• The Welltower Census Decline

    Welltower’s seniors housing partners continue to suffer from census declines and operating costs. We do appreciate the transparency that Welltower has been providing investors, but boy does it provide a window onto what is happening. In its monthly update, Welltower informed us that it suffered its worst monthly census decline since May.... Read More »
  • Creativcap Closes Two Transactions

    Scott Kavel of Creativcap announced a couple of financings that showed off the company’s range of services. First, Creativcap provided a $6.0 million mezzanine loan to support the construction of an assisted living/memory care community in Southern California. This was the fourth mezzanine loan closed for the regional... Read More »
  • Giannini Closes Green Bay Sale

    Ray Giannini and Aaron Thompson of Marcus & Millichap arranged the sale of a 50-unit assisted living/memory care community in Green Bay, Wisconsin. Contrary to many seniors housing communities today, this property was fully occupied, with a 100% private pay census at the time of closing. It also reported strong cash flow and was relatively... Read More »
  • HJ Sims Handles CCRC Bond Refinance

    HJ Sims worked on behalf of The Bethel Methodist Home, a not-for-profit CCRC in Valhalla, New York, to refinance the property’s existing acquisition bonds. Opening in 2002 and offering a continuum of services from independent living to skilled nursing, the property experienced financial difficulty during the Great Recession (few entrance fee... Read More »
  • Grandbridge Arranges Two Seniors Housing Sales

    Not long after making the move from Cushman & Wakefield to Grandbridge Real Estate Capital, the Tampa-based team of Allen McMurtry, Dave Kliewer and Jay Jordan announced a couple of seniors housing sales. First, they were tapped by the owner of an independent living/assisted living community near Springfield, Massachusetts... Read More »
The “Post-COVID” Assisted Living M&A Market Takes Shape

The “Post-COVID” Assisted Living M&A Market Takes Shape

It is safe to say the senior care M&A market in 2020 is quite different from that of 2019, in terms of the number of acquisitions closed, the values for senior care properties and perhaps most importantly, the types of properties actually put up for sale. Value-add and distressed communities have so far dominated the market since the onset of COVID-19, as owners of newer, stabilized communities are largely sitting on the sidelines to wait for a seller’s market again. Who knows when that will happen?  Assisted living communities have been hit hard across the board, census-wise and with cash flow too. As a result, we have seen the sales of many struggling communities, which brought... Read More »
National Health Investors Provides Occupancy and Rent Update

National Health Investors Provides Occupancy and Rent Update

We appreciate any transparency from companies and how they are dealing with impact from COVID-19. As such, National Health Investors provided an update for its latest rent collection and occupancy results. The REIT collected 96.6% of contractual rent in September, which improved on the 95.3% success rate announced in August. In addition, 2.9% of rent was deferred, including 2.6% related to a previously disclosed deferral to Bickford Senior Living. The remaining balance reflected forecasted revenue that NHI had expected to receive from transitioned properties prior to the pandemic. Another tenant has also agreed to a deferral of approximately $560,000 in each in each the third and fourth... Read More »
Average Assisted Living Occupancy Falls To New Low

Average Assisted Living Occupancy Falls To New Low

The latest occupancy numbers from NIC are in and hit another low that the industry will be spending months and probably years to rebound from. Perhaps most notably, in the three months ending in August, the assisted living market fell below an average of 80% occupancy for the first time ever, to 79.5%. That is a 60-basis point drop from July’s trailing-three month level, which may have shocked us in the past, but after the nearly 170-basis point fall from June, it could be worse.   To be fair, that is just across the 31 Primary Markets that NIC tracks for its quarterly results, but with COVID-19 affecting most localities nationwide and its economic ramifications even more widespread, we... Read More »
What About the MOB M&A Market?

What About the MOB M&A Market?

With seniors housing and care transactions slowing to a crawl in light of the COVID-19 pandemic, let’s check in on another healthcare real estate sector that has not seen the same decline. Medical office building (MOB) transactions have been flowing steadily throughout the third quarter, with 11 deals on the books so far according to our M&A database Deal Search Online. Most deals are focused on facilities in the Southeastern region of the United States, such as Alabama, North and South Carolina, and Georgia, and the buyers are a mix of REITs, private real estate investment firms, and developers. So far in the third quarter, over 376,000 square feet of MOBs have been sold, with... Read More »
Senior Care M&A Market Remains at the Bottom

Senior Care M&A Market Remains at the Bottom

It appears we have hit the bottom of the seniors housing and care M&A market. For the second month in a row, we have recorded 18 publicly announced transactions in July, according to our database Deal Search Online. That is less than half of the monthly average in 2019 of 37.5 deals, and when taking into account the deals that actually closed in July (as opposed to publicly disclosed), activity was likely even lower. And from what we hear on the ground, conditions for dealmaking are not improving as quickly as was maybe thought back in May. And certainly not quick enough for the parties involved in closing the deals, we’re sure.  Just over half of the deals were for... Read More »
Average Independent Living Values Slide Significantly

Average Independent Living Values Slide Significantly

Some have argued that the independent living market will fare better than assisted living or skilled nursing in the immediate aftermath of COVID-19. This is easy to see, given independent living’s longer average length of stay, lower expenses and younger, healthier resident population. Long-term may be a different story, as we brought up in the June edition of The SeniorCare Investor.   But interestingly, in the trailing-12 months ended June 30th, the IL sector recorded the largest drop in values from 2019 compared with the other senior care sectors. The average price per unit fell 16.5% from $233,600 in 2019 to $194,900 in the last four quarters, according to The Senior Care Acquisition... Read More »