A Ventas-Priority Life Care Turnaround Success
We all know that seniors housing census has pretty much increased across the board since the bottom was hit in March 2021, nearly two years ago. But the pace of that increase has been slowing. A case in point is Brookdale Senior Living’s stall in October and November, and we have not even hit the worst flu months yet, and this one is supposed to be a doozy. Late last year, after Ventas removed the operator for its Eclipse Senior Living portfolio (the former Elmcroft Senior Living portfolio) and basically shut down the management company, the REIT dispersed the management of the roughly 90 communities in 20 states across eight other operators. Maybe some old-fashioned TLC from smaller... Read More »
Ziegler Closes North Carolina CCRC Expansion Financing
Ziegler announced the closing of $58.1 million in bond financing for a CCRC in North Carolina. Built in 1983, Twin Lakes community is a not-for-profit CCRC that comprises 434 independent living units, 36 assisted living units, 32 memory care assisted living units and 104 health care units on 215 acres of land in the town of Elon. After being renovated in 2019 with the construction and replacement of the skilled nursing facility, Twin Lakes is now planning a 48-unit independent living expansion known as the Stockton Apartment Building. The project will be financed with Series 2022A bonds issued through the North Carolina Medical Care Commission that are structured in two tranches. First was... Read More »
Walker & Dunlop Refinances Wisconsin AL Community
Walker & Dunlop arranged a $14.7 million HUD loan to refinance Reena Senior Living, an 80-unit assisted living/memory care community in Fort Atkinson, Wisconsin (between Madison and Milwaukee). The community consists of a three-story assisted living building that was built in 2016 and a one-story memory care addition that was built in 2019. Kevin Giusti and Matthew Lund of Walker & Dunlop arranged the loan on behalf of the borrower, Tukka Properties, a Wisconsin-based senior living developer that has partnered with Lifesprk Senior Living, which acquired Tealwood Senior Living in 2021. Read More »
Charter Senior Living Will Operate High-End Miami Community
An upscale independent living community in the Westchester neighborhood of Miami, Florida, is set to open its doors in the new year, Miami-based commercial real estate owners and developers AJP Ventures and Mas Group, in addition to equity partner OCTA, completed construction of The Contemporary, which features one- and two-bedroom units on a six-acre campus. Charter Senior Living will operate it upon opening. Located on the same campus is MedSquare Place, a medical office building also in development by the two developers. Read More »Spotlight on Senior Care M&A
The seniors housing and care industry has witnessed incredible growth so far in the 21st century, surviving the Great Recession and the COVID-19 pandemic among other bumps along the way. Despite the headwinds, investors continue to pour money into the space in search of higher returns and to capitalize on demographic trends. But post-pandemic, where did valuations settle across the senior care sectors and why? Check out the just-published special report, Spotlight on Senior Care M&A to see the latest M&A stats and market analysis. Read More Read More »
JLL Handles Two Divestments for Public REIT
Working on behalf of a publicly traded REIT, Mike Garbers and Cody Tremper of JLL Capital Markets handled the sale of four assisted living/memory care communities across two transactions. The first deal, which closed in October, involved two communities both built in 2000 in affluent Atlanta submarkets. Totaling around 135 assisted living and memory care units, the communities were occupied in the high-70s but were losing money. The undisclosed buyer will replace the current management company with two separate operators. There was no disclosed purchase price. Second, Garbers and Tremper sold two AL/MC communities in the Houston, Texas area on behalf of a publicly traded REIT. This time,... Read More »
Blueprint Facilitates Stand-Alone Memory Care Sale in Oklahoma
Blueprint Healthcare Real Estate Advisors announced the sale of a stand-alone memory care community in Oklahoma City, Oklahoma, on behalf of a national private equity seller. Built in 2010, Town Village Retirement Community comprises 38 units and had always had strong historical occupancy but was negatively impacted by the pandemic. However, it has since been in the early stages of a performance rebound. The community was positioned as a value-add opportunity for buyers to capitalize on the scarcity of stand-alone memory care competitors to build a more high-end offering through a targeted capital improvement plan and the conversion of semi-private units. After receiving multiple... Read More »
Two Assisted Living Communities Sell in Florida
The DeMarco Real Estate Group of RE/MAX 5 Star Realty has announced the sale of two assisted living communities for $12.1 million in the state of Florida. The two communities comprise a total of 131 beds and reside in the greater Miami area in the towns of Margate and Davie. The communities specialize in memory care and operate under the name Caring Village. The seller of the communities was PrivCap Cos, who ultimately sold the assets to a private investment group from New York. At the time of sale the communities held an occupancy of 71% and sold at a 2% cap rate. The Margate asset was previously sold in 2020 for a purchase price of $7 million. However, that sale did not include the... Read More »
Latest Seniors Housing Development Activity
We have tracked multiple seniors housing projects announcing their groundbreakings across the country this past week. In East Chicago, funding for a $51 million affordable seniors housing development has been secured by several investors. Lakeshore Manor will comprise 206 units across two separate four-story buildings. DTM Real Estate will develop the new affordable seniors housing project, which will replace the 1972-built John B. Nicosia Senior Housing high-rise that stood nine stories tall for the past 50 years. In a separate development, we have learned that the 2,200-acre, 3,500-home development along Lake Travis, just outside of Austin, Texas will include seniors housing units. The... Read More »60 Seconds With Swett: The Rising Insurance Costs in Senior Care
Senior care facilities are not catching a break. Labor costs have soared, even when not accounting for staffing agency costs, and won’t come back down. Occupancy is slowly recovering, but a long winter and a bad flu season will set the sector back. Food and other supply costs are high. Plus, inflation, higher interest rates, a weaker housing market and potential recession all make it harder for seniors to afford senior care services and certainly to cover another year of 8-12% rental rate increases necessary for communities to even maintain their operating margins. But another thorn in the sector’s side has been insurance costs, both property and liability, which are rising and eating into... Read More »Schedule a demo
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