SLIB Sells Three Southeast Seniors Housing Communities
Three seniors housing communities in the Southeast sold to a private equity group partnering with a management company that was looking to enter the region. The Tennessee community is located in the town of Madison, while the two Georgia communities are in Marietta and Jonesboro. Built in 1999 and 2000, they consist of 228 units of assisted living and memory care. These were outliers for the outgoing owner/operator, which is based in the western United States and has its core operations in the region. The properties were also struggling operationally, which probably added to the seller’s motivation. Vince Viverito, Brad Clousing, Jason Punzel and Brad Goodsell of Senior Living... Read More »
BWE Finances New Development in Georgia
BWE, a national commercial and multifamily mortgage banking company, closed a $4.5 million long-term loan for Legacy at Walton Trail, a newly constructed affordable seniors housing development in Villa Rica, Georgia (Atlanta MSA). The loan includes an 18-year term with a 35-year amortization. The property is also financed with 9% Low-Income Housing Tax Credits and a loan from the Housing Authority of Villa Rica. Victor Agusta, Jr., Executive Vice President in BWE’s Raleigh, North Carolina office, originated the Freddie Mac Targeted Affordable Housing loan on behalf of the borrower, Walton Communities. Built on the site of obsolete public housing, Legacy at Walton Trail comprises 90 one-... Read More »
60 Seconds with Swett: An End to the Public Health Emergency
After more than three years in effect, the federal COVID-19 public health emergency ended on May 11. That seems like a moment worth celebrating, after the upheaval the country has experienced since the beginning of the pandemic. The vast majority of Americans wouldn’t have noticed the switch, since life has been pretty much back to normal for over a year now. But health care facilities will feel the change. Although states and localities may have different rules, staff vaccine mandates that caused a lot of consternation and even reached the Supreme Court will end at nursing homes, thereby hopefully relieving some of the staffing stresses on facilities. Continuous enrollment policies... Read More »
Major Medicaid Waiver AL Portfolio Sells in Midwest
A major portfolio of Medicaid waiver assisted living communities sold in the Midwest, with Connor Doherty, Ryan Kelly and Alex Florea of Blueprint Healthcare Real Estate Advisors handling the transaction. The portfolio, which has seven locations in Indiana and four in Ohio all built around 2000, consists of 1,400 total units. Altogether, the communities earned approximately $56 million and $12 million in revenues and EBITDAR, respectively, for a strong 21% margin. Not too many Medicaid waiver portfolios of this size hit the market, let alone stabilized portfolios, but ownership desired to execute a succession plan and engaged Blueprint to create a competitive bidding process. Apart from... Read More »
Owner/Operator Grows Midwest Portfolio
A Midwest-based owner/operator bought an 81-unit assisted living/memory care community in Mason, Ohio, about 20 miles north of Cincinnati. No purchase price was disclosed, but the buyer plans to make significant upgrades to the community that should help improve the operations. Built in 2011, the community features 61 assisted living and 20 memory care units. It has been well maintained over the years, but some renovations were needed. The seller chose to divest the asset to focus on its current operational footprint, while the buyer saw the community fitting into its growing footprint in the Midwest. Dan Geraghty, Bradley Clousing and Ryan Saul of Senior Living Investment Brokerage... Read More »
Huntington National Bank Finances Discovery Expansion Project
Construction loan activity has slowed to a relative trickle, but Huntington National Bank closed a $26.5 million loan for the development of a 90-unit, Phase II expansion project at an existing senior living community owned and operated by Discovery Senior Living. Located in Dallas, Texas, the community currently features 175 units of independent living. The 81,500-square-foot expansion would add 72 units of assisted living and 18 of memory care, and it is set to open in 12 months. Working with Huntington’s Healthcare team for the first time, Discovery Senior Living obtained a $26.5 million loan with a floating interest rate. Lisa Silvers of Huntington handled the... Read More »
National Health Investors Shares Jump
When National Health Investors announced its first quarter earnings results last week, investors liked what they heard and sent the shares up by 8%, and they stayed up. The REIT has been dealing with problems at a few major tenants since the onset of the pandemic, and while the problems are not entirely over, most indicators are moving in the right direction. During the quarter, cash collections hit a near-term high of 98%, which should give investors a lot more confidence in the durability of the dividend. Total year-over-year occupancy increased by 400 basis points to 81.3%, driven by a 440-basis point increase in seniors housing and a 350-basis point increase in skilled nursing. ... Read More »
SLIB Handles Rocky Mountain Deal
A couple of assisted living/memory care communities located in tertiary markets in Rocky Mountain states sold to a large, regional owner/operator for $12 million, or around $92,300 per unit. Jason Punzel, Vince Viverito, Matthew Alley and Brad Goodsell of Senior Living Investment Brokerage handled the transaction. Totaling 130 units, the communities were both built in the late-1990s. They were previously owned by a group of investors who are now exiting the industry. The new California-based owner, which owns more than 30 communities across the country, plans to invest in capital improvements and continue the strong operational performance. No other details were disclosed. Read More »
JLL Capital Markets Arranges JV Equity for Construction Project
At a time when construction financing is hard to come by, JLL Capital Markets announced that it worked on behalf of Centric Development LLC to arrange joint venture equity for a seniors housing development project in Fredericksburg, Virginia. Located across the street from Spotsylvania Regional Medical Center, the project is a 153,000-square-foot building on a 16.2-acre parcel that will contain 106 assisted living one- and two-bedroom units and 36 memory care units. It is set to open in 2025 and will include luxury finishes. The JLL Capital Markets Advisory team was led by Managing Director Joel Mendes, Senior Managing Director Anthony T. Fertitta Jr. and Associate Billy... Read More »
Sonida Senior Living Showing Some Life
It is nice to see that the rising tide of the post-pandemic recovery is lifting all ships, including Sonida Senior Living. As you will recall, they issued a “going concern” opinion last quarter, with cash balances declining every month and a debt load that will be difficult to ever pay off. While they are not out of the ICU yet, perhaps the respirator can be turned off, at least for a few quarters. The company is small, with 62 owned communities, which they should be able to use to their advantage and laser focus on operations, marketing and census. Occupancy has not been the problem, as at about 84% they are beating some of the larger companies as well as the SHOP portfolios of REITs.... Read More »Schedule a demo
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