60 Seconds with Swett: 2023 Deal Volume at 2019 Levels
Dealmakers have a lot to be frustrated with in the M&A market right now, with valuations low, deal processes taking longer than ever, scarcity in the debt markets and other headwinds making their impact. But despite it all, deal volume was actually historically healthy in the third quarter of 2023. There were 115 publicly announced transactions in the quarter. That is down from the 120 deals made public in Q2:23 and the 140 from last year’s third quarter. But the average deals per quarter for 2023 at 115 is equal to the average deals per quarter in 2019, a time of cheap and abundant capital and before anyone knew what COVID-19 was. Plus, on an annualized basis, Q3’s total would... Read More »
TJM Properties Re-enters Senior Living Sector
In 2013, Clearwater, Florida-based TJM Properties sold 15 of its 19 senior living communities to Fortress Investment Group/Holiday Retirement for $220 million, effectively exiting the sector to focus on the hotel industry and its remaining senior living communities. However, TJM has recently re-invested in the sector through the acquisition of five separate senior living communities in Florida in 2023. Interestly, these five communities were part of the 15-community portfolio that the company had previously divested. TJM initiated its return to the sector in February with the purchase of Bayside Terrace, a 162-bed senior living community in Pinellas Park, Florida. The acquisition was... Read More »
60 Seconds with Swett: New NORC Study Great for Senior Care PR
The seniors housing and care market is fighting an often uphill battle to fix its public perception, and providers got a significant tool in their marketing arsenal when NORC at the University of Chicago released a study on how frailty levels among seniors ultimately decline after their moving into seniors housing or skilled nursing properties. NIC funded the study through a grant, and it will certainly be highlighted heavily throughout the upcoming Fall conference, and for good reason. In a review of Medicare claims of residents from more than 14,000 senior living properties and using a frailty index developed by Harvard University that measures rates of chronic conditions, acute... Read More »
Staffing Regs May Cost 60% More Than CMS Suggested
Following up on CMS’s initial estimate that the Minimum Staffing Mandate would cost around $4 billion for skilled nursing facilities (and $40.6 billion over the first 10 years), CliftonLarsonAllen (CLA) released a competing study that put that cost nearly 60% higher, at around $6.8 billion. The American Health Care Association/National Center for Assisted Living’s President and CEO Mark Parkinson quickly responded to the results (in advance of them being released), saying, “What CLA’s analysis confirms is that this proposed rule is deeply flawed, and the Biden Administration has woefully underestimated the feasibility and cost of this unfunded mandate.” The proposed rule from CMS mandates... Read More »
Financing Package Secured for New D.C. Development
A new affordable seniors housing development is going up in Washington, D.C. with the help of financing provided by a variety of capital sources. Urban Atlantic Development is building the 93-unit community, which is located on the campus of the 60-bed Lisner-Louise-Dickson-Hurt Home, one of the oldest skilled nursing facilities in the District that is scheduled to be renovated in the next year. The project received $69 million of financing through DC Department of Housing and Community Development’s Housing Production Trust Fund, federal and state low-income housing tax credits, and District of Columbia Housing Finance Administration bonds, including equity provided by Boston... Read More »Schedule a demo
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