Ventas: Time For A Change?
Ventas has been an incredible success story, both in terms of the company itself and its stock. But most of the “incredible” for the stock occurred many years ago. Ten years ago, its share price was about $70, and currently it is about $40. It has averaged close to $65 a share for much of the past 10 years. But if you bought it in March of 2020, when the senior care world was under attack, at its low of $13.35 per share, you would be considered a genius and would have pocketed a hefty return. But that would have taken brass ones. CEO Debbie Cafaro was recruited (against her better judgment at the time) nearly 25 years ago when the REIT’s only tenant, Vencor (later renamed Kindred... Read More »
Brookdale’s Occupancy Gets August Bump
Brookdale Senior Living just announced its August occupancy levels, and it has been a good summer so far. But the third quarter has always been the best quarter of the year for census increases for the entire sector, so we expected some good news. If not, that would have spelled trouble. Weighted average occupancy in August increased sequentially by 50 basis points to 77.6%, while census at the end of August increased sequentially by a larger 80 basis points to 79.3%. This is the first time that month-end occupancy has topped 79% since the recovery began. A year ago, weighted average occupancy was 76.4%, so Brookdale has not seen a big jump since then, just 120 basis points. It has... Read More »
Blueprint Sells in the Old Dominion
A public REIT selected Blueprint Healthcare Real Estate Advisors to sell The Laurels of Willow Creek, a 120-bed skilled nursing and rehabilitation facility located in the Richmond, Virginia, suburb of Midlothian. Michael Segal and Ben Firestone handled the deal. Built in 1991, with an addition completed in 2018, the facility features 36 private and 42 semi-private units. It had been well maintained and demonstrated consistent performance with stable census and cash flow. Virginia’s Medicaid rate enhancement made the facility even more attractive to buyers, and another REIT ultimately bought the asset. Blueprint successfully closed the transaction in approximately 60... Read More »
Phorcys Capital Partners Grows Georgia Holdings
Ziegler served as exclusive financial advisor to raise $20.5 million in financing on behalf of Phorcys Capital Partners to acquire The Glen at Lake Oconee Village, a senior housing community in Greensboro, Georgia. PCP was previously the supermajority creditor on the municipal bonds issued to finance the construction of the project. The company purchased the community for $26.45 million, or $232,000 per unit. The community was built in 2017 with 28 independent living, 68 assisted living and 18 memory care units. It is situated on Lake Oconee, between Atlanta and Augusta, Georgia. The facility will continue to be operated by SRI Management. The community was in receivership, but... Read More »
Grandbridge Secures Large Agency Refinance
Grandbridge Real Estate Capital’s Seniors Housing and Diversified Healthcare Finance Group arranged $426.8 million in agency financing for a large seniors housing portfolio owned by a publicly traded, healthcare REIT. In its latest earnings report, Ventas also disclosed that it entered into a $427 million 10-year mortgage loan, which (after Ventas completes its contemplated purchase of a 7.5% tranche of the original principal balance of the loan) will result in a $395 million net mortgage loan at an all-in expected weighted average cash rate of 5.5%. The portfolio was secured by 19 seniors housing properties located across 10 states and was financed by an agency lender. The... Read More »
Evergreen Healthcare Group Acquires EmpRes Healthcare
In one of the largest transactions of the year, Tony Cassie, Gideon Orion, and Mark Myers of Walker & Dunlop facilitated the sale of 46 senior care facilities across six Western states for EmpRes Healthcare. The company recently announced on its website that Evergreen Healthcare Group acquired its entire skilled nursing and senior living business line, including the rights to use the name “EmpRes”. The 4,100-bed portfolio spanned across Oregon, Washington, Nevada, Montana, Wyoming, and South Dakota with four seniors housing properties, and the remainder skilled nursing facilities. The complex deal structure took an investment banking form involving the sale of the business line, its... Read More »
CareTrust REIT & JV Partner Acquire SNF
CareTrust REIT, Inc. completed a joint venture investment to acquire La Fuente Post Acute, a 187-bed skilled nursing facility located in Vista, California. Once regulatory approval is obtained, the facility will be operated by Bayshire Senior Communities, a current tenant of CareTrust’s, pursuant to a new 15-year lease with the joint venture landlord. CareTrust and a third-party regional healthcare real estate investor entered into a joint venture to acquire the facility, with CareTrust’s combined common equity and preferred equity investments in the joint venture totaling $25.5 million. CareTrust’s initial contractual yield on its combined preferred and common equity investments in the... Read More »
Walker & Dunlop Provides Memory Care Refinancing
Kevin Giusti and Daniel Barone of Walker & Dunlop arranged a $15.2 million loan for the refinancing of a memory care community in Beaverton, Oregon. The community was Waterhouse Ridge Memory Care, which comprises 68 memory care beds in 52 units and over 36,000 square feet. The community specializes in caring for Alzheimer’s and dementia patients and is currently 88% occupied. Loan proceeds were utilized to refinance existing debt and provide cash to the borrower, Onelift Senior Living, which developed, owns and operates the community. After two years, the loan will be refinanced under the HUD’s 232 Program. Read More »
Two Florida Not-for-Profits Affiliate
Florida Presbyterian Homes has agreed to affiliate with Westminster Communities of Florida, the largest not-for-profit senior care provider in the Sunshine State. The arrangement adds the 11th CCRC to Westminster’s portfolio while improving the financial stability of the standalone CCRC Florida Presbyterian Homes (FPH). State approval is still needed for the affiliation. Once the affiliation is complete, Westminster Communities of Florida will operate the FPH community in Lakeland and will be responsible for governance of the organization, its assets and liabilities going forward. FPH has nearly 700 residents across independent living, assisted living and skilled nursing units. Its... Read More »
In-Place Operator Buys Virginia Senior Care Portfolio
Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors facilitated the sale of a five-facility senior care portfolio, representing a public REIT in the process. These skilled nursing facilities and seniors housing communities were built in the early 1990s and are located throughout central and western Virginia. They have between 57 to 89 licensed beds each, totaling 326 beds. Most of the facilities/communities were four- and five-star rated with relatively stable census and cash flow. The buyer was the in-place operator. Blueprint emphasized Virginia’s Medicaid reimbursement increases in its marketing process to showcase the underlying performance trends and... Read More »Schedule a demo
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