• Greystone Closes Large CLO

    Greystone closed a large collateralized loan obligation (CLO) composed solely of healthcare assets. Greystone CRE Notes 2025-HC4, LLC is a $451.6 million commercial real estate CLO backed exclusively by bridge loans provided by Greystone. The transaction marks the firm’s eighth overall CRE CLO and the industry’s fourth-ever CRE CLO composed... Read More »
  • Fortress Investment Group Divests Arizona Asset

    JLL Capital Markets has closed the sale of Inspira Arrowhead, a 165-unit seniors housing community in Glendale, Arizona. The community was under the ownership of Fortress Investment Group funds for just 18 months, but in that time occupancy rose from 89% to 94% and NOI improved by 35%. Fortress bought the asset in April 2024 in a joint venture... Read More »
  • Stacked Stone Makes Another Acquisition

    Stacked Stone Ventures, a real estate investment firm founded by Kent Eikanas, followed up on its October acquisition in Oklahoma with the purchase of two assisted living/memory care communities in Illinois, near the St. Louis MSA. Similar to the Oklahoma deal, Stacked Stone has made Illinois acquisition in a joint venture with the private equity... Read More »
  • Blueprint Handles Large SNF Deal in Pennsylvania

    Not-for-profit to for-profit are not easy, and it took a two-year process for Blueprint to successfully close the sale of a 250-bed skilled nursing facility in Philadelphia, Pennsylvania. The property appears to be Cheltenham Nursing & Rehabilitation, one of three skilled nursing facilities owned by Dublin, Ohio-American Health Foundation... Read More »
  • JDI Realty Buys Alpharetta Asset

    A partnership recently acquired Chapters Living of Alpharetta, a 79-unit assisted living/memory care community in Alpharetta, Georgia (Atlanta, MSA). Built in 2013, the high-quality community was previously known as Addington Place of Alpharetta. JDI Realty, in partnership with Purity Strategies and Chapters Senior Living, bought the community... Read More »
Brookdale: Has The Long-Awaited Turnaround Begun?

Brookdale: Has The Long-Awaited Turnaround Begun?

Late on April 10, Brookdale Senior Living reported its March occupancy results, and disclosed that preliminarily, the first quarter financial results looked to be better than originally forecast. The market pounced on the news that first quarter adjusted EBITDA would be “meaningfully” above previously issued guidance. Revenue was higher than expected while expenses were in line with fourth quarter expenses, meaning little inflationary cost pressures. The share price surged by more than 30%. Finally, some good news. Let’s hope this is not merely a case of under-promising and overperforming, because if the second quarter does not come in better, then what investors giveth they and taketh... Read More »
Mounting Troubles For Sonida Senior Living

Mounting Troubles For Sonida Senior Living

When we read Sonida Senior Living’s recent fourth quarter earnings report, we had already heard that it contained the dreaded “going concern” caveat. While not surprising, what was surprising was how glowing the highlights were.  Management “was thrilled with what our team has accomplished in Q4 and throughout 2022,” but five pages later it is disclosed that the company may run out of cash and fail to meet its obligations. Hmmm. Investors sent the share price tumbling by 40%. We were not surprised because in our November 2022 issue we stated that we thought the company would run out of money by April of this year based on its cash burn rate. We are now at the end of March, and cash... Read More »
More Trouble Brewing in Credit Markets

More Trouble Brewing in Credit Markets

We had all heard that the first half of this year was going to see a spike in loan defaults, forced sales of properties and other signs of financial distress in the seniors housing and care sector. But we are not sure many people thought there would be one this big. We are talking about the TPG Real Estate and Sabra Health Care REIT joint venture involving 157 assisted living communities in 18 states operated by Enlivant, which is the former Assisted Living Concepts. This was not a great portfolio to begin with, and it consists of mostly small and older properties in secondary markets.  Sabra purchased a 49% interest in the portfolio in January 2018, paying a hefty price to help the... Read More »
Some Good News For A Change

Some Good News For A Change

There has not been much good news out there, whether on the financing front, the deal volume front, or the census front. But some operators are actually kicking some butt these days, specifically Bloom Senior Living. When the pandemic began, this small operator had an average 83% occupancy across its portfolio of independent living, assisted living and memory care units. One year later it had plunged by 1,600 basis points to 67% and bottomed out in March 2021, like so many other providers.  Just 12 months later, however, and not like many others, it had gained back 1,300 basis points to reach 80% in March 2022. Not quite to pre-COVID levels, but certainly a lot better than many other... Read More »

Industry Leader Passes Away

I was saddened to learn that my friend George Chapman has just passed away. I had known George since the 1980s when he was working under Bruce Thompson, the co-founder and CEO of Health Care REIT (now Welltower). We started with a very friendly relationship when Bruce found out that he and I both went to the same Connecticut prep school. Bruce never let it drop, and George continued on with the teasing over the years. Back then, I never saw one without the other. Not many people know that Health Care REIT started as the Health Care Fund, and then changed its tax status to a REIT. It was the first healthcare-focused, and really long-term care focused, REIT in existence. And this was when... Read More »
Brookdale Senior Living Census Drops

Brookdale Senior Living Census Drops

As you may remember, in October 2020 we did a comprehensive study of seniors housing occupancy for the 10 years leading up to the pandemic. What we found surprised us in many ways. We used assisted living occupancy as a proxy for the entire seniors housing market, mostly because it is the largest segment, using the NIC MAP census numbers. What we found was that for the 11 years prior to the pandemic, occupancy had never increased in the first quarter of any year. In the first quarter of 2022, however, Brookdale Senior Living beat those odds by posting a 50-basis point increase in month-end occupancy after dropping 30 basis points in January. Weighted average occupancy for that quarter was... Read More »