RAM Properties Acquires Florida Portfolio
A private institutional group sold three seniors housing communities in Florida to RAM Properties, a boutique private equity firm backed by a family office. RAM paid $70.85 million, or $158,000 per unit, for the portfolio and brought in its Florida-based operating partner Concordis Senior Living to take over management. The properties included 253 independent/assisted living units (all licensed for assisted living) and 193 memory care units, averaging more than 20 years in age but with multiple renovations over the years. When the portfolio went under LOI, occupancy was in the 80s, but that improved throughout the process into the 90s at closing. In addition, previous resident rent... Read More »Struggling Florida SNF Sells
Evans Senior Investments has handled the sale of a large 200+ bed skilled nursing facility in Volusia County, Florida. Built in the 1960s, the facility features semiprivate rooms and three-bed wards. Occupancy rates averaged 73% before the pandemic. However, at the time of the sale, the facility was losing money while occupancy dipped to 41%. The seller was a regional owner/operator who was looking to get rid of the struggling geographic outlier from its portfolio. An East Coast owner/operator, adding to their skilled nursing facility portfolio, ended up as the buyer. Read More »Carnegie Capital Secures Construction Loan for Texas Community
A single-asset owner in Texas refinanced the construction debt on its assisted living/memory care community with the help of JD Stettin of Carnegie Capital. Built five years ago, the 90-unit community in Houston went through operator changes before the pandemic, and then dealt with occupancy troubles during the pandemic. So, it was at last on the tail end of lease-up with census reaching 80% when ownership decided to refinance its existing construction loan before maturity. A $10.5 million refinance enabled the borrower to also replenish its interest reserves and pay off over $500,000 of tax liens. The loan came with a seven-year term, fixed interest rate at 4.75% and one year of interest... Read More »CareTrust REIT Planning a Behavioral Health Conversion
Blueprint Healthcare Real Estate Advisors has successfully advised its publicly traded REIT client, CareTrust REIT, on the sale of a 120-unit assisted living and memory care community in the Baltimore, Maryland area. Built in 1999, the community had struggled from an operational standpoint. The team of Amy Sitzman, Giancarlo Riso, Kory Buzin, and Steve Thomes was originally hired to run a sales process in the community but later advised CareTrust REIT to structure a new lease with a multistate behavioral health operator. Then, that multistate behavioral health operator will convert the community into an addiction recovery center. This acquisition marks the publicly traded REIT’s first... Read More »JLL Handles SNF Texas Transaction
JLL Capital Markets has closed the sale of Methodist Transitional Care, a 100-bed/ 66-unit skilled nursing facility in Desoto, Texas. Equipped with advanced technology, the facility has the ability to offer intravenous therapy, physical therapy, speech therapy, occupational therapy, wound care, pulmonary care and many other treatments and services. Madison Marquette sold this asset with 13 years remaining on the lease. Based on first-year rent, the cap rate is 6.8%. This deal also includes two five-year renewal options. The buyer of the amenity-filled facility is real estate development firm Location Finders International. Such amenities include a large state-of-the-art therapy gym,... Read More »Family Owner/Operator Exits the SNF Business
Branford Hills Healthcare Center, a 190-bed skilled nursing facility in Branford, Connecticut, is no longer in the hands of the Shelton family, who ran operations since its construction in 1980. The facility sits on over 10 acres in Branford, Connecticut just a few miles outside of New Haven. It was expanded in 1991 and reported strong occupancy before the pandemic in excess of 94%, with revenues over $20 million. However, despite its close proximity to Yale New Haven Hospital and other referral sources in the county, the facility struggled during the pandemic. The Shelton family got the facility on the right track operationally leading up to the sale, which represents their exit from the... Read More »Assisted Living Community Sells in Florida
Vitality Living Lady Lake, an 89-unit assisted living/memory care community in Lady Lake, Florida, has been sold just outside of the senior haven, The Villages. Built in 2010, the 89-unit community comprises 69 assisted living units along with 20 memory care units on over 9 acres. Occupancy stood around 72% in 2021. The seller was a Northeast-based real estate private equity firm which initially purchased the community as part of a larger portfolio. However, this asset was an operational outlier from the rest of the portfolio. So, the seller hired Senior Living Investment Brokerage to find a buyer, which ended up being an unidentified regional owner/operator looking to add to their... Read More »Bender Companies Invests in Active Adult
Chicago-based investment firm Bender Companies has spent $20.5 million, or $118,500 per unit, in Burbank Manor, a 173-unit active adult complex in Burbank, Illinois. Built in 1985, the apartments sit on 6 acres in the suburbs of Chicago. The property is well maintained and offers its residents a variety of amenities including secured outside entries, balconies, in-unit washers and dryers, and on-site parking with 300 tenant spaces. The buyer is a company that shares a Chicago address with Bender. Burbank Manor previously sold in 2021 for $14.6 million, or $84,400 per unit. That means the seller, Advantage Management, sold the complex for 40% more than their original purchase price. Given... Read More »Brookdale Continues To Grow Census
Brookdale Senior Living continues to see census growth, posting its best second quarter sequential weighted average occupancy growth in more than 10 years. And remember, the second quarter has not been the industry’s friend for the past decade or so, so this is a great set up for the rest of the year. Weighted average occupancy in June was 75.2%, up 60 basis points from May and up 400 basis points from June in 2021. Before we pop the corks, occupancy in the mid 70 percent range is still quite low, and a far cry from Brookdale’s 84.5% in the fourth quarter of 2019, or 89.0% in the fourth quarter of 2013. But it is a step in the right direction. It is just that we need to see a lot of these... Read More »60 Seconds with Swett: Healthcare M&A Activity Drops
The second quarter saw senior care M&A sustain its very high level, but deal activity across the other 12 healthcare sectors that we track on our LevinPro HC platform experienced a 9% drop in dealmaking from 622 publicly announced deals in the first quarter of 2022 to 568 in Q2. Compared to Q4:21, the quarterly deal total has also dropped by over 10%. We cover a number of healthcare sectors from hospitals and home health to eHealth and Biotech, and the most popular sector of late (by far) has been Physician Medical Groups. Last quarter, we recorded 142 PMG deals, 54% of which were made by a private equity buyer. Compare that to 5% of the 135 long-term care deals announced in the second... Read More »Schedule a demo
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