Grandbridge Closes ChampionsGate Community Sale
Grandbridge Real Estate Capital’s Tampa-based Senior Housing Investment Sales team arranged the sale of a recently-constructed 223-unit senior living campus in the ChampionsGate submarket of Orlando, Florida. Opened in 2017, the community offers independent living, assisted living and memory care. Grandbridge’s David Kliewer and Jay Jordan facilitated the sale to funds managed by Fortress Investment Group for $45 million, or $201,800 per unit. Fortress will bring in Watermark Retirement Communities to manage the community. The community was developed through a 142(d) bond issuance and opened in December 2017. However, following challenges in meeting the operating covenants of the bond... Read More »
PE Firm Divests Denver-Area Property
An institutional private equity firm engaged Evans Senior Investments to sell its 120-unit independent living community in Arvada, Colorado (Denver MSA). The Kipling Meadows was built in 2008 and renovated in 2018. In the three months prior to its sale, the community averaged 86% occupancy (based on units) and was producing positive cash flow. Occupancy actually increased to 90% in the latest month, so Evans could forecast a 6% rental rate increase to a new owner, who was not disclosed. Read More »
A Focus on Treplus Communities
Active Adult communities have been the hot topic for the past year for many reasons. First, they fill a void in the senior living spectrum, a void that will be growing. Second, there are very few labor concerns with Active Adult – no care providers, kitchen help or much of anything else – which is huge in today’s labor-constrained market. Third, they are a cheaper alternative to traditional senior living communities. Fourth, if all fails, they are very easy to convert to traditional multifamily apartments or sell as condos. And five, the average length of stay appears to be between four and five years, although it may be too early to say that with any conviction. At the recent NIC... Read More »
Plains Commercial Sells Oklahoma SNF Portfolio
Plains Commercial announced the sale of three skilled nursing facilities in Oklahoma. Dubbed the “Rucker SNF Portfolio,” they are located in Tulsa and Cushing, Oklahoma, totaling 243 licensed beds. All of the facilities had high-quality physical plants, with two buildings opened in the 60s and 70s with more recent extensive renovations, and one facility purpose-built in 1997. The seller is a local operator that Plains had been advising for a number of years about their planned exit from the industry. After a competitive bidding process, the seller chose one of the largest SNF operators in Oklahoma as the ultimate buyer. Daniel Morris handled the... Read More »
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 »Schedule a demo
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