Chartwell Retirement Residences Sees Census Soar
Canada-based Chartwell Retirement Residences has been seeing a resurgence of occupancy growth that seems to be above and beyond the normal third quarter increases that we have come to expect. The third quarter saw census increase by 210 basis points from the June average of 80.1%, but it grew by another 100 basis points in October to 83.2%. They expect to add another 100 basis points over the next two months. Not too shabby. If they keep it up, they may reach the 95% occupancy levels of Ventas’s Canadian operators. Leasing activity in 2023 to date is 18% higher than the company’s pre-pandemic levels. Occupancy is now 600 basis points above its recent low of 77.2% in April 2022. With... Read More »
Financing Secured for a Not-For-Profit Affordable Seniors Housing Community
Rockabill, a leading development partner and consultant to not-for-profit owners of affordable, support, and transitional housing, and the national commercial and multifamily mortgage banking company BWE, announced a refinancing of an affordable seniors housing community in Yonkers, New York. Monastery Manor comprises 147 one-bedroom units that are reserved for persons 62 years and older who earn no more than 50% of area median income. Residents contribute no more than 30% of their adjusted annual income toward rent. Financing for the project included a $16.9 million Fannie Mae loan and an extension of the property’s existing PILOT agreement with the Yonkers Industrial Development... Read More »
Is This The Time To Start A REIT?
As we know, healthcare REITs suffered during the pandemic, with share prices hitting lows in March 2020. It was a long battle to regain previous values and even longer to sort out the various tenant problems. Balance sheets have been cleaned up, tenants and properties have been replaced, but there are still many legacy problems. Is now a good time to start a REIT with a clean slate? Well, 1031 Crowdfunding thinks so. It has just launched Covenant Senior Housing REIT, which out of the gate has three assisted living/memory care properties with a value of $51.25 million. The communities are located in Oregon and California with an average 89.0% occupancy. They plan to buy cash-flowing... Read More »
Welltower And Chartwell Retirement Residences Swap Out Properties
Welltower and Chartwell Retirement Residences have agreed to wind-down their existing joint venture covering 39 communities in Canada. The joint venture, with equal ownership in the properties, began in 2012 with the interests of both parties strongly aligned. As part of the agreement, Chartwell will transfer its interest in 23 assets to Welltower while Welltower will transfer its interest in 16 properties plus C$97.2 million in cash. One additional community will continue to be co-owned by Chartwell and Welltower. The entire 40-community portfolio has 8,476 units, so these are relatively large communities with an average of 212 units each. When the transaction closes in the second... Read More »
CareTrust REIT Steadies For The Future
While it may not have been CareTrust REIT’s best quarter, there do not seem to be many problems with its tenants. The REIT collected 97.5% of contractual rent, up from 96.7% in the previous quarter. It helps when The Ensign Group is your major tenant. Lease coverage ratios are important when most of your business is triple net leases. For CareTrust, it is the envy of the industry. For the 12 months ended June 30, 2023 (REITs and their leases are always three months behind in reporting), CareTrust’s top 10 tenants had a combined EBITDARM coverage ratio of 2.87x, up from 2.71x for the previous 12-month period. And this excludes any use of HHS Relief Funds. Within this group, Ensign was tops... Read More »
Sabra: The Manager Really Does Matter
There were a lot of moving parts during 2023 at Sabra Health Care REIT with regard to its former Enlivant portfolio, owned in a joint venture with private equity firm TPG. After defaulting on its Fannie Mae debt and basically handing the keys over to Fannie for a majority of its Enlivant assets, Sabra still owned 11 Enlivant-managed communities outside of its TPG joint venture. These properties were transitioned to Inspirit Senior Living on July 6. In just three months, census in the portfolio increased by more than 230 basis points. We can’t wait to see where it will be this time next year. This has been a common theme of sorts: a new manager is brought in for underperforming... Read More »
NHI’s Tenants Continue To Improve
As we are coming to the end of the third quarter earnings season, we apologize for sounding a bit like a broken record, but the fact of the matter is that the industry continues to claw its way out of the COVID pandemic pit. While it is taking longer than anyone wants, and longer than most people had expected, census and cash flow are increasing. The lack of new developments certainly has not hurt. Take National Health Investors as an example. Would CEO Eric Mendelsohn like to see more progress with his tenants? Sure, but the third quarter saw some of their providers post great increases in occupancy. Bickford’s same community results for 38 communities saw a 240-basis point increase in... Read More »
CFG Arranges Refinancing for an Arizona SNF
Capital Funding Group announced the closing of a $10.9 million HUD loan on behalf of a nationally recognized borrower. The loan supported the refinancing of an existing bridge loan, executed by CFG, into a HUD loan. The refinancing was secured by a 112-bed skilled nursing facility in Arizona. Tommy Dillon of CFG originated the transaction. This financing follows the company’s recent announcement of $22.4 million in bridge-to-HUD financing for the acquisition of three skilled nursing facilities in Georgia secured by 338 beds. Read More »
NY Active Adult Community Changes Hands
CBRE Capital Markets announced the sale and financing of an active adult community in Deer Park, New York. Jeff Dunne and Eric Apfel of the New York Metro Institutional Sales team, along with Aron Will, John Sweeny and Scott Bray of the CBRE Senior Housing team, handled this transaction. CBRE represented the seller, a joint venture between B2K Development, a Long Island-based real estate development group, and Harrison Street, one of the leading investment management firms that has a focus on alternative real assets. The team also procured the buyer, Fairfield Knolls at Deer Park Owner LLC, a real estate investment group based in Melville, NY. There was significant interest in the... Read More »
Publicly Traded REIT Divests in Florida
Blueprint was brought on by a publicly traded REIT to facilitate the sale of an assisted living community in Lakeland, Florida. At the time of marketing, the community’s performance was trending back upward following a decline in 2020 and 2021. It was built in 2001 and occupancy was around 85%. Blueprint marketed the deal as an opportunity for an incoming investor with regional expertise to capitalize on economies of scale and expand upon a Florida footprint. The ultimate buyer was a local owner/operator actively acquiring in Florida. Brooks Blackmon and Lauren Nagle handled this transaction, which closed within three months of executing the letter of intent, in all cash. Read More »Schedule a demo
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