• Community First Solutions Acquires Again in Ohio

    Ziegler was engaged by Marquee Capital, the real estate company affiliated with Marcus Investments, LLC, the Marcus’ family office, in the sale of its seniors housing community in Mason, Ohio. Built in 2020, BrightStar Senior Living of Mason sits on 3.2 acres with 41 assisted living and memory care units. The community was well occupied at 90%,... Read More »
  • Joint Venture Acquires Nashville Active Adult Community

    An active adult community in Germantown, Tennessee, found a new owner thanks to the team at Newmark. Built in 2020, Avenida Watermarq is a 161-unit, Class-A active adult community in an affluent suburb of Nashville. There are one- and two-bedroom options averaging 919 square feet per unit. Occupancy was 87%. Inspired Real Estate Partners and GEM... Read More »
  • Institutional Owner Divests Ohio Facility

    Evans Senior Investments arranged the sale of a skilled nursing facility in Ohio on behalf of an institutional owner looking to exit the market. The facility comprises 88 beds and 20 independent living units, which served as a referral source for the nursing home. The buyer was a regional owner/operator that is actively expanding in Ohio. This is... Read More »
  • Strawberry Fields Completes Missouri SNF Portfolio Acquisition

    Strawberry Fields REIT, Inc. announced that it completed the acquisition of nine skilled nursing facilities comprising 686 beds in Missouri for $59 million, or $86,000 per bed. The REIT completed the acquisition using cash on hand and the issuance of approximately $2.0 million in OP Units of Strawberry Fields REIT LP to the seller. Eight of the... Read More »
  • Macquarie Asset Management Launches Health Wave Partners

    Macquarie Asset Management, which has over 35 years of experience in the real estate sector and a current network of 15 specialist operator investments globally, announced the launch of Health Wave Partners, a seniors housing platform aimed at targeting investments in modern seniors housing assets alongside established operators. The platform... Read More »
Quarterly Results Are In

Quarterly Results Are In

If you go by the number of transaction announced from April 1, 2017 to June 30, 2017, the second quarter may seem a bit slow, especially when compared to the recent quarterly highs of 90 deals in the second quarter of last year and of 93 deals in the fourth quarter of 2016. Keep in mind, these are preliminary numbers, as we hear of more transactions as the year goes on. M&A activity stayed virtually even in the second quarter, down 1% over the previous quarter, to 75 transactions. The quarter’s deal volume makes up 24% of the 315 deals announced within the past 12 months. Nothing too drastic there. However, based on revealed prices, approximately $9.7 billion was committed to finance... Read More »
SNF, AL and IL Values All Remain High

SNF, AL and IL Values All Remain High

For the four quarters ended June 30, 2017, skilled nursing, assisted living and independent living properties remained at or near their all-time high values, while cap rates decreased across the board. A quarter does not make a trend, but across the seniors housing and care spectrum, values have remained stubbornly high. Stubbornly? Skilled nursing values peaked in 2016, while seniors housing peaked in 2014 with a matching peak in 2016. People, including myself, thought that values would slowing decline, especially if interest rates spiked up. Well, neither event has occurred. For the 12 months ended June 30, 2017, skilled nursing average prices posted a small decline to $97,900 per bed... Read More »
What Do The Experts (and the Audience) Say On The Labor Crisis?

What Do The Experts (and the Audience) Say On The Labor Crisis?

On Thursday, July 13, we hosted a webinar entitled, “The Coming Labor Market Shock to Senior Care,” with panelists Glenn Barclay of Quality Senior Living, John Gonzales of SDG Senior Living and Lori Porter of the National Association of Health Care Assistants. For 90 minutes, the panel discussed how the industry will deal with a labor shortage, improving retention rates, improving onboarding and training practices, an increased minimum wage to $15 per hour in the coming years, technology’s impact on labor demands and how middle market operators will be able to deal with these changes. If you’d like to hear a recording of the webinar, click here. Needless the say, the industry has a lot of... Read More »

Seniors Housing Occupancy Weakens

NIC announced their second quarter occupancy and development trends, and unfortunately it was not pretty. After a first quarter which suffered from the ubiquitous flu season census declines, we had expected, at worst, a small sequential decline in the second quarter, but perhaps a small 10 to 20 basis point uptick, maybe even better. For majority assisted living in the top 31 MSAs, for those properties open for two years (stabilized properties) average occupancy dropped 50 basis points from the first quarter to 88.9%, but down 80 basis points from the year-ago quarter. Historically, the average second quarter sequential decline is 10 basis points, and the current 50 basis point drop was... Read More »

Paying Up For Square Footage In Skilled Nursing

The size of a skilled nursing facility can have important ramifications for the services they provide, especially as many facilities are engaging in higher acuity services and more frail patients. Four-bed wards and even triples became a thing of the past (mostly) more than 10 to 15 years ago. You need a lot more room to provide quality therapy programs, and with increasing demand for private rooms, or at a minimum large semi-private rooms, small facilities on a square foot per bed basis have become less desirable in the market, both for buyers as well as consumers. Most nursing facilities built today have at least 400 square feet per bed, and often much more. But in the past, many had 250... Read More »

The Price of Age in Seniors Housing

Largely, the relationship between the age of a seniors housing property (including assisted and independent living) and the average price per unit is a near-perfect correlation, as the newest communities tend to sell at higher prices than the older ones. That was not the case in 2016, which saw its oldest properties jump in price and its newer ones fall, compared with 2015. Communities built earlier than 2001 (the tail-end of the assisted living building boom) sold for $179,900 per unit, up from $153,800 per unit in 2015, according to The Senior Care Acquisition Report. The anomaly of the year occurred in the group of properties built between 11 and 15 years ago, which sold on average for... Read More »