Blueprint Closes Another South Carolina Deal
A publicly traded REIT divested a skilled nursing facility in Bennettsville, South Carolina, with an East Coast-based owner/operator adding to its existing in-state portfolio. Blueprint Healthcare Real Estate Advisors handled the transaction, following two other South Carolina sales closed by the firm in the second quarter. Those included a skilled nursing facility in Beaufort and an assisted living/memory care community in Florence. Amy Sitzman, Brooks Blackmon and Giancarlo Riso worked on the deal. Similar to the Bayview Manor deal in Beaufort, the Bennettsville facility was constructed in several phases beginning in 1958 and featured 110 predominantly semi-private rooms. It maintained... Read More »
60 Seconds with Swett: The Persistence of Higher Capital Costs
After the Fed held interest rates steady following 10 consecutive increases but left the door open for potentially two additional increases this year, you can’t help but think, what has gone as planned, or as predicted, in the last several years? Very little, unfortunately. Inflation has persisted in the economy, and rates will have to remain elevated for longer than earlier projections. Sounds a little familiar to the overly optimistic predictions of a seniors housing occupancy and margin recovery, post-pandemic, which is taking longer to materialize, and may never happen in many markets. We’re just saying that a little more conservatism may be needed in people’s projections or proformas... Read More »
Stabilized, Class-A Asset Sells in Kentucky
Nearly five years after acquiring a newly-built senior living community in Lexington, Kentucky, Atlas Senior Living is selling the asset, marking the first disposition in the company’s nearly 10-year history. Blueprint Healthcare Real Estate Advisors’ Brooks Blackmon, Ben Firestone, Kyle Hallion and Lauren Nagle handled the transaction on behalf of Atlas and oversaw a competitive bidding process for one of the few Class-A, stabilized communities on the market right now. Opened in 2017, The Legacy at Fritz Farm was developed by DMK Development at a cost of $26 million, or $155,000 per unit. It features 114 independent living, 38 assisted living and 15 memory care units. The community was... Read More »
Vacant Seniors Housing Community Sells in Nashville
Nick Cacciabando and Patrick Burke of Senior Living Investment Brokerage sold a vacant assisted living community in Nashville, Tennessee, finding a cash buyer that was able to close within 60 days of escrow. Grace Manor was originally built in 2010 by a local church and featured 42 units of assisted living. However, the property had struggled with occupancy and profitability during the pandemic, and it was voluntarily closed in November 2021. The HUD note was then sold at auction in December 2022 to a private investment firm that manages alternative assets for high-net-worth individuals and institutional investors. With the help of SLIB, they then sold the community to an undisclosed... Read More »
PGIM Finances Lincoln Avenue Capital Acquisition
PGIM Real Estate provided fixed-rate HUD financing to Lincoln Avenue Capital for the acquisition and renovation of the South Forty Apartments, a 101-unit affordable seniors housing asset in Billings, Montana. Alex Viorst, executive director at PGIM Real Estate, arranged the $16.14 million loan under the FHA section 223(f) loan program. The property is 100% subsidized by a Section 8 contract and also has a tax credit LURA on title restricting half of the units at 50% of area median income (AMI) and the other half at 60% AMI through 2069. Lincoln Avenue Capital, in a joint venture with Fairview Housing Partners, will complete an extensive rehabilitation of the property that will address... Read More »
PE Firm Acquires Two Value-Add Communities
A private equity firm acquired a couple of former Atria Senior Living-managed assisted living communities in upstate New York. Located within 15 miles of each other near Rochester in the towns of Greece and Penfield, the communities combine for 168 units and 199 beds of assisted living. They were previously owned by a private real estate development and investment company based in Rochester that had hired Atria to manage the communities for the last several years. However, the seller wished to focus on other strategic initiatives within its organization, such as residential communities, while also maintaining a presence in the seniors housing space. Despite being of an older vintage, with... Read More »
Birchwood Eyes Distressed Assets with New Fund
Birchwood Healthcare Partners is setting itself up to capitalize on the coming distress in the seniors housing and care industry with the closing of initial fundraising for its 5V+ Seniors Healthcare Fund. The fund will provide investors with exposure to four key sectors: seniors housing, healthcare services (like rehabilitation, hospice, home health, therapy and behavioral health), transitional/long-term care and active adult. Citing the appeal of demographics, Birchwood also noted the “unparalleled opportunity in the fragmented and misaligned seniors healthcare industry in today’s market.” In its announcement, the firm also pointed out that with over $272 billion in government... Read More »
Baptist Village Communities Grows Its Portfolio
Baptist Village Communities, the largest not-for-profit senior care provider in Oklahoma, announced its plans to acquire a senior living community in the town of Enid. The organization had started a partnership with the community, Golden Oaks Village, in 2019 to provide management consulting services after the community was restructured into a not-for-profit organization. But the Golden Oaks Board of Directors later approached Baptist Village to take over ownership, with the transition expected to be completed by September 2023. Golden Oaks Village was founded in 1988 before it was acquired and expanded in the early-1990s by Wesley Kroeker, who retired in 2012 and handed over operations to... Read More »
Strawberry Fields REIT Makes Major SNF Purchase
The capital markets upheaval has led to a decrease in liquidity, an increase in capital costs and a corresponding drop in property values in the senior care M&A market. That combination has led sellers to only make small, strategic divestments because they cannot command the prices they want, and it has prevented buyers from making larger purchases because of expensive debt. So, we have not seen many portfolio deals in 2023. The majority of portfolio deals that have been announced in 2023 so far have been in the skilled nursing sector, with over 70% of properties included in the year’s portfolio deals being skilled nursing facilities. The sector has proven more resilient in terms... Read More »
Public REIT Divests Keystone State Portfolio
A public REIT and its operating partner made the strategic divestment of a senior care portfolio in Pennsylvania. The deal included multiple skilled nursing facilities and two campuses featuring independent living, assisted living (personal care) and memory care units. There are more than 1,000 beds and units mostly concentrated in northeast and central Pennsylvania. Michael Segal, Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors positioned the portfolio as a value-add opportunity for an incoming buyer to capitalize on strong pre-pandemic financial performance along with a substantial Medicaid reimbursement rate increase recently passed in the state’s... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
