Steady As She Goes For Chartwell
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, posted a slight 20-basis point decline in census in February, to 85.5%. They are forecasting no drop for March and a 20-basis point rise for April. If that holds, they will escape the winter census blues, and the December to April period would end up showing an 80 basis-point increase. Chartwell had a remarkable run in 2023, with occupancy increasing by 520 basis points, certainly an above-average jump for 12 months, especially a few years after the bottom. They are expecting rate increases in 2024 to average 5%, and same-community margins to increase by about 400 basis points in 2024 to 38%, from 34% in... Read More »
Carnegie Capital Finances Two SNF Acquisitions
JD Stettin of Carnegie Capital could not get enough of Texas this month, closing two loans for skilled nursing facilities in the state before attending the NIC Conference in Dallas. Both loans facilitated acquisitions of the facilities. In one, Stettin arranged the assumption of a HUD loan on a 120-bed SNF in west Texas, which carries a sub-3% rate and represented 75% of the purchase price. The same seller also divested a 150-bed SNF in west Texas, after its relationships with local admissions sources faded over the last year. That led to a substantial decrease in the Medicaid census and cash flow, and upon closing the acquisition, the facility’s EBITDAR was negative, excluding QIPP... Read More »
Knapp-Stahler Group Inks Idaho Deal
Nick Stahler and Chad Mundy of the Knapp-Stahler Group at Marcus & Millichap facilitated a successful seniors housing transaction in Idaho. The team worked on behalf of the original developers and owner/operators of the community, who are leaving after more than two decades of ownership. The community, completed in two phases, comprises 51 independent living and assisted living units, with 73 beds. An owner/operator with a strong presence in Idaho bought the asset for an undisclosed price. The transaction was completed with the assistance of conventional bank financing. Read More »
60 Seconds with Swett: Reflections on Spring NIC
Maybe it was because Spring is around the corner, but the mood at the NIC in Dallas was relatively better, especially compared with the mood of the last three conferences when rising interest rates soured things in Fall 2022, the banking crisis of early 2023 affected last Spring and last Fall most were resigned to the reality of high rates and low values. That acceptance of the present market conditions means that almost no one is happy, but that they are more ready and willing to do deals again. And we heard of more performing, Class-A properties and portfolios hitting the market and receiving interest from buyers. More than in the previous year. On the lending side, banks are not totally... Read More »
Brookdale Census Holds Steady So Far
We all know that historically the winter months have never been kind to nursing home census. Known as the flu season, occupancy tends to drop in the first quarter by 50 to 100 basis points, if not more. The same has been true for assisted living, especially since acuity levels started rising more than a decade ago. The one exception for some providers was during the pandemic recovery, when census was ramping up at unprecedented rates in general, and the flu was nothing compared with COVID. Brookdale Senior Living just announced its February occupancy results, and while they noted it was an improvement from “normal” pre-pandemic seasonality, first quarter-to-date occupancy declined by 40... Read More »
REIT Divests in Colorado
Senior Living Investment Brokerage was brought on by a REIT in its divestment of a seniors housing community in Colorado. This was its tenant’s only managed asset in the state. The buyer was a Colorado-based owner/operator growing its portfolio. The purchase price was $3.0 million, or $36,100 per unit and $27,800 per bed. Built in 1982 and 1989, Devonshire Acres offers independent living, assisted living and skilled nursing in Sterling on 10 acres. There was also a large greenhouse added in 2021 for residents to enjoy gardening. The community comprises 24 IL/AL and 68 SNF beds, with 15 IL/AL and 84 SNF units. Occupancy, as of April 2023, was 86.7% for the IL/AL component and 71.3%... Read More »
Vacant Seniors Housing Community Sells in Memphis
Blueprint’s behavioral healthcare team was engaged by a seniors housing investor to obtain specialized zoning entitlements for a vacant seniors housing asset and to sell the asset as a potential behavioral healthcare conversion. The seller secured specialized zoning entitlements for inpatient behavioral use before Blueprint brought the Memphis, Tennessee, asset to market. A behavioral healthcare owner/operator submitted an offer to purchase the asset, deploy capital improvements and license the building as an inpatient substance abuse facility. However, during escrow, another mental healthcare provider approached Blueprint and expressed strong interest in operating the... Read More »
Plains Executes in Texas
Plains Commercial Real Estate was brought on by a regional owner/operator in the divestment of its senior care facility in Texas. The seller was looking to consolidate its operations closer to its home office. The buyer is a private investor, and the facility will be operated by a large, Texas-based operator. Built in 2009 and well maintained, Copperas Hollow Nursing & Rehab comprises 90 skilled nursing beds and 12 assisted living units in Caldwell. At the time of closing, occupancy was hovering around 70%. The facility offered strong in-place cash flow as well as significant upside through some operational changes and agency expense controls. Daniel Morris of Plains handled the... Read More »
Momentous Healthcare Adds in Ohio
Forest Healthcare Properties was brought on by an Ohio-based owner/operator in a lease-to-purchase for a skilled nursing facility in Ohio. The owner was looking to divest from this region, and the buyer was Momentous Healthcare. Newly renovated, the facility comprises 100 beds with an in-house dialysis component near Cleveland, Ohio. The asset sits on 4.6 acres with 26,627 total square feet. Occupancy was low at the time of closing, so there is certainly some room for improvement for the new operator. But the lease-to-purchase structure gives them time to ramp up census and cash flow before taking over ownership. Joe Schiff and Jeffrey Vegh handled the transaction. Read More »
Not-For-Profit and For-Profit Shake Hands in Oregon
Ziegler was brought on by a not-for-profit in its divestment of a seniors housing community in Portland, Oregon, to a for-profit senior living owner/operator. Built in stages from the 1940s to the 1990s, Parkview Christian Retirement Community comprises 115 independent living units and 62 assisted living units across six acres. Humair Sabir, Stephen Johnson, Marie Carlson and Ryan Anders handled the transaction. The seller, Oregon Baptist Retirement Home Society, emphasized to Ziegler its desire for the community to be divested to a buyer that was culturally aligned and had a shared vision and values. Ziegler initially targeted not-for-profits, however, after an organization with a similar... Read More »Schedule a demo
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