Newmark Recapitalizes Tampa Bay-Area Community
Newmark arranged the recapitalization of Keystone Place at Terra Bella, a 140-unit seniors housing community in Land O’ Lakes, Florida (Tampa Bay area) between a partnership including Keystone Senior Living, Scarp Ridge Capital Partners, and global alternative investment firm Angelo Gordon. Opened in 2018 by Keystone Senior Living, the property features 62 independent living, 56 assisted living and 22 memory care units. The Class-A community located in a strong and growing market is benefiting from strong rental rates, and occupancy has improved significantly over the past year. Operating margins improved as well, a testament to the operator Keystone Senior Management Services, Inc. and... Read More »
Cascadia Healthcare Enters New Mexico Market
One newly opened transitional care facility in Las Cruces, New Mexico has already gone through multiple operator changes and now, with the help of Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors, an ownership change. Built in 2017, the state-of-the-art facility features 50 private units and is strategically located in a highly desirable medical corridor that includes three hospitals within a five-mile radius. A high-quality physical plant is no guarantee of operating success, however (just ask Mainstreet), and this facility struggled to make positive cash flow. It had recently undergone an operator transition and was approaching 80% occupancy at the onset of... Read More »
Popular Bank Adds to CRE Team
Popular Bank, a subsidiary of Popular, Inc., appointed Adam R. Bavifard to be Senior Relationship Manager in the bank’s Commercial Real Estate (CRE) Lending team. In his role, Mr. Bavifard will focus on growing the bank’s CRE business through expanding current customer relationships and bringing Popular’s product offerings to new customers. Based in New York, Mr. Bavifard joins Popular from M&T Bank, where he held several roles of increasing responsibility in their commercial bank, most recently managing multi-product portfolios totaling over $600 million in loan commitments with $150 million in deposits. Earlier in his career, Mr. Bavifard was with The Dak Group where he... Read More »
Foundry Commercial & Morgan Stanley Fund Make Major Acquisition
Foundry Commercial announced a major acquisition in the seniors housing market, nearly doubling its portfolio and adding another institutional partner in the process. The real estate investment firm teamed up with a fund managed by Morgan Stanley Real Estate Investing (the majority owner in this deal) to purchase 24 assisted living/memory care communities throughout the mid-Atlantic in addition to the portfolio’s operating company, Spring Arbor Senior Living. Multifamily developer HHHunt was the seller, which owned and operated the communities through Spring Arbor. The portfolio includes three communities in Maryland, nine in Virginia, and 12 in North Carolina, with 1,424 total units... Read More »
Small Oregon Facility Sells At High Price
An old-fashioned 40-bed intermediate care facility (ICF) with 16 residential care facility beds (assisted living) located in the Willamette Valley region in Portland, Oregon was just sold for $9.65 million, or $172,300 per bed ($253,900 per unit). The relatively high per-bed price has all to do with performance, despite an old age. The facility was originally built in 1955 with a renovation/addition in 2006. It has 29,000 square feet on 1.7 acres. Despite the pandemic, occupancy is a robust 98%, which we presume has been driving the financial performance. Based on three months annualized from September to November 2021, revenues and EBITDA were $6,053,500 and $983,300, respectively. That... Read More »
SLIB Closes on Montana Sale
Montana is not the most active acquisition market, but buyers still want to invest there. A regional owner/operator with just one community in Montana decided to exit the state, and hired Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage to handle the sale. Located in Butte, the community has 159 units with 164 licensed beds and was built in 1997 with 87,086 square feet on 11.26 acres. There are 42 independent living units, 102 assisted living units and 15 memory care units. Occupancy suffered in 2021 at 60%, which resulted in lower revenues and EBITDA than one would normally expect. For the first six months of 2021 annualized, revenues and EBITDA were... Read More »
Capital Funding Group Finances Another Acquisition
Capital Funding Group (CFG) announced the closing of a $10.57 million bridge-to-HUD loan for the acquisition of an 84-bed skilled nursing facility in Pittsgrove, New Jersey. Capital Funding Group Managing Director, Long-Term Care Tim Eberhardt and Senior Associate Ava Julio originated the transaction for the company. This announcement follows the recent closings of two deals: $17.2 million in bridge-to-HUD financing for the acquisition of two skilled nursing facilities in Arizona and a $11.26 million bridge loan for the acquisition of a 121-bed skilled nursing facility in Sacramento, California. Read More »
60 Seconds with Steve Monroe: Do We Really Have To Worry About A Recession?
We just can’t seem to get a break. Just as we are coming out of the pandemic morass with some decent census increases since March of 2021, now we have to worry about a looming recession and stagflation. Many people in the sector have only seen a growing economy in the past decade and inflation rates hovering between zero and 2%. Stagnation? Never heard of it, well, not for a few decades at least. As a result, we thought we would take a look at what happened to the senior care sector in the last major recession in 2008-2009, as well as the mini-recession in 2020, and see what exactly happened in our sector and what might happen this time around. What we concluded is that... Read More »
Illinois Memory Care Portfolio Transacts
Jeff Binder of Senior Living Investment Brokerage closed on the sale of a portfolio of small memory care communities in early May known as the Lavender Ridge portfolio. Located in Effingham, Jacksonville, Mt. Vernon and Olney, Illinois, all four communities are within a 150-mile radius of the St. Louis, Missouri metropolitan area. There are a total of 112 units (118 beds) that were built in 2009, 2010, 2013 and 2017. They average about 28 units each, and also average about 15,500 square feet per building. All but one of the communities have space to build a 14-unit wing, which the buyer just may consider given that occupancy averages 92%. Annualized revenues for the three months... Read More »
When Small Is Better
It is difficult to be nimble when you are large, and with so many headwinds, let’s take a look at Bloom Senior Living, a small operator in the Midwest and Southeast, and how it is faring. At the height of the pandemic, as in March 2021, when everyone was suffering from their lowest occupancy levels, Bloom was no exception when it dipped to 66.7%. The difference is in what happened in the next 15 months. By August 2021, census had increased by 830 basis points at its five communities and jumped another 500 basis points by the end of the year. As of May 1, 2022, census stood at 85%, a more than 1800-basis point increase since the bottom of the market. We have not seen that kind of... Read More »Schedule a demo
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