Ventas Continues To Improve
We are rounding out the first quarter earnings announcements, and like most everyone else, Ventas posted improved results, especially in its SHOP portfolio. And like everyone else, we are sure management would have liked to see a faster pace with the improvements. We can probably be criticized for focusing so much on census improvement over the now-25 months since the bottom of the market, but census is a good indicator for the health of the industry, as well as the demand for seniors housing units in an environment when supply is at its slowest growth point in years. With new supply constrained because of construction costs and a financing market contraction, combined with the beginning... Read More »
Blueprint Sells in San Angelo
A publicly traded REIT sold its cash-flowing, 30-unit assisted living/memory care community in San Angelo, Texas, hiring Amy Sitzman, Giancarlo Riso and Michael Segal of Blueprint Healthcare Real Estate Advisors to handle the sale. Built in 2012, the community consists of two adjacent standalone buildings, in addition to excess land for expansion with a lot size of 2.82 acres. It was the newest seniors housing community in town, and the community historically performed well with occupancy exceeding 85% in 2019, while generating cash flows of $1.5 million at a 34% margin in the same period. After experiencing an occupancy disruption in 2021 from weather-related damages, the community... Read More »
Dwight Capital Announces Latest Activity
Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, financed over $118.35 million in seniors and healthcare financing during the first quarter of 2023. Among those transactions, Dwight closed a $31.2 million HUD refinance for Riverfront Rehabilitation and Healthcare Center, a 180-bed skilled nursing facility in Pennsauken, New Jersey. The SNF features a beauty salon, gym, lounges, landscaped outdoor spaces and waterfront views. The HUD loan refinanced an existing bridge loan that was provided by Dwight Mortgage Trust in June 2022. Managing Director of Healthcare Finance, Adam Offman, originated this transaction. Some other notable transactions from the quarter included a $40... Read More »
60 Seconds with Steve Monroe: Out of Touch With SNF Reality
Is the Biden Administration so out of touch with reality that they would actually shove a mandate down the throats of providers to require additional staffing in our nation’s nursing homes? Don’t answer that. Although we have heard that they are “talking” with the industry about how and what to do, let’s hope it is more frequently than they have talked with Republicans about the debt ceiling problem. Some sort of pronouncement on the staffing mandate is now expected in June, but it would be better to wait and have a workable way to move forward than to set the industry up for failure. Unfortunately, there are too many people who would like to see the entire industry go out of... Read More »
Is Brookdale Senior Living On The Move?
Brookdale Senior Living has had its share of ups and downs since coming out of the pandemic bottom in March of 2021. Other than sequential occupancy, the first quarter was its best financial performance in a while. Same-community revenue was up year over year by 13.1% and sequentially by 8.4%, labor expense was down 1.2% year over year and down sequentially by 0.6%, and while sequential occupancy was down by 80 basis points in the notoriously bad first quarter for providers, it was up 310 basis points year over year. It could have been a lot worse. More importantly, same-community adjusted operating income was up 50.3% year over year and up 35.4% sequentially. And operating... Read More »
Evans Facilitates CareTrust REIT’s Georgia Acquisition
An older skilled nursing facility that recently underwent a major renovation sold to CareTrust REIT in a deal valued at $12 million, or $81,000 per bed. Located about 40 miles south of Atlanta, Georgia, in the town of Spalding, the 148-bed facility was originally built in 1968 and was recently put on the special focus facility list. A recent renovation modernized the amenities, which added to the facility’s appeal and helped boost occupancy. At the time of marketing, it was around 95% occupied, and according to CareTrust’s press release, the facility is expected to generate first-year annual cash rent of $1.17 million. A regional owner/operator hired Evans Senior Investments to... Read More »
Blueprint Sells South Florida AL Community
Blueprint Healthcare Real Estate Advisors sold a 54-unit assisted living community located in between Boca Raton and Fort Lauderdale, Florida. Brooks Blackmon and Lauren Nagle were engaged by a regional owner/operator to run a confidential marketing process of the property, which was positioned as an opportunity for an incoming investor with regional expertise to bolster their Florida footprint, implement a strong business plan, and capitalize on economies of scale. A local-owner operator emerged from two other offers to buy the community for an undisclosed price. Read More »
BWE Refinances Newly Built AL/MC Community
Bellwether Enterprise Real Estate Capital (BWE), a national mortgage banking company, closed the refinance of a newly-built assisted living/memory care community in Levittown, New York. Taylor Mokris and Ryan Stoll of BWE originated the $26.66 million loan through a regional bank on behalf of the borrower, a regional developer and owner of seniors and affordable housing. Opened in November 2020, Village Green features both assisted living and memory care options. It was around 80% occupied at the time of the transaction. With the time to refinance approaching, the BWE Seniors Housing and Care team ran a competitive process to source multiple bank quotes on behalf of their client.... Read More »
Sabra Health Care REIT’s First Quarter
The big news in Sabra Health Care REIT’s first quarter report was that effective May 1, they are completely out of the 49% joint venture with the Enlivant portfolio that encompasses 154 assisted living communities. The J/V had been in default on the portfolio’s debt, and since there was no recourse to Sabra, it was time to cut the cord. Sabra’s investment had been written down to zero a while ago, so there was no financial impact with the decision. The J/V agreement contained a provision that allowed either partner to walk after a certain period of time. While we understood the original rationale to make this investment to diversify from its skilled nursing portfolio, the price... Read More »
Ziegler’s Advanced Pricing Saved Millions
Not many borrowers are refinancing their debt in today’s high-interest rate environment, but if you made the decision to forward price in January of 2022, you were in a great position. That is what Ziegler did for Presbyterian Retirement Communities, which is part of Westminster Communities of Florida, the largest operator of CCRCs in Florida and the 11th largest not-for-profit in the country. Ziegler forward priced $142.6 million of tax-exempt bonds in January 2022 for delivery in May 2023. The bonds have a weighted average maturity of 17 years and an overall yield to maturity of 3.35%. It is doubtful they could achieve any rate close to that today. The total savings on the refinance will... Read More »Schedule a demo
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