An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care is a deep dive into the 2024 investment landscape in the seniors housing and skilled nursing sectors. Gain valuable insights, market analysis and strategic guidance to seize opportunities and navigate potential challenges in the long-term care market. The panelists included: Ben Swett, Managing Editor, The SeniorCare Investor (moderator) Bryan J. Lockard, MRICS, Executive Managing Director, U.S Healthcare & Alternative Real Estate Lead, JLL Value and Risk Advisory Jason Punzel, Managing Director, SLIB Chris Hollister, Co-Founder, CEO and Chair, Pegasus Senior Living Austin Sacco, Managing... Read More »
Coastal California Community Finds New Owner
Location, location, location. A seniors housing community sitting on the oceanfront in San Clemente, California, found a new owner with the help of Brad Goodsell and Jason Punzel of Senior Living Investment Brokerage. The 140-unit assisted living/memory care community was built in 2002 and comprises 131,765 square feet on 3.3 acres. Some improvements could be made to maximize the property’s scenic location and customer appeal. Occupancy was 82% at the time of the sale. Its owner chose to divest with the ultimate goal of exiting the seniors housing space. The seller’s family had developed it and managed the property through the sale. A joint venture between a private equity group... Read More »
CIBC Bank USA Closes Cash-Out Refinance
CIBC Bank USA provided a financing package for an improving skilled nursing facility in Kansas. The package included a cash-out refinance that comprised $9 million at closing and a $3 million earn-out based on sustained financial performance over subsequent periods. CIBC also closed a $1.5 million capital expenditure, non-revolving line of credit and a $500,000 working capital revolving line of credit. Historical performance trended positively over the last year as the facility improved census and operating leverage. The operator will also remain in place. Going forward, occupancy is expected to be in the mid-80% range, with continued improvement in operating margins. CIBC’s Daniel Forrer... Read More »
SLIB Sells Emerald City
Senior Living Investment Brokerage was brought on by an out-of-state private equity group with a third-party operator to divest an assisted living/memory care community in Seattle, Washington. Emerald City was built in 2006, renovated in 2017, and comprises 119 units with 51% occupancy. There is also a 11,102-square-foot parking garage included in the deal. Looking to improve that occupancy and the value of the community will be a regional owner/operator that is expanding its Washington State portfolio. The purchase price was not disclosed. Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson handled the transaction. Read More »
Class-A, Stabilized Sarasota Property Sells
A new and full seniors housing community sold in southwest Florida, garnering multiple offers and bidding rounds. Built in 2019, Grand Living at Lakewood Ranch is a Class-A community with 172 units of independent living, assisted living and memory care in Sarasota. Occupancy reached 99% with a substantial waiting list. As such, the community boasted a strong operating margin, sometimes a rarity in today’s M&A marketing. Ryan Companies US led the selling joint venture, which ultimately chose an institutional core fund as the buyer. Joshua Jandris, Tom Falkenberg and Nick Hall of Walker & Dunlop’s Chicago Seniors Housing team handled the transaction. Read More »
60 Seconds with Swett: An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
Most are predicting similar conditions in the senior care M&A market next year, as compared with 2023, and that could be largely true with sustained high interest rates, operational and financial distress still out there and lower values. But taking advantage of the more subtle shifts in valuations, the lending environment, seller and listing profiles, acquisition strategies, distress and operational improvements could prime some for success in what should still be a difficult year. The decisions made in 2024 could also set the stage for many companies to excel in 2025 when M&A activity, new developments and valuations likely come storming back. We’ll be looking to the future... Read More »
Health Dimensions Group Acquires Managed Property
After already operating an 80-unit assisted living/memory care community in Appleton, Wisconsin, Health Dimensions Group emerged as its eventual buyer when its national investor/owner decided to divest the non-core asset. Built in the late-1990s, the community had been purchased as part of a larger, geographically diverse portfolio before the pandemic, with a “value-add thesis” that included operator transitions to create regional groupings and significant renovation and repositioning projects. The pandemic and ensuing high capital costs made that thesis untenable, prompting a re-prioritization and de-levering of the portfolio. This older Appleton asset was also a strong performer,... Read More »
New Tenant Secured for Large Midwest Portfolio
Evans Senior Investments secured a new tenant for a large portfolio of senior care assets in Illinois and Missouri. The portfolio consists of 13 skilled nursing and supportive living facilities, with more than 1,600 licensed beds. Its independent owner/operator was not ready to sell the assets and saw the advantages of leasing the portfolio to a third-party operator, with an added purchase option. A regional Midwest group secured the 10-year lease and purchase option, emerging from multiple other offers. They will have the opportunity to improve operations and add value. For the landlord, they can avoid capital gains taxes, secure passive income and alleviate in-place operating losses... Read More »
JLL Arranges Harrison Street/Artemis Recap
JLL Capital Markets arranged the successful recapitalization of Franklin Park Alamo Heights, a high-end seniors housing community in San Antonio, Texas, owned by Harrison Street and Franklin Park Senior Living. Artemis Real Estate Partners, the buyer, has retained Franklin Park as manager in a new joint venture. JLL also placed the acquisition financing with a Freddie Mac loan for the buyer. Franklin Park Alamo Heights was built in 2017 with 117 independent living, 64 assisted living and 40 memory care units. There are two four-story buildings housing the IL and AL units, respectively, plus a single-story memory care wing. The amenities include a grand ballroom, indoor pool, beauty salon,... Read More »
SLIB Handles Colorado Memory Care Deal
An experienced local owner/operator in the Colorado market looking to grow its portfolio in Denver acquired a small memory care community in Aurora. Renew Saddle Rock was built in 2015 with 40 respite care and memory care units. Occupancy was around 85% based on 52 functional beds (there are 64 licensed beds), and the community operated at a 12% margin on nearly $3.5 million of revenues. The new ownership group saw an opportunity to use its efficiencies and local knowledge to cut expenses and improve occupancy. An out-of-state private equity group was the previous owner and is now exiting the senior living space. They had hired Renew Senior Communities as the third-party manager.... Read More »Schedule a demo
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