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 »
Memory Care Coming Back
Stand-alone memory care communities were much maligned several years ago, partly because too many of them were built, and partly just because you said you were a memory care operator didn’t mean that you knew what you were doing (we can just see Loren Shook nodding in agreement). Exactly two years ago, at the initial height of the pandemic, a group of investors bought a small memory care community in Clinton, Connecticut with the goal of holding it for a short period of time, investing capex and stabilizing it through the pandemic. It looks like they succeeded. Dave Balow of Senior Living Investment Brokerage just sold this 48-unit community for $7.1 million, or about $148,000... Read More »
Ziegler Arranges $35.25 Million In Acquisition Financing
Hill Valley Healthcare acquired a rental CCRC located in Farmville, Virginia, and the $35.25 million in acquisition financing was arranged by Christopher Utz, Managing Director of Ziegler. The Woodland has 60 independent living units, 85 assisted living units and 120 skilled nursing beds. The financing comes to $133,000 per unit/bed. Based in Flushing, New York, Hill Valley Healthcare has been active on the acquisition front, having acquired three senior care facilities in Virginia in 2021, and a three-property portfolio of two SNFs and one assisted living community in 2019. This current acquisition expands their presence in the Virginia market to 10 properties and 20 overall, with other... Read More »
Senior Care Realty Handles Owner Exit in Wisconsin
Bob Richards of Senior Care Realty arranged an owner’s exit from the seniors housing business with the sale of his last assisted living community in Wisconsin. Located in Kenosha, the community was originally built in 1925 but was kept up over the years. It features 86 private units and mostly drew from a lower acuity, veteran population. Occupancy was strong at 96%, and the owner was able to control expenses extremely well, as the community operated at a 46% margin pre-pandemic (and stayed close to there through the pandemic) on around $2.38 million of revenues. The private individual seller originally entered the senior care business in 2012 with a three-community portfolio... Read More »
Integral Senior Living Assumes New Management Contracts
Integral Senior Living announced that effective May 1 it has assumed the management of four assisted living and memory care communities in Utah (3) and Nevada (1). Under the Escalante brand, they are owned by MedCore Partners, a Dallas-based real estate firm that is dedicated entirely to serving the health care industry. The properties are not new and were previously managed by Elegance. In-house capabilities include brokerage advisory services, development, construction management, finance and investments, and health care research and analytics. In 2016, MedCore launched its senior living division with the objective of developing full-service senior living communities in strategic... Read More »
San Luis Obispo County Community Sells
Sherman & Roylance announced the sale of a small assisted living/memory care community poised for growth in San Luis Obispo County, California. Totaling 33 units, the community has a strong historical revenue base and was fully stabilized. As such, there was a shovel-ready project with a Major Use Permit, pre-approved plans and entitlements for a new 52-unit community on a 2.56-acre lot. After a healthy bidding process, a private owner/operator offering the best combination of price, terms and execution probability was selected. And in the end, Sherman & Roylance was involved in every step of the transaction, from the buyer’s due diligence to the transition between the... Read More »
D.A. Davidson Adds Senior Living Experts
D.A. Davidson Companies, an employee-owned financial services firm, made clear its intentions in the seniors housing industry with the announcement that it added four senior living-focused individuals to its Fixed Income Capital Markets Group. Previously leading the Senior Living practice at Piper Sandler, the team includes Richard (Rick) Lohr as managing director and head of Senior Living and Structured Housing, Amy Hayman and Romy McCarthy as managing directors and Ogieva Guobadia, CFA joins as senior vice president. Together, they have experience closing over 250 financings representing in excess of $10 billion for senior living and structured housing clients. Their clients have... Read More »
60 Seconds with Swett: Occupancy Optimism in the Seniors Housing Market
When we did our analysis of NIC MAP census data in late 2020, we discovered that from 2009 to 2020, there was only one year when the assisted living sector did not report a Q1 decline in average occupancy. That was in 2012, when census stayed flat. Not only that, every year after 2012 reported a Q2 decline as well. All this showed us that the road to recovery for the seniors housing market would be long following the pandemic, and much longer than most optimistic predictions at the time. Last year’s first quarter continued the trend, as the industry bottomed out and most public providers hit their lows too. Although, vaccines had only just started being distributed to seniors, and there... Read More »Schedule a demo
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