Vote On Diversified Healthcare Trust Merger Postponed
While we are not surprised, the vote on the merger of Diversified Healthcare Trust and Office Properties Income Trust, scheduled for this past August 30, has been postponed until September 6, even though “the polls remain open.” With the three major proxy firms weighing in against the merger, as well as a holder of 9.8% of DHC stock, we assume the managements of the two merging firms realized they did not have the votes. We stated last week that we thought something fishy was going on, and we didn’t like the smell. There are just too many conflicts of interest, but we do not know what could happen between August 30 and this coming September 6, two days after the Labor Day holiday, to... Read More »
Three Acquisition Loans from CIBC
Lending in the senior care space may have slowed in 2023, but CIBC Bank USA announced a slew of new loans it provided to skilled nursing facilities across the country in the last couple of months. The largest went to an Indiana-based owner/operator to acquire four skilled nursing facilities in the southern part of the state. Totaling 450 beds, the facilities were managed by a local operator and had an effective age between 10 and 15 years. Historical EBITDAR margins were close to 15% and were around that level at the time of the deal. The buyer received a $32 million loan plus a $4 million revolving credit facility for the acquisition. Next, a Nebraska owner/operator bought a 120-bed... Read More »
CFG Refinances Previous Bridge Loan with HUD Debt
Capital Funding Group closed a $7.2 million HUD loan to take out an existing bridge loan on a 75-bed skilled nursing facility in Ohio. CFG had also executed the bridge debt. The deal was closed on August 17, 2023, on behalf of a nationally recognized borrower. Capital Funding Group Managing Director, Real Estate Finance Tim Eberhardt originated the transaction. The financing follows the company’s recent announcement of its total financing for the first half of 2023, which exceeded $411 million across 27 deals nationwide. Read More »
SNF Transfers Hands from a Not-For-Profit to a For-Profit
Ziegler handled the sale of Bethesda Rehab & Senior Care, a 135-bed skilled nursing facility located on two acres in Chicago, Illinois. The facility has had a presence in the Chicago area for over 100 years and was originally part of the CCRC Norwood Crossing, founded in 1896. It provides short-term rehabilitation, long-term skilled nursing care, respite care and Alzheimer’s care. The seller was a not-for-profit owner/operator, and the buyer was a joint venture between a well-known multi-generation Midwest owner/operator with control of several thousand beds, and Pearl Healthcare, which operates more than 10 facilities in Chicago. Pearl took over operations of Bethesda on July 1. Nick... Read More »
60 Seconds with Swett: SNF Values Begin to Drop
The surge in capital costs has finally eaten into the price per bed for skilled nursing facilities, at least according to our latest averages. Using data from our proprietary M&A database which includes dozens of confidential prices and property financials, the average price per bed for skilled nursing facilities in the four quarters ended June 2023 dropped 6.5% to $106,800 from its record-high of $114,200 per bed from calendar year 2022. Anecdotally, we had heard that buyers were not paying the prices they were in 2022 but that investor interest (and prices as a result) was still higher than it was before and during the pandemic. That checks out with our numbers, since the latest... Read More »
Expensive Expansion for Washington State CCRC
Emerald Heights, a large, not-for-profit CCRC founded in 1992 in Redmond, Washington, officially broke ground on an assisted living expansion project. The building will include 54 one-bedroom units, along with a new dining space, activity rooms, an outdoor patio and a centralized courtyard. Its cost is reportedly $55 million, or over $1.0 million per unit, which is very high for new construction, let alone for an expansion project. The community expects to finance the expansion with a bond issue from the Washington State Housing Finance Commision. Sponsored by the not-for-profit Emerald Communities, the community previously expanded in 2022 with a brand-new, three-story, 42-unit... Read More »
Diversified Healthcare Trust Provides SHOP Update
With its upcoming August 30th shareholder vote on its merger with Office Properties Income Trust, Diversified Healthcare Trust provided some discouraging news on its seniors housing portfolio. It is almost as if they wanted to have bad news, since the dissident shareholders have been touting the recovery of DHC’s SHOP portfolio as one of many reasons to reject the proposed merger as undervaluing DHC. The reason why we say that they seemed to want to share bad news is that they keep on comparing results with 2019 performance, as in July occupancy was 750 basis points below July 2019. Yes, we all know that most operators have not fully recovered from pre-pandemic census levels, but is it... Read More »
SLIB Arranges New Mexico Deal
Senior Living Investment Brokerage helped a mom & pop retire from the senior care industry with the sale of two assisted living communities in Albuquerque, New Mexico. Built in 1972 and 1982, with renovations in 2011 and 2015, respectively, the communities were on the smaller side. An owner/operator expanding its presence in the western United States emerged as the buyer, making its first acquisition in New Mexico. Vince Viverito and Matthew Alley of Senior Living Investment Brokerage handled the transaction. Read More »
Foundry Commercial Adds 16 New Managed Communities
Foundry Commercial continues to expand its seniors housing portfolio, recently adding 16 new seniors housing communities to be managed by Spring Arbor, its in-house operating platform. With the new contracts, Spring Arbor now manages 40 communities in 10 states across the Mid-Atlantic, Southeast and Midwest. In addition to North Carolina, Virginia, and Maryland, where Spring Arbor was already operating, Foundry now has a management presence in South Carolina, Florida, Tennessee, Kansas, Nebraska, Iowa, and Minnesota. Also with these added communities, Foundry and its affiliated joint venture operating partner, Cascadia Senior Living, now operate 54 communities in 12 states. Four... Read More »
Gardant Management Solutions Grows By 45%
Gardant Management Solutions has just taken over management of 25 assisted living communities in Illinois (22) and Ohio (3) with nearly 1,375 units. With this addition, Gardant’s size will increase by about 45%, something that will not be too easy to transition in the current operating environment. The company will now operate more than 80 communities with nearly 7,200 units. Prior to this new management contract, Gardant’s average community size was 106 units. Now it is closer to 90 units since the new 25-community portfolio averages about 55 units each. The Bourbonnais, Illinois-based company focuses on affordable assisted living, and many of these 25 communities were designed to... Read More »Schedule a demo
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