Foundry Commercial Acquires White Springs Senior Living
White Springs Senior Living, a 90-unit assisted living/memory care community built in 2020 in Warrenton, Virginia, was acquired by Foundry Commercial, marking Foundry’s 30th senior living community purchased since its establishment in 2020. Spring Arbor Senior Living, Foundry’s in-house seniors housing operating company, will manage the community going forward. White Springs Senior Living is the newest community in the operator’s portfolio. Acquisition financing was arranged by Capital Funding Group, but no other details were disclosed. Read More »
Evans Senior Investments Sells Colorado SNF
Evans Senior Investments was brought on by an independent owner/operator to arrange the sale of a skilled nursing facility that was built in 1968 and is in Fort Collins, Colorado. The seller owned and operated the facility for about 20 years, with it as their only SNF. Like so many other independent owner/operators, they were impacted by the difficulties of today’s operating environment as well as a lack of economies of scale. Making the decision to exit the long-term care industry, the owner/operator divested. There was a competitive marketing process, and at the time of marketing, occupancy was 68%. The facility was generating over $7.5 million in annual revenue, with a loss of over... Read More »
Brookdale Senior Living Projects Growth
Brookdale Senior Living released its second quarter 2023 earnings and seemed to gush with optimism. But remember the old saying, under promise and over perform. While there was some positive news in the quarter, they still have a long way to go. The first big news was that Adjusted EBITDA increased by 60.5% over the year-ago-quarter to $81.4 million. The bad news was that this was an 8% decline from the first quarter when it was $88.6 million. Revenues increased year over year by 10.9% while facility operating expenses increased by only 3.4%. In this inflationary environment that is quite good. The company is now cash flow positive after lease and interest expense, but before capex. Other... Read More »
60 Seconds with Swett: The Long, Slow Brookdale Recovery
Brookdale Senior Living came out with its Q2 earnings, and the occupancy results revealed just how prolonged the post-pandemic recovery has been for seniors housing and care, making many early predictions of a swift return to pre-pandemic census sound more and more ridiculous in hindsight. The good news is that Brookdale reported its highest month-end occupancy since before the pandemic, at 78.5%, up 30 basis points from the previous month and up just 10 basis points from the previous high recorded in September of last year. The bad news is the fact that Brookdale has taken this long to get back to last fall’s level of occupancy. To us, that is not “progress” in the larger goal of getting... Read More »
Ventas SHOP Improves
Ventas (NYSE: VTR) is the latest REIT to report second quarter earnings, and while performance is improving, it is not improving fast enough for some investors. Its seniors housing portfolio, while still showing improvements, lagged behind Welltower’s, and investors sent the shares down by 6.5% in early trading. Total seniors housing occupancy in its SHOP portfolio of 568 communities decreased by 30 basis points in the quarter, year over year, and declined by 20 basis points sequentially. On a same-community basis, occupancy increased by a small 10 basis points year over year, but declined by 20 basis points sequentially. Yes, the first and second quarters are usually not good for... Read More »
Newmark Closes a Cap Rate Deal in Texas
There was a cap rate deal in Texas at the start of August, a relative rarity in today’s market. Newmark closed the sale of Heartis San Antonio, a 109-unit assisted living/memory care community in San Antonio, Texas, to an undisclosed buyer. The community was developed by Caddis Partners, the seller, in 2016 and had been a strong performer ever since opening, even through the pandemic. It was nearly full at the time of the sale, with a healthy operating margin. With so few performing properties available for sale these days, interest from buyers was strong, and we understood pricing reached the mid-$30 million range. The community also sold at a cap rate in the high-6s, a very good... Read More »
Omega’s Q2:23 Results
Omega Healthcare Investors reported second quarter results on August 2 and announced a host of new investments totaling $270 million. In total, the company completed $129 million in real estate acquisitions, invested $124 million in real estate loans and other loans and investments and funded $17 million in capital renovation and construction-in-progress projects. Regarding Omega’s real estate acquisitions, the largest was Omega’s purchase of four skilled nursing facilities located in West Virginia for $114.8 million. The company leased the SNFs to an existing operator, and the facilities were added to that operator’s master lease with an initial annual cash yield of 9.5%, with 2.5% annual... Read More »
Berkadia’s Latest Two Refinances
Berkadia refinanced a couple of senior care facilities, including a large HUD financing for a 320-bed skilled nursing facility in New York City. Owned by a Northeast-based operator, the facility serves downtown Brooklyn and maintained strong occupancy, even during the pandemic. Census also grew throughout 2023, surpassing 90% at the time of the closing with a 20% Medicare mix. To pay off existing commercial bank debt as well as transaction costs, Berkadia’s Ed Williams and Richard Price secured a $62.1 million million HUD loan on behalf of the client. The 80% loan-to-value financing included a term of 35 years. Next, Jay Healy and Andrew Lanzaro arranged a $14.4 million bridge loan... Read More »
60 Seconds with Monroe: Ode to Stew
An ode to an industry veteran on his 60th birthday. Read More »
SLIB Sells a Memory Care Community
Senior Living Investment Brokerage was brought on to sell a memory care community in Oregon. The team included Jason Punzel, Brad Goodsell and Vince Viverito. Built in 2010 with an addition in 2013, the 30-unit/40-bed community is located in Portland, Oregon, on two acres of land with 16,300 square feet. The seller was a REIT that chose to divest its non-core, smaller assets. The buyer was a local owner/operator that plans to make capital improvement and focus on improving occupancy as well as operations. No other details were disclosed. Read More »Schedule a demo
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