Diversified Healthcare Trust Still Has Problems
One thing that we still don’t understand about Diversified Healthcare Trust is why they seem to like making comparisons to 2019, whether year-to-date comparisons or, in the case of August 2023, comparing to August 2019. Are they trying to make shareholders feel bad, or are they trying to shame their providers, primarily Five Star/Aleris? Very, very few companies have come close to meeting 2019’s results, and when they do it is with census, not NOI or margins. For the month of August 2023, total SHOP occupancy was 79.3%, up 30 basis points from July and up 240 basis points since January. These increases seem similar to the industry at large. Net operating income declined slightly in August,... Read More »
A Community For The Future?
Back in June, newly formed Senior Living Transformation Company (SLTC), in a joint venture with Omega Healthcare Investors, purchased a 114-unit senior living community in Brentwood, Tennessee for about $11 million, or $96,500 per unit. They consider that to be a distressed price for the roughly 25-year-old building, and they plan to invest a few million dollars into the property over the next several years. SLTC is led by Arnie Whitman, Chip Gabriel, Corey Bennett and Joelle Poe. But the acquisition is not the real story. The community, to be called Senior Living Transformation Center, will be an incubator of sorts to try to create an environment that will be the future of seniors... Read More »
Confluent & MorningStar Team Up on Development
Confluent Senior Living and MorningStar Senior Living entered into an exclusive negotiating agreement with the City of Tustin, California, to lead the development of MorningStar at Tustin Legacy. The Orange County community will feature 145 independent living, 60 assisted living and 28 memory care units. There will be several four- or five-story buildings, surrounded by 29 single-story independent living cottages. The community is being built on the former Marine Corps Air Station in Tustin, and is located within the 1,600-acre planned community of Tustin Legacy. Confluent and MorningStar expect to break ground on the project in the first half of 2025 through a public-private partnership... Read More »
H2C Securities Refinances Quality Life Services
H2C Securities Inc., a healthcare-focused strategic advisory and investment banking firm, served as the exclusive advisor to Quality Life Services in obtaining a bridge loan to refinance the debt associated with the company’s portfolio of 10 skilled nursing and senior living properties. Quality Life Services’ existing lenders were reducing their exposure to the long-term care sector, requiring the company to refinance its outstanding debt. Working with H2C to evaluate a range of options, the company ultimately elected to execute a bridge-to-HUD loan for the properties, allowing it to retain control and prepare to secure lower cost long-term financing via HUD in the future. Read More »
Inspired Healthcare Capital’s $41 Million Acquisition
A Class-A, well performing seniors housing community in North Haven, Connecticut, sold for $41.1 million, or around $330,000 per unit. The seller, Columbia Pacific Advisors, capitalized on an opportunistic disposition to lock in returns and return capital to investors early in its fund’s life. Built in 2019, The Landing of North Haven features more than 120 units of assisted living and memory care on an 11-acre campus. Lease-up was solid through the pandemic, as were rates and margin, highlighting the advantages of Class-A buildings in good locations during the pandemic recovery and ensuing inflation. So, as occupancy approached stabilization, there was meaningful cash flow and a... Read More »
Blueprint Handles Florence County Deal
Kyle Hallion, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors were brought on by a repeat institutional owner/operator client to sell Florence Place, a 61-unit assisted living/memory care community in Florence, South Carolina, that was built in 1999. The seller decided to divest at the start of 2023, following the implementation of in-house and street rate increases that resulted in double-digit revenue growth over the prior year. Blueprint targeted both individual regional and portfolio-specific buyers. A Southeast-based owner/operator was selected to acquire the community, raising sufficient equity to close the transaction with all cash at the originally... Read More »
CFG Arranges Senior and Mezz Debt
A portfolio of senior care facilities in the Pacific Northwest received a debt package consisting of a mezzanine and senior loan. Capital Funding Group first helped the client place senior debt which totaled $78.46 million. Then, CFG closed a $13.84 million mezzanine loan, which supported the refinancing of eleven skilled nursing facilities and one assisted living community. The total financing package amounted to $93.31 million. The facilities are located in Washington, Idaho, and Oregon, and consist of over 1,554 beds. The financing was closed on behalf of a nationally recognized borrower. Capital Funding Group Managing Director, Real Estate Finance Tim Eberhardt and Senior Associate Ava... Read More »
JLL Secures Financing for CA Community
JLL Capital Markets announced that it secured $43.24 million in financing for an 86-unit assisted living/memory care community, Varenita of Westlake, on behalf of Westlake Senior Living Center. Alanna Ellis and Ace Sudah of JLL handled this transaction, which amounts to $502,000 per unit for the debt. Varenita of Westlake is a Class-A community in Thousand Oaks, California, with 58 assisted living and 28 memory care units and amenities such as a spa, salon, movie theater and a fitness center with physical and occupational therapy. It spans 77,096 square feet with predominantly one-bedroom units as well as some studios and two-bedroom units. Read More »
60 Seconds with Swett: SNFs Get a Bad Grade
It was unfortunate, but unsurprising, to see that in a recent Gallup poll, a plurality of those surveyed gave SNFs either a D or an F grade on overall quality of care. We say unsurprising not because we agree with that for the majority of facilities, although there are certainly those guilty of providing subpar care, but because of the general negative perception the public has on SNFs. Cases of bad care will always spread in the media and by word-of-mouth faster than the many instances of good care, and only 9% of respondents gave SNFs either B (good) or A (excellent) grades in the survey. That is not good, but let’s face it, the skilled nursing business is also a thankless... Read More »
Lument Refinances SanStone Senior Care Portfolio
Lument closed several financings for SanStone Health & Rehabilitation, which operates 18 skilled nursing/rehab facilities across North Carolina. The debt was secured on three properties that SanStone had acquired in 2020, thanks to bridge financing also arranged by Lument. Those three facilities were Wilkes Health & Rehabilitation, a 97-unit, 130-bed skilled nursing facility in North Wilkesboro, Hickory Falls Health & Rehabilitation, a 70-unit, 120-bed SNF in Granite Falls, and Wilkes Assisted Living, a 102-unit assisted living community in Wilkesboro. The original acquisition debt also included funds for repairs and the opportunity to recapitalize once performance and value... Read More »Schedule a demo
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