• Solera Grows through Acquisition of SageLife

    Solera Senior Living expanded its portfolio through the acquisition of SageLife. SageLife’s portfolio includes five high performing seniors housing communities in Maryland, Massachusetts and Pennsylvania. This acquisition brings Solera’s growing portfolio to 14 properties spanning nine states, including a growing concentration in the... Read More »
  • Joint Venture Acquires Class-A Seniors Housing Asset in Texas

    CBRE National Senior Housing acted as the exclusive advisor on the sale of a Class-A seniors housing community in the Houston, Texas MSA. Built in 2012, the community comprises 207 units offering independent living, assisted living and memory care services. CBRE National Senior Housing also arranged acquisition financing for the community on... Read More »
  • Owner/Operator Acquires in Illinois

    Evans Senior Investments arranged the sale of a supportive living community in the south suburbs of Chicago, Illinois. Waterford Estates totals 247 units with 170 independent living, 61 assisted living and 16 memory care units. The seller was a New York-based institutional owner seeking to recycle capital. Due to the scarcity of supportive living... Read More »
  • AEC Living Secures Financing

    Helios Healthcare Advisors structured the recapitalization of a 300-bed assisted living and skilled nursing portfolio in the San Francisco MSA. Facing a pending maturity with its existing lender, the borrower (AEC Living) engaged Helios to structure a refinance across two owned/operated assisted living communities and one skilled nursing property... Read More »
  • Massachusetts SNF Secures New Future in Behavioral Health

    Blueprint’s Behavioral Healthcare Team sold a vacant skilled nursing facility on behalf of a nationally recognized institutional REIT to a buyer that will convert the building into a behavioral health facility. The existing asset is in Agawam, Massachusetts, and was identified as a potential candidate for a behavioral healthcare provider due to... Read More »
Weighting the Seniors Housing Cap Rate By Units

Weighting the Seniors Housing Cap Rate By Units

The average seniors housing (independent living and assisted living, combined) cap rate resumed its downward trend that began after the Great Recession and strayed only one year (in 2016), hitting a new record low too, at 7.5%, according to the 23rd Edition of The Senior Care Acquisition Report. However, when weighted by units, the average seniors housing cap rate dropped even more significantly year over year, from 7.1% in 2015 (the previous record-low) to 6.6% in 2017, which was a full 90 basis points lower than the unweighted average for the year. What has changed year over year to merit such a drop? As always it comes down to the quality of properties sold during the year, with 2017... Read More »
Pricing “A” vs. “B” Seniors Housing Properties

Pricing “A” vs. “B” Seniors Housing Properties

On Thursday April 12, 2018, we hosted a webinar titled “Pricing “A” vs. “B” Seniors Housing Properties,” where moderator Steve Monroe and panelists Richard Swartz of Cushman & Wakefield, Wayne Kaplan of Premier Senior Living Group and Paul Froning of Focus Healthcare Partners spent 90 minutes detailing the ins and outs of investing in these two very different markets. The panel discussed current pricing of seniors housing properties (broken out between “A” and “B” properties), operating statistics (like occupancy, operating margin and NOI per unit) and cap rates. But they also covered who is buying “A” and “B” properties, and who is selling them, in addition to the risks and rewards of... Read More »
What to Pay for a Stabilized Assisted Living Community

What to Pay for a Stabilized Assisted Living Community

Buyers are increasingly prizing stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%) over non-stabilized communities when making acquisitions. The gap between the two property types continued to widen in 2017, growing from $87,200 per unit in 2016 ($147,700 per unit for non-stabilized properties and $234,900 per unit for stabilized properties) to $128,500 per unit in 2017 ($126,200 per unit for non-stabilized and $254,700 per unit for stabilized), according to the 23rd Edition of The Senior Care Acquisition Report. The widening gulf continues a consistent theme in 2017 of investors continuing to pay up for quality and existing... Read More »
Paying For Stabilized Versus Non-Stabilized SNFs

Paying For Stabilized Versus Non-Stabilized SNFs

Given the continual decline in census for the nation’s nursing facilities, it is no longer clear where “stabilized” is in today’s market, especially as lengths of stay have shortened. For your reference, we have traditionally defined stabilized occupancy for skilled nursing facilities as 85% and higher. With that said, nursing facilities with stabilized occupancy declined in value from an average of $114,700 per bed in 2016 to $93,700 per bed in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. This makes sense given the overall deterioration of the market in 2017. For non-stabilized nursing facilities, the reverse occurred. While it might... Read More »
How Old Is Too Old In Seniors Housing?

How Old Is Too Old In Seniors Housing?

For the first time in our Senior Care Acquisition Report (with the 23rd Edition just published), we decided to take a look at how investors priced in the risk purchasing a newer seniors housing community, versus an older one. As many of you know, the assisted living product did not develop in earnest until the 1990s, when at the end of the 20th century, the industry experienced a boom in development, mostly on the assisted living side. Since then, the tastes of seniors have changed, and what may have been a luxury “A” property in 2000 may not be one now. We have also more recently undergone a development boom, once again primarily in the assisted living/memory care sector. Many of these... Read More »
Pricing Age Into Seniors Housing Sales

Pricing Age Into Seniors Housing Sales

It shouldn’t come as a surprise that in 2017, the oldest seniors housing properties (independent living and assisted living properties built before 2002) were valued the lowest and the newest properties (built after 2011) were valued the highest, according to the just-published 2018 Senior Care Acquisition Report. We see a similar correlation most years, but it is important to note that not all ages take into account renovations (and they would have to be substantial renovations and/or gut rehabs to change the effective age of the building) or additions (often of memory care units). However, it is generally true that in order to better compete in today’s senior living market, investors... Read More »