60 Seconds with Swett: M&A and Financing Markets Breaking Loose
We have to say that there seems to be a good amount of optimism out there, despite an uncertain economy, an unsettling election cycle and constant pressure on operators to increase census and cash flow. Rates have a lot to do with it, as the 10-Year Treasury rate appears to have settled below 4% and expectations of one and more likely two rate cuts are increasingly becoming consensus. That is far from a sure thing, but we have heard that even one rate cut could be enough to bring a lot of buyers, sellers and lenders back into the fold, with the reasonable assurance that rates have started their descent. We also spoke with a couple of lenders who described a much healthier debt and equity... Read More »
Sonida Senior Living Delivers
As one of the last companies in our sector to report second quarter earnings results, the wait was worth it. Sonida Senior Living continues to deliver results that top its peers and puts them in an increasingly better position to grow. Where do we start? Perhaps the most impressive stat was the sequential increase in same-community NOI margin. The second quarter’s margin jumped by 360 basis points in one quarter, to 28.2%, and this was on just a 30-basis point increase in occupancy to 86.2%. It jumped by 440 basis points year over year. That occupancy level is above the national average, and way above what Brookdale Senior Living has reported, and above the SHOP census of both Welltower... Read More »
SLIB’s Summer of Sales Continues
It’s been a record-setting year, so far, for M&A activity, and 2024 could mark a record for Senior Living Investment Brokerage, as well. After a little more than half the year, the firm has so far closed 42 transactions, split between 28 seniors housing and 14 skilled nursing deals, comprising 62 total properties across 30 states. Sellers spanned the not-for-profit world, private owners seeking retirement, and institutional players right-sizing their portfolios, while buyers ranged from individual private owners to regional companies to institutional capital partnering with quality operators for growth. All told, those deals were worth more than $370 million. SLIB’s 2023 activity... Read More »
Regional Operator Acquires Struggling SNF in Michigan
Evans Senior Investments arranged the sale of a skilled nursing facility in Jackson, Michigan. The seller was an independent owner/operator looking to recycle capital and exit the industry. The ultimate selected buyer was a regional operator. Built in 1968, Countryside Care Center comprises 108 beds. The facility was facing challenges at the time of ESI’s marketing process, operating only 80 of its beds with an occupancy rate of 59%. Additionally, the facility held a two-star rating from CMS. ESI marketed this value-add opportunity by highlighting the opportunities to boost occupancy, enhance asset management synergies and capitalize on the facility’s favorable location near a strong... Read More »
Capital Funding Group Reports Strong H1
Capital Funding Group has financed over $440 million from January through June of this year. This financing includes 18 healthcare bridge loans, five multifamily bridge loans and eight HUD loans. Notable transactions included a $65 million bridge loan for the refinancing of a nine-property seniors housing portfolio in Ohio, a $43 million HUD financing package for three skilled nursing facilities in Washington and Idaho, and a $36.2 million bridge-to-HUD loan for the refinancing of five SNFs in North Carolina. Additionally, CFG secured a $23.6 million bridge-to-HUD loan for the refinancing of a SNF in Delaware, a $20 million bridge-to-HUD loan for the refinancing of SNF in Maryland,... Read More »
Creative Solutions Secures Financing
Oxford Finance announced the closing of a $47 million senior credit facility to Creative Solutions in Healthcare, Inc., a family-owned, Fort Worth, Texas-based company with more than 170 long-term care communities throughout Texas. Funds drawn at closing were used to finance the acquisition of two skilled nursing facilities in Texas, totaling 228 beds. Additionally, the credit facility includes a substantial delayed draw commitment, providing Creative Solutions with the flexibility to finance future acquisitions. Read More »
Brookdale Senior Living Disappoints Investors
In a quarter where most providers and REITs are delivering some very good numbers in their seniors housing portfolios, Brookdale Senior Living disappointed investors with a lackluster second quarter. Yes, metrics continue to be on an upswing, but not as up as they should be, and not as up as their peer group. Consolidated weighted average occupancy increased 160 basis points to 78.1% in the quarter, but increased just 20 basis points sequentially. Same-community operating margin increased by 160 basis points year over year, based on a revenue increase of 6.0% and a much smaller 3.6% increase in expenses. All good news. Second quarter adjusted EBITDA increased by 20.2% year over year, but... Read More »
Berkadia Refinances Class-A Community in Maryland
Berkadia’s Steve Muth and Austin Sacco arranged the refinance of a 135-unit seniors housing community in Kensington, Maryland. Modena Reserve at Kensington was opened in December 2021 in an affluent area with 62 independent living, 47 assisted living and 26 memory care units. The high-end, resort-style community also includes fine dining, a bistro and lounge, an art studio, full-service salon and spa, a theater, full-service bar, fitness centers, and an outdoor courtyard including walking paths, fire pits, and more. Solera Senior Living operates the community, which helped the community reach stabilized occupancy within two years of opening. The owners, including Solera, McCaffery and a... Read More »
Investment Management Firm Acquires LA Senior Living
JLL facilitated the sale of a seniors housing community in the Los Angeles suburb of Encino, California. The buyer was an independent investment management firm. Aaron Rosenzweig and Dan Baker represented the seller and procured the buyer in the transaction. Built in 1977, Encino Terrace comprises 73 assisted living units. A recent renovation updated the common areas and 29 of the units. It stands three-stories tall on half an acre and comprises 54,450 square feet. Community amenities include resident laundry, a living room, dining room, fitness center, interior courtyard and a 41-space underground parking garage. Occupancy was 65% at the time of sale. The price was not... Read More »
The Seniors Housing Team at C&W Grows
Cushman & Wakefield hired Matthew Yance as a Director for the firm’s Valuation & Advisory group as part of the senior living and care specialty practice. Based out of the firm’s New York office, Yance will focus on institutional valuations and market studies across the United States. Yance has nine years of experience focusing on the senior living sector. Previously, he was at Newmark where he co-led the seniors housing and healthcare team, overseeing a team of appraisers focused on the senior housing industry as well as business development, assignment management, delivery of appraisal and consulting services, and training of appraisal professionals. Earlier this year, the firm... Read More »Schedule a demo
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