SLIB Sells Improving Seniors Housing Asset in Scottsdale
An independent owner based in southern California enlisted Senior Living Investment Brokerage in the divestment of a seniors housing community in Scottsdale, Arizona. The Springs of Scottsdale is a 143-unit independent and assisted living community, with 56 licensed AL beds and the remainder serving IL residents. Built in 1986, the community has undergone recent renovations in excess of $1.0 million. Occupancy was decent at 81%, and so was the margin at 20% on $4.86 million of revenues. But the seller had used multiple management companies over the past few years, so some stability there could help things going forward. Stability was ensured when the seller chose to sell the community to... Read More »
60 Seconds with Steve Monroe: Not So Merry This Year?
As many of you know, this time of year I often do my “Twas The Night Before Christmas” roast of senior participants in our industry, picking on either REITs, brokers, provider CEOs, or anyone else. Somehow, this year it just didn’t seem appropriate. They have been picked on enough, but not in jest like I try to do, even though some seem to take it a bit too personally. You shouldn’t. It seems the media, in particular The New York Times and The Washington Post, have decided to pick on the assisted living industry, maybe figuring nursing homes have already been through the media meat grinder, which they have. Last weekend, The Post came out with two articles blasting the assisted living... Read More »
National Developer/Investor Divests in Kentucky
In a pre-COVID, value-add portfolio transaction, a national developer/investor acquired over 12 geographically disparate, older-vintage communities. The combined impact of COVID and an unforeseen rise in interest rates prompted a strategic portfolio re-prioritization, rationalization and de-levering effort, leading to the divestment of a seniors housing community in Fort Mitchell, Kentucky, that was a geographic outlier and deemed non-core. Built in the late 1990s, the community comprises 95 units of assisted living and memory care. Although it was performing, it was not fully stable from an occupancy or margin perspective, necessitating capital enhancements to achieve its full potential. ... Read More »
G Capital Markets Secures HUD Refinancing
G Capital Markets arranged the permanent refinancing of a skilled nursing facility with an assisted living component in Plum City, Wisconsin. The facility was originally built in 1987 and was renovated in 2005, with an AL expansion built in 2014. In total the project operates 65 beds in 41 private and semi-private units, with 70% SNF beds and 30% AL. The facility has performed strongly with occupancy consistently over 80% and a high debt service coverage of 2.5x. A 232/223(f) HUD takeout loan was funded to pay off the balance of a term loan portfolio credit facility previously structured by G Capital founder Grant Goodman. The buyer is an owner/operator based in Nevada that manages and... Read More »
An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care is a deep dive into the 2024 investment landscape in the seniors housing and skilled nursing sectors. Gain valuable insights, market analysis and strategic guidance to seize opportunities and navigate potential challenges in the long-term care market. The panelists included: Ben Swett, Managing Editor, The SeniorCare Investor (moderator) Bryan J. Lockard, MRICS, Executive Managing Director, U.S Healthcare & Alternative Real Estate Lead, JLL Value and Risk Advisory Jason Punzel, Managing Director, SLIB Chris Hollister, Co-Founder, CEO and Chair, Pegasus Senior Living Austin Sacco, Managing... Read More »
Coastal California Community Finds New Owner
Location, location, location. A seniors housing community sitting on the oceanfront in San Clemente, California, found a new owner with the help of Brad Goodsell and Jason Punzel of Senior Living Investment Brokerage. The 140-unit assisted living/memory care community was built in 2002 and comprises 131,765 square feet on 3.3 acres. Some improvements could be made to maximize the property’s scenic location and customer appeal. Occupancy was 82% at the time of the sale. Its owner chose to divest with the ultimate goal of exiting the seniors housing space. The seller’s family had developed it and managed the property through the sale. A joint venture between a private equity group... Read More »
CIBC Bank USA Closes Cash-Out Refinance
CIBC Bank USA provided a financing package for an improving skilled nursing facility in Kansas. The package included a cash-out refinance that comprised $9 million at closing and a $3 million earn-out based on sustained financial performance over subsequent periods. CIBC also closed a $1.5 million capital expenditure, non-revolving line of credit and a $500,000 working capital revolving line of credit. Historical performance trended positively over the last year as the facility improved census and operating leverage. The operator will also remain in place. Going forward, occupancy is expected to be in the mid-80% range, with continued improvement in operating margins. CIBC’s Daniel Forrer... Read More »
SLIB Sells Emerald City
Senior Living Investment Brokerage was brought on by an out-of-state private equity group with a third-party operator to divest an assisted living/memory care community in Seattle, Washington. Emerald City was built in 2006, renovated in 2017, and comprises 119 units with 51% occupancy. There is also a 11,102-square-foot parking garage included in the deal. Looking to improve that occupancy and the value of the community will be a regional owner/operator that is expanding its Washington State portfolio. The purchase price was not disclosed. Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson handled the transaction. Read More »
Class-A, Stabilized Sarasota Property Sells
A new and full seniors housing community sold in southwest Florida, garnering multiple offers and bidding rounds. Built in 2019, Grand Living at Lakewood Ranch is a Class-A community with 172 units of independent living, assisted living and memory care in Sarasota. Occupancy reached 99% with a substantial waiting list. As such, the community boasted a strong operating margin, sometimes a rarity in today’s M&A marketing. Ryan Companies US led the selling joint venture, which ultimately chose an institutional core fund as the buyer. Joshua Jandris, Tom Falkenberg and Nick Hall of Walker & Dunlop’s Chicago Seniors Housing team handled the transaction. Read More »
60 Seconds with Swett: An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
Most are predicting similar conditions in the senior care M&A market next year, as compared with 2023, and that could be largely true with sustained high interest rates, operational and financial distress still out there and lower values. But taking advantage of the more subtle shifts in valuations, the lending environment, seller and listing profiles, acquisition strategies, distress and operational improvements could prime some for success in what should still be a difficult year. The decisions made in 2024 could also set the stage for many companies to excel in 2025 when M&A activity, new developments and valuations likely come storming back. We’ll be looking to the future... Read More »Schedule a demo
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