60 Seconds with Swett: U.S. Senior Care Deal Activity Surpasses 400 Deals
Across U.S. senior care M&A activity, we have surpassed 400 transactions in the first 11 months of the year, hitting 402. That is more than 15% down from the 476 transactions recorded in the first 11 months of 2022, but we are not sure many would have predicted the market even exceeding 400 deals. Of course, deals will continue to trickle in from the previous months, and December could yield its usual rush of closings, but we would be lucky to reach 450 deals on the year, far below 2022’s U.S. total of 517 deals. However, believe it or not, 2023’s estimated annual deal count of, let’s conservatively call it 440 deals publicly announced in the U.S., would be a very healthy number,... Read More »
Newmark Handles Half-Billion-Dollar Portfolio Sale
The seniors housing and care market has largely been missing out on large portfolio deals in 2023, because few sellers want to take a substantive portfolio to market when buyers are constrained by the capital markets on the prices they can afford to pay. However, the team at Newmark including Ryan Maconachy, Chad Lavender, Sarah Anderson, Mills Poynor, Ben McElroy and Brittany Robinson successfully sold a portfolio of 12 seniors housing communities for approximately $500 million, or $277,000 per unit. Located in seven states (Virginia, Massachusetts, Missouri, North Carolina, New Jersey, South Carolina and Texas), the portfolio consists of 1,809 total units, with independent living,... Read More »
SLIB Sells Two Seniors Housing Assets
Senior Living Investment Brokerage was brought on by two different sellers in the sale of two seniors housing assets. First, SLIB was enlisted by a group of local real estate owners looking to retire from the industry in their sale of a CBRF community in Footville, Wisconsin. The community was developed in 2009 and comprises 80 beds in 73 units. The buyer ended up being an experienced local operator that partnered with an out of state equity group. This is the ninth community added to the buyer’s growing Wisconsin portfolio. Jason Punzel, Ryan Saul, Brad Clousing and Jake Anderson handled the transaction. Next, SLIB was engaged by a multifamily owner/developer looking to focus on... Read More »
Bloom Acquires in Indiana
Blueprint was brought on to market two late 1990s-built assisted living communities in Indianapolis, Indiana. Three competing offers from regional owner/operators were received and the selected buyer was Bloom Senior Living. Bloom plans to reposition the assets as more affordable options in Indianapolis by utilizing the Indiana Assisted Living Waiver Program. Ryan Kelly, Connor Doherty, Amy Sitzman and Giancarlo Riso handled the transaction, which successfully closed upon receipt of licensure and change of ownership approval. Read More »
Berkadia Closes Four HUD Loans
Berkadia Seniors Housing & Healthcare recently announced the closing of four loans totaling $56.6 million in volume through HUD’s 232/223f program, all of which achieved the program’s maximum loan term of 35 years. First, Ed Williams closed a $14.5 million loan secured by a 139-bed skilled nursing facility in South Florida for a repeat Florida-based client. The loan refinanced a bridge loan that Williams placed in 2019 and a subsequent cash-out, borrow-up originated by the senior lender in August of 2022. Berkadia closed the HUD refinance 13-months from the borrow-up by qualifying the project under HUD’s reduced seasoning guidelines. The community appraised for $164,000 per bed and was... Read More »
Covenant Living Communities Expands in Illinois
Covenant Living Communities and Services enlisted Chicago-based construction company, Leopardo, and Atlanta-based architects, THW Design, for a $66.5 million expansion project at the assisted living community Covenant Living of Northbrook in Northbrook, Illinois. This expansion involves the construction of three new three-story carriage homes, resulting in the addition of 36 new one- and two-bedroom apartments. Each apartment will feature a spacious patio or balcony and a private garage. Additionally, the “Town Center” will undergo a substantial 9,000-square-foot expansion, enhancing both indoor and outdoor dining venues. The project is slated for completion in late 2025. Read More »
Meridian’s November Transaction Volume
Meridian Capital Group’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson, closed $176 million in transaction volume in November 2023. The team recently arranged $48.7 million in financing from a commercial bank along with a $5 million A/R line for the acquisition of two skilled nursing facilities with 300 beds in New Jersey. They also arranged $12.1 million from a commercial bank to refinance a 45-bed assisted living community in New Jersey, and $10.5 million in financing from a commercial bank along with a $500,000 A/R line to refinance an 85-bed skilled nursing facility in Kansas. On the investment sales side, Meridian recently sold four Connecticut... Read More »
Developers Secure LIHTC Equity for Indiana Project
Brown Capital Group, Leo Brown Group and Rogers Development Group are teaming up on a new seniors housing development in Indiana. The trio will open Reserve on Park Place, a 187-unit affordable senior apartment building in Fort Wayne, in April 2025. The three-story community will have 15 studio, 136 one-bedroom and 36 two-bedroom units for residents earning 40%, 60% and 80% of the area median income (AMI). To help finance the project, Merchants Capital provided $17.4 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the construction. Read More »
Construction Coming to a Close for NY Development
FilBen Group, an owner/developer, and its equity partner RSF Partners are nearing completion of their $54 million seniors housing development in Montebello, New York, in the Lower Hudson Valley. The four-story Braemar at Montebello will be complete in 2024 and feature 133 total units. Of those, there are 66 studio, 14 one-bedroom and 53 two-bedroom units (semi-private “friendship” units each with approximately 600 square feet) across 133,675 total square feet. There will also be shared public spaces on the main, second and third levels. The community is adjacent to the Montebello Commercial Center, which offers retail, entertainment, dining and medical services. Good Samaritan... Read More »
REIT Divests Washington State Seniors Housing Asset
Blueprint’s Behavioral Healthcare and Seniors Housing Team worked together to sell a seniors housing asset in Bremerton, Washington, on behalf of its nationally recognized healthcare REIT owner. The property was identified as an ideal candidate for either a behavioral healthcare provider, based on strong demand and reimbursement in the state, or a strategic regional seniors housing operator that could use economies of scale in the region to turn around operations. So, Blueprint deployed a dual marketing campaign receiving offers from both behavioral and seniors housing operators. However, a large regional seniors housing operator, with which Blueprint has worked previously, ultimately... Read More »Schedule a demo
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