Massive Menorah Park Selling in Cleveland
A massive, not-for-profit senior care campus in Beachwood, Ohio (Cleveland MSA), is set to sell to a New Jersey-based group before the end of the year. Menorah Park, which was founded in 1906 and moved to its current location in 1968, had been struggling operationally in the wake of the pandemic, higher staffing costs, changes in government funding and the competitive environment. That prompted the board to review its strategic options and a potential sale, and Connor Doherty, Ryan Kelly, Michael Segal and Ben Firestone of Blueprint were brought in to run the process. The 355-bed Menorah Park Nursing Home was built in stages between 1968 and 2015, which was followed by a 193-unit... Read More »
Walker & Dunlop Handles Three Deals
A large seniors housing community in Schererville, Indiana (Chicagoland), saw seven bidders on the asset before a joint venture paying all cash emerged as the buyer. Walker & Dunlop Investment Sales ran a competitive process, with multiple bidding rounds, on behalf of the sellers: Harrison Street, Ryan Companies and Life Care Services (LCS). Ryan Companies and LCS developed the community in 2015 at a cost of $40 million, or $226,000 per unit. It features 177 units and 180 beds of independent living, assisted living and memory care. The stabilized asset’s occupancy was above 90% and had a strong profit margin. The buyer was a joint venture between an undisclosed capital source and... Read More »
BWE Secures Three RAD for PRAC Loans
BWE secured $15.25 million in permanent loans to finance two affordable seniors housing communities and one affordable multifamily community. Jon Killough and Tony Love of BWE originated the loans for Sweetwater Point, La Vista de Lopez and AHEPA 310. Killough and Love used HUD’s RAD for PRAC initiative, a new tool designed to preserve existing Section 202 housing as well as create new Section 8 housing across the country. Traditionally, Section 202 PRAC rental assistance could only be used for operating expenses, not debt servicing. The RAD for PRAC process allows borrowers to convert PRAC subsidies to project-based Section 8 contracts, which boosts the rental subsidy to a level... Read More »
60 Seconds with Monroe: Are We Getting Too Big Again?
One of the consequences of the pandemic, one of many, is that the differentiation between the best operators and the not so good has been increasingly exposed. And of course, investors will seek out the best to manage their properties. But as this happens, the operators who are doing a good or even great job today will start to be spread too thin. Managing 20 communities is a lot different than 50, 100 or more. You can have the procedures and policies in place for 100 properties, but you do start to lose that personal touch, especially if the CEO is very hands on. With REITs and other investors doubling down on either their best operators, or finding others that they perceive to be top... Read More »
Are Cap Rates Set To Rise in 2024?
In a recent survey conducted by Cushman & Wakefield, 68% of respondents anticipate a sustained increase in capitalization rates over the next year, expressing concern over debt market liquidity, which is the primary worry for 51% of participants. The majority of respondents, 49%, are pursuing core-plus investment strategies, while 34% focus on opportunistic or distressed investments, expecting around $18 billion in sector-specific loan maturities within the next 24 months. Notably, 33% of participants are targeting need-driven segments, particularly assisted living. There’s a notable compression in basis point spreads between the going-in capitalization rate and terminal capitalization... Read More »
Sonida Senior Living Still Making Progress
As Col. Hannibal Smith of the A-Team was fond of saying, “I love it when a plan comes together.” For Sonida Senior Living, it has been a long struggle, and while it may be taking longer than management wanted, the plan is slowly coming together. Everything is moving in the right direction, with occupancy up 150 basis points year over year to 84.9% in the third quarter, higher than industry averages, resident revenue increased 12.6% year over year, adjusted EBITDA more than doubled in the third quarter compared with the year-ago quarter, and RevPOR increased by 11.7% year over year. October’s census increased by 40 basis points from September to over 86%. The third quarter also saw... Read More »
Massachusetts SNF Changes Hands and Purpose
Blueprint facilitated the sale of a skilled nursing facility in the Boston, Massachusetts area. The facility was constructed in 1960 and was well maintained. It comprises 53 beds across over 18,000 square feet. Kyle Hallion and Michael Segal of Blueprint handled this transaction, which closed within 60 days of the marketing launch. The ultimate buyer was a family owner/operator that intends to repurpose the property to multifamily. Read More »
Chartwell Retirement Residences Sees Census Soar
Canada-based Chartwell Retirement Residences has been seeing a resurgence of occupancy growth that seems to be above and beyond the normal third quarter increases that we have come to expect. The third quarter saw census increase by 210 basis points from the June average of 80.1%, but it grew by another 100 basis points in October to 83.2%. They expect to add another 100 basis points over the next two months. Not too shabby. If they keep it up, they may reach the 95% occupancy levels of Ventas’s Canadian operators. Leasing activity in 2023 to date is 18% higher than the company’s pre-pandemic levels. Occupancy is now 600 basis points above its recent low of 77.2% in April 2022. With... Read More »
Financing Secured for a Not-For-Profit Affordable Seniors Housing Community
Rockabill, a leading development partner and consultant to not-for-profit owners of affordable, support, and transitional housing, and the national commercial and multifamily mortgage banking company BWE, announced a refinancing of an affordable seniors housing community in Yonkers, New York. Monastery Manor comprises 147 one-bedroom units that are reserved for persons 62 years and older who earn no more than 50% of area median income. Residents contribute no more than 30% of their adjusted annual income toward rent. Financing for the project included a $16.9 million Fannie Mae loan and an extension of the property’s existing PILOT agreement with the Yonkers Industrial Development... Read More »
Is This The Time To Start A REIT?
As we know, healthcare REITs suffered during the pandemic, with share prices hitting lows in March 2020. It was a long battle to regain previous values and even longer to sort out the various tenant problems. Balance sheets have been cleaned up, tenants and properties have been replaced, but there are still many legacy problems. Is now a good time to start a REIT with a clean slate? Well, 1031 Crowdfunding thinks so. It has just launched Covenant Senior Housing REIT, which out of the gate has three assisted living/memory care properties with a value of $51.25 million. The communities are located in Oregon and California with an average 89.0% occupancy. They plan to buy cash-flowing... Read More »Schedule a demo
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