Class-A, Stabilized Sarasota Property Sells
A new and full seniors housing community sold in southwest Florida, garnering multiple offers and bidding rounds. Built in 2019, Grand Living at Lakewood Ranch is a Class-A community with 172 units of independent living, assisted living and memory care in Sarasota. Occupancy reached 99% with a substantial waiting list. As such, the community boasted a strong operating margin, sometimes a rarity in today’s M&A marketing. Ryan Companies US led the selling joint venture, which ultimately chose an institutional core fund as the buyer. Joshua Jandris, Tom Falkenberg and Nick Hall of Walker & Dunlop’s Chicago Seniors Housing team handled the transaction. Read More »
60 Seconds with Swett: An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
Most are predicting similar conditions in the senior care M&A market next year, as compared with 2023, and that could be largely true with sustained high interest rates, operational and financial distress still out there and lower values. But taking advantage of the more subtle shifts in valuations, the lending environment, seller and listing profiles, acquisition strategies, distress and operational improvements could prime some for success in what should still be a difficult year. The decisions made in 2024 could also set the stage for many companies to excel in 2025 when M&A activity, new developments and valuations likely come storming back. We’ll be looking to the future... Read More »
Health Dimensions Group Acquires Managed Property
After already operating an 80-unit assisted living/memory care community in Appleton, Wisconsin, Health Dimensions Group emerged as its eventual buyer when its national investor/owner decided to divest the non-core asset. Built in the late-1990s, the community had been purchased as part of a larger, geographically diverse portfolio before the pandemic, with a “value-add thesis” that included operator transitions to create regional groupings and significant renovation and repositioning projects. The pandemic and ensuing high capital costs made that thesis untenable, prompting a re-prioritization and de-levering of the portfolio. This older Appleton asset was also a strong performer,... Read More »
New Tenant Secured for Large Midwest Portfolio
Evans Senior Investments secured a new tenant for a large portfolio of senior care assets in Illinois and Missouri. The portfolio consists of 13 skilled nursing and supportive living facilities, with more than 1,600 licensed beds. Its independent owner/operator was not ready to sell the assets and saw the advantages of leasing the portfolio to a third-party operator, with an added purchase option. A regional Midwest group secured the 10-year lease and purchase option, emerging from multiple other offers. They will have the opportunity to improve operations and add value. For the landlord, they can avoid capital gains taxes, secure passive income and alleviate in-place operating losses... Read More »
JLL Arranges Harrison Street/Artemis Recap
JLL Capital Markets arranged the successful recapitalization of Franklin Park Alamo Heights, a high-end seniors housing community in San Antonio, Texas, owned by Harrison Street and Franklin Park Senior Living. Artemis Real Estate Partners, the buyer, has retained Franklin Park as manager in a new joint venture. JLL also placed the acquisition financing with a Freddie Mac loan for the buyer. Franklin Park Alamo Heights was built in 2017 with 117 independent living, 64 assisted living and 40 memory care units. There are two four-story buildings housing the IL and AL units, respectively, plus a single-story memory care wing. The amenities include a grand ballroom, indoor pool, beauty salon,... Read More »
SLIB Handles Colorado Memory Care Deal
An experienced local owner/operator in the Colorado market looking to grow its portfolio in Denver acquired a small memory care community in Aurora. Renew Saddle Rock was built in 2015 with 40 respite care and memory care units. Occupancy was around 85% based on 52 functional beds (there are 64 licensed beds), and the community operated at a 12% margin on nearly $3.5 million of revenues. The new ownership group saw an opportunity to use its efficiencies and local knowledge to cut expenses and improve occupancy. An out-of-state private equity group was the previous owner and is now exiting the senior living space. They had hired Renew Senior Communities as the third-party manager.... Read More »
Ziegler Helps Finance Wisconsin Acquisition
Fresh off his sale of a stabilized seniors housing community in Fort Wayne, Indiana, Ziegler’s Nick Glaisner was joined by Dalton Esmond to arrange acquisition financing for a 72-unit assisted living/memory care community located in Footville, Wisconsin. St. Elizabeth Manor was built in 2009 on 7.07 acres. Occupancy was around 82%. The seller was a group of local real estate owners seeking to retire from the industry. They were represented by Jason Punzel, Ryan Saul and Brad Clousing of Senior Living Investment Brokerage. Ziegler helped Opal Senior Living source acquisition financing from a small, regional, Chicago-based bank. Opal partnered with a Florida-based equity group on the... Read More »
Marquee Capital Sells Community to Not-for-Profit
A not-for-profit organization emerged as the highest (and winning) bidder for a stabilized, high-quality assisted living community in Fort Wayne, Indiana, beating out several for-profit buyers in the process. We have not seen many deals with a not-for-profit buyer, but perhaps those that can build scale should do so to avoid the fate of so many not-for-profits that have exited in the last couple of years. Lutheran Life Villages, a local, faith-based organization that has served northeast Indiana for more than 90 years and operates five seniors housing communities across Fort Wayne and Kendallville, paid roughly $270,000 per unit for the property. Brightstar Senior Living Fort Wayne was... Read More »
Regional Operator Takes Over Struggling Senior Care Campus
Eads Investment Brokerage represented a regional not-for-profit in the sale of its skilled nursing and independent living campus in Southern Illinois. The primarily SNF campus consists of 167 beds and units (156 SNF beds and 11 IL units). Despite occupancy falling under 70%, revenues exceeded $10.5 million and were trending positively. The campus was operating near breakeven prior to the pandemic, and ownership recently began to mitigate their losses, which stood at more than $1 million per year. So, a sale would help stabilize its portfolio and add some needed liquidity to further the mission in other communities. While the campus also offered assisted living, that standalone (and well... Read More »
PE Group Acquires CT Seniors Housing Community
Toby Siefert and Dave Balow of Senior Living Investment Brokerage headed to Torrington, Connecticut, to sell a 68-unit assisted living/memory care community owned by one of the largest New England-based operators. With the sale, the owner was able to realize its investment horizon on the asset. The Cottage at Litchfield Hills was built in 1998 and features 39 assisted living and 29 memory care units. It maintained high occupancy levels and above market rents, helped by key demographic growth in the Torrington market. A growing Northeast-based private equity group seeking to grow its footprint into the Connecticut market paid an undisclosed sum for the community. Read More »Schedule a demo
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