Ziegler Closes $118.33 Million Financing
Investment banking firm Ziegler just closed a $118.33 million bond financing for Emerald Heights, a not-for-profit CCRC in Redmond, Washington, with 333 independent living units (including apartments and cottages), 40 assisted living beds, 16 memory care units and 61 skilled nursing beds set on 38 acres. Emerald Heights was established in 1979. The proceeds will be used to finance the construction and equipping of 54 new assisted living units and a sky bridge connecting these units to the main IL building, as well as to fund the construction of 42 new IL units. The remainder of the proceeds will go toward paying off existing debt and certain costs of the bond issuance. The tax-exempt... Read More »
Vote On Diversified Healthcare Trust Merger Postponed
While we are not surprised, the vote on the merger of Diversified Healthcare Trust and Office Properties Income Trust, scheduled for this past August 30, has been postponed until September 6, even though “the polls remain open.” With the three major proxy firms weighing in against the merger, as well as a holder of 9.8% of DHC stock, we assume the managements of the two merging firms realized they did not have the votes. We stated last week that we thought something fishy was going on, and we didn’t like the smell. There are just too many conflicts of interest, but we do not know what could happen between August 30 and this coming September 6, two days after the Labor Day holiday, to... Read More »
60 Seconds with Swett: SNF Values Begin to Drop
The surge in capital costs has finally eaten into the price per bed for skilled nursing facilities, at least according to our latest averages. Using data from our proprietary M&A database which includes dozens of confidential prices and property financials, the average price per bed for skilled nursing facilities in the four quarters ended June 2023 dropped 6.5% to $106,800 from its record-high of $114,200 per bed from calendar year 2022. Anecdotally, we had heard that buyers were not paying the prices they were in 2022 but that investor interest (and prices as a result) was still higher than it was before and during the pandemic. That checks out with our numbers, since the latest... Read More »
Expensive Expansion for Washington State CCRC
Emerald Heights, a large, not-for-profit CCRC founded in 1992 in Redmond, Washington, officially broke ground on an assisted living expansion project. The building will include 54 one-bedroom units, along with a new dining space, activity rooms, an outdoor patio and a centralized courtyard. Its cost is reportedly $55 million, or over $1.0 million per unit, which is very high for new construction, let alone for an expansion project. The community expects to finance the expansion with a bond issue from the Washington State Housing Finance Commision. Sponsored by the not-for-profit Emerald Communities, the community previously expanded in 2022 with a brand-new, three-story, 42-unit... Read More »
Diversified Healthcare Trust Provides SHOP Update
With its upcoming August 30th shareholder vote on its merger with Office Properties Income Trust, Diversified Healthcare Trust provided some discouraging news on its seniors housing portfolio. It is almost as if they wanted to have bad news, since the dissident shareholders have been touting the recovery of DHC’s SHOP portfolio as one of many reasons to reject the proposed merger as undervaluing DHC. The reason why we say that they seemed to want to share bad news is that they keep on comparing results with 2019 performance, as in July occupancy was 750 basis points below July 2019. Yes, we all know that most operators have not fully recovered from pre-pandemic census levels, but is it... Read More »Schedule a demo
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