Major Medicaid Waiver AL Portfolio Sells in Midwest
A major portfolio of Medicaid waiver assisted living communities sold in the Midwest, with Connor Doherty, Ryan Kelly and Alex Florea of Blueprint Healthcare Real Estate Advisors handling the transaction. The portfolio, which has seven locations in Indiana and four in Ohio all built around 2000, consists of 1,400 total units. Altogether, the communities earned approximately $56 million and $12 million in revenues and EBITDAR, respectively, for a strong 21% margin. Not too many Medicaid waiver portfolios of this size hit the market, let alone stabilized portfolios, but ownership desired to execute a succession plan and engaged Blueprint to create a competitive bidding process. Apart from... Read More »
Owner/Operator Grows Midwest Portfolio
A Midwest-based owner/operator bought an 81-unit assisted living/memory care community in Mason, Ohio, about 20 miles north of Cincinnati. No purchase price was disclosed, but the buyer plans to make significant upgrades to the community that should help improve the operations. Built in 2011, the community features 61 assisted living and 20 memory care units. It has been well maintained over the years, but some renovations were needed. The seller chose to divest the asset to focus on its current operational footprint, while the buyer saw the community fitting into its growing footprint in the Midwest. Dan Geraghty, Bradley Clousing and Ryan Saul of Senior Living Investment Brokerage... Read More »
Huntington National Bank Finances Discovery Expansion Project
Construction loan activity has slowed to a relative trickle, but Huntington National Bank closed a $26.5 million loan for the development of a 90-unit, Phase II expansion project at an existing senior living community owned and operated by Discovery Senior Living. Located in Dallas, Texas, the community currently features 175 units of independent living. The 81,500-square-foot expansion would add 72 units of assisted living and 18 of memory care, and it is set to open in 12 months. Working with Huntington’s Healthcare team for the first time, Discovery Senior Living obtained a $26.5 million loan with a floating interest rate. Lisa Silvers of Huntington handled the... Read More »
National Health Investors Shares Jump
When National Health Investors announced its first quarter earnings results last week, investors liked what they heard and sent the shares up by 8%, and they stayed up. The REIT has been dealing with problems at a few major tenants since the onset of the pandemic, and while the problems are not entirely over, most indicators are moving in the right direction. During the quarter, cash collections hit a near-term high of 98%, which should give investors a lot more confidence in the durability of the dividend. Total year-over-year occupancy increased by 400 basis points to 81.3%, driven by a 440-basis point increase in seniors housing and a 350-basis point increase in skilled nursing. ... Read More »
SLIB Handles Rocky Mountain Deal
A couple of assisted living/memory care communities located in tertiary markets in Rocky Mountain states sold to a large, regional owner/operator for $12 million, or around $92,300 per unit. Jason Punzel, Vince Viverito, Matthew Alley and Brad Goodsell of Senior Living Investment Brokerage handled the transaction. Totaling 130 units, the communities were both built in the late-1990s. They were previously owned by a group of investors who are now exiting the industry. The new California-based owner, which owns more than 30 communities across the country, plans to invest in capital improvements and continue the strong operational performance. No other details were disclosed. Read More »
JLL Capital Markets Arranges JV Equity for Construction Project
At a time when construction financing is hard to come by, JLL Capital Markets announced that it worked on behalf of Centric Development LLC to arrange joint venture equity for a seniors housing development project in Fredericksburg, Virginia. Located across the street from Spotsylvania Regional Medical Center, the project is a 153,000-square-foot building on a 16.2-acre parcel that will contain 106 assisted living one- and two-bedroom units and 36 memory care units. It is set to open in 2025 and will include luxury finishes. The JLL Capital Markets Advisory team was led by Managing Director Joel Mendes, Senior Managing Director Anthony T. Fertitta Jr. and Associate Billy... Read More »
Sonida Senior Living Showing Some Life
It is nice to see that the rising tide of the post-pandemic recovery is lifting all ships, including Sonida Senior Living. As you will recall, they issued a “going concern” opinion last quarter, with cash balances declining every month and a debt load that will be difficult to ever pay off. While they are not out of the ICU yet, perhaps the respirator can be turned off, at least for a few quarters. The company is small, with 62 owned communities, which they should be able to use to their advantage and laser focus on operations, marketing and census. Occupancy has not been the problem, as at about 84% they are beating some of the larger companies as well as the SHOP portfolios of REITs.... Read More »
Ventas Continues To Improve
We are rounding out the first quarter earnings announcements, and like most everyone else, Ventas posted improved results, especially in its SHOP portfolio. And like everyone else, we are sure management would have liked to see a faster pace with the improvements. We can probably be criticized for focusing so much on census improvement over the now-25 months since the bottom of the market, but census is a good indicator for the health of the industry, as well as the demand for seniors housing units in an environment when supply is at its slowest growth point in years. With new supply constrained because of construction costs and a financing market contraction, combined with the beginning... Read More »
Blueprint Sells in San Angelo
A publicly traded REIT sold its cash-flowing, 30-unit assisted living/memory care community in San Angelo, Texas, hiring Amy Sitzman, Giancarlo Riso and Michael Segal of Blueprint Healthcare Real Estate Advisors to handle the sale. Built in 2012, the community consists of two adjacent standalone buildings, in addition to excess land for expansion with a lot size of 2.82 acres. It was the newest seniors housing community in town, and the community historically performed well with occupancy exceeding 85% in 2019, while generating cash flows of $1.5 million at a 34% margin in the same period. After experiencing an occupancy disruption in 2021 from weather-related damages, the community... Read More »
Dwight Capital Announces Latest Activity
Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, financed over $118.35 million in seniors and healthcare financing during the first quarter of 2023. Among those transactions, Dwight closed a $31.2 million HUD refinance for Riverfront Rehabilitation and Healthcare Center, a 180-bed skilled nursing facility in Pennsauken, New Jersey. The SNF features a beauty salon, gym, lounges, landscaped outdoor spaces and waterfront views. The HUD loan refinanced an existing bridge loan that was provided by Dwight Mortgage Trust in June 2022. Managing Director of Healthcare Finance, Adam Offman, originated this transaction. Some other notable transactions from the quarter included a $40... Read More »Schedule a demo
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