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 »
Foundry Commercial Adds 16 New Managed Communities
Foundry Commercial continues to expand its seniors housing portfolio, recently adding 16 new seniors housing communities to be managed by Spring Arbor, its in-house operating platform. With the new contracts, Spring Arbor now manages 40 communities in 10 states across the Mid-Atlantic, Southeast and Midwest. In addition to North Carolina, Virginia, and Maryland, where Spring Arbor was already operating, Foundry now has a management presence in South Carolina, Florida, Tennessee, Kansas, Nebraska, Iowa, and Minnesota. Also with these added communities, Foundry and its affiliated joint venture operating partner, Cascadia Senior Living, now operate 54 communities in 12 states. Four... Read More »
Gardant Management Solutions Grows By 45%
Gardant Management Solutions has just taken over management of 25 assisted living communities in Illinois (22) and Ohio (3) with nearly 1,375 units. With this addition, Gardant’s size will increase by about 45%, something that will not be too easy to transition in the current operating environment. The company will now operate more than 80 communities with nearly 7,200 units. Prior to this new management contract, Gardant’s average community size was 106 units. Now it is closer to 90 units since the new 25-community portfolio averages about 55 units each. The Bourbonnais, Illinois-based company focuses on affordable assisted living, and many of these 25 communities were designed to... Read More »Schedule a demo
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