sean McNee facilitated the sale of two seniors housing communities on behalf of the local owner and operator. Both located less than a mile apart in Lafayette, Louisiana, the all-private pay properties included a 70-unit independent/assisted living community that was built in 1997 and a just-opened 37-unit memory care community. The buyer, Griffin-American Healthcare REIT IV will bring on Colonial Oaks Senior Living to operate the communities under a 15-year absolute net lease with two 10-year renewal options and annual rent escalators of 6.3% after year one and 2.5% thereafter. Griffin-American financed the... Read More »Net-worth nets results
A high net-worth healthcare real estate investor saw quite the value-add opportunity in a portfolio of five assisted living communities located throughout Central Florida. The properties were perhaps fated to change hands, as they were acquired by the seller (a publicly traded REIT) as part of a large merger a few years ago, but were not seen as “core” communities. There is some work to be done too. Built from the mid-1980s to the early-1990s, the buildings need some capex. And despite a stable occupancy in the mid- to high-80s, a significant portion of the census was Medicaid payors. Under management of a national operator (which had been in place for a short time before the REIT took... Read More »
No Worries in Missouri
The trio of Ben Firestone, Michael Segal and Josh Salzman, Esq. from Blueprint Healthcare Real Estate Advisors sold three rural skilled nursing facilities in the southeast corner of Missouri on behalf of a public REIT owner. The facilities were the only three in the state to be managed by the Texas-based tenant. So management could perhaps be tightened by an in-state operator, as the portfolio’s census had fallen in recent years to below 50% in the six months ended March 2016, annualized. Cash flow was also negative at two of the facilities, and not trending well. The age of the buildings did not help matters, with one facility built in 1967, although the other two in the early-1990s. But... Read More »
Give and Receive
A relatively new assisted living community in Vancouver, Washington was already under control of a Receiver when it was sold to a regional operator for $7.5 million, or $156,250 per unit, with an 8.7% cap rate. Built in 2013 by Oregon-based Elite Care, the 48-unit community was just 73% occupied by 2016. And even though it was operating at a 22% margin on approximately $3 million of revenues, the community was placed under receivership and slotted for sale. The new owner plans to invest in capital and cosmetic improvements, as well as convert some employee apartments to senior living units. Matthew Alley, Jeff Binder and Jason Punzel of Senior Living Investment Brokerage represented the... Read More »A New Horizon?
Michigan has been in the news a lot lately as the home of political upsets and recounts. But it’s also the home of Mike Garbers and Cody Tremper’s (of Greystone Real Estate Advisors) latest transaction. The duo represented a publicly traded REIT in the sale of its 298-unit independent living community in Southfield, Michigan to a private equity firm. Built in 1998 on seven acres, the Brookdale Senior Living-operated community features a host of amenities, including a greenhouse, gazebo, library, restaurant-style dining and a beauty/barber shop, but it has significant capex needs. That perhaps explains the relatively low purchase price of $12.5 million, or about $42,000 per unit. For some... Read More »Schedule a demo
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