Blueprint Handles Two Skilled Nursing Portfolio Deals
Blueprint Healthcare Real Estate Advisors announced its involvement in a couple of skilled nursing sales involving a total of nine properties. The larger deal featured seven facilities in the state of Texas, which after a competitive bidding process sold to a regional owner/operator with an extensive operating footprint in the state and an upcoming 1031 exchange event. Geographically clustered in central and east Texas, the facilities were built in 1969, on average, and had a total of 564 beds. Before the pandemic, they boasted a strong operation with consolidated total revenues and EBITDAR inclusive of QIPP income exceeding $20.7 million and $2.5 million, respectively, in 2019. In... Read More »
Evans Sells SNF in the Land of Enchantment
A West Coast-based group entered the state of New Mexico with the acquisition of a 101-bed skilled nursing facility in the rural northwestern part of the state. Despite its rural location, the facility had a strong operation, with occupancy improving from 83% during the marketing process to 95% upon closing. In addition, a strong Medicaid rate increase implemented in July 2022 helped boost cash flow. Evans Senior Investments represented the seller, a Southwest regional operator, in the transaction. Showing off the potential for expense savings, Evans sold the asset for $16.5 million, or $163,400 per bed. Read More »
Bourne Financial Group Acquires Two Senior Living Communities
Bourne Financial Group acquired a pair of senior living communities in Santa Monica, California, for $13 million, or $265,300 per unit. Bella Mar and Ocean Villa were originally developed as hotels in the 1950s but converted to senior living in the 1970s. In addition, the properties were both renovated in 2014. Bella Mar has 20 units of memory care, and Ocean Villa has 29 units of assisted living. Occupancy was around 60% across the communities. Revenues reached $3.2 million, but the pair operated around breakeven. H2C represented the seller, Meridian Senior Living, in the transaction. Read More »
300 Seconds with Steve Monroe: Silverado, COVID and Lawsuits
I have been uncharacteristically quiet about the news last month from the People’s Republic of California, or should I say, from Comrade DA George Gascon of Los Angeles. No more. I am referring, of course, to the criminal charges against Silverado, its CEO Loren Shook, Kimberly Butrum, SVP of clinical services, and Jason Russo, the administrator at the Silverado Alzheimer’s facility where there was a major COVID outbreak in early 2020. The trio faces a total of 13 felony counts of elder endangerment and five felony counts of violation causing death. The company itself also faces charges. What we know is that a retired physician flew in from New York City to Los Angeles late on March... Read More »
Brookdale: Has The Long-Awaited Turnaround Begun?
Late on April 10, Brookdale Senior Living reported its March occupancy results, and disclosed that preliminarily, the first quarter financial results looked to be better than originally forecast. The market pounced on the news that first quarter adjusted EBITDA would be “meaningfully” above previously issued guidance. Revenue was higher than expected while expenses were in line with fourth quarter expenses, meaning little inflationary cost pressures. The share price surged by more than 30%. Finally, some good news. Let’s hope this is not merely a case of under-promising and overperforming, because if the second quarter does not come in better, then what investors giveth they and taketh... Read More »
First AlerisLife, And Now Diversified Healthcare Trust
Just weeks after AlerisLife was taken private in what we would call a bit of an inside deal, the REIT that owns most of its assets, Diversified Healthcare Trust (DHC), is being merged into Office Properties Income Trust (OPI), an office REIT with current tenant retention of about 50%. You know what they say when you have two lemons, time to make some lemonade. A little sugar may have to be added to make this one sweet enough. DHC had fallen on hard times, with a market cap of just under $300 million and a quarterly dividend of just one penny per share. Oh, and the share price had a range of $0.61 to $2.98 per share in the last 12 months, but had been over $8.00 per share in March 2020. In... Read More »
Eskaton’s Exit from Standalone SNFs
Not-for-profit senior living organization Eskaton announced that it was exiting its only standalone skilled nursing assets, totaling three properties in the Sacramento, California area. The facilities were Eskaton Care Center Manzanita, Eskaton Care Center Greenhaven and Eskaton Care Center Fair Oaks, which are selling for a combined $35.64 million, or $90,000 per bed. Built in the late-1970s and early 1980s, the portfolio totaled 396 beds and generated more than $42 million in 2022 revenues, according to a notice filed for the California Attorney General. However, occupancy was around 70% across the facilities, and each reported large operational losses in 2022. Eskaton employees were... Read More »
Walker & Dunlop Wraps Up Q1 with Six Transactions
With the first quarter wrapped up, Walker & Dunlop announced six closings totaling 13 assets located across the country. The largest deal was handled by Gideon Orion on behalf of a publicly traded REIT client. The five-facility skilled nursing portfolio is located in the Mid-Atlantic region and consisted of nearly 770 beds. A national owner/operator bought the properties for over $200,000 per bed at a cap rate of approximately 7% on in-place EBITDAR. Another portfolio sold, this time including three Class-A memory care communities in the Phoenix, Arizona MSA. Totaling 196 units and 258 beds, the properties were built from 2012 to 2016. A regional owner/operator bought them for an... Read More »
REIT Divests Struggling South Carolina SNF
A publicly traded REIT sold its 170-bed skilled nursing facility in Beaufort, South Carolina, for an undisclosed price. Brooks Blackmon, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors handled the transaction. Built in several phases beginning in 1969, the facility features mostly semi-private rooms. Prior to the pandemic, it had generated positive cash flows with occupancies exceeding 90%, but operations were significantly impacted by census and staffing headwinds as a result of the pandemic, thereby generating millions of dollars in operating losses. Blueprint was hired to run a confidential marketing process on a separate SNF that the REIT owned in... Read More »
Eads Investment Brokerage Closes Two Transactions in Missouri
Eads Investment Brokerage, a brand-new boutique seniors housing & long-term care brokerage firm led by Patrick Byrne, formerly of Senior Living Investment Brokerage, has closed $44.5 million in transactions in the past five months. Two recent closings totaled $13.5 million between the two. One included the sale of a not-for-profit CCRC in Concordia, Missouri, and the sale of a member interest in a 475-bed skilled nursing portfolio in eastern Missouri. Starting with the CCRC deal, the 200+ bed/unit campus sponsored by a Lutheran organization has been serving the local community for over 50 years. However, the pandemic took a toll on its operations, and some much-needed capital repairs... Read More »Schedule a demo
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