New Tenant Secured for Large Midwest Portfolio
Evans Senior Investments secured a new tenant for a large portfolio of senior care assets in Illinois and Missouri. The portfolio consists of 13 skilled nursing and supportive living facilities, with more than 1,600 licensed beds. Its independent owner/operator was not ready to sell the assets and saw the advantages of leasing the portfolio to a third-party operator, with an added purchase option. A regional Midwest group secured the 10-year lease and purchase option, emerging from multiple other offers. They will have the opportunity to improve operations and add value. For the landlord, they can avoid capital gains taxes, secure passive income and alleviate in-place operating losses... Read More »
JLL Arranges Harrison Street/Artemis Recap
JLL Capital Markets arranged the successful recapitalization of Franklin Park Alamo Heights, a high-end seniors housing community in San Antonio, Texas, owned by Harrison Street and Franklin Park Senior Living. Artemis Real Estate Partners, the buyer, has retained Franklin Park as manager in a new joint venture. JLL also placed the acquisition financing with a Freddie Mac loan for the buyer. Franklin Park Alamo Heights was built in 2017 with 117 independent living, 64 assisted living and 40 memory care units. There are two four-story buildings housing the IL and AL units, respectively, plus a single-story memory care wing. The amenities include a grand ballroom, indoor pool, beauty salon,... Read More »
SLIB Handles Colorado Memory Care Deal
An experienced local owner/operator in the Colorado market looking to grow its portfolio in Denver acquired a small memory care community in Aurora. Renew Saddle Rock was built in 2015 with 40 respite care and memory care units. Occupancy was around 85% based on 52 functional beds (there are 64 licensed beds), and the community operated at a 12% margin on nearly $3.5 million of revenues. The new ownership group saw an opportunity to use its efficiencies and local knowledge to cut expenses and improve occupancy. An out-of-state private equity group was the previous owner and is now exiting the senior living space. They had hired Renew Senior Communities as the third-party manager.... Read More »
Ziegler Helps Finance Wisconsin Acquisition
Fresh off his sale of a stabilized seniors housing community in Fort Wayne, Indiana, Ziegler’s Nick Glaisner was joined by Dalton Esmond to arrange acquisition financing for a 72-unit assisted living/memory care community located in Footville, Wisconsin. St. Elizabeth Manor was built in 2009 on 7.07 acres. Occupancy was around 82%. The seller was a group of local real estate owners seeking to retire from the industry. They were represented by Jason Punzel, Ryan Saul and Brad Clousing of Senior Living Investment Brokerage. Ziegler helped Opal Senior Living source acquisition financing from a small, regional, Chicago-based bank. Opal partnered with a Florida-based equity group on the... Read More »
Marquee Capital Sells Community to Not-for-Profit
A not-for-profit organization emerged as the highest (and winning) bidder for a stabilized, high-quality assisted living community in Fort Wayne, Indiana, beating out several for-profit buyers in the process. We have not seen many deals with a not-for-profit buyer, but perhaps those that can build scale should do so to avoid the fate of so many not-for-profits that have exited in the last couple of years. Lutheran Life Villages, a local, faith-based organization that has served northeast Indiana for more than 90 years and operates five seniors housing communities across Fort Wayne and Kendallville, paid roughly $270,000 per unit for the property. Brightstar Senior Living Fort Wayne was... Read More »
Regional Operator Takes Over Struggling Senior Care Campus
Eads Investment Brokerage represented a regional not-for-profit in the sale of its skilled nursing and independent living campus in Southern Illinois. The primarily SNF campus consists of 167 beds and units (156 SNF beds and 11 IL units). Despite occupancy falling under 70%, revenues exceeded $10.5 million and were trending positively. The campus was operating near breakeven prior to the pandemic, and ownership recently began to mitigate their losses, which stood at more than $1 million per year. So, a sale would help stabilize its portfolio and add some needed liquidity to further the mission in other communities. While the campus also offered assisted living, that standalone (and well... Read More »
PE Group Acquires CT Seniors Housing Community
Toby Siefert and Dave Balow of Senior Living Investment Brokerage headed to Torrington, Connecticut, to sell a 68-unit assisted living/memory care community owned by one of the largest New England-based operators. With the sale, the owner was able to realize its investment horizon on the asset. The Cottage at Litchfield Hills was built in 1998 and features 39 assisted living and 29 memory care units. It maintained high occupancy levels and above market rents, helped by key demographic growth in the Torrington market. A growing Northeast-based private equity group seeking to grow its footprint into the Connecticut market paid an undisclosed sum for the community. Read More »
JLL Finances Active Adult Development
The United Group of Companies is building a new active adult community in Worcester, Massachusetts, thanks to bank financing arranged by JLL Capital Markets. The Arbella at Bramble Hill will include 123 units across three elevator-serviced buildings, with one- and two-bedroom units and an 8,500-square-foot clubhouse. UW Senior, LLC, an affiliate of United Group of Companies, borrowed $35 million in construction financing from Washington Trust. The property is owned by Premier Property Group LLC of Dracut, which bought it in 2018 for $820,000. Read More »
60 Seconds with Swett: U.S. Senior Care Deal Activity Surpasses 400 Deals
Across U.S. senior care M&A activity, we have surpassed 400 transactions in the first 11 months of the year, hitting 402. That is more than 15% down from the 476 transactions recorded in the first 11 months of 2022, but we are not sure many would have predicted the market even exceeding 400 deals. Of course, deals will continue to trickle in from the previous months, and December could yield its usual rush of closings, but we would be lucky to reach 450 deals on the year, far below 2022’s U.S. total of 517 deals. However, believe it or not, 2023’s estimated annual deal count of, let’s conservatively call it 440 deals publicly announced in the U.S., would be a very healthy number,... Read More »
Newmark Handles Half-Billion-Dollar Portfolio Sale
The seniors housing and care market has largely been missing out on large portfolio deals in 2023, because few sellers want to take a substantive portfolio to market when buyers are constrained by the capital markets on the prices they can afford to pay. However, the team at Newmark including Ryan Maconachy, Chad Lavender, Sarah Anderson, Mills Poynor, Ben McElroy and Brittany Robinson successfully sold a portfolio of 12 seniors housing communities for approximately $500 million, or $277,000 per unit. Located in seven states (Virginia, Massachusetts, Missouri, North Carolina, New Jersey, South Carolina and Texas), the portfolio consists of 1,809 total units, with independent living,... Read More »Schedule a demo
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