Birchwood Eyes Distressed Assets with New Fund
Birchwood Healthcare Partners is setting itself up to capitalize on the coming distress in the seniors housing and care industry with the closing of initial fundraising for its 5V+ Seniors Healthcare Fund. The fund will provide investors with exposure to four key sectors: seniors housing, healthcare services (like rehabilitation, hospice, home health, therapy and behavioral health), transitional/long-term care and active adult. Citing the appeal of demographics, Birchwood also noted the “unparalleled opportunity in the fragmented and misaligned seniors healthcare industry in today’s market.” In its announcement, the firm also pointed out that with over $272 billion in government... Read More »
Baptist Village Communities Grows Its Portfolio
Baptist Village Communities, the largest not-for-profit senior care provider in Oklahoma, announced its plans to acquire a senior living community in the town of Enid. The organization had started a partnership with the community, Golden Oaks Village, in 2019 to provide management consulting services after the community was restructured into a not-for-profit organization. But the Golden Oaks Board of Directors later approached Baptist Village to take over ownership, with the transition expected to be completed by September 2023. Golden Oaks Village was founded in 1988 before it was acquired and expanded in the early-1990s by Wesley Kroeker, who retired in 2012 and handed over operations to... Read More »
Strawberry Fields REIT Makes Major SNF Purchase
The capital markets upheaval has led to a decrease in liquidity, an increase in capital costs and a corresponding drop in property values in the senior care M&A market. That combination has led sellers to only make small, strategic divestments because they cannot command the prices they want, and it has prevented buyers from making larger purchases because of expensive debt. So, we have not seen many portfolio deals in 2023. The majority of portfolio deals that have been announced in 2023 so far have been in the skilled nursing sector, with over 70% of properties included in the year’s portfolio deals being skilled nursing facilities. The sector has proven more resilient in terms... Read More »
Public REIT Divests Keystone State Portfolio
A public REIT and its operating partner made the strategic divestment of a senior care portfolio in Pennsylvania. The deal included multiple skilled nursing facilities and two campuses featuring independent living, assisted living (personal care) and memory care units. There are more than 1,000 beds and units mostly concentrated in northeast and central Pennsylvania. Michael Segal, Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors positioned the portfolio as a value-add opportunity for an incoming buyer to capitalize on strong pre-pandemic financial performance along with a substantial Medicaid reimbursement rate increase recently passed in the state’s... Read More »
Westchester Co. SNF Finds New Owner
Evans Senior Investments arranged the real estate sale of a skilled nursing facility in New Rochelle, New York, about 15 miles from Manhattan. The transfer of the operations is still pending, which takes a longer time in the Empire State than in most other states. Originally built in 1965, the facility is licensed for 60 beds. After owning and operating the facility for more than 30 years, the independent seller decided to exit the skilled nursing industry. There were several competitive offers for the facility, but the eventual buyer was a New York-based company. The purchase price was not disclosed. Read More »
60 Seconds with Swett: Supreme Court Decision Hits Public SNFs
So much of the ire against skilled nursing facilities (personal, political and in the media) has been directed towards privately-owned facilities, and mainly their ownership those they deem as “private equity”, because of their great sin of caring for nursing home patients at a profit, and often not even at one. However, a recent Supreme Court ruling is now opening up public SNFs to the threat of lawsuits on the basis of civil rights violations. After the wife of a patient with dementia in a county-owned SNF in Indiana sued alleging he was unnecessarily chemically restrained and involuntarily transferred without their consent, which would be violations of the Federal Nursing Home Reform... Read More »
Blueprint Handles United Church Homes Sale
United Church Homes sold its original senior care property in Upper Sandusky, Ohio, as part of its initiative to focus on lower acuity seniors housing services. First established in 1920 to house seven residents, The Fairhaven was later redeveloped and subsequently expanded into a large senior care campus featuring 99 licensed skilled nursing beds with an additional six independent living units. The value-add property offered different paths to achieving improved performance, and Blueprint Healthcare Real Estate Advisors procured seven competitive offers from qualified acquirers with existing Ohio-based operating platforms. Vancrest Health Care Centers, a family-owned operator of 11... Read More »
Berkadia Arranges Acquisition Financing through Fannie Mae
Berkadia helped finance the acquisition of Prairie House, a 105-unit assisted living/memory care community in Broken Arrow, Oklahoma. Managing Directors Chris Cain and Rafael Nobo of Berkadia Seniors Housing & Healthcare secured $16.74 million in acquisition financing through Fannie Mae on behalf of the buyer, Wichita, Kansas-based Legend Senior Living. The 10-year loan featured a 5.68% interest rate, a 30-year amortization schedule and a 65% loan-to-value ratio, which puts the purchase price at $25.75 million, or $245,300 per unit. Built in 2017 with 73 assisted living and 32 memory care units, Prairie House is Legend’s fourth Tulsa-area community and 11th community in the state. The... Read More »
Haven Senior Investments Handles Family Owner/Operator Exit
Haven Senior Investments, a faith-based advisory and brokerage firm specializing in seniors housing transactions, closed the sale of a long-standing, family-owned assisted living community in northern Missouri. The transaction was handled by Robin Gestal, Haven’s COO. Opened in 1996, the community features 40 units and 67 beds across 24,000 square feet. The local ownership wished to retire and sold the community to a private equity company headquartered in New York. The PE buyer has a portfolio of senior living communities across the country, but this acquisition marks its first foray into Missouri. Additionally, the company has plans for another strategic acquisition in the region next... Read More »
Ziegler Secures Bond Financing for California CCRC
Ziegler arranged a bond financing for a CCRC in San Rafael, California, to expand its campus and refinance its existing Series 2015A bonds. The borrower, Aldersly, opened Aldersly Garden Retirement Community in 1921 to serve the Danish-American senior population in California and Nevada, although it now welcomes anyone who meets its financial and other admission criteria. Life Care Services has managed the community since 2004. Aldersley received $61.3 million in bonds, which are rated AA- by Standard & Poor’s based on credit enhancement provided by the Cal-Mortgage Loan Insurance Program. The bonds were issued through the California Municipal Finance Authority and amortize over a... Read More »Schedule a demo
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