Blueprint Finds a Behavioral Health Buyer for Texas Transaction
Sometimes in seniors housing, the better buyer comes from behavioral health. That was the case in Blueprint Healthcare Real Estate Advisors’ sale of an assisted living/memory care community near Dallas, Texas. Featuring 65 units, the community was originally developed in 1996 but received substantial renovations in 2020. It consisted of large units, amenity spaces and outdoor areas. However, intense market competition and surrounding labor pressures negatively impacted the community. Although occupancy was decent, RevPOR was still low (albeit improving) and the community (while profitable) was not covering its debt payments. So, Blueprint implemented a tiered marketing campaign... Read More »
Meridian Capital Group Reports Latest Activity
Meridian Capital Group’s Senior Housing and Healthcare Team closed $310 million in transaction volume in May for a combination of 17 facilities in six states. These transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson. The team’s recent closings include a $169 million acquisition loan from a commercial bank and mezzanine lender for seven skilled nursing facilities comprising 1,112 beds in Maryland and New Jersey; a $34.2 million acquisition loan from a commercial bank for three skilled nursing facilities in Illinois totaling 515 beds; and a $31 million acquisition loan from a commercial bank along with a $3.5 million A/R... Read More »
Diversified Healthcare Trust – Not So Fast
It has been nearly two months since Diversified Healthcare Trust announced its merger with Office Properties Income Trust, two REITs basically controlled by external manager RMR Group. This was about the most self-serving transaction we have seen in a long time. But at least one DHC shareholder is not going to stand by. Flat Footed LLC, which with its affiliates owns about 7.4% of DHC’s shares, wants shareholders to vote against the deal, believing DHC should be (will be) worth between $9 and $10 per share if they let their SHOP portfolio continue to improve. The shares closed May 31 at $1.36 per share. That is a huge valuation differential, and it all seems to rest on DHC’s management’s... Read More »
PE Firm Buys Senior Living Community in Oregon
Jason Punzel, Vince Viverito, Brad Goodsell and Jake Anderson of Senior Living Investment Brokerage handled the sale of an assisted living/memory care community in Portland, Oregon. They represented the local owner/operator who was seeking to retire from the industry. Built in 1961 and renovated in 2021, the community features 72 units of assisted living and memory care. Occupancy was around 67%, and the community operated at a 12% margin on approximately $2.725 million of revenues. A new owner with some scale may be able to improve operations pretty quickly. A Salt Lake City-based private equity firm emerged as the buyer, adding its second community in the Portland market. The purchase... Read More »
Ziegler and M&T Team Up on Freddie Mac Refinance
Ziegler, a specialty investment bank, in partnership with M&T Realty Capital Corporation, announced its role as financial advisor in a $105.6 million Freddie Mac refinancing on behalf of The Ridge Senior Living to underwrite the existing debt on The Ridge Pinehurst, its high-end senior living community community in Lakewood, Colorado. The 371-unit community began opening in phases in September 2020 and features independent living, assisted living and memory care services. The original 10-year, fixed-rate loan was structured with five years of interest-only payments, followed by 30-year amortization. The refinance provided The Ridge with a long-term fixed-rate loan to replace the... Read More »
Bridge Investment Group Divests Midwest Portfolio
Bridge Investment Group divested a portfolio of seniors housing communities in the Midwest. The alternative investment management firm engaged CBRE’s National Senior Housing Investment Properties team including John Sweeny, Aron Will, Scott Bray and Garrett Sacco to represent them in the deal. The portfolio consists of mid-rise, steel and concrete buildings that offer a mix of independent living, assisted living and memory care units, with large floorplans, luxury finishes and attractive common areas. They are located in desirable areas, close to hospitals and primary transportation routes. Plus, assets in the portfolio are adjacent to high-end skilled nursing facilities, creating... Read More »
SLIB Sells Two Florida Communities
Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage sold a couple of seniors housing communities in Florida. Totaling 173 units of assisted living and memory care, the communities are located in Lutz and Orange City, Florida. They were previously owned by a partnership between an institutional capital provider and a national operator, which engaged with the SLIB team to run a competitive process. There were multiple offers from both regional and national buyers, but the eventual buyer was a Florida-based regional owner/operator continuing to grow its presence across the southeastern United States. Read More »
CFG Closes Its Largest Transaction of 2023
Capital Funding Group announced its largest transaction of 2023, so far, with the closing of $207 million in financing to support the refinancing of ten skilled nursing facilities. The facilities, which are located in Maryland, Virginia and North Carolina, consist of more than 1,200 beds. The deal was closed on behalf of affiliates of The Portopiccolo Group, a New Jersey-based family office with a large portfolio of skilled nursing facilities in the country. Capital Funding Group Managing Director, Real Estate Finance Tim Eberhardt and Senior Associate Ava Julio originated the transaction for the company, which allowed for an equity recapture at closing, a transition to third-party... Read More »
60 Seconds with Steve Monroe: A Win For Providers
We all know that the Life Care Centers of America nursing home in Kirkland, Washington was the location of the first major SNF outbreak of COVID at the beginning of the pandemic. Well, the families of two residents who died sued the facility, the management company and some employees for negligence. As I have stated too many times, this early in the pandemic no one really knew what was going on, no one understood the severity, and no one knew what to do with the early cases, if they even had test kits, and to be held liable for deaths in those early weeks did not seem to make sense. While the jury found that the company was not at fault for the deaths of the two women, the jury found... Read More »
SLIB Nails Nevada Closing
A stabilized independent living community in Reno, Nevada, sold to a private equity company that specializes in active adult and independent living. A regional owner/operator based in the western United States developed the 131-unit community in 2020 and leased it up quickly. Not only was the occupancy strong, but the community operated at a very healthy margin. Well-performing communities have not been hitting the market much these days, so pricing must have been strong for the asset, although the purchase price was not disclosed. However, the cap rate was approximately 6% based on trailing stabilized financials. Jason Punzel, Dave Balow, Vince Viverito and Brad Goodsell of Senior... Read More »Schedule a demo
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