Marquee Capital Sells Community to Not-for-Profit
A not-for-profit organization emerged as the highest (and winning) bidder for a stabilized, high-quality assisted living community in Fort Wayne, Indiana, beating out several for-profit buyers in the process. We have not seen many deals with a not-for-profit buyer, but perhaps those that can build scale should do so to avoid the fate of so many not-for-profits that have exited in the last couple of years. Lutheran Life Villages, a local, faith-based organization that has served northeast Indiana for more than 90 years and operates five seniors housing communities across Fort Wayne and Kendallville, paid roughly $270,000 per unit for the property. Brightstar Senior Living Fort Wayne was... Read More »
Regional Operator Takes Over Struggling Senior Care Campus
Eads Investment Brokerage represented a regional not-for-profit in the sale of its skilled nursing and independent living campus in Southern Illinois. The primarily SNF campus consists of 167 beds and units (156 SNF beds and 11 IL units). Despite occupancy falling under 70%, revenues exceeded $10.5 million and were trending positively. The campus was operating near breakeven prior to the pandemic, and ownership recently began to mitigate their losses, which stood at more than $1 million per year. So, a sale would help stabilize its portfolio and add some needed liquidity to further the mission in other communities. While the campus also offered assisted living, that standalone (and well... Read More »
PE Group Acquires CT Seniors Housing Community
Toby Siefert and Dave Balow of Senior Living Investment Brokerage headed to Torrington, Connecticut, to sell a 68-unit assisted living/memory care community owned by one of the largest New England-based operators. With the sale, the owner was able to realize its investment horizon on the asset. The Cottage at Litchfield Hills was built in 1998 and features 39 assisted living and 29 memory care units. It maintained high occupancy levels and above market rents, helped by key demographic growth in the Torrington market. A growing Northeast-based private equity group seeking to grow its footprint into the Connecticut market paid an undisclosed sum for the community. Read More »
JLL Finances Active Adult Development
The United Group of Companies is building a new active adult community in Worcester, Massachusetts, thanks to bank financing arranged by JLL Capital Markets. The Arbella at Bramble Hill will include 123 units across three elevator-serviced buildings, with one- and two-bedroom units and an 8,500-square-foot clubhouse. UW Senior, LLC, an affiliate of United Group of Companies, borrowed $35 million in construction financing from Washington Trust. The property is owned by Premier Property Group LLC of Dracut, which bought it in 2018 for $820,000. Read More »
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 »Schedule a demo
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