Two Class-A Communities Sell around D.C.
The Newmark Seniors Housing team facilitated the sale and equity raise for two Class-A seniors housing communities in the Washington, D.C. metro area. They worked on behalf of the sellers, Harrison Street and Palomino Capital, a middle market investment bank. Thrive Senior Living had developed the communities in the late-2010s to include 140 units, each. Built in 2019, Tribute at Melford comprises 104 assisted living and 36 memory care units in Bowie, Maryland. While Tribute at The Glen was built in 2017 with 96 assisted living and 44 memory care units in Woodbridge, Virginia. Cogir had taken over operations at both locations in recent years. We heard that the properties were... Read More »
Seven Properties Sell in Missouri
Eads Investment Brokerage facilitated the sale of seven seniors housing communities in and around Saint Louis, Missouri. Patrick Byrne, who has sold 23 communities in Missouri since 2022, handled the transaction. First, Eads represented a regional owner/operator downsizing to focus on its core markets in the sale of a 96-bed skilled nursing facility with a mostly Medicaid census in Saint Peters. It was operating well and sold for approximately $5.4 million, or $63,000 per bed. Turnover at key leadership positions largely accounted for post-pandemic census and regulatory challenges. The facility averaged 73% census in 2023, producing $5.5 million in revenues, and it was trending... Read More »
SLIB Closes in Jacksonville
Senior Living Investment Brokerage closed the sale of Rosecastle of Deerwood, a memory care community in Jacksonville, Florida. Built in 2015, the community was originally designed as stand-alone memory care with 60 units, back when that care type was all the rage to build. But due to slower-than-expected lease-up, the operator decided to convert 20 of the units into assisted living. The operations improved significantly throughout the marketing process. SLIB’s Brad Clousing and Daniel Geraghty worked with the seller, a seniors housing and healthcare-focused REIT, to procure multiple offers. Ultimately, a Florida-based owner in a 1031 exchange was selected as the buyer, for an undisclosed... Read More »
Flatirons Divests in Colorado
Benchmark Commercial Real Estate was brought on by Flatirons Health Development, LLC. in its divestment of a skilled nursing facility in Colorado. The facility was previously operated by Axiom Healthcare Services. This was its only managed facility in Colorado, with all others in Kansas. The buyer is a local owner/operator that intends to occupy the building with a use compatible with the existing configuration. Built in 2016 by Neenan Archistruction, Flatirons Health and Rehabilitation features 48 beds. It comprises 43,391 square feet and sits on 2.6 acres in Louisville. The property sold for $9.85 million, or $205,000 per bed. Marketing began in 2023 during the difficult capital markets... Read More »
Two SNFs Secure Bridge-To-HUD Debt
Capital Funding Group announced the execution of $16.25 million in bridge-to-HUD financing for the acquisition of two Utah skilled nursing facilities totaling 220 beds. The buyer is nationally recognized, and this marks its entrance into the state. Tommy Dillon originated the transaction. The financing follows CFG’s announcement of the closing of a $12 million bridge loan for a Florida skilled nursing facility comprising 109 beds. The buyer is converting it to a drug and alcohol rehabilitation facility. Read More »
The Pennant Group Purchases in Utah
A national developer/investor engaged Blueprint to create an exit strategy to maximize value for more than a dozen geographically disparate, older-vintage communities. These communities were purchased in a sizable portfolio transaction pre-pandemic under a value-add thesis with the intent to invest in renovations and repositioning. However, cumulative headwinds from the pandemic and rising interest rates drove a portfolio re-prioritization, rationalization and ultimate de-levering effort. Built in 1999 and 2000, the portfolio consisted of two Utah seniors housing communities: a 113-unit AL/MC community in Salt Lake City and a 75-unit AL/MC community in Saint George. Performance varied... Read More »
SNF Sold through Lease-To-Purchase Agreement
Montgomery Intermediary Group closed on a lease-to-purchase agreement of a skilled nursing facility with 60 beds in Missouri. Built in 1961 and expanded in the 1980s, the facility was owned by Blue Sky Basin, which is still actively looking to grow in the sector but deemed this facility a geographical outlier and chose to sell. Anew Healthcare, an expanding owner/operator based in the Kansas City area that is looking to grow its footprint in western Missouri, was selected as the buyer in the lease-to-purchase structure. Andrew Montgomery handled the transaction. Read More »
Bravo Capital Closes Quick Financing
Taking flexibility to another level, Bravo Capital, a privately held lender with a national presence, closed a $13 million loan for Green Hill Senior Living and Rehabilitation just seven days from signing the term sheet to funding. The first mortgage was arranged through Bravo’s “most agile” vehicle, Bravo Mezz Fund, but terms were not disclosed. Located in West Orange, New Jersey, Green Hill consists of a 77-bed skilled nursing facility and a 40-bed assisted living/memory care community. Green Hill started as the Society for Relief of the Respectable Aged Women in Newark in 1866 before the organization moved to West Orange into the Green’s Hotel building in 1965. The campus was losing... Read More »
60 Seconds with Swett: Private Equity Ownership in Health Care
We have long been tired of the often-inaccurate claims of “private equity’s takeover of the nursing home industry” and the too-simplistic or misleading correlations between PE ownership and quality of care. Of course there are never any mentions of the need for SNF owners to make a profit or the benefits of fresh capital injections into the industry and into aging physical plants. We have also written several times that, according to our data, PE firms have only been the buyers in about 5% of SNF deals, a share that has actually shrunk in the last couple of years. Seniors housing was higher, above 10% of acquisitions, but a study done by our sister site LevinPro HC shows that several... Read More »
Not-For-Profit Expands Texas Footprint
Buckner Retirement Services, Inc., a not-for-profit senior living provider, acquired a CCRC in Texas. This will be the seventh senior living community owned/operated by Buckner in the state. The seller, Lifespace Communities Inc., acquired the community in 2019 and has operated it since. Lifespace was focused on finding a buyer with similar values. The Stayton at Museum Way is an 11-story CCRC in Fort Worth. It comprises 188 independent living, 46 skilled nursing, 42 assisted living and 20 memory care units. The anticipated closing is June 2024, however, it may occur as soon as late April. The transaction is subject to regulatory approvals and customary closing conditions. The transaction... Read More »Schedule a demo
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