• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
Institutional Property Advisors Sells Iowa SNF Portfolio

Institutional Property Advisors Sells Iowa SNF Portfolio

In a strategic move to build its presence in the Midwest, Beacon Health Management acquired 10 skilled nursing facilities in Iowa last month. Ryan Fleming of Institutional Property Advisors represented the seller in this $24.2 million, or $42,600 per bed, transaction. Todd Lindblom was the broker of record.  The targeted properties within the Pearl Valley Rehab & Healthcare portfolio include 568 beds and currently generate total revenue of $35 million and EBITDA of $3.5 million. That results in a 14.5% cap rate on the deal.  Occupancy across the portfolio fluctuated around 75 to 80% during the sale process. Some COVID cases towards the end of the transaction resulted in a delay in... Read More »
Ziegler Closes Massive Bond Financing For Sonoma County Construction Project

Ziegler Closes Massive Bond Financing For Sonoma County Construction Project

Ziegler brought out the big guns for a nearly $300 million bond financing closed for Ensō Village, a to-be-built CCRC in Healdsburg, California. The Kendal Corporation, a national not-for-profit provider of senior living services, is spearheading the project, which will be a Zen-inspired community set on 16 acres in the heart of Sonoma wine country.   Kendal has planned for 221 independent living, 30 assisted living and 24 memory support units. Of the 221 IL units, 20 are low-income rental apartments for retired Buddhist teachers, and 10 are moderate-income apartments, which will all be mixed among the market-rate units on campus. Common areas and amenities will include a central lobby,... Read More »
BMO Harris Bank Finances New Jersey Development

BMO Harris Bank Finances New Jersey Development

BMO Harris Bank’s Healthcare Real Estate Finance group announced that it led and closed a $73.4 million construction financing for a joint venture between LCS and an institutional partner to develop a 220-unit senior living community in Florham Park, New Jersey. People’s United Bank was also a $30 million participant in the deal.  Set to open in March 2023, the community will feature 128 independent living units (53 one-bedroom and 75 two-bedroom options), 58 assisted living units (10 studio, 40 one-bedroom and eight two-bedroom options) and 34 memory care units (32 private and two semi-private units).  Read More »
Ziegler Arranges Debt For Invesque Illinois Sale

Ziegler Arranges Debt For Invesque Illinois Sale

Ziegler served as capital structuring advisor in the $48.95 million debt placement to support the acquisition of two skilled nursing facilities and one supportive living facility in the Lincoln Park and South Shore neighborhoods of Chicago, Illinois. Symphony Care Network is the buyer, after having already operated the communities for some time on behalf of the landlord, Invesque. There are 475 licensed skilled nursing beds and 118 supportive living beds.   The deal is part of Invesque’s plan to streamline its relationship with Symphony. These three facilities sold for approximately $55.5 million, or $93,600 per bed, providing about $10.5 million of net cash proceeds... Read More »
Monarch Advisors Finances Two Texas Transactions

Monarch Advisors Finances Two Texas Transactions

Alec Blanc of Monarch Advisors helped finance a couple of Senior Living Investment Brokerage’s latest deals in Texas, which we highlighted last week. Cascades Healthcare, a Provo, Utah-based owner/operator, announced two separate acquisitions for four total skilled nursing facilities in Texas for a combined 26.545 million, or 41,400 per bed. Mr. Blanc secured a $21 million acquisition loan from a national commercial finance company to support the deal. There is also a $3.5 million earn-out feature that brings the loan-to-cost to around 92%. We’re not seeing leverage like that very often these days.  The loan comes with a three-year term and interest only payments for the first two years.... Read More »
JLL Sells Oregon Assisted Living Community

JLL Sells Oregon Assisted Living Community

Mike Garbers and Cody Tremper of JLL successfully sold an 85-unit assisted living community in Portland, Oregon. The seller and buyer were not disclosed, but the community has an almost entirely Medicaid census.   It was built in 2005 with 81 private rooms and four semi-private rooms. Occupancy was in the high-90s in the fall of 2019, but has since dropped to about 88%. Many operators would love to have their communities that full. But, operations were close to breakeven, so there is some room for improvement, clearly. The property was subject to a ground lease controlled by a local family.  Read More »
Newmark Team Handles Canadian Portfolio Deal

Newmark Team Handles Canadian Portfolio Deal

Newmark brokers BJ Bhal, Mark Gallagher and David Kalinowsky, who are widely regarded as the most active real estate brokers for seniors housing in Canada, recently aided Revera in selling eight senior living communities.   The portfolio consists of 584 combined units and sold at a capitalization rate of 6.75% based on 2019 net operating income. There are locations in Richmond Hill, Oshawa, Mississauga, Kitchener and Ottawa, Ontario. A purchase price has not been disclosed.  Marlin Spring, a Toronto-based real estate company, acquired the properties. They have acquired more than 30 projects since 2013, consisting of 9,000 residential units in various stages of development,... Read More »
Harrison Street Announces the Largest Seniors Housing Deal Since 2019

Harrison Street Announces the Largest Seniors Housing Deal Since 2019

In the June issue of The SeniorCare Investor, we wondered when private equity would get off the M&A sidelines in a major way, with so much dry powder available to them. On cue, Harrison Street Real Estate Capital announced the largest seniors housing and care deal in two years, spending approximately $1.2 billion on a portfolio of 24 assisted living/memory care communities in California and Nevada. The portfolio totals 2,195 units, resulting in a per-unit price of $546,700 per unit.  Oakmont Management Group operated the whole portfolio, Healthpeak Properties owned half of the properties and California-based real estate developer Gallaher... Read More »
Senior Living Investment Brokerage Handles Three More Transactions

Senior Living Investment Brokerage Handles Three More Transactions

As of the writing of this, Senior Living Investment Brokerage has now closed 39 seniors housing and care transactions in 2021. Their total for the whole year of 2020: 39 deals. To hit that mark before the end of June is impressive, to say the least. Pushing them to that number were three transactions in the Southwest announced in quick succession.   The first was an assisted living/memory care sale in Las Vegas, Nevada, handled by Vince Viverito, Jason Punzel and Brad Goodsell. Built in 2016 by a local developer (who is now the seller), the community has 119 beds in 98 units. A third-party operator managed the community, but the buyer, a national private equity fund, will bring in a... Read More »
Welltower Acquires Portfolio Well Below Replacement Cost

Welltower Acquires Portfolio Well Below Replacement Cost

Earlier this week, Welltower announced it had acquired 22 seniors housing communities in partnership with Pathway to Living for a purchase price of $97 million, amid a flurry of other announcements. Now, more details have emerged on the deal.  Totaling 1,103 units, the portfolio consists of 156 independent living, 835 assisted living and 112 memory care units. That results in a per-unit price of $87,900 per unit. Welltower had said that the deal went for well below replacement cost, and they were not kidding. The REIT plans on investing an additional $15,000 to $20,000 per unit, which should help improve the portfolio’s value. Newmark handled the deal. The seller was an... Read More »
National Health Investors Expands Navion Relationship

National Health Investors Expands Navion Relationship

National Health Investors expanded its relationship with Navion Senior Solutions, announcing an acquisition, funding of a community expansion project and funding of a corporate loan for the operator to put towards future development costs. The investments total approximately $13.2 million.  First, NHI acquired a 48-unit assisted living/memory care community in Manchester, Tennessee, adding it to an existing master lease with Navion which has a 12-year maturity, 2.5% annual escalators, and two five-year extensions. The community was purchased for $6.5 million, or $135,400 per unit, excluding about $100,000 of closing costs. That results in an initial yield of 7.5%.  NHI also provided... Read More »