JLL Helps Finance Land Acquisition
The seniors housing construction market has slowed, but plenty of projects are still being planned and opened across the country. Recently, JLL Capital Markets arranged $16.275 million in acquisition financing for two land sites totaling 12.73 acres for the development of seniors housing communities in Livermore and Soquel, California. The developer, Calson Management, secured $10.5 million and $5.775 million one-year, fixed-rate loans through Barnett Capital Limited. The first site totals nine acres in Livermore and will be developed into a 128-unit assisted living/memory care community. On-site amenities will include designated dining rooms, a hobby room, spa/salon, movie theater,... Read More »
Del Webb Expanding Its 55+ Portfolio
Active adult is attracting a lot of attention from developers and investors these days, but one of the pioneering companies in the sector is continuing to add to its own portfolio. Last month, Del Webb announced the groundbreaking of a new community, Del Webb Southern Harmony, in Murfreesboro, Tennessee, which will feature around 1,100 single-family homes and an abundance of amenities. Now, the company is opening a new active adult community in North Fort Myers, with at least 900 homes. Called Del Webb Oak Creek, the gated community will offer single-family homes in dozens of designs ranging from 1,405 to just more than 3,000 square feet of living space with two to four bedrooms, two to... Read More »
Not-For-Profit Exits Ohio Senior Care Campus
Ryan Saul of Senior Living Investment Brokerage recently sold a senior care campus in Mason, Ohio. Built in 1997, the community features 105 assisted living and independent living units along with 162 skilled nursing beds. It was originally a faith-based, not-for-profit community independently owned and operated by the Jewish Home of Cincinnati. But in 2018, another not-for-profit, Indiana Senior Housing Health Care Properties, Inc., stepped in to buy the community for an undisclosed price. They hired CarDon & Associates to operate the community and pledged to continue providing Jewish programs and services to its residents. The plan for the new owners was to grow their Ohio... Read More »
Lument Refinances South Carolina Construction Loan
Lease-up did not go according to plan for an assisted living/memory care community that opened during the pandemic in Charleston, South Carolina, but ownership was able to refinance its construction debt with the help of Lument. Kevin Oakley and Steve McGee led the closing, which included a $24.5 million bridge loan placed with a national bank. It came with a floating interest rate, five-year term, 25-year amortization and 18 months of interest only. The capital structure also included an $11.5 million mezzanine loan from an asset management firm. A regional owner/operator with a large portfolio in the Southeast was the borrower. With its construction loan approaching maturity, they... Read More »
60 Seconds with Swett: Can SNFs Survive the Medicare Cut?
The dreaded day has come. On April 11th, CMS issued a proposed rule to update its Medicare payment policies and rates which would lower Medicare Part A payments to SNFs by approximately $320 million in FY 2023 compared with FY 2022. This is all the result of CMS’ October 1, 2019 rule change called the Patient Driven Payment Model, or PDPM. In a nutshell, the case mix classification model was supposed to more accurately compensate SNFs for the high-acuity, medically complex patients they already cared for. However, it was also supposed to be budget neutral, which it was not. CMS estimated there was an unintended increase in payments of about 5%, or $1.7 billion in FY 2020. The... Read More »
Brookdale Ends Quarter With A Census Boost
The entire seniors housing industry seems to be clawing back its occupancy losses, even during the perennial lackluster first quarter. Brookdale Senior Living ended the first quarter on a high note (it is all relative, we suppose), with its highest occupancy level since the bottom was hit a year ago, reaching 75.0% at the end of March 2022. This was also the highest month-end occupancy since September 2020. For comparison purposes, it was 82.2% at the end of March 2020. So, bucking the historical trend of first quarter gloom, month-end occupancy in the first quarter 2022 actually increased from December by 50 basis points, even though weighted average occupancy was flat from December to... Read More »
SLIB Handles Upstate New York AL Sale
A small owner/operator added to its upstate New York holdings with the acquisition of a 29-unit assisted living community in the town of Randolph, in between Buffalo and Erie. The buyer, Willow Ridge Senior Living, already owns a small adult home in Albany and an 89-unit assisted living/memory care community in Wellsville that it acquired in August 2021 for $8 million, or $89,900 per unit, at a 7% cap rate. The principal for Willow Ridge is Mike Morris, a former Brookdale Senior Living and Holiday Retirement executive that is now building his own portfolio. The Randolph property was originally built in the 1880s but was converted to assisted living in 1992, with an expansion in 2003.... Read More »
Family Operator Exits SNF Business in Arkansas
Smaller owner/operators are continuing to exit the skilled nursing market, and it’s no wonder considering the increased complexity of the sector, rising labor costs and stagnant Medicaid rates. As such, another family operator looking to retire sold its facility in Brinkley, Arkansas with the help of Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage. The same family has owned and operated the 116-bed facility since its inception in 1962. Called Cla-Cliff Nursing and Rehabilitation Center, it is situated in between Little Rock and Memphis, along I-40. Occupancy was 44%, so the new regional owner will look to use its expanding footprint to help improve operations.... Read More »
Greystone Arranges Refinance and Construction Financing
Greystone placed a total of $140 million in financing for both the refinancing and expansion of a large seniors housing community in Scottsdale, Arizona that is owned by Senior Resource Group. Greystone’s Senior Housing Capital Markets Team, led by Cary Tremper and Matt Miller, arranged the financing from a national bank on behalf of SRG. Phase I of the luxury senior living community, Maravilla Scottsdale, opened in 2012 with 217 units of independent living, assisted living and memory care. It was fully stabilized and has received numerous awards and recognitions. Phase II of Maravilla Scottsdale is a planned 193-unit independent living community on the same parcel as Phase I that will... Read More »
Meridian’s Momentum Continues into Q1
Meridian Capital Group’s Senior Housing and Healthcare team closed nearly $1 billion in transaction volume in the first quarter of 2022 for 97 properties in 19 states, following a record year in 2021 where they closed more than $5.5 billion in transaction volume. Ari Adlerstein and Josh Simpson led the team, which included Matt Lesnik, Jesse Rauch, Rafi Sod, David Gottlieb, Jacob Scott and Yuval Hananya. The largest transaction was a $100 million acquisition loan provided by a commercial bank and mezzanine lender for seven skilled nursing facilities comprising 848 beds in Florida. There were several other acquisition loans, including an $80.3 million loan from a finance company for the... Read More »Schedule a demo
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