Dawson Holdings Purchases in California
Marcus & Millichap arranged the sale of a 44-unit affordable seniors housing community, Olivetree Senior Citizen Apartments, in Olivehurst, California. Aaron Moayed and Isaak Heitzeberg handled the transaction. There were multiple competitive bids, with the transaction closing after zero days on the market. The seller was a government agency and the buyer was Dawson Holdings, Inc. DHI secured a 9% tax credit allocation through the acquisition-rehabilitation tax credits program. The seller, in turn, received a premium on the property due to the cash-flow restrictions associated with the USDA RD 515 program. According to ConnectCRE, the purchase price was $3.27 million, or $74,200... Read More »
Sonida Announces Nine-Figure Acquisition
On the heels of its second quarter earnings announcement, Sonida Senior Living revealed it’s making a new nine-figure acquisition in the Southeast. The deal involves eight assisted living/memory care communities owned by Batson-Cook Construction (a development/construction company based in Georgia) and Principal Senior Living Group, and operated under Principal’s Benton House brand. They total 555 units, split between 383 assisted living and 172 memory care units, and averaged five years old, as opposed to the 19-years-old average for properties in the surrounding 10 miles of each asset. Five of the assets are located in Florida (Jacksonville, Orlando and Daytona Beach MSAs), while three... Read More »
CBRE Closes Three Bank Financings
The dog days of summer have brought a slew of bank financings from CBRE this August. First was a refinance for The Springs at Lancaster Village, which is owned by a joint venture between The Springs Living and Amstad Farms Land Company. Built in 1983 with expansions in the 1990s, the community has 115 independent living and 74 assisted living units, with an array of amenities. It was acquired by The Springs Living in 2020 for $31.5 million, or $165,800 per unit, with Amstad, a long-standing friend and family relationship of Springs, providing the original capital for the deal. Amstad is not your typical seniors housing investor, being one of the largest potato producers in the Pacific... Read More »
Green Courte Partners Acquires Active Adult
CBRE handled the sale of Chesapeake Bay, an active adult community with 348 apartments and cottages in Seabrook, Texas. The community’s initial phase leased quickly and maintained strong occupancy, prompting the developer to add 90 cottages in late 2023 to meet market demand. Green Courte Partners, a private equity real estate investment firm, announced that its fifth investment fund, Green Courte Real Estate Partners V, and its affiliates acquired the community. The seller was a private real estate investment firm. Port-acquisition, the community will be managed by True Connection Communities, GCP’s wholly-owned seniors housing operating company. John Sweeny, Aron Will and Garrett Sacco... Read More »
Not-For-Profit Divests to Compass Healthcare in Minnesota
Saint Therese, a Minnesota-based not-for-profit senior care organization, engaged Blueprint in its divestment of its CCRC in a northwest Minneapolis submarket. Originally built in 1967, Saint Therese of New Hope comprises 221 independent and assisted living units and 168 skilled nursing beds in New Hope, Minnesota. Starting in 1979, the community underwent extensive senior living expansion and renovation projects over the years. In 2003, it also became the first in the Midwest to offer a palliative care unit. Michael Segal and Daniel Waldhorn handled the transaction. The marketing process generated a competitive bidding environment among investors and operators within the state and the... Read More »
National REIT and Atria Secure Financing for California Class-A Community
JLL arranged a $52 million refinancing for Atria Newport Beach, a 168-unit senior living community in the Newport Beach enclave of Orange County, California. The Class-A asset was built in two phases with the north building fully renovated in 2023, while the south building was purpose-built and opened in 2021. The three-story buildings are home to independent living, assisted living and memory care units. The borrower is a partnership between a national REIT and Atria Senior Living. MidCap Financial provided the floating-rate first mortgage loan. Aaron Rosenzweig and Dan Baker handled the transaction. Read More »
Tennessee Class-A AL/MC Community Secures Financing
BWE secured $11 million in C-PACE financing for a Class-A seniors housing community in Tennessee. Built in 2022, Cloverland Park is a 100-unit, three-story assisted living and memory care community in Brentwood. The funds will be used to pay down and extend the community’s senior loan. Charles Bissell arranged financing with GreenRock Capital for this transaction. Read More »
60 Seconds with Swett: M&A and Financing Markets Breaking Loose
We have to say that there seems to be a good amount of optimism out there, despite an uncertain economy, an unsettling election cycle and constant pressure on operators to increase census and cash flow. Rates have a lot to do with it, as the 10-Year Treasury rate appears to have settled below 4% and expectations of one and more likely two rate cuts are increasingly becoming consensus. That is far from a sure thing, but we have heard that even one rate cut could be enough to bring a lot of buyers, sellers and lenders back into the fold, with the reasonable assurance that rates have started their descent. We also spoke with a couple of lenders who described a much healthier debt and equity... Read More »
Sonida Senior Living Delivers
As one of the last companies in our sector to report second quarter earnings results, the wait was worth it. Sonida Senior Living continues to deliver results that top its peers and puts them in an increasingly better position to grow. Where do we start? Perhaps the most impressive stat was the sequential increase in same-community NOI margin. The second quarter’s margin jumped by 360 basis points in one quarter, to 28.2%, and this was on just a 30-basis point increase in occupancy to 86.2%. It jumped by 440 basis points year over year. That occupancy level is above the national average, and way above what Brookdale Senior Living has reported, and above the SHOP census of both Welltower... Read More »
SLIB’s Summer of Sales Continues
It’s been a record-setting year, so far, for M&A activity, and 2024 could mark a record for Senior Living Investment Brokerage, as well. After a little more than half the year, the firm has so far closed 42 transactions, split between 28 seniors housing and 14 skilled nursing deals, comprising 62 total properties across 30 states. Sellers spanned the not-for-profit world, private owners seeking retirement, and institutional players right-sizing their portfolios, while buyers ranged from individual private owners to regional companies to institutional capital partnering with quality operators for growth. All told, those deals were worth more than $370 million. SLIB’s 2023 activity... Read More »Schedule a demo
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