60 Seconds with Swett: Getting Realistic with New Development
The positive mood at the NIC Fall Conference was contagious, as dealmakers were looking forward to a potential record-breaking fourth quarter. We at LevinPro are also gearing up to cover a new elevated level of M&A activity and pricing in the coming months, with our updated valuation tool better accounting for today’s market and the estimated prices for higher-quality, better-performing properties. But one disappointment from the conference may have been the conversation surrounding new development, particularly building for the middle market. We don’t fault anyone for being constrained by the simple math of the cost to build and the rents needed to cover those costs. If anything, the... Read More »
NHC Responds to NHI
National Healthcare Corporation, the tenant of 32 of National Health Investor’s skilled nursing/senior care facilities and three independent living communities, is disputing NHI’s determination of default after the landlord formally notified the operator that it was in default and must cure the default within 30 days to avoid an Event of Default. NHI notified NHC on July 29 that it was not in compliance with four non-monetary provisions of the master lease and requested it come into compliance by August 29. On August 15, the tenant responded to the landlord stating it believes it was in compliance and requests clarifying information to address alleged potential... Read More »
REIT Acquires High-Quality Continuum of Care Community
Blueprint facilitated the sale of a Class-A seniors housing community in Jasper, Georgia. Built in 2022, The Lodge at Stephens Lake includes 83 units of independent living cottages, assisted living and memory care. It is adjacent to a large active adult development and benefits from significant planned residential and commercial growth. At the time of launch, the community was approaching 95% occupancy and generating annualized revenue of $4.7 million with EBITDAR margins of 30%+. Engaged by the original developer, Blueprint launched a 30-day marketing campaign that generated multiple initial round offers from both public and private investors. Following a competitive final round... Read More »
Legend Senior Living Adds Allentown-Area Asset
A Class-A, well performing property outside of Allentown, Pennsylvania, traded to a joint venture between Legend Senior Living and a new capital partner. Alex Florea and Kevin Lukehart of Blueprint handled the transaction. Legend had been operating The Vero at Bethlehem, which opened in July 2023 and stabilized within 18 months. At the time of marketing, the 124-unit assisted living/memory care asset achieved industry-leading occupancy and margins, which we would guess were in the high-90s and high-30s range, respectively. The builder of the project, KBE Building Corporation, listed Columbia Pacific Advisors as the developer. Given the community’s outstanding performance and trajectory,... Read More »
CFG’s Senior Care Financing Activity
Capital Funding Group financed more than $86 million across six transactions from early to mid-August. The transactions supported two memory care communities, four skilled nursing facilities, and one psychiatric hospital in Missouri, California, Tennessee, Texas and Virginia on behalf of nationally recognized borrowers, one of which is a returning client. First, CFG provided a $33.1 million senior loan for the refinancing of two memory care communities in Missouri and California, featuring 122 beds. Last year, CFG provided a mezzanine loan for the borrower to acquire the properties. Ken Assiran and Jake Walsh originated the deal. Next, the company provided a $10.9 million HUD loan for the... Read More »Spotlight on Senior Care M&A, Seventh Edition
The SeniorCare Investor is releasing a mid-year update of its key valuation statistics for the assisted living, independent living and skilled nursing sectors in its latest report: Spotlight on Senior Care M&A. Check out the average prices and cap rates, as well as analysis of industry headwinds and tailwinds. Read More »
PACS Gets Trading Period Extension
PACS Group is trying to right the ship as it works to restate its prior financial statements amid an investigation into its Medicare billing practices, and return to providing regular quarterly earnings statements. The New York Stock Exchange Listing Operations Committee did agree to provide PACS with an additional trading period through November 19, 2025, subject to its own ongoing review of the company. PACS is currently working to complete the previously announced restatement of its financial statements for the three months ended March 31, 2024, and the three and six months ended June 30, 2024. It has not submitted earnings reports since the second quarter of 2024. PACS provided a... Read More »
Outcome Healthcare Acquires Pennsylvania SNF
Evans Senior Investments facilitated the sale of Mahoning Valley Nursing & Rehabilitation Center, a 142-bed skilled nursing facility in Lehighton, Pennsylvania. The seller, an independent owner, faced increasing financial and operational pressures in today’s skilled nursing environment. The selected buyer was a regional operator with a growing presence in the state and will rebrand the facility as Mahoning Post Acute Nursing and Rehabilitation. According to Time News, Lakewood, New Jersey-based Outcome Healthcare was the buyer, and the seller was a mom & pop, Mike and Devon Mickey. The pair purchased the SNF in 1999 from Norman Berger, who had owned it since the... Read More »
Full Continuum Community Obtains Refinancing
CBRE National Senior Housing refinanced The Pointe at Meridian, a 100-unit seniors housing community in Meridian, Idaho. Built in 2022, The Pointe at Meridian consists of 60 independent living units, including 14 townhome units, 30 assisted living units and 10 memory care units. Grace Management took over management of the property in July 2024 on behalf of the owner, Gold Stream Retirement Communities LLC, a Utah-based real estate firm that specializes in the development, construction and management of commercial real estate, including single-family, multifamily and seniors housing properties. To refinance the community, Aron Will and Tim Root of CBRE National Senior Housing originated a... Read More »
Arizona Seniors Housing Development Secures Construction Financing
Fifty Stones Capital Group closed a $39.3 million construction loan for a seniors housing community in Chandler, Arizona. The proposed development comprises 147 units with 150 beds. The opportunity came to Fifty Stones Capital Group through a local broker. The sponsor, an experienced local developer with a focus on multifamily and senior care, had already invested over $4.2 million of their own capital. This included acquiring the land without any debt and completing horizontal site improvements, leaving the site shovel-ready for construction. The development is adjacent to the sponsor’s existing, profitable seniors housing community, creating operational synergies. Fifty Stones... Read More »Schedule a demo
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