Joint Venture Divests to Private Owner/Operator
Blueprint was engaged by a joint venture between two national investors in the divestment of its seniors housing community in Pickerington, Ohio, that was acquired as part of a larger transaction. The buyer, which intends to reposition the asset as affordable seniors housing, was a well-capitalized private owner/operator seeking to expand and increase operational leverage in the Midwest. Built in 2009, the community comprises 86 assisted living and memory care units in a growing, but supply-constrained, suburb of Columbus. The community’s occupancy challenges post-COVID, in combination with its outlier geography and care mix, made it a non-core component of the broader transaction... Read More »
60 Seconds with Steve Monroe: The Election And Senior Care
So, the 2024 election results are in, and many people were surprised, many shocked, some cried and some cheered, and many who did not vote wished they had. But wherever you are on the political spectrum, if you invest in seniors housing and care, the outlook for you may be better with the election outcome. I say that because Mr. Trump is more pro-business and pro-real estate than Ms. Harris, and the Biden/Harris administration was set to make some changes in staffing and PE investing which our sector was not too happy about. The proposed nursing home staffing mandate will most likely go out the window, and pressure on private equity investing in seniors housing may be put on the backburner... Read More »
Minnesota AL/MC Community Changes Hands
An assisted living/memory care community in rural southern Minnesota found a new owner with the help of Ray Giannini of Marcus & Millichap. Built in 2017, Bridgwater at Janesville features 24 units. It featured a 90% waiver census and was fully occupied at the time of closing, generating strong cash flow, as well. The undisclosed buyer paid $4.2 million, or $175,000 per unit, for the asset. Read More »
Texas SNF Secures Financing
Berkadia arranged financing for a 104-bed skilled nursing facility in Eagles Pass, Texas. A Fort Worth, Texas-based owner/operator had successfully operated the property since 2019 and financed its purchase of the leased fee interest of the property with the loan. Berkadia’s Jay Healy closed a $13 million bridge-to-HUD loan with an 18-month, interest-only term that covered 100% of the purchase price. It is anticipated that Berkadia will close the subsequent HUD refinance in the first half of 2025. Read More »
SNF Operator Makes First Purchase in MA
An institutional owner decided to divest its skilled nursing facility in East Boston, Massachusetts, in order to recycle capital and shift its investment focus. Evans Senior Investments marketed the facility to a group of regional and national buyers before an experienced regional operator stepped in to make its first purchase of a facility, for an undisclosed price. Evans helped the new owner by facilitating a regional capital partner for the deal. Built more than 50 years ago, the facility featured 165 beds, including a number of three-bed wards. It was 83% occupied but held a two-star CMS rating with an abuse icon from CMS. Other operational challenges included high agency staffing... Read More »
Regional Owner/Operator Acquires in Arizona
Blueprint facilitated the sale of a seniors housing community in Phoenix, Arizona. Amy Sitzman, Giancarlo Riso, Jacob Gehl and Dillon Rudy handled the transaction, which closed 112 days from LOI signing. Developed in phases between 2015 and 2017, the community encompasses nine residential homes arranged in a neighborhood setting in Litchfield Park. There are 89 total assisted living/memory care units. The community accepts private pay and ALTC (Arizona Medicaid) residents and was approaching stabilized occupancy at the time of marketing. It is projected to experience favorable year-over-year rate growth given the lack of new or planned competing developments within the local market.... Read More »
Ziegler Arranges Bond Financing
A CCRC in Southern Pines, North Carolina, near the world-famous Pinehurst Golf Course, is embarking on an independent living expansion project with the help of bond financing arranged by Ziegler. Currently comprising 150 IL units, 42 assisted living units and 32 skilled nursing beds, Penick Village will add 44 IL units (with underbuilding parking), a new 5,000 square-foot wellness center and renovations to the healthcare center. Since beginning pre-sales in June 2024, the expansion has successfully pre-sold 39 of the 44 (88.6%) new units with a 10% deposit. Two tranches of bonds will finance the project, totaling $73.295 million. The Series A long-term bonds totaled $54.87 million and came... Read More »
Four SNFs Receive Refinancing
MONTICELLOAM closed $87.0 million in total bridge and working capital financing for a portfolio of four skilled nursing facilities totaling 450 beds in Florida. The $80 million bridge loan carries a two-year term, with two six-month extensions, and will be used to refinance the existing debt on the four assets. The $7.0 million working capital revolver will be used to manage day-to-day operational expenses across the portfolio. Proceeds from the $80,000,000 bridge loan were used to refinance the existing debt on four skilled nursing facilities. The loan carries a 24-month term with two six-month extensions for the borrower. Read More »
Brookdale Q3 Results Disappoint
Historically, and we are going back more than 12 years, the third quarter has been the best quarter of the year for occupancy increases, and usually cash flow increases based on those census jumps. This was certainly the case for Welltower and Ventas this year, the two largest owners of seniors housing communities. Unfortunately, Brookdale Senior Living, which continues to underperform the market and lags these two REITs, leaves investors disappointed and wondering what is wrong. And dare we say disillusioned with management’s forecasts, which have not panned out at all this year. Don’t get us wrong. Occupancy has increased, but not in the way investors expected, and “little” things like... Read More »
SHOP at National Health Investors Outperforms
At National Health Investors, it seems to be all about SHOP, SHOP, SHOP. Although it is a small portfolio at just 15 properties, it is becoming mighty. September’s occupancy was 89.1%, compared with 81.2% a year ago, representing a 790-basis point increase. From July 2023, the increase was 1190 basis points. It is now the highest occupancy portfolio of the major property groups for NHI. The sequential increase from August was 60 basis points. The SHOP NOI increased 30.4% year over year and represents the highest quarterly result since the portfolio’s formation in April 2022. As we have written previously, SHOP portfolios are performing well, and REITs are expanding them. All is not... Read More »Schedule a demo
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