AgeWell Solvere Living Acquires Sonata Senior Living
Two senior living operators based in Florida have affiliated, resulting in a portfolio of 34 communities in seven states, and an additional four communities that will open in the near-future. AgeWell Solvere Living acquired Sonata Senior Living, assuming ownership of the operating companies that manage Sonata’s 14 communities starting November 1. This development followed the merger of Solvere Living and AgeWell Living in January, which formed the new entity known as AgeWell Solvere. The newly-acquired communities will continue to operate under Sonata’s branding, and many of these communities currently operate below occupancy stabilization levels. AgeWell Solvere plans to integrate its own... Read More »
Plains Commercial Handles Anaheim Deal
Plains Commercial sold Family Choice Senior Living, a 30-bed residential care (assisted living) community in Anaheim, California. Daniel Morris of Plains was engaged by the private investor seller to do a direct transaction, as they were exiting the seniors housing space. The community had undergone an extensive renovation in the last few years, after which the seller executed a long-term lease with a local seniors housing operator. The buyer is a local investor with existing seniors housing investments that was looking to expand its portfolio as a landlord. The community sold at an attractive cap rate, which helped the parties to be able to navigate the current lending... Read More »
SLIB Hits 50 Deals for 2023
A regional owner/operator bought a 94-unit personal care community in Georgia. Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage handled the transaction, which saw offers from multiple local and regional buyers as part of the competitive process. The ultimate acquirer plans to make significant capital improvements to the community. The deal is SLIB’s 50th of the year, so far. The 50 deals included 70 properties in 26 states. Most of the deals that have closed (82%) have involved seniors housing communities, with the remainder featuring skilled nursing facilities, or majority-SNF deals. Anecdotally, we have heard that SNF deals have (generally) been easier to get... Read More »
Marcus & Millichap Sells in Minnesota
Two not-for-profit organizations traded a couple of seniors housing communities in New Ulm, Minnesota (about 90 miles southwest of Minneapolis), with Ray Giannini of Marcus & Millichap handling the transaction. The two properties, Ridgeway on German and Ridgeway on 23rd, feature 116 assisted living and memory care units, which were 75% occupied at closing. They were built between 1998 and 2004 and were well maintained. The seller, Housing Alternatives Development Corp., sold the communities to Vista Prairie Communities for $8.955 million, or $77,000 per unit. The deal brings Vista Prairie’s holdings to 10 assisted living and memory care communities in Minnesota, Iowa and Ohio that it... Read More »
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 »Schedule a demo
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