Some Providers Still Stuck In Pandemic Swamp
Diversified Healthcare Trust reported on the December performance of its seniors housing operators, and let’s just say it seems that little progress has been made. In the seniors housing operating portfolio (SHOP) operated by Aleris/Five Star, with 117 communities and 16,951 units, in 2023 census increased by only 240 basis points to 80.4% in December. But that is not the major problem. The average monthly rate has held fairly stable, ending the year at $4,429 compared with $4,278 in January last year. The problem has been expenses, which increased by 11% over the year, jumping by 5% from November to December alone. That resulted in a plunge in NOI in December to $4.0 million,... Read More »
Stabilized Seniors Housing Sale in Midwest
An independent owner sold their only senior care asset in a deal arranged by Evans Senior Investments. Country Meadow Place is a 56-unit assisted living/memory care community located in Mason City, Iowa. It was originally built in 1985 as a 36-unit memory care community before it was acquired in 2013 and expanded five years later with 20 additional assisted living units. At the time of marketing, the community was 100% occupied (which has been maintained for the previous 13 months) with a 95% private pay census. NOI also exceeded $1.4 million, or $25,000 per unit. Evans targeted a select group of potential buyers before the existing operator emerged as the winning bidder for $13 million,... Read More »
JV Seller Divests to JV Buyer
A joint venture seller engaged CBRE in the divestment of its affordable seniors housing community in Santa Cruz, California. The buyer was also a joint venture, between Jonathan Rose Cos. and First Community Housing. Built in 1981, Mission Gardens Apartments comprises seven buildings with 50 units reserved for households that earn up to 50% and 60% of AMI. All units are under a project-based Section 8 contract that was extended by Jonathan Rose for another 20 years. The buyer also intends to conduct renovations. Walker & Dunlop provided financing through HUD. Other entities involved in the transaction include the City of Santa Cruz, HUD, CalHFA and the California Tax Credit... Read More »
300 Seconds with Steve Monroe: Here We Go Again
Whenever there are headlines about anything in senior care, we can always count on Senate hearings, with a lot of unfounded accusations and unrealistic recommendations. This usually leads to a new commission being formed, the results of which are delivered a year later in 300 pages that no one reads, except perhaps Richard Mollot of the Long Term Care Community Coalition. But that is his job. It is doubtful Liz Warren will read it. Let me start with Richard Mollot, who apparently claimed at the January 25th Senate hearing that there is a crisis in assisted living, and compared assisted living today with nursing homes in the 1970s and 1980s. Really? Did he ever go into a nursing home back... Read More »
Investment Group Acquires Site for CCRC Development
California Commercial Investment Group acquired a 19-acre site in Woodland Hills, California, approximately 30 miles west of Los Angeles. Motion Picture & Television Fund was the seller, and the purchase price was reportedly $30 million. The buyer intends to develop a luxury senior living CCRC comprising 300 units. Construction is set to begin in 2026 with completion expected by 2028. Such a high barrier-to-entry market should not see very elevated levels of new development by then, when capital costs are theoretically lower to support many more construction projects than in today’s market. Many other markets may not be so lucky four years from now, given what we saw with... Read More »
Owner/Operator Expands SNF Footprint in Ohio
A regional owner/operator looking to shift its focus to other alternative classes brought on Blueprint in its divestment of a 118-bed skilled nursing facility in Dayton, Ohio. Opened in 1973, the facility recently faced challenges including survey issues resulting in financial disruption. There was a competitive marketing environment with multiple offers. The emerging buyer was an owner/operator with an existing footprint in Ohio, and this was their second acquisition in the Dayton MSA. Closing was achieved shortly after obtaining HUD approval. Connor Doherty and Ryan Kelly handled the transaction. Read More »
Sherman & Roylance Facilitates Florida AL/MC Deal
Sherman & Roylance were brought on by CareTrust REIT in its divestment of a seniors housing asset in northwestern Florida. Built in 1997, the assisted living/memory care community comprises 64 beds in 42 units and had an occupancy rate of 87%. The buyer was a local owner/operator looking to expand their regional footprint. Jack Osteen, Shep Roylance and John Sherman handled the transaction. Read More »
SLIB Closes Minnesota Deal
Wanting to fund continued investments in the seniors housing space, the owner of a 118-unit seniors housing community in Mankato, Minnesota, sold the property to a private equity group, for an undisclosed price. Jason Punzel, Jake Anderson, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage handled the transaction. Built in 2019, The Pillars of Mankato consists of 98 independent living/assisted living units and 20 memory care units, approximately 75 miles southwest of Minneapolis. The IL/AL units were all interchangeable. Occupancy was close to full, and the community was stabilized, but no financial details were disclosed. The out-of-state private equity group... Read More »
Two Separate Sellers Divest Seniors Housing Assets in Michigan
Meiser Commercial Real Estate recently closed two separate seniors housing transactions. First, in a transaction that closed before year-end, an owner/operator engaged Meiser in its divestment of an assisted living community in Clinton County, Michigan. Built in the 1980s and remodeled since then, Serene Gardens of DeWitt comprises 58 beds, and occupancy was 98% at closing. The purchase price was $4.0 million, or around $69,000 per bed. The buyer financed 70% of the acquisition cost through a local bank. Next, DeShano Companies Inc. brought on Meiser in its divestment of two assisted living communities in Michigan: Close to Home Saginaw in Saginaw and Bay City in Bay City. DeShano, a... Read More »
Arrow Adds Three Missouri Seniors Housing Communities
Arrow Senior Living added three seniors housing communities to its portfolio in Missouri that comprise 252 independent living, assisted living and memory care units. The Burlington Creek Senior Living, formerly known as Anthology of Burlington Creek, first opened in 2016 and features 85 units. Opened in 2017 and 2018, respectively, The Plaza at Wildwood consists of 91 units and The Town & Country comprises 86 units. Arrow, with its joint venture partner O’Reilly Development, also announced the opening of The Boulevard Senior Living of St. Peters. The community includes 93 IL, 44 AL and 18 MC units. No other details were disclosed. Read More »Schedule a demo
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