Refinancing Closed for American House St. Petersburg
First Citizens Bank’s Healthcare Finance team provided a loan to refinance American House St. Petersburg, a seniors housing community located in St. Petersburg, Florida. This 165-unit community is comprised of 66 independent living, 66 assisted living and 33 memory care units. Previously, Prevarian Senior Living bought a parcel near Tyrone Square Mall for $5.18 million. American House St. Petersburg was then later developed by Prevarian, Harrison Street and American House, one of the country’s largest owner/operators of senior living communities. The community is American House’s ninth senior living community in Florida and first in the Tampa Bay area. The community opened in 2021,... Read More »
New Class-A Seniors Housing Community Opens
Magnolia Bridge at Murrells Inlet, developed by Bourne Financial Group and operated by SRI Management, celebrated its grand opening in July after receiving its license to operate in June. Bourne is a real estate investment company specializing in seniors housing development, acquisitions, and asset management. SRI has independent living, assisted living and memory care communities throughout the Southeast. Magnolia Bridge is a Class-A community located in Murrells Inlet near Myrtle Beach, South Carolina, with 170 units of independent living, assisted living and memory care. The community stands four stories tall and is in close proximity to local boutiques. It has amenities such as... Read More »
Sabra Health Care REIT Stays in Good Shape
All we can say is that Sabra Health Care REIT is fortunate to have gotten out of its joint venture with TPG and the former Enlivant portfolio. TPG bought those assets at a very low per-unit price, and Sabra bought its 49% interest from them at a very high per-unit price, more than double TPG’s price. While we understood the need to diversify Sabra’s portfolio into more private pay seniors housing, these were not the right assets. But they were available at the time, and if it worked out Sabra had an option for the remaining 51%. Even without the pandemic, we do not believe the value would have climbed to merit buying the other 51%. The buildings were small, on the old side and were... Read More »
Chartwell Retirement Residences Sees Census Gains
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, serving more than 25,000 residents in four provinces, posted a net loss in the second quarter, but same-community occupancy increased by 180 basis points year over year to 79.2%. The operating margin at the facility level increased by 120 basis points year over year to 32.7%. The loss in the quarter was mostly due to higher finance costs, higher G&A expense and negative changes in fair values of financial instruments, so not the operations. It is interesting that of the large REITs with major operations in Canada, Ventas has the best occupancy rate at 94.3% in the second quarter, up 90 basis points year... Read More »
Private Investment Firm Buys Two Turnaround Assets
A Dallas-based private investment firm purchased a couple of seniors housing communities in Texas and Oklahoma. Both 1990s-built communities were losing nearly $1 million at the time of the sales, so they offered significant upside. The Carrollton, Texas, community was built in 1996 and renovated in both 2009 and 2016. In addition, it received a memory care expansion in 2014 and currently features 62 units. Occupancy was under 30%, and the community generated nearly $900,000 in revenues. Its private equity group seller with a regional seniors housing portfolio looked to divest the community. The buyer partnered with a local operator to take over management of the community. Matthew... Read More »
Spokane Active Adult Community Sells
Whispering Pines Apartments, a Class-A active adult community located in Spokane, Washington, was divested in the first quarter of 2023 in a 1031 exchange event. Built in 2016, the community has 31 units with long-term tenants and sits on two acres. According to the rent roll, in 2022, revenues were roughly $657,060. SVN Cornerstone’s Nate Gant and Guy Byrd were brought on to represent the seller, Whispering Pines LLC. Lee & Associates’ Levi Sterley represented the buyer, Seven Lakes Development, an investor/developer. The purchase price was $10.15 million, or approximately $327,400 per unit. Read More »
National Health Investors Sees Improvements
National Health Investors turned in a mixed second quarter but appears to see more tailwinds than headwinds as it approaches 2024. They are not out of the woods with some of their providers yet, and deferrals are still a bit of a problem, but census levels are rising, margins are increasing and they are seeing some coverage ratios increasing. Investors, however, focused on a slight decrease in earnings guidance for the rest of the year and rent deferrals, sending the share price down by 6.4% after the release. The REIT’s small SHOP portfolio (15 properties) posted a nice $200,000 increase in NOI from the first quarter to $2.1 million. The operating margin increased by 170 basis points from... Read More »
SLIB Arranges Two Southeast Deals
Two Senior Living Investment Brokerage teams sold a couple of senior care facilities in the Southeast. Jeff Binder and Nick Cacciabando first represented a local owner/operator in their exit from the skilled nursing industry by selling their 130-bed facility in Hollister, Missouri, near Branson. The facility was built in 1984 on top of a hill and offers views of Lake Taneycomo. It maintained consistent revenue and occupancy throughout the last three years, most recently (in 2022) generating about $6.45 million of revenue, with an 8% margin and 75% occupancy. Emerging from multiple offers, the eventual buyer was a Missouri-based owner/operator of skilled nursing facilities with one of... Read More »
Grandbridge Completes REIT’s Non-Core Portfolio Disposition
Grandbridge was brought on to sell three older seniors housing communities in Florida that were distressed: The Grande, Balmoral and Forest Oaks. The Grande is a 144-unit community in Brooksville with independent living, assisted living and memory care services, and Balmoral is a 125-unit AL/MC community in Lake Placid. Forest Oaks is an 80-unit AL/MC community in Spring Hill. The Grande and Balmoral sold in June to TJM Properties, a regional Florida-based owner/operator. In a separate transaction in August, Forest Oaks sold to a Florida-based buyer that was not disclosed. A national REIT sold the communities, and this sale completed its disposition of a portfolio that consisted of... Read More »
Ziegler Prices Ohio Living Bonds
Ziegler announced that it priced Ohio Living’s Series 2023 bonds to be used to refund existing bank debt, terminate an interest swap agreement, fund a debt service reserve fund and fund approximately $3 million of capital expenditures across the organization’s portfolio. The not-for-profit owns and operates 12 communities throughout Ohio, making it the second largest not-for-profit provider in the state. The bonds consist of tax-exempt fixed interest rate serial and term bonds with an 18-year final maturity. They feature a three-year interest only period with annual principal amortization starting in 2026. Ohio Living decided to utilize fixed interest rate bonds to refund a portion of its... Read More »Schedule a demo
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