• Regional Owner/Operator Purchases Seniors Housing Portfolio

    A portfolio of three Class-B seniors housing communities in tertiary markets in Northern California found a new owner. The communities all featured assisted living, memory care and independent living services, with 205 total units and 242 licensed beds. They were originally developed in 2001 and 2002, and occupancy stood at 71%, 89% and 84%,... Read More »
  • Minnesota Community Secures HUD Refinance

    Sam Butler of the Fort Worth office of Colliers Mortgage closed a $24 million HUD loan for the refinance of The Pillars of Mankato in Mankato, Minnesota. Built in 2019, the community features 118 units across 146,138 square feet on 3.9 acres. There are 98 independent and assisted living units plus 20 memory care units.  According to LevinPro LTC,... Read More »
  • Solinity’s New Development

    Solinity has partnered with the Scott County Economic Development Authority to develop a 100-acre multigenerational, mixed-use community in Scott County, Virginia, called Riverside. The development will feature a range of housing options, including age-restricted housing, such as active adult, independent living, assisted living and memory care... Read More »
  • EF Senior Care Expands its Footprint

    EF Senior Care, an owner/operator based in Plymouth, Massachusetts, grew its long-term care portfolio this month, having acquired the operations of a senior care campus in Lawrence, Massachusetts. Built in 1895, Berkeley Retirement Home comprises 44 skilled nursing and independent living beds. Berkeley Retirement Home represents EF Senior Care’s... Read More »
  • 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 »
What Are the Memory Care Investors Saying?

What Are the Memory Care Investors Saying?

On March 9th, we hosted a webinar entitled “Building or Buying Memory Care,” with moderator Steve Monroe and panelists Clint Malin of LTC Properties, Mark Myers of Marcus & Millichap, Michael Stoller of LCB Senior Living and Matthew Turner of MorningStar Senior Living. The panelists covered a range of topics (you can listen to the discussion here) including the risks of overbuilding, effectiveness of memory care conversions and fill-up risk, among others. But our audience also chimed in, answering three poll questions throughout the webinar. First, when asked if they would build stand-alone MC, assisted living with MC or stand-alone AL, 60% preferred the mix, 32% would build... Read More »
Memory Care: Buy or Build?

Memory Care: Buy or Build?

Investors in seniors housing have been flocking to the memory care market, as the sector has experienced unprecedented growth since the Great Recession. They are attracted to its need-based demand, higher rents, private payors and apparent dearth in supply in a number of markets (though given the amount of construction in the last few years that is becoming less and less true). But those investors that are interested in getting into or expanding their holdings in this market are faced with a question: do they build memory care, or buy? That is the topic of our upcoming webinar this Thursday at 1PM aptly named, “Buying or Building Memory Care.” Our moderator Steve Monroe and panelists Clint... Read More »
The Senior Care Investors Have Spoken

The Senior Care Investors Have Spoken

Last week, we hosted a 90-minute webinar called “Seniors Housing M&A: The Numbers, the Deals and the 2017 Forecast” with panelists Arnold Whitman of Formation Capital, Bill Mulligan of Ziegler and Alan Plush of HealthTrust, and Steve Monroe moderating. The panel discussed our 2016 M&A statistics for the skilled nursing, assisted living and independent living M&A markets (to be published in the 22nd Edition of The Senior Care Acquisition Report this March), which saw new record-high prices for SNFs and ALFs. But those high prices contradict a growing sense of caution among investors, and lead us to wonder if we have passed the peak. Our listeners to the webinar certainly thought... Read More »
Seniors Housing Cap Rates On The Rise

Seniors Housing Cap Rates On The Rise

For the first time since the Great Recession, average seniors housing cap rates increased year-over-year from 7.6% in 2015 to 8.2% in 2016. While that only approaches the high of the previous bull market (8.3% in 2007) it is a sharp break from this current bull market. But if there are a number of other signs that the market is still strong in 2016, why did average cap rates go up 60 basis points? First, as unprecedented high prices forced a number of buyers out of the market for high-quality “A” properties, investors pounced on more value-add opportunities to get their returns. Those riskier deals obviously featured higher cap rates. Second, the cost of borrowing went up in 2016,... Read More »
Skilled Nursing Cap Rates Stable after Record Rise in Price

Skilled Nursing Cap Rates Stable after Record Rise in Price

We are less than a week away from our webinar “Seniors Housing M&A: the Numbers, the Deals and the 2017 Forecast,” where we discuss the results of our soon-to-be-released Senior Care Acquisition Report. Prices have risen to new heights in skilled nursing, nearly surpassing $100,000 per bed at $99,200 per bed. But what happened to skilled nursing cap rates, which most buyers prize far more as a valuation tool than price per bed? In the last couple of years, it has remained remarkably stable at 12.2% (identical to its 2015 level), with just a 20 basis point variance over the past three years. Although not reaching the record-low from the last bull market (12.1% in 2007), skilled nursing... Read More »
Values in the Seniors Housing and Care M&A Market Jump

Values in the Seniors Housing and Care M&A Market Jump

For the four quarters ended September 30, average prices in the independent living market have increased, as have assisted living prices and skilled nursing prices. The seniors housing and care M&A market has seen less activity this year than in recent years, but that doesn’t mean buyers are not paying up for the assets they want. The best example is in the independent living market, where the average price paid in the four quarters ended September 30 was $234,000 per unit, or 21% higher than in calendar year 2015. The average cap rate remained steady at 7.0%. Assisted living prices have risen as well, jumping a smaller 5% for the past four quarters compared with 2015 to an average... Read More »