• 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 »

The Price of Empty Units in Assisted Living

When comparing stabilized and non-stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%), there is a clear difference in the price per unit, according to the 2017 Senior Care Acquisition Report. The gap between stabilized and non-stabilized properties grew year over year from $61,500 per unit in 2015 ($139,100 per unit for non-stabilized and $200,600 per unit for stabilized) to $87,200 in 2016 ($147,700 per unit for non-stabilized and $234,900 per unit for stabilized). That does not surpass the disparity recorded in 2014, however, when stabilized properties sold for $230,300 per unit compared with just $139,000 per unit for... Read More »

Paying Up for “A” Quality in Independent Living

Last week, we examined what buyers paid for “A” quality assisted living properties versus “B” quality, according to the 22nd Edition of The Senior Care Acquisition Report. But what about independent living, which has not received the same attention that assisted living has in recent years and has not seen as much new construction (which are often categorized as “A” properties). Nevertheless, hitting new heights this year was the average price paid for “A” quality independent living communities. Those properties, which we determine on several factors including age, size and location, sold for an average of $285,800 per unit, or about $8,000 per unit higher than in 2015. “B” properties, on... Read More »

What to Pay For an “A” Quality Assisted Living Community

It is becoming increasingly apparent that there are two separate markets for assisted living properties between those we consider “A” properties and those that are “B” properties. We first separated out these two markets in 2012 (and did so again in our just-published 2017 Senior Care Acquisition Report) based on the properties’ age, size and location, and while there will likely be some “A” communities in with the “B” communities (and the other way around), it all evens out. The difference was stark in 2016, with “A” properties averaging $265,700 per unit, compared with $94,200 per unit for “B” properties. That difference of $171,500 per unit easily beats out 2015’s $110,100 per unit gap... Read More »

Occupancy’s Impact on Skilled Nursing Facility Prices

The skilled nursing industry has experienced consistent declines in average occupancy over the past few years, sinking to a new low of 81.8% in the fourth quarter of 2016, according to NIC’s latest Skilled Nursing Data Report. It should be said that the actual level of occupancy has become less important for skilled nursing facilities because the focus has been centered on short-term-stay patients. Almost by definition, because of the high level of turnover with these patients, and the inability to consistently and constantly fill those beds on discharge, overall occupancy tends to suffer. But since these patients are more profitable than longer stay patients, providers have not worried as... Read More »
The Highs and Lows of Seniors Housing Prices

The Highs and Lows of Seniors Housing Prices

Last week, we examined the difference in price between the low and high ends of the skilled nursing M&A market. As opposed to just using the average or median, breaking down the market by quartile allows us to separate the higher end of the market from the lower end, since many sellers think the average has no meaning to their particular properties that may be newer, in better locations or just more profitable (and often all three). So, what about the seniors housing (independent and assisted living combined) market? Like the overall average seniors housing price in 2016, the upper quartile price in 2016 of $241,500 per unit rose from its 2015 level ($227,900 per unit) and was just off... 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 »