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 »
The Prestige Group Facilitates Pennsylvania Sale
The Prestige Group announced the sale of an assisted living community in Allentown, Pennsylvania. Above & Beyond Senior Living comprises 40 beds on half of an acre. The community also offers both memory care and independent living units. Amenities include outdoor patios and gardens, common areas with TVs, and studio, one-bedroom and two-bedroom unit options. Joe Shallow of The Prestige Group handled the transaction. Read More »
Sabra Transitions 24 SNFs To Ensign & Avamere Portfolios
Sabra Health Care REIT is transitioning 24 previously leased properties to North American Health Care, Inc. to two existing tenants, The Ensign Group and the Avamere Family of Companies. With the agreement, Ensign added 20 properties in California to two master leases with initial terms of 18 and 20 years, respectively, and Ensign provided a corporate guarantee. Avamere will add four properties in Washington to its existing master lease with Sabra, which includes nine other properties in Washington, with an initial term of 13 years. The state recently increased its Medicaid rates by nearly 20%, and Avamere’s existing presence in the state could help them maximize revenue there going... Read More »
Brookdale Senior Living Has Mixed Results
On the surface, it looks like Brookdale Senior Living posted decent results for the third quarter. Weighted average occupancy for the quarter increased by 180 basis points sequentially to 76.4%, and by 390 basis points from the year-ago quarter. RevPar increased by 9.7% year over year, and contract labor plunged sequentially by over 40%. But, overall weighted average occupancy is still low at 76.4%, and to get to true profitability again, it needs to get to 85%, which is a long way to go. When looking at same-community results (which includes the vast majority of their communities), community operating expenses increased by 11.1% year over year, while revenue increased by 9.9%. That... Read More »
Welltower’s Third Quarter Results Improve
Three months ago, we reported that Welltower’s CEO, Shankh Mitra, seemed a little depressed on his second quarter earnings call. He was not happy with his portfolio’s performance. He is a little happier today with the third quarter performance, and so are investors, who sent the shares up 8% on the results and other news. Compared with a year ago, Welltower’s same-community SHOP portfolio has seen occupancy increase by 390 basis points, revenues increase by 10.6% and net operating income jump by 17.5%. Now, we are talking about coming from a bad place in the history of the portfolio, so we would expect to see good increases. On the negative side, same-community compensation expense... Read More »60 Seconds With Steve Monroe: ProMedica Exits Welltower’s SNF Joint Venture
Well, well, well. Three months ago, after reviewing Welltower’s second quarter earnings call, we questioned how long ProMedica Health’s board would continue to subsidize huge operating losses suffered by its subsidiary, ProMedica Senior Care, under its joint venture with Welltower. It turns out, not much longer. Both companies just announced that the 147 nursing facilities, formerly known as the HCR ManorCare portfolio, were being sold to a new joint venture between Welltower and Integra Health (or possibly Integra Healthcare Properties). Not to be confused with California-based Integral Senior Living with more than 100 communities, orIntegraCare with 18 communities in three states, or a... Read More »
Newmark Announces Arizona Portfolio Acquisition
Newmark kicked off November with a couple of closings, most notably selling the LivGenerations portfolio in Arizona. Located around the Phoenix market, the four properties feature 546 units of independent living, assisted living and memory care, with an average age of just five years. They include a 118-unit community in Gilbert that opened in 2014, a 137-unit community in Phoenix built in 2017, a 110-unit community in Scottsdale that opened in 2017 and a 181-unit community built near the Mayo Clinic hospital in Phoenix in 2021. LIVGenerations, which also develops market-rate apartment communities in Arizona and Michigan, was the seller. These four properties represented LIV’s entire... Read More »
Blueprint Facilitates Arizona Assisted Living Sale
Blueprint Healthcare Real Estate Advisors announced the sale of an assisted living community in Arizona. Built in 1987 as a hotel, the property was converted into an assisted living community in 2016. The community comprises 116 units and was operating at 70% occupancy, but it operated very profitably. The community also has a Medicaid behavioral health license. The 2016 converted community was sold to an Intermountain West private equity firm for a purchase price of $45 million or $271,000 per unit. Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate advisors handled the transaction on behalf of the regional developer/owner/operator. Read More »
Regional Owner Acquires Wisconsin AL Community
The Senior Living Investment Brokerage team of Daniel Geraghty and Ryan Saul sold an assisted living community in central Wisconsin for an undisclosed price. Built in the early-1990s, the community was 92% occupied at the time of marketing, but occupancy reached 100% by the time of the sale. Working on behalf of a Northeast-based REIT that deemed the property to be an operational outlier, as it was their only Wisconsin property, the SLIB team procured multiple offers from interested parties. With occupancy like that, we are not surprised. In the end, the buyer was a private regional company with additional assets in Wisconsin looking to strategically add to their portfolio. They have a... Read More »
Omega Healthcare Sells Two Florida Facilities
Omega Healthcare announced the sale of two Florida skilled nursing facilities in Miami and Jacksonville for a combined purchase price of $37.2 million. The facilities were sold to 1990 South Canal Dr LLC, based in Woodmere, Long Island, New York. The LLC is an affiliate of New York City based Topaz Financial Services. The two facilities are Brookwood Gardens of Homestead and Signature Healthcare of Jacksonville comprising a total of 180 beds. Omega had bought Brookwood in 2016 for $11.1 million and Signature Healthcare in 2010 for $4.8 million. Both sold facilities were operated by Louisville, Kentucky-based Signature HealthCare. Read More »Schedule a demo
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