Not-For-Profit Divests Non-Core Asset
Blueprint advised a not-for-profit seller in the divestment of a southern Pennsylvania memory care community. Despite profitable operations, the Washington, D.C. metro area-based seller sought to exit ownership of the community given its non-core location relative to the balance of its portfolio. The sub-30-unit memory care community, located along the Mason-Dixon line between Pennsylvania and Maryland, was originally built in 1990 and sits on a 20-acre parcel. A western Maryland-based group was identified as the buyer, which brought a knowledge of the resident base and proximity to the facility that made it a “natural” fit for its second location. Steve Thomes, Kory Buzin and Colin... Read More »
12 Oaks Acquires in Texas
12 Oaks Senior Living acquired a seniors housing community in Irving, Texas. This is 12 Oak’s first owned property in many years in its managed portfolio. Acquisitions are not part of the company’s current business strategy, however, this was a unique opportunity that was a “natural fit.” The company has been operating this community since 2018, and the seller was Longview Senior Housing, a Blackstone Real Estate portfolio company focused on senior housing. West Fork Village features 201 independent living units. Dick Blaylock, the CEO of 12 Oaks, noted that his father, Charles Blaylock, built the community in 1984. The intent is to own the asset long-term. Read More »
Illinois Seniors Housing Community Secures Refinancing
BMO’s Healthcare Real Estate Finance group acted as sole lender on a term loan that refinanced a trophy seniors housing asset owned by a joint venture between Dial Senior Living and Harrison Street. The Landings was built in 2021 by the joint venture in Batavia, Illinois (Chicago MSA). It features 62 independent living, 56 assisted living and 24 memory care units, and was over 98% occupied at the time of closing. In order to take out the original three-year (with a one-year extension option) construction loan, BMO provided the new loan. The non-recourse loan has a three-year term and a full term of interest only. Newmark arranged the debt. Read More »
60 Seconds with Swett: Cap Rates Coming Down?
Cap rate data has been difficult to measure in the last couple of years, due to a fast-changing capital costs environment, a relatively fast-changing operating environment and, frankly, a relative absence of true “cap rate deals” where the buyer was valuing the trailing set of financials, without any funny business. Now, we are seeing more “cap rate deals” and look forward to providing our industry averages, broken out by property type, quality, age and performance in our next Senior Care Acquisition Report. Anecdotally, what we are hearing is that cap rates are compressing slightly, but in the grand scheme of things, are staying relatively high relative to the record (and some may say... Read More »
Brookdale Senior Living Occupancy Sends Mixed Signals
Perhaps when Brookdale Senior Living can better focus on a smaller number of properties when its lease for 120 communities with Ventas ends at the end of next year, they will be able to push occupancy on the remaining portfolio. The company’s size will shrink by nearly 20% if the full lease termination goes through as disclosed last week, and we have to imagine that the Ventas properties require a lot of management time. Meanwhile, the company reported November’s occupancy, and while there was some good news, census levels still disappointed us at this point in the recovery from the pandemic. Investors, however, differed from our assessment, sending the share price up by 7.5% before ending... Read More »
CareTrust Acquires Large Midwest Portfolio
CareTrust REIT, Inc. acquired a 46-facility, 3,820-bed/unit senior care portfolio in the Midwest for a total investment amount of approximately $97 million (inclusive of transaction costs), or $25,000 per bed/unit. Seven of the 46 facilities are skilled nursing and assisted living campuses and an additional seven are assisted living communities. The transaction also commences a new relationship with a skilled nursing investor and operator. In connection with the acquisition, the company entered into a triple-net master lease with a large skilled nursing investor and operator that will sublease the portfolio to several licensed subtenant operators. The new master lease has an initial... Read More »
Phorcys Divests to Healthcare REIT in Georgia
Phorcys Capital Partners, an asset manager focused on distressed debt and equity investments in assets that were financed by municipal bonds, recently divested a seniors housing community in Greensboro, Georgia, after a little more than one year of ownership. Built in 2017, The Glen at Lake Oconee Village comprises 28 independent living, 68 assisted living and 18 memory care units. It was operated by SRI Management, and the community was sold to a leading healthcare REIT in November. Phorcys purchased this asset in August 2023 for $26.45 million, or $232,000 per unit. The community was performing better than when initially acquired, running close to fully occupied at the time of... Read More »
Public REIT Buys Two Indiana Assets
A publicly traded REIT bought two high-quality seniors housing communities in Indiana markets. Berkadia’s Dave Fasano, Ross Sanders, Cody Tremper and Mike Garbers closed the transaction on behalf of the seller, a private equity firm. Traditions Management operates both communities and will continue to manage the properties moving forward. Built in 2014 by Leo Brown Group, Traditions at Reagan Park is located in Avon, Indiana, with 125 independent living, assisted living and memory care units, including 30 independent living villas built in 2016 and 2019. Also built in 2014, Traditions at Solana is located in Indianapolis, Indiana, with 117 IL, AL and MC units, including 24 IL villas added... Read More »
Ziegler Handles CCRC Sale to Nonprofit
Not-for-profit organizations have generally been net-sellers in recent years, struggling with expenses in a post-pandemic and post-inflation environment, but one organization is adding a new CCRC to its portfolio. Saint Therese is a Minneapolis, Minnesota-based, Catholic not-for-profit that has over 50 years of experience and five other communities in Minnesota (4) and Michigan. Its latest addition was St. Mary of the Woods, a 179-bed/unit CCRC in Avon, Ohio. The campus was originally acquired out of bankruptcy in 2012 from Atrium Centers, a 100% employee-owned provider of senior care services with over 2,000 beds in Ohio, Michigan, Kentucky and Wisconsin. Atrium completed several... Read More »
BMO Provides ReNew REIT Financing
BMO’s Healthcare Real Estate Finance group closed on a $57.8 million credit facility to a joint venture between ReNew REIT and Heritage Senior Living for the recapitalization of existing debt on Keystone Villa at Douglassville, a Class-A seniors housing community in Douglassville, Pennsylvania. BWE’s Ryan Stoll and Taylor Mokris secured the loan featuring a non-recourse structure prepayment flexibility, a competitive rate and full term of interest-only payments. The transaction represents a new lending relationship for the borrower. Originally built in 2011 as a 125-unit assisted living/memory care community before a 123-unit independent living building was added in 2015, the... Read More »Schedule a demo
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