Blueprint Sells Two Midwest Assisted Living Communities
Blueprint was brought on by a repeat institutional client to facilitate the sale of two seniors housing communities. One of the communities is located in Iowa and the other in Kansas, both of which were designed and constructed for assisted living in the mid- to late-90s. Amy Sitzman, Giancarlo Riso and Kory Buzin of Blueprint handled this transaction. These communities were presented as part of two large portfolios that collectively included 23 seniors housing communities spanning the Southeast, Midwest and Mid-Atlantic regions. Multiple competitive offers were received, with a regional owner/operator emerging as the buyer. This was not the first transaction Blueprint has executed... Read More »
An Active Adult Deal in the Southeast
The active adult M&A market has slowed considerably in 2023, as interest rates rose above the typical cap rates for the asset class, but Berkadia just closed a sale for a community in Charlotte, North Carolina. Cody Tremper, Mike Garbers, David Fasano and Ross Sanders led the transaction on behalf of the seller, Evergreen Residential. The deal closed on October 2. The property opened in fall 2020 and leased up quickly. It helps that the property is located in one of Charlotte’s exclusive master-planned communities near an array of shopping and entertainment opportunities. Community outdoor amenities include a resort-style pool with sun deck, dual manicured courtyards, outdoor grilling... Read More »
Blueprint’s Recent Activity
We have said it before: the senior care M&A market has been an enigma. The difficult capital markets environment combined with operational distress in the industry has reduced buyer demand, increased lender scrutiny of deals and lowered values to a level that discourages potential sellers from entering the market. Headaches involving sourcing debt, soaring insurance costs and skittish (some would say fickle) buyers/lenders have made each transaction that much more difficult to complete. Despite all of this, M&A activity is, at first glance, still at historically high levels. In the third quarter of 2023, 115 deals were publicly announced. That is down from the 140 transactions made... Read More »
Trustwell Living Doubles In Size
After launching in early 2021, Trustwell Living has added an additional 24 communities with 1,126 units to its growing portfolio. These 24 properties are located in eight states and bring Trustwell’s total portfolio to 45 communities with more than 2,300 units in 14 states. For now. This will be a lot of work for the company, since it just transitioned 16 communities with 762 units in three states (Florida, Illinois and Ohio) last June. Prior to that, Trustwell had just five communities under management. Good thing they had the corporate infrastructure in place. In the current agreement, they started transitioning 12 communities at the end of June, six more in September and the final six... Read More »
SLIB Handles PE Group Seniors Housing Divestment
Senior Living Investment Brokerage was brought on by a private equity group to facilitate the sale of two seniors housing communities in Utah. Vince Viverito and Jason Punzel of SLIB handled this transaction. The seller is divesting to focus on its core assets. The joint venture buyers, a Utah-based private equity group partnering with a Utah-based operator that is expanding its existing presence in the state, intend to invest in capex and marketing to renovate the communities and enhance their performance. Both built in 2001, these two communities collectively comprise 140 assisted living and memory care units with a total of 144 beds. One community spans 35,334 square feet across 1.56... Read More »
60 Seconds with Monroe: Finding A Solution For LTC Funding
My friend Stephen Moses, president of the Center for Long-Term Care Reform, has been a consistent and persistent advocate for reforming the Medicaid system and getting Americans out of the Medicaid-dependency mindset. He just published, with the Paragon Health Institute, the follow-on to his paper “Long-Term Care: The Problem.” Available now is “Long-Term Care: The Solution.” While I was hoping for something completely new and creative, I can’t disagree with his recommendations, which include 1) stop the ability to purchase Medicaid-exempt assets, 2) eliminate the home equity exemption, 3) ban Medicaid Asset Protection Trusts, 4) disallow Medicaid compliant annuities, and 5) increase the... Read More »
Brookdale Occupancy Continues to Grow
As we have mentioned time and again, the seniors housing industry needs Brookdale Senior Living to succeed. While census continues to increase, the pace needs to increase as well before we head into the flu season this winter, which usually sees a drop in census. Many providers were spared this seasonal decline in census last year, as the industry’s recovery was stronger than the flu season. But Brookdale lost 90 basis points of census in the first quarter this year. September’s weighted average occupancy increased 60 basis points from August, to 78.2%. Month-end occupancy in September increased by 40 basis points from August, to 79.7%, inching closer to that psychological 80% level. But... Read More »
Breathing Room Gets Bigger for Sonida Senior Living
Three months ago, Sonida Senior Living announced a comprehensive loan forbearance agreement with Fannie Mae covering 37 mortgaged communities. Part two occurred last week, which was the signing of loan modifications for these loans. It appears that the terms from three months ago remained in place. All maturities under the 37 loans have been extended to December 2026 or later. Principal payments have been deferred for three years or waived until maturity, resulting in $33 million in deferred payments. A near-term interest rate reduction for all 37 loans will result in $6.1 million in cash interest rate savings from June 2023 to May 2024. As part of the agreement, Sonida paid down $5... Read More »
NY Assisted Living Community Refinances Construction Debt
Live Oak Bank closed a $29 million loan in September for Waltham, Massachusetts-based Benchmark Senior Living to refinance a 101-unit assisted living/memory care community in Smithtown, New York. With 130 licensed beds and 88,500 square feet, the three-story community is called Whisper Woods of Smithtown. Its development cost was estimated at $25 million, or $248,000 per unit. The financing replaced the original construction debt for the community, which was built by Benchmark and was stabilized at the time of closing. Read More »
VIUM Capital’s Q3:23 Transaction Haul
VIUM Capital did not let the difficult capital markets stop them from closing a healthy amount of financing volume in the third quarter. The firm closed nine separate transactions totaling $175 million, consisting of acquisition loans, recapitalizations and refinancings for senior care properties across seven states. VIUM also received 14 HUD 232/223f commitments during the quarter, which positions it well for a strong HUD FY 2024. Starting with the acquisition loans, the team financed the purchase of two skilled nursing facilities with 243 beds in Louisiana from two different sellers. A balance sheet loan covers $13.926 million of initial funding for the acquisition and a $4.5 million... Read More »Schedule a demo
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