Ventas Restructures More Leases
In this post-COVID world, Ventas continues to modify existing leases with major tenants with an eye to the future. First was Brookdale Senior Living several years ago, and now it is with its original tenant going back more than 25 years, Kindred. Ventas owns 23 long-term acute care hospitals that are leased to Kindred for annual cash rent of $109 million. Starting in May 2025, the annual cash rent will be reduced by 27% to $80 million, with annual escalators of 2.75%. The lease maturity date was extended from April 2025 to April 30, 2030. In addition, as part of the transaction, Ventas has received warrants for 9.9% of the common equity of Kindred’s parent, ScionHealth, exercisable... Read More »
Joint Venture Acquires in Pennsylvania
A national investor partnered with Legend Senior Living to acquire a seniors housing community in Bucks County, Pennsylvania, after Legend had turned around operations at the location since taking over in March 2023. Opened in 2020, the community was built by a national developer/investor to include more than 100 units of assisted living and memory care. Despite an attractive physical plant, the community faced lease-up challenges after opening during the pandemic, and subsequent regulatory challenges throughout 2022 drove an operator transition, with Legend coming into that role. Looking at Legend’s Pennsylvania properties, this appears to be The Province of Southampton, or formerly The... Read More »
Focus Healthcare Partners On Acquisition Streak
One of the more active buyers of high-quality seniors housing assets announced a couple more acquisitions in the last month. Focus Healthcare Partners has so far acquired $200 million in assets this year to date, and has an approximately $100 million pipeline set to close before year end. First, in August, Focus bought The Summit of Blue Ash in Blue Ash, Ohio (Cincinnati MSA), from an institutional investor. Opened in 2022, the community featured 200 units of independent living (107 units), assisted living (61 units) and memory care (32 units). It was previously operated by Anthology Senior Living but reported occupancy in the low-50s at the time of closing. Evolve Senior Living will... Read More »
Owner/Operator Grows in the Southeast
Senior Living Investment Brokerage facilitated the sale of a personal care community in a highly desirable market in Forsyth County, Georgia. SLIB was engaged to solicit bids on behalf of the court-appointed receiver, GGG Partners. Built in 1997, Country Gardens Lanier features 41 assisted living units in Cumming. The community comprises 22,945 square feet and is situated on 1.85 acres. Occupancy was 71% at the time of closing, and it was operating just above breakeven. The buyer is a regional owner/operator that operates another asset within the county, which can help with expense efficiencies. The buyer purchased the community because it is looking to expand its growing footprint... Read More »
60 Seconds with Swett: The Surprising Price of Aging at Home
Despite the enormous opportunity that demographics offer the seniors housing industry in the next decade, the affordability factor may prove to seriously sink demand for the product. That makes it that much more important for the industry to provide more middle- and lower-market options but also to demonstrate its value to the consumer. Demonstrating its value relative to alternatives such as…living at home…could prove effective too, which is why ASHA just released a new Special Issue Brief called The Surprising Price of Staying in a House: Cost Comparisons Often Favor Senior Living. The title gives it away. Prepared by Dan Bernstein, formerly of Stifel and Capital One, and available for... Read More »
CIBC & Locust Point Fund Illinois Portfolio Deal
CIBC Bank USA announced a couple of closings for both seniors housing and skilled nursing properties in the Midwest. First, along with Locust Point Capital, the bank provided $30 million in acquisition financing and a $2 million working capital revolving line of credit for a 244-unit, six property, seniors housing portfolio in southern Illinois. Historical performance trended positively over the last year, as the facilities improved census and operating leverage. Going forward, occupancy and operating margins are expected to further improve under the management of a growing senior living operator based in Chicago. Fritz Kieckhefer and Kyle Doran handled the transaction for CIBC Bank USA... Read More »
Ziegler Closes Bonds for PA CCRC
Ziegler announced the closing of Garden Spot Village’s $67.27 million Series 2024 Tax-Exempt Fixed Rate bonds. The obligated group consists of Garden Spot Village and its subsidiary, GSV, LLC, and Garden Spot’s parent organization is the not-for-profit Garden Spot Communities. Garden Spot Village is a CCRC with 621 independent living homes consisting of 306 apartments and 315 cottage-style homes, 65 personal care units, 40 memory support units and 75 skilled nursing beds across 220 acres in New Holland, Pennsylvania. GSV also owns and leases Center for Health, an ambulatory health care building that sits at the entrance to the campus. WellSpan Health leases the Center, providing a... Read More »
EBSC Lending Funds Los Angeles Development
EBSC Lending has secured funding for a high-quality seniors housing community under development in Los Angeles. Brian Stark, manager of information technology at EBSC, led the transaction. The community obtained $31.2 million in construction financing The development will feature a new 172,163-square-foot community owned and operated by a senior living provider in the Southeast, with a primary focus on Florida. The community will offer a total of 198 independent living, assisted living and memory care units in three buildings spread over a 7.8-acre campus. It will also feature restaurant-style dining, boutique hotel décor, and a variety of luxury amenities. Based in Irvine, California,... Read More »
Summit Divests SNF Portfolio to Current Operator
After selling eight skilled nursing facilities in Connecticut earlier this year, California-based Summit Healthcare REIT further pared back its portfolio by divesting three SNFs in San Bernardino County, California. The portfolio comprises 191 beds and sold for $30 million, or $157,000 per bed. The buyers were affiliates of the current operator. The sale of this portfolio yielded an internal rate of return of over 50% for Summit and closed without the aid of an outside brokerage firm. Summit’s portfolio now comprises interests in 36 senior living communities throughout 11 states. In May, Summit had sold eight skilled nursing facilities totaling 1,106 beds in Connecticut for $60... Read More »
CCRC in Bankruptcy Sells in PA
The senior care business is a tough business, especially since the pandemic and inflation lowered census and raised expenses, respectively, and it has taken a toll on many not-for-profit organizations. And recently, another organization facing financial pressures defaulted on its bond debt, which triggered a Section 363 bankruptcy process. Evans Senior Investments was brought in by the seller to guide them through the process and ultimately also sell its CCRC in Somerset, Pennsylvania. Originally built in the 1900s and renovated in 1990, The Patriot is a CCRC with 100 skilled nursing beds, 76 personal care beds in 47 units, and two independent living units. At the time of marketing, it... Read More »Schedule a demo
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