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 »Proveer Purchases Alabama AL/MC Portfolio
A publicly traded REIT divested a portfolio of three seniors housing communities in Alabama, hiring Brooks Blackmon and Kyle Hallion of Blueprint Healthcare Real Estate Advisors to handle the sale. Originally built in 1999 and 2000, the three communities feature 202 assisted living and memory care units. They are located across Alabama’s three largest metropolitan areas and attracted interest from several potential buyers in the Southeast. Texas-based Proveer Senior Living ended up as the purchaser, paying an undisclosed price to grow its existing footprint in Alabama. Proveer will undertake significant capital projects across the communities. Read More »
Hospital Acquires Alaska SNF
Bartlett Regional Hospital has announced the acquisition of a skilled nursing facility in Juneau, Alaska. The not-for-profit facility is Wildflower Court, which sits adjacent to the hospital and comprises 61 beds. Around the time of acquisition, it held an occupancy between 75% and 80%. Even Alaska isn’t too far to hide from skilled nursing staffing problems. The facility had struggled to hire and retain staff since spring of 2021. At one point, ownership had to close one wing of the nursing facility due to these shortages. Bartlett Regional Hospital also plans to take over the operations of Wildflower Court and use its scale to provide administrative support, better recruit staff and... Read More »
Colorado Community Changes Ownership
Colorado-based senior living owner/operator Ascent Living Communities (ALC) acquired Roaring Fork Senior Living in Glenwood Springs, Colorado. Built in 2016, the senior living community comprises 60 assisted living and 24 memory care units and is located just north of Aspen. ALC will serve as owner and operator of the property in a financial partnership with Dillin Corp, the original co-developer of the property. Roaring Fork is the largest assisted living community in a three-county region. The resort-like community encompasses 78,000 square feet and sits on the banks of the Roaring Fork River with panoramic views of the Rocky Mountains, including Mt. Sopris. Residents have their own... Read More »Arkansas Acquirer Buys Texas SNF Portfolio
A regional developer is exiting the skilled nursing industry and sold its second tranche of facilities in Texas, bringing its total divestment to 11 facilities across the Lone Star State. All told, the whole portfolio totaling 1,357 beds has sold for $90.8 million, or around $67,000 per bed. The second tranche included four skilled nursing facilities and 505 total beds in the Dallas-Fort Worth area. Helios Healthcare Advisors was engaged as the exclusive sell-side advisor to structure a transaction that dealt with the real estate being subject to a non-performing master lease with a regional operator. Boasting a new vintage and good locations in higher barrier-to-entry, affluent suburbs,... Read More »
Ziegler Arranges Distressed CCRC Sale in Illinois
Ziegler has announced its role in arranging the sale of a distressed CCRC in Mount Morris, Illinois, about 100 miles west of Chicago. Founded in 1893, Pinecrest Community is a Christian, not-for-profit continuing care retirement community affiliated with the Church of the Brethren. It has grown over the years to include active adult cottage homes, independent living apartments, assisted living, skilled nursing and a memory care center. It also features a large theater, public gym and retail spaces for the surrounding Mt. Morris community. However, the Board ultimately decided to sell the CCRC due to its financial instability. Struggling with both staffing shortages, pandemic expenses and... Read More »
Chartwell Divests Two More Long-Term Care Facilities
Chartwell Retirement Residences completed the sale of two long-term care facilities in British Columbia to AgeCare Health Services and a fund managed by Axium Infrastructure Inc. The deal included Malaspina Care Residence in Nanaimo (Vancouver Island) and Carlton Care Residence in Burnaby (outside of Vancouver), which total 264 long-term care beds. The value of the transaction came to C$112 million, or about US$81.9 million (US$310,000 per bed). In addition, the buyers assumed property specific debt of approximately C$26 million, with the balance paid in cash, approximately C$16 million of which was used to repay the remaining mortgage debt on the British Columbia properties. Chartwell... Read More »
Senior Housing Development Breaks Ground in California
A major seniors housing community is going forward in Orcutt, California, with an eye toward inter-generational living. Having just received approval from the Santa Barbara County Planning Commission, Ranch at Orcutt will comprise a 103-unit assisted living/memory care building, 48 independent living apartments, one single-story duplex and four two-story fourplex IL units. To combat ongoing labor concerns within the senior care industry, this development will include 20 employee dwelling units that could also be used as workforce housing. The 9.5-acre campus will also comprise a day care center for up to 36 children at a given time. The community is hoping to establish close relationships... Read More »
Brookdale Occupancy Stumbles
Last month’s capital raise caused Brookdale Senior Living’s shares to plunge 40%, and now November occupancy is on a downward path as well. Perhaps that is why they needed the new capital, and we are just barely in the flu season. Weighted average occupancy dropped by 20 basis points in November to 77.0%, and month-end census fell by a smaller 10 basis points to 78.1%. But month-end occupancy has now dropped two months in a row. These are small declines, but symptomatic of problems. The company needs some help. It has been offered in terms of refreshing the Board, but to no avail…. Perhaps it is time that Brookdale finally hires Second Act Financial Services to help its customers move... Read More »Schedule a demo
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