Strawberry Fields REIT Buys Kentucky SNF
South Bend, Indiana-based Strawberry Fields REIT announced it has acquired a skilled nursing facility in Jackson, Kentucky. Built in 1971 and renovated in 2021, the Nim Henson Geriatric Center comprises 120 beds and sits on just under three acres in eastern Kentucky. It is the only SNF in Breathitt County and offers a range of services. In addition, it is situated close to the Kentucky River Medical Center, a small regional acute hospital. As part of the transaction, the facility was added to the Landmark master lease, joining a network of other Landmark SNFs and LTACHs operated by A&M Healthcare Investments in Kentucky, Texas, Oklahoma, Illinois, and Michigan. A&M has been a... Read More »
60 Seconds With Swett: Healthcare M&A Activity Broke a Record in 2022, Too
Last week, we confirmed that long-term care M&A activity hit a record in 2022, but what about for the healthcare market as a whole? Across all other healthcare sectors, from home health and hospitals to physician groups and biotech, our sister site LevinPro HC tracked nearly 2,400 deals in 2022, or 2,392 to be exact at this moment, but we expect that number to creep up in the coming days and weeks. That does not even include the over-500 long-term care deals, and represents an 8% increase over the previous record of 2,214 deals in 2021. For many investors, the long-term demographics, strong governmental support and attractive yields in the healthcare industry are too good to pass up,... Read More »
Brookdale Senior Living Reports December Occupancy
Sometimes no news is good news. After two straight months of declines, Brookdale SeniorLiving reported that December’s month-end occupancy remained flat with November at 78.1%.That can be considered good news since we are in the beginning of what could be a terrible fluand COVID season. In addition, weighted average occupancy remained flat from November to December at 77.0%,after dropping by 20 basis points in November. If they can hold the line for the next threemonths, the company could start to see some improvement in the second quarter. Weightedaverage occupancy peaked in October at 77.2%, while month-end occupancy peaked inSeptember at 78.4%. So far this year, after a dismal 2022,... Read More »
Two End-of-Year Deals from Blueprint
Blueprint Healthcare Real Estate Advisors announced a couple other late-2022 transactions in the Midwest. The first deal featured an active adult community in the Dayton, Ohio MSA selling to a private equity investor and operator that is looking to expand through an aggressive acquisition strategy. Built in the mid-2000s, the 40-unit community was nearly 100% occupied. It was previously owned by a regional owner/operator that had sold two nearby skilled nursing facilities at the end of 2021, one of which was adjacent to the active adult community. The same PE buyer had acquired those SNFs, and adding this community, plus a 12,000-square-foot office building and a 5.7-acre parcel, made... Read More »
SLIB Announces 150th Texas Transaction
To kick off 2023, Matthew Alley and Ryan Saul of Senior Living Investment Brokerage sold a 132-bed skilled nursing facility in Sherman, Texas, marking the 150th building that Mr. Alley and SLIB have sold in the Lone Star State across more than 16 years. They represented a private partnership based in Dallas in the deal. While a large share of SNFs were built 40 or more years ago, this facility was built in 2006. It currently operates with 115 beds and is 63% occupied. On a trailing-six-month basis, the facility was generating more than $60,000 in EBITDAR on $6.87 million of revenues. Any positive cash flow in the SNF sector should generate interest from buyers, and a Fort Worth-based... Read More »
Grandbridge Handles High-End CCRC Sale in Naples
A high-end CCRC in Naples, Florida in financial distress sold to Life Care Services in a deal handled by Grandbridge Real Estate Capital’s Senior Housing Investment Sales team led by Dave Kliewer and Jay Jordan. Opened in 2015 on 39 acres in the Lely Resort master-planned community of Naples, the community offers 47 independent living cottages, 128 IL units, 42 assisted living units, 37 memory care units and 44 skilled nursing units, with plenty of amenities. Entrance fees average around $950,000, which would certainly put the community on the high end of the Naples area. However, the community was in default on around $136.32 million of Series 2013 and 2015 bonds (as of June 1, 2022) plus... Read More »Live Oak Bank/Berkadia Close Utah Loan
Live Oak Bank closed a $16.3 million A/B unitranche loan for an owner/operator of skilled nursing facilities in Utah. Berkadia Commercial Mortgage’s Seniors Housing & Healthcare Group assisted in the process, too. The financing provided bridge-to-HUD debt for a 38-bed transitional care/skilled nursing facility that opened in 2019 and provides short-term rehabilitation services. The loan announcement comes after Live Oak Bank closed a $13 million loan to refinance a 94-unit assisted living/memory care community in Lawrenceville, Georgia. That property also opened in 2019 and was leasing up when the pandemic began. So, the loan allows for additional time to fill the community before a... Read More »
Lument Refinances Two Oklahoma SNFs
Lument closed $16.9 million in HUD financing for two skilled nursing facilities in Oklahoma. The two skilled nursing facilities combine for a total of 266 beds. One was built in 2006, with an addition completed in 2010, while the larger facility was built in 1953 and renovated in 1967, 1985 and 2018. Bill Wilson, managing director at Lument, arranged the loans, which were issued with 35-year amortizations and fixed interest rates. They replaced existing variable-rate, personally guaranteed commercial bank debt and also reimbursed nearly $2 million of the borrower’s previous capital expenditures. Read More »
LTC Properties Makes Large North Carolina Acquisition
LTC Properties announced an approximate $128 million investment in 12 assisted living/memory care communities with a combined 937 licensed beds in 568 units. Spread out in North Carolina, the communities are currently owned and operated by an existing LTC partner. The majority of LTC’s investment is structured as a joint venture to acquire 11 of the properties, and a minor portion totaling $11 million is structured as a senior mortgage loan secured by one property with a two-year term and interest-only rate of 7.25%, at an IRR of 9.0%. LTC has a 97% ownership in the $121 million joint venture with the current operator for the purchase of the 11 properties. The communities will be... Read More »
Newmark Sells Project Freedom Portfolio
In the waning days of 2022, the Newmark Seniors Housing Team sold a large assisted living portfolio in Pennsylvania and Michigan. Dubbed “Project Freedom,” the portfolio consists of eight communities and 744 private pay units, featuring a mix of assisted living and memory care. These communities are located in smaller submarkets and have an average age of approximately 20 years, which leaves room for some capital improvement projects for the new owner. Persimmon Ventures, LLC began acquiring the communities in 2016 after having built and sold a 10-facility skilled nursing portfolio over the previous eight years. Persimmon and its joint venture partner on the portfolio, Big Bay Ventures,... Read More »Schedule a demo
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