Continuum of Care Portfolio Sells in Indiana
Evans Senior Investments sold a portfolio of three senior care assets in Indiana. Built in 1982 and 1995, the properties offered a continuum of care for seniors housing and skilled nursing residents. One property was a CCRC with 34 seniors housing units and 137 licensed skilled nursing beds (operating at 128 beds). The SNF portion was consistently occupied in the low-90s, while the seniors housing portion hovered in the high-80s and low-90s. The other two were located on the same campus and offer a combined 63 independent living, assisted living and memory care units and 127 licensed skilled nursing beds. Again, the SNF portion saw stronger census, from the mid- to high-80s, while the... Read More »
Carnegie Capital Secures CDFI Refinance
JD Stettin of Carnegie Capital closed the refinance of two assisted living/memory care communities totaling 130 units about 80 miles outside of San Francisco, California. After acquiring the communities in late-2019 and 2020, the borrower began to renovate and reposition them. However, given the pandemic, repositioning the communities took longer than initially anticipated, and upon closing the refinance, the in-place, portfolio-wide EBITDAR was still negative and occupancy was under 50%. The borrower was still implementing capex projects at one of the properties, which affected census, as well. The borrower originally purchased the assets with cash but looked to secure a loan to complete... Read More »
JCH Negotiates Two Leases in the Golden State
JCH Senior Housing Investment Brokerage negotiated a couple of leases for senior care properties in California. First was a new lease for an assisted living community in Alhambra, California. The community, previously operated by a national operator, will now be under the management of a reputable regional operator. There were a myriad of licensing challenges, but JCH identified a resourceful, incoming operator with strong relationships with local licensing agencies which helped facilitate the process. That new regional operator specializes in programs that provide access to care for low-income residents and wellness programs. Next, JCH negotiated a new lease for a skilled nursing facility... Read More »
Maryland Owner/Operator Adds to Its Portfolio
A publicly traded REIT sold Woodlands Assisted Living, an assisted living/memory care community with about 65 units in Middle River, Maryland (Baltimore MSA). Built in 1999, the community boasted historically strong operations prior to the onset of the pandemic, with occupancy north of 90% and operating margins approaching 30%. However, significantly impacted by the pandemic in 2020 and 2021, the community’s performance was just beginning to trend back upwards at the time of marketing. The REIT owner engaged Kory Buzin, Brooks Blackmon, Steve Thomes and Lauren Nagle of Blueprint Healthcare Real Estate Advisors to sell the community, which they marketed as an opportunity to purchase a... Read More »
Northeast Operator Grows Midwest Portfolio
Daniel Geraghty, Vince Viverito and Jason Punzel of Senior Living Investment Brokerage sold a couple of Kentucky seniors housing communities on behalf of the REIT owner that was divesting the properties for strategic consolidation purposes. The buyer, a Northeast-based operator looking to add to its growing Midwest portfolio, purchased Arcadian Cove in Richmond and Willow Creek Senior Living in Elizabethtown, located about 125 miles from each other. Built in 2009, Arcadian Cove features 49 units of assisted living, while Willow Creek, built in 1998, has 65 AL and memory care units. There were multiple offers for the communities from both local and regional buyers before the... Read More »
REIT Divests Two Florida Communities
Grandbridge Real Estate Capital’s Senior Housing Investment Sales team sold two seniors housing communities in Florida on behalf of a national REIT. Totaling 420 units of independent living, assisted living and memory care, the communities include Spring Haven (297 units) in Winter Haven and Lake Morton Plaza (123 units) in Lakeland. Both older-vintage assets are located between Tampa and Orlando. They were deemed to be non-core by the REIT owner, which was able to improve its overall portfolio operating metrics and simultaneously reallocate capital to other initiatives. A Florida-based owner/operator with a growing portfolio in the region was the eventual buyer, purchasing the communities... Read More »
Plains Commercial Arranges SNF Lease
Plains Commercial arranged the lease of Davis West Nursing Home, a 177-bed skilled nursing facility in Pine Bluff, Arkansas. Daniel Morris of Plains was engaged to market the facility on a confidential basis at the request of the landlord. The exiting operator is a not-for-profit that made the decision to exit the SNF operating business. The facility was also suffering from a depressed census which had not fully recovered from the pandemic. So, it offered a new operator significant upside through further lease-up and operational changes. After the bidding process, the landlord chose to engage with a Chicago-based operator, which is taking on its first facility in Arkansas with this lease.... Read More »
Vermont SNF Gets a HUD Refinance
Capital Funding Group closed a $13.4 million HUD refinance of a 144-bed skilled nursing facility in Vermont. The new loan replaced an existing bridge loan that had been executed by CFG and had seasoned for two years before being brought to HUD. The nationally recognized borrower was able to take cash out as a result. Managing Director, Real Estate Finance Tim Eberhardt and Senior Associate Ava Julio originated the transaction for the company. The financing follows CFG’s recent closing of $207 million in financing to support the refinancing of 10 skilled nursing facilities across Maryland, Virginia, and North Carolina. Read More »
60 Seconds with Swett: Welltower Increases Guidance
Welltower came out with a business update for June, and there was some good news on the financial front, particularly in regard to labor cost trends. First, the REIT was able to raise guidance for both its 2023 net income attributable to common stockholders and 2023 normalized FFO on the back of better-than-expected operating results in its SHOP portfolio and a bolstered balance sheet. Operationally, the REIT reported that same-store RevPOR continued to grow at a faster rate than ExpPOR in the first quarter of this year, the fifth consecutive quarter of margin expansion. This was helped in part by agency labor expense as a percentage of total compensation dropping to 3.4% in the first... Read More »
Solid Price Achieved for Struggling Seniors Housing Community
The guys at Senior Living Investment Brokerage have been on a roll lately, announcing nine transactions in the month of May and another four in the first week of June. And there are more to come this month. The latest was the sale of The Waterford in Smyrna, a 92-unit assisted living/memory care community in Smyrna, Tennessee. Dave Balow and Patrick Burke sold the community on behalf of a local ownership group/operator that decided to exit the asset to deploy capital into other real estate ventures. Built in 2009 about 25 miles southeast of Nashville, the community was 57% occupied around the time of marketing. It generated nearly $2.48 million of revenues but lost $57,000 in EBITDAR... Read More »Schedule a demo
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