60 Seconds with Swett: Rising Treasuries and Senior Care M&A
Momentum in the M&A market has continued into 2025, and there is general optimism that the new Administration that descended on Washington this week will be good for the business environment. Although there is some uncertainty around what, if any, tariffs are enacted and whether their effect on prices would potentially be blunted by falling energy costs and efficiency efforts, assuming “drill baby drill” and “DOGE” have a near-immediate effect. And we don’t know about the scale of the deportations and its impact on wages. However, if M&A activity started to take off last year due to the expectation of lower interest rates, then what effect will the 10-Year Treasury rate shooting... Read More »
PruittHealth Secures Financing in Georgia
Jay Healy and Andrew Lanzaro of Berkadia closed a $9.1 million bridge-to-HUD loan on behalf of PruittHealth to facilitate the acquisition of a skilled nursing facility. The 18-month, interest-only bridge loan represented 76.5% of the value and is prepayable at any time, putting its value at around $11.9 million, or $180,000 per bed. Berkadia anticipates closing the subsequent HUD refinance in the third quarter of this year. Built in 1966 and renovated in 2019, Southern Pines Nursing Center comprises 66 beds in Warner Robins, Georgia, and occupancy at the time of closing was 90%. It will be rebranded as PruittHealth – Warner Robins. This acquisition was made in conjunction with... Read More »
MorningStar Welcomes New President/CIO
MorningStar Senior Living announced a new President and Chief Investment Officer, Jamie Ranzan. Ranzan brings 20 years of experience in real estate development, acquisitions and operations across multiple property types, including senior living. Ranzan began her career at Ernst & Young as an auditor in the real estate group of its Orange County office. From there she joined KBS Realty Advisors in Newport Beach where she was responsible for a $1.8 billion portfolio with assets across the U.S. Her next role was CFO/BP of Corporate Finance for MBK Senior Living, responsible for acquisitions, dispositions, accounting, finance, insurance, tax and compliance. Razan relocated to... Read More »
Seniors Housing Occupancy Hits New Post-Pandemic High
NIC released its latest seniors housing occupancy update for the 31 NIC Map Primary Markets, and fourth quarter 2024 census has hit another post-pandemic occupancy high. Overall seniors housing occupancy rose to 87.2%, up 70 basis points from 86.5% in the third quarter. Separated out by property type, majority-independent living properties were 88.6% occupied in Q4, and majority-assisted living properties were 85.7% occupied. While the Primary markets averaged 87.2%, the 99 Primary and Secondary markets combined averaged 87.7% and the remaining 41 markets to round out the 140 total markets that NIC tracks averaged 88.5%. Overall, occupancy was 87.8% for all 140 markets. The last time... Read More »
Alternative-Use Buyer Acquires Standalone Memory Care Community
Before the year ended, BWE closed on the sale of a standalone memory care community in Suwanee, Georgia. Built in 2013, Peachtree Villa at Suwanee comprises 42-units on three acres. At the time of the sale, the property was not in operation. The buyer will renovate the property for an alternative use. Charley Bissell handled the transaction, which was facilitated through a CREXI auction. This closing marks the seventh memory care community sold by Bissell over the past 24 months on behalf of a Midwest-based alternative investment firm. Previous transactions included properties in Flower Mound, San Antonio and Missouri City, Texas, as well as in Stockbridge and Alpharetta, Georgia,... Read More »
Samaritas Exits Senior Care Industry
Blueprint executed the final sale facilitating Samaritas’ exit from the senior care industry. Following 50 years of providing senior care services, the company has a renewed focus on child and family services, behavioral health, refugee services and affordable housing. Built in 1964 with an expansion completed in the 1970s, and a full renovation and rehab addition in 2012, Samaritas Senior Living Cadillac comprises 107 skilled nursing beds and 24 memory care beds in Cadillac, Michigan. The senior care facility features 31 private rooms and 50 semi-private rooms, and is less than one mile from the Munson Healthcare Cadillac Hospital. Historically, the facility generated stabilized... Read More »
Arcus Healthcare Acquires Nebraska Portfolio
Jacob Gehl and Dillon Rudy of Blueprint were engaged by an institutional private equity firm in its divestment of a portfolio comprising four seniors housing communities in Nebraska. Built in the late 1990s and the early 2000s, the properties were well-maintained with local reputations for excellent quality of care. They were performing well with high census at the time of closing. The communities drew attention from a mix of local Nebraska-based operators, Midwest-focused investors and national buyers. The ultimate buyer was Arcus Healthcare Partners, a real estate investment firm specializing in seniors housing and healthcare. Arcus will bring on Omega Senior Living as operator for all... Read More »
Texas-Based Operator Establishes Footprint in Oklahoma
Daniel Morris of Plains Commercial Real Estate kicked off his 2025 M&A activity by representing an institutional owner in its sale of an assisted living community in Edmond, Oklahoma. The seller was divesting because the community was an outlier in its portfolio, and it is focusing on core assets. The transaction closed approximately 10 weeks after signing the LOI. Built in 1996, Oxford Springs Assisted Living comprises around 25 units with 29 beds, with the smaller size of the community creating operational challenges. There was a competitive bidding environment, with the ultimate buyer being a Texas-based operator that focuses on AL communities ranging in size from 25 to 60... Read More »
Ohio Senior Care Communities Secure Financing
MONTICELLOAM’s Healthcare Bridge Lending team closed $73.2 million in total bridge and working capital financing for a portfolio of senior care communities across Ohio. The $64.7 million floating-rate senior bridge loan will be used by the pre-existing sponsor group, a repeat client of MONTICELLOAM, to recapitalize the existing debt on the portfolio, which comprises independent living, assisted living and skilled nursing properties. The $8.5 million working capital facility will be used to cover the day-to-day operational needs of over 700 beds across the portfolio. Read More »
Forbright Bank Reports Active 2024
Forbright Bank’s Healthcare and HUD lending teams closed 2024 with strong deal activity. Last year the Healthcare and HUD lending teams provided more than $400 million in financing to organizations in more than 12 states. In one recent transaction, Forbright provided a $40 million bridge loan for the acquisition of three seniors housing facilities in Oregon. Underwriting was done in conjunction with Forbright’s HUD team. In another recent transaction, the bank provided a $38 million term loan and $5 million revolver for the acquisition and renovation of two skilled nursing facilities in Massachusetts by an experienced regional operator with a strong presence in the state.... Read More »Schedule a demo
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