60 Seconds With Steve Monroe: Sonida Senior Living, One Step Forward, But…
In the November issue of The SeniorCare Investor, we raised the question of how long Sonida Senior Living could go with its cash burn rate. Well, the burn rate has decreased, which is good, but they are still not out of the woods. In a case of one step forward, two steps back, weighted average occupancy increased year over year by 270 basis points and by 50 basis points sequentially to 83.7% in the third quarter. Slower than we would want to see, but decent. The problem is that the same-community net operating margin declined by 140 basis points year over year and 100 basis points sequentially to 19.6%. And, RevPOR was up only 2.9% year over year to $3,682. That is not good enough.... Read More »
Ziegler Facilitates Minnesota Transaction
Nick Glaisner at Ziegler sold a senior living community just south of Minneapolis, Minnesota for an undisclosed price. Built in the late 2000s and originally conceived as a multifamily community, the Wisconsin-based family office seller converted it to senior living and opened with 105 units of independent living, assisted living and memory care. All units were licensed for assisted living, and the rural community catered to a middle market population. It was 81% occupied at the time of marketing and operated at a decent margin in the mid-20s, which was improving throughout the sale process. That improvement helped portray future performance after some rent increases and operational... Read More »
Hillview Group Sells Florida SNF
Hillview Group has announced the sale of a Florida skilled nursing facility. After previously acquiring The Signature Healthcare Center of Waterford in 2019 from The Arba Group for a purchase price of $29.31 million, or $137,000 per bed, Hillview has now sold the asset for $43.16 million, or $200,900 per bed. Built in 1986, the skilled nursing facility comprises 214 beds and 65,000 square feet on two acres in Hialeah Gardens, Florida (Miami MSA). The buyers of the skilled nursing facility are Waterford Propco LLC, Waterford TIC 1 DM Member LLC and five other entities with similar names. Andrew Bronfield of Miami-based Venture Services, Bent Philipson of New York-based Philosophy Care... Read More »
VIUM Capital’s Productive October
VIUM Capital announced it has closed four transactions totaling more than $250 million to kick off an active fourth quarter. In Indiana, VIUM kicked off October by closing a $136.8 million acquisition loan for a skilled nursing portfolio comprising 1,470 beds across 17 facilities. The purpose of the bridge was to acquire the real estate associated with these facilities and immediately refinance as many of the loans as possible to HUD. Most of the buildings are stabilized with a strong credit tenant and manager in place, so they stand a good chance. VIUM closed another acquisition loan totaling $16.34 million for a 64-unit assisted living community in Michigan. There was an initial $4... Read More »
Blueprint handling the sale of four senior care communities
Blueprint Healthcare Real Estate Advisors represented a public REIT in the sale of two skilled nursing facilities in the Atlanta, Georgia area. The sale is part of a larger portfolio with staggered closings. Totaling 333 licensed beds, the two facilities are located in the affluent suburbs of Buckhead and Marietta near two regional hospitals and other referral sources. Despite the labor challenges impacting the local market and the current state of the economy, the facilities maintained a steadily improving census and revenue coming out of the pandemic. As we have seen in the SNF market all year, Blueprint received a slew of competitive offers resulting in the selection of an East... Read More »
MedCore Partners Expands Houston-Area Senior Living Community
Active adult development activity continues at a steady pace. MedCore Partners announced the construction of the second phase of its senior living project in Cypress, Texas (Houston MSA), along with a new partner, ACRON USA. Opened in 2018 with the help of The National Realty Group, Phase I of Spring Cypress Senior Living includes 80 units of assisted living and memory care, but Phase II will include 138 new active adult and independent living units. The new units will consist of apartments, cottages and townhomes, plus a 12-unit expansion of the existing memory care portion. MedCore is partnering with Orcutt Winslow for architectural and engineering services, Faulkner Design Group for... Read More »
Lument Advises SNF Sale in Pennsylvania
Lument Securities announced the sale of a Philadelphia-area nonprofit skilled nursing facility. Built in 1973 and renovated with a $3.5 million renovation in 2016, Saunders House comprises 180 beds and sits on 5 acres in Wynnewood, Pennsylvania. The nonprofit used the proceeds from the sale to fund a foundation that supports seniors housing and healthcare providers whose residents may lack financial resources. Laca Wong-Hammond and Dominic Porretta of Lument Securities handled the transaction. Read More »
New Jersey Buyer Plans MC Conversion for PA Personal Care Home
A small personal care home in Allentown, Pennsylvania, will transition to 100% memory care after a New Jersey-based operator acquired the community for $2.25 million, or $112,500 per unit. The purchase included an adjacent home that was used by the community for various purposes, which pushed the final price up in the end. Built in 1948 and expanded in 2002, the community had around 19 residents at the time of marketing, with monthly rents ranging between $1,800 and $2,500. It operated at a healthy margin around 28%, but new ownership saw an opportunity to convert the community to 100% memory care and command rents closer to $4,000 per month. Some cosmetic renovations will also be... Read More »
Berkadia Closes Seven Financings
Berkadia announced $177 million in financings across seven deals, with Bianca Andujo, Ed Williams, Jay Healy, Rafael Nobo and Chris Cain working on the transactions. There were four HUD loans, the largest being a $62 million arranged by Mr. Williams for a senior living community in Portland, Oregon. At 70% loan-to-value, the financing retired a Berkadia-arranged 232/223(a)(7) loan from 2021 and a surplus cash note provided by Berkadia’s Proprietary Lending Group. Mr. Williams also secured a $13.65 million loan for a 100-unit assisted living/memory care community in Arizona that qualified for reduced seasoning and refinanced a cash-out loan originated in late 2021. The cash-out loan... Read More »
Sabra Putting Enlivant Stake On Sale This Year
Sabra Health Care REIT’s CEO Rick Matros announced in the company’s third quarter earnings call that its 49% stake in the Enlivant joint venture with TPG Real Estate, the real estate platform of TPG, would start to be marketed for sale by the end of 2022. The news comes more than a year after the company evaluated the JV and determined that the carrying value exceeded the estimated fair value of its investment, and that the decline was not temporary. Things have not gotten significantly better since the evaluation, with occupancy at around 75% and 76%, according to Mr. Matros. On approximately $237 million of revenues for the nine months ended September 2022, the portfolio also registered... Read More »Schedule a demo
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