Staffing Regs May Cost 60% More Than CMS Suggested
Following up on CMS’s initial estimate that the Minimum Staffing Mandate would cost around $4 billion for skilled nursing facilities (and $40.6 billion over the first 10 years), CliftonLarsonAllen (CLA) released a competing study that put that cost nearly 60% higher, at around $6.8 billion. The American Health Care Association/National Center for Assisted Living’s President and CEO Mark Parkinson quickly responded to the results (in advance of them being released), saying, “What CLA’s analysis confirms is that this proposed rule is deeply flawed, and the Biden Administration has woefully underestimated the feasibility and cost of this unfunded mandate.” The proposed rule from CMS mandates... Read More »
Financing Package Secured for New D.C. Development
A new affordable seniors housing development is going up in Washington, D.C. with the help of financing provided by a variety of capital sources. Urban Atlantic Development is building the 93-unit community, which is located on the campus of the 60-bed Lisner-Louise-Dickson-Hurt Home, one of the oldest skilled nursing facilities in the District that is scheduled to be renovated in the next year. The project received $69 million of financing through DC Department of Housing and Community Development’s Housing Production Trust Fund, federal and state low-income housing tax credits, and District of Columbia Housing Finance Administration bonds, including equity provided by Boston... Read More »
Diversified Healthcare Trust Still Has Problems
One thing that we still don’t understand about Diversified Healthcare Trust is why they seem to like making comparisons to 2019, whether year-to-date comparisons or, in the case of August 2023, comparing to August 2019. Are they trying to make shareholders feel bad, or are they trying to shame their providers, primarily Five Star/Aleris? Very, very few companies have come close to meeting 2019’s results, and when they do it is with census, not NOI or margins. For the month of August 2023, total SHOP occupancy was 79.3%, up 30 basis points from July and up 240 basis points since January. These increases seem similar to the industry at large. Net operating income declined slightly in August,... Read More »
A Community For The Future?
Back in June, newly formed Senior Living Transformation Company (SLTC), in a joint venture with Omega Healthcare Investors, purchased a 114-unit senior living community in Brentwood, Tennessee for about $11 million, or $96,500 per unit. They consider that to be a distressed price for the roughly 25-year-old building, and they plan to invest a few million dollars into the property over the next several years. SLTC is led by Arnie Whitman, Chip Gabriel, Corey Bennett and Joelle Poe. But the acquisition is not the real story. The community, to be called Senior Living Transformation Center, will be an incubator of sorts to try to create an environment that will be the future of seniors... Read More »
Confluent & MorningStar Team Up on Development
Confluent Senior Living and MorningStar Senior Living entered into an exclusive negotiating agreement with the City of Tustin, California, to lead the development of MorningStar at Tustin Legacy. The Orange County community will feature 145 independent living, 60 assisted living and 28 memory care units. There will be several four- or five-story buildings, surrounded by 29 single-story independent living cottages. The community is being built on the former Marine Corps Air Station in Tustin, and is located within the 1,600-acre planned community of Tustin Legacy. Confluent and MorningStar expect to break ground on the project in the first half of 2025 through a public-private partnership... Read More »
H2C Securities Refinances Quality Life Services
H2C Securities Inc., a healthcare-focused strategic advisory and investment banking firm, served as the exclusive advisor to Quality Life Services in obtaining a bridge loan to refinance the debt associated with the company’s portfolio of 10 skilled nursing and senior living properties. Quality Life Services’ existing lenders were reducing their exposure to the long-term care sector, requiring the company to refinance its outstanding debt. Working with H2C to evaluate a range of options, the company ultimately elected to execute a bridge-to-HUD loan for the properties, allowing it to retain control and prepare to secure lower cost long-term financing via HUD in the future. Read More »
Inspired Healthcare Capital’s $41 Million Acquisition
A Class-A, well performing seniors housing community in North Haven, Connecticut, sold for $41.1 million, or around $330,000 per unit. The seller, Columbia Pacific Advisors, capitalized on an opportunistic disposition to lock in returns and return capital to investors early in its fund’s life. Built in 2019, The Landing of North Haven features more than 120 units of assisted living and memory care on an 11-acre campus. Lease-up was solid through the pandemic, as were rates and margin, highlighting the advantages of Class-A buildings in good locations during the pandemic recovery and ensuing inflation. So, as occupancy approached stabilization, there was meaningful cash flow and a... Read More »
Blueprint Handles Florence County Deal
Kyle Hallion, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors were brought on by a repeat institutional owner/operator client to sell Florence Place, a 61-unit assisted living/memory care community in Florence, South Carolina, that was built in 1999. The seller decided to divest at the start of 2023, following the implementation of in-house and street rate increases that resulted in double-digit revenue growth over the prior year. Blueprint targeted both individual regional and portfolio-specific buyers. A Southeast-based owner/operator was selected to acquire the community, raising sufficient equity to close the transaction with all cash at the originally... Read More »
CFG Arranges Senior and Mezz Debt
A portfolio of senior care facilities in the Pacific Northwest received a debt package consisting of a mezzanine and senior loan. Capital Funding Group first helped the client place senior debt which totaled $78.46 million. Then, CFG closed a $13.84 million mezzanine loan, which supported the refinancing of eleven skilled nursing facilities and one assisted living community. The total financing package amounted to $93.31 million. The facilities are located in Washington, Idaho, and Oregon, and consist of over 1,554 beds. The financing was closed on behalf of a nationally recognized borrower. Capital Funding Group Managing Director, Real Estate Finance Tim Eberhardt and Senior Associate Ava... Read More »
JLL Secures Financing for CA Community
JLL Capital Markets announced that it secured $43.24 million in financing for an 86-unit assisted living/memory care community, Varenita of Westlake, on behalf of Westlake Senior Living Center. Alanna Ellis and Ace Sudah of JLL handled this transaction, which amounts to $502,000 per unit for the debt. Varenita of Westlake is a Class-A community in Thousand Oaks, California, with 58 assisted living and 28 memory care units and amenities such as a spa, salon, movie theater and a fitness center with physical and occupational therapy. It spans 77,096 square feet with predominantly one-bedroom units as well as some studios and two-bedroom units. Read More »Schedule a demo
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