Affordable Housing Preservation Developer Purchases in California
Marcus & Millichap and Affordable Housing Advisors teamed up to facilitate the sale of an affordable seniors housing community in Campbell, California. After operating the community for over 30 years, the not-for-profit owner/operator chose to divest Corinthian House Apartments. Corinthian features 102 studio and one-bedroom units and contains 36 project-based Section-8 units. The buyer is a mission-driven affordable housing preservation developer. Rob Reis of M&M and Andy Daitch of AHA handled the transaction, which closed at the agreed-upon price. Read More »
Berkadia Secures Financing on Behalf of POAH
Berkadia announced the financing and preservation of Jesse Jackson Jr. Senior Housing, a 120-unit affordable seniors housing community in Harvey, Illinois. James Grande secured the $17.6 million low-income housing tax credit equity investment on behalf of the sponsor, Preservation of Affordable Housing. The community consists of two three-story, elevator-serviced buildings that were originally constructed in 2007 (phase II) and 2011 (phase III). The project will consist of 120 one-bedroom units serving seniors aged 62 and above, with 114 of the units set aside for persons whose income is at or below 50% of the area median income. The remaining six units will be set aside for persons... Read More »
High-Value Mississippi SNF Deal Closes
Senior Living Investment Brokerage was engaged by SunLink Health Systems in its divestment of a skilled nursing facility in Houston, Mississippi. Built in 1969, the facility, Trace Extended Care & Rehab, features 66 beds in 50 units. SunLink sold this facility and related real estate to redeploy capital and focus on its core business. The buyer was a Mississippi-based group looking to add to its existing presence in the state. According to SunLink, the facility was sold for approximately $7.1 million, or $107,600 per bed. SunLink noted that the sale is intended to further its strategy of positioning itself for a larger transaction, which might include a merger or consolidation with a... Read More »
All-Medicare SNF in Vegas Sells
Evans Senior Investments arranged the sale of a 45-bed post-acute rehab facility in Las Vegas, Nevada. Understandably, with its newer vintage, all-Medicare census and higher and higher acuity patient base, the facility traded for a high per-bed price, at $8.5 million, or $188,900 per bed. The transaction was executed on behalf of a regional owner/operator. The facility, exclusively licensed to accept Medicare only, was built in 2015. At the time of marketing, it was 73% occupied and had struggled to maintain healthy occupancy levels in previous months. Despite that, the facility’s growth potential and the anticipated Medicare rate increase set to take effect this year presented a valuable... Read More »
Ziegler Handles Financing in Missouri
John Knox Village is a large not-for-profit single-site provider of senior living services headquartered in Lee’s Summit, Missouri. JKV owns/operates a life plan community which, as of December 31, 2023, consisted of 948 marketable independent living units ranging from single-family homes to apartments, assisted living communities consisting of 106 apartments and 76 memory care units, and a skilled nursing center operating 122 beds. Ziegler announced the closing of John Knox Village obligated group’s $42.3 million Series 2024 tax-exempt bonds. The $30.83 million of Series 2024A fixed rate bonds along with the $5.53 million Series 2024B-1 (TEMPS SM-85) and $7.5 million Series 2024B-2... Read More »
Welltower to Disperse 89 Atria Properties
Several years ago, we had a rather heated discussion with Atria’s former CEO, John Moore, in the lobby of the hotel at the NIC fall conference. This was pre-COVID. It started with our comment that Atria was getting too big to be well managed, since no operator in long-term care had succeeded when they had over 500 communities, and maybe even 300. He took strong exception to that concept, insisting that if you were a good manager, like Atria, you could do well no matter the size. Let’s just say, we were right, he was wrong, and the rest is becoming history. While Atria became a very good operator, a little arrogance may have slipped in as to how good, especially during tough times. We know... Read More »
CareTrust REIT Funds SNF Portfolio Acquisition
CareTrust REIT funded $90 million of a senior mortgage loan in connection with the borrower’s acquisition of a eight-facility skilled nursing portfolio in the southeastern United States. The portfolio, comprising 1,011 skilled nursing beds and 150 assisted living beds, has been acquired by an experienced, regional health care real estate owner/operator. The loan is secured by a first priority lien on the borrowers’ ownership interest in the real estate and carries a five-year maturity with two, six-month extension options and a starting annual effective yield of 10.7%. CareTrust’s $90 million loan is part of a $165 million senior mortgage term loan with an interest rate of SOFR plus... Read More »
Ensign Adds Two Western Facilities
The Ensign Group acquired the real estate and operations of Wellsprings of Gilbert, a 32-bed skilled nursing facility in Gilbert, Arizona. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc. In a separate transaction, Ensign acquired the operations at The Springs at St. Andrews Village, a 58-bed skilled nursing facility in Aurora, Colorado. It will be operated by an Ensign affiliated operator. These latest additions bring Ensign’s portfolio to 312 healthcare operations, 29 of which also include senior living operations, across fourteen states. Read More »
60 Seconds with Swett: How Serious Is the Minimum Staffing Mandate?
We conducted a survey of our readers, asking some questions on the skilled nursing M&A market. Most of the results will be featured in the June issue of The SeniorCare Investor, released later this week, but here are a couple of takeaways from it. First, we asked whether the threat of the minimum staffing mandate (as it currently stands) would impact buyer demand for SNFs. The majority, or 72%, said “somewhat” while 21% said “not at all.” Only 7% thought that there would be a significant impact. Posing the same question, but how lenders’ ability to lend for SNFs would be impacted, also saw the majority, or 64%, of respondents say “somewhat” and 14% believed it would have no impact.... Read More »
Marcus & Millichap Handles Sacramento Sale
After more than twenty years of ownership, a family owner/operator decided to sell its senior apartment community in Sacramento, California. The partnership chose to engage Rob Reis and Jon Holmquist of Marcus & Millichap to quietly market their property for sale. Built in 1971, the 103-unit community consists entirely of one-bedroom apartments. It is a hybrid between independent living and senior apartments, as the previous owner contracted in a meal service for two to three meals per day, and had a prep kitchen, not a full commercial kitchen. Common area amenities include a community room, game room, meal plan service and exercise classes. Plus, unit amenities include hardwood... Read More »Schedule a demo
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