Blueprint Finds Tenant (and Buyer) in Large SNF Portfolio Deal
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors were tasked with finding a new tenant for a portfolio of 12 skilled nursing facilities in Utah that were under contract to be sold. Their owner, a Utah-based owner/operator, was in the process of executing on a strategic firm-wide recapitalization, hence the portfolio sale, which included a total of 1,275 licensed beds. Blueprint launched a strategic process on behalf of its long-standing client that resulted in the identification of a Nevada-based operator which had strong interest in leasing the portfolio from the future buyer. Read More »
60 Seconds with Steve Monroe: Here I Go Again
Ziegler recently came out with its quarterly analysis of the CCRC market (LPC for the not-for-profit world, but we still prefer to use CCRC), and once again, their performance is rocking. Ziegler uses statistics provided by NIC MAP. CCRC occupancy far exceeds assisted living and independent living communities on average, and not-for-profit CCRCs are performing better than for-profits. In the fourth quarter of 2022, occupancy at NFP CCRCs averaged 88.2%, while for profits were 84.3%. Not bad, right? CCRCs in general performed better during the pandemic than other senior living property types partly because their residents tend to be healthier. This makes sense. Two months ago, I toured a... Read More »
Hamister Group Acquires Fully Stabilized Memory Care Community
We have not seen many stabilized seniors housing deals close in the last several months, since most owners of these properties would rather collect the cash flow or rent instead of exiting in a higher-cap-rate environment. Other owners of these properties could see the latest interest rate increase by the Fed as a sign that we will be in this higher-rate environment for longer, and see the cost of holding onto the asset for another 18 months or two years as too expensive for their taste. One possible advantage of selling now is the scarcity of stabilized assets on the market, meaning one could still command a high price for their community. Arbor Terrace Fairfax in Chantilly, Virginia, was... Read More »
Institutional Owner Sells Three Vacant Seniors Housing Communities
An institutional owner divested a portfolio of three seniors housing communities in Florida and Ohio after closing them down in 2022 due to unsustainable operational losses. All were 1990s-vintage communities combining for 179 total units. The buildings also required a good amount of capex to reopen. There were three separate buyers that emerged to buy the communities, including a seniors housing, a behavioral health and a multifamily investor. The future of these communities is also varied, from seniors housing to behavioral. Originally engaged in December 2022, the Blueprint Healthcare Real Estate Advisors team of Kyle Hallion, Andrew Sfreddo, Ryan Kelly and Gunnar Raney closed... Read More »
Partnership Acquires Active Adult Community Near Orlando
Virtus Real Estate Capital and Blaze Capital Partners partnered to acquire The Pointe at Siena Ridge, a 163-unit active adult community in Davenport, Florida, a suburb southwest of Orlando. Built in 2021, the community features a mix of one- and two-bedroom units that range in size from 753 to 1,046 square feet. Blaze Capital Partners has made three other acquisitions in the active adult space in the last five months, including Hardy Springs in the Paulding County submarket of Atlanta, Annabelle on Main in the Duluth submarket of Atlanta, and Sage Stone Oak in San Antonio, Texas. However, The Pointe at Siena Ridge is Blaze’s first active adult investment in Florida. Blaze’s partner... Read More »
Cardinal Senior Management Expands Its Midwest Portfolio
The team at Newmark represented a family owner in their sale of Byron Center Manor, a 102-unit senior living community in Grand Rapids, Michigan. With the sale, the family exited the industry, except for a piece of seller financing that they provided on the deal. The Cook Family built the community in stages over the years, opening the independent living portion in 1989, followed by the assisted living in 1992 and the memory care unit in 2003. In the last several years, the community operated at around breakeven, with nearly $5.5 million of in-place revenues at the time of marketing. Occupancy was 90%, but a new owner could trim expenses to help make the community profitable going forward.... Read More »
High-Quality SNF Sold by Blueprint
Jacob Gehl of Blueprint Healthcare Real Estate Advisors landed in Roswell, New Mexico to sell a 52-bed skilled nursing facility to a private owner/operator based in Los Angeles. Built in 1965, Sunset Villa Care Center has been well maintained over the years and boasted an impressive operation. At the time of marketing, the facility was generating revenues of approximately $6 million with a high operating margin and a quality mix of more than 40%. It is helped by being located in a growing submarket near two regional acute care hospitals. Its owner was looking to maximize proceeds and ensure a smooth operational transition, both of which were accomplished. The final purchase price was not... Read More »
Bloom Senior Living/Kandu Capital Shifts Focus to Seniors Housing
Bloom Senior Living has overseen a tremendous occupancy recovery across its seniors housing assets, which we profiled last week, and its family office owner Kandu Capital have decided to focus on that sector while divesting their remaining legacy skilled nursing and mental health/psychiatric facilities located throughout California. The sales included a 255-bed skilled nursing/special treatment program facility in Santa Ana, the leasehold in an 80-bed mental health rehabilitation center in Mission Viejo, and a 45-bed skilled nursing/special treatment program facility in Los Angeles. The collective purchase price was $70.7 million on initial investments of approximately $9 million.... Read More »
More Trouble Brewing in Credit Markets
We had all heard that the first half of this year was going to see a spike in loan defaults, forced sales of properties and other signs of financial distress in the seniors housing and care sector. But we are not sure many people thought there would be one this big. We are talking about the TPG Real Estate and Sabra Health Care REIT joint venture involving 157 assisted living communities in 18 states operated by Enlivant, which is the former Assisted Living Concepts. This was not a great portfolio to begin with, and it consists of mostly small and older properties in secondary markets. Sabra purchased a 49% interest in the portfolio in January 2018, paying a hefty price to help the... Read More »
Some Good News For A Change
There has not been much good news out there, whether on the financing front, the deal volume front, or the census front. But some operators are actually kicking some butt these days, specifically Bloom Senior Living. When the pandemic began, this small operator had an average 83% occupancy across its portfolio of independent living, assisted living and memory care units. One year later it had plunged by 1,600 basis points to 67% and bottomed out in March 2021, like so many other providers. Just 12 months later, however, and not like many others, it had gained back 1,300 basis points to reach 80% in March 2022. Not quite to pre-COVID levels, but certainly a lot better than many other... Read More »Schedule a demo
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