Cushman & Wakefield Facilitates Chicago Pacific Founders Acquisition
Cushman & Wakefield announced the sale of a seniors housing portfolio just north of Atlanta in the state of Georgia. Built from 2018 to 2020, Celebration Village Acworth comprises 226 units, which consist of 144 independent living, 55 assisted living and 31 memory care units. The other community was Celebration Village Forsyth. Built in 2017 to 2019, the community comprises a total of 248 units, which comprise 162 independent living, 55 assisted living and 31 memory care units. Selling the two assets was a joint venture between AgeWell Living, The ASC Group and a large investment fund. Cushman & Wakefield also collaborated with Christopher Clare of its joint venture partner... Read More »
LTC Properties Reports
LTC Properties reported fourth quarter and full year 2022 earnings, and other than the large new joint venture (previously announced), the big news was that tenant Anthem repaid $1.5 million of temporary rent reduction and paid $900,000 of monthly rent in the fourth quarter. As a result, Anthem has now paid the full rent for 2022, which is a bit of a relief. The REIT is still not out of the woods as other tenants are still recovering slowly, but at least they can see through to the clearing. However, coverage ratios still need to increase. Assisted living EBITDARM and EBITDAR coverage was 1.02x and 0.80x, respectively, in the third quarter (lease information lags by a quarter), but was... Read More »
Blueprint Facilitates Texas Transaction
Blueprint Healthcare Real Estate Advisors announced the sale of an assisted living community in the state of Texas. Built in 1990, The Inn at Los Patios comprises 166 units of both assisted living and independent living. At the time of the transaction, the community was 80% occupied and generating approximately $1 million in cash flow. After a competitive marketing process which resulted in eight total offers, the ultimate buyer was a New York-based private equity group and their Texas-based operating partner. The Inn at Los Patios sold for $21 million, or $126,500 per unit, in an all-cash deal. Dallas-based 12 Oaks Senior Living will manage the community. According to Levin Pro LTC, this... Read More »
Welltower’s SHOP Communities Perform
Following fourth quarter earnings from Ventas, Welltower also posted solid gains in its SHOP portfolio, both sequentially and year over year. On a same-community basis, Welltower’s 654 communities posted a 20-basis point sequential increase in occupancy and a 200-basis point increase year-over-year to 79.1%. Now, while we are sure management would like to see the final year-end numbers higher, and getting over 80% (if not 85%) is crucial, the slowdown in the fourth quarter does not bode well for the first quarter this year. At least this year’s flu season has not been as bad as previously forecast by the media. The same-community net operating income increased 6.3% sequentially, but at a... Read More »
BWE Secures Financing for Harrison Street Portfolio Acquisition
Bellwether Enterprise Real Estate Capital LLC (BWE) arranged acquisition financing for a portfolio of assisted living and memory care communities in California on behalf of an affiliate of Harrison Street Real Estate Capital. The portfolio consists of three communities: Oakmont of Agoura Hills, Oakmont of Lodi, and Oakmont of Silver Creek. They total 75 units, 90 units, and 94 units respectively, each with plentiful amenities. Ryan Stoll and Taylor Mokris of BWE originated the loan through two regional banks to include a five-year, interest-only term. Huntington National Bank participated in the transaction. The communities will continue to be managed by Oakmont Management... Read More »
Helios Helps Sell Six Skilled Nursing Facilities
Helios Healthcare Advisors announced it has structured the sale of a skilled nursing portfolio in western Missouri on behalf of a family owner/operator. The Tiffany Care Centers portfolio consists of six skilled nursing facilities with a total of 360 beds. The portfolio is centered around the Kansas City MSA, offering a buyer a clustered geographical market presence, with potential upside by way of Missouri transitioning its Medicaid program to a case-mix reimbursement system. An East Coast-based owner/operator group emerged as the ultimate buyer of the portfolio. That same buyer entered the state through a separate portfolio acquisition in 2021. Bill Janis, Mario Wilson and Andrew... Read More »
PEF Advisors Acquires Affordable Housing in Illinois
Preservation Equity Fund Advisors LLC (PEF Advisors) acquired an affordable seniors housing community in Illinois. Built in 1998, Freedom Village in Homewood comprises 198 units in three stories in the greater Chicago area. Units include a mix of one- and two-bedroom floorplans and are reserved for seniors earning up to 60% of the area median income. At the time of the transaction, the community was 98% occupied. The seller and purchase price of the community were not disclosed. Just last month, according to Levin Pro LTC, PEF Advisors also acquired Belmont Place Senior Apartments, a 110-unit affordable seniors housing community in the Chicago area. That transaction closed on January... Read More »
Capital Funding Group’s 2022 Recap
Capital Funding Group (CFG) announced that the company executed more than $2.7 billion in financing deals throughout 2022. The transactions consisted of seniors housing and multifamily properties. Of that total, CFG financed 24 HUD loans, in excess of $250 million, and 88 healthcare and multifamily bridge-to-HUD loans, in excess of $2.5 billion. Some highlights from CFG’s seniors housing and long-term division included: $317 million bridge loan for the refinancing of a nationwide skilled nursing facility portfolio $40 million loan for the refinancing of an assisted living/memory care community in Simi Valley, California $19 million HUD loan for a 152-bed skilled nursing facility in Florida... Read More »
60 Seconds With Swett: 2022 M&A Results and Valuation Statistics
As we look back on 2022, in terms of M&A, it was a tale of two years, split by a low-interest rate environment in the first half and high rates in the second half which killed many deals and sunk most property values. Signs from the Fed point to interest rates remaining around this elevated level, or even higher, for most of 2023, so the M&A market of this year will likely look very similar to the market of the second half of last year. So, it could be helpful to know where did values settle across the different sectors and property types last year? How did a property’s age, quality, occupancy, operating margin or location affect its valuation? How have buyers’ strategies shifted... Read More »
Biden Administration Wants More SNF Transparency
The Biden administration is at it again. While he had just a passing reference to skilled nursing in his State of the Union address, Joe Biden is back at it now. They are continuing with the mantra that after private equity firms buy nursing homes, the mortality rate increases by 10%. However, they do not say why and what other influences there may be, such as higher acuity rates, which would by definition result in more deaths. Private equity firms always try to get their operators to increase the Medicare census in facilities they purchase because that is where the profits are, not in custodial care Medicaid patients. This is partly why there is an increase in taxpayer spending after a... Read More »Schedule a demo
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