Blueprint Handles Two East Coast Sales
Blueprint Healthcare Real Estate Advisors handled a couple of sales on opposite ends of the East Coast. First, in Connecticut, Steve Thomes and Chris Hyldahl sold two skilled nursing facilities that were acquired by a private investment group based in New York City as part of a 10-SNF portfolio in late 2017. Combining for 197 licensed beds, one facility is located in the Hartford MSA, and the other is in Fairfield County near the New York border. Older facilities, they were occupied in the mid-70s when the marketing process started in 2019, and it’s fair to say the pandemic and ensuing lockdowns took a further toll on census. Revenues also at the time of marketing were approximately $16... Read More »
The Prestige Group Sells Vacant Personal Care Home in Pennsylvania
Jim Baranello of The Prestige Group had an uphill battle marketing for sale a vacant personal care facility in the northeast area of Philadelphia, Pennsylvania during the pandemic, but he got the deal done. Owned by a family for nearly 20 years, the 35-bed facility was originally built in 1910 but converted to personal care in the last 20 years. Set in the Tacony section of Philadelphia, it features 15 units and five bathrooms in three stories, with a full commercial kitchen. The facility was inherited by a second generation who did not want to continue operating it and who chose to shut it down in 2019. Positioned for a buyer to either continue operating the building for personal care... Read More »
CCRC Bond Financing Rocks This Year
A week does not go by without another announcement about either a refinance of a not-for-profit CCRC or a new financing with the proceeds being used to expand or renovate, and even new, ground-up CCRC developments. Expand, during the worst pandemic in 100 years when seniors housing occupancy is plummeting? That’s what we said. In our first transaction, Cain Brothers had been working with Whitestone: A Masonic and Eastern Community since 2007, when several areas of need were identified to make the community more competitive. It opened its doors in 1913 and is the oldest CCRC in North Carolina. It has been managed by Life Care Services, which together with Cain... Read More »
Labor Costs During The Pandemic
Rising labor costs during the pandemic are hurting the bottom line, but there are solutions. As you may have heard, we will be hosting a webcast next week on the labor problems affecting seniors housing and care, and we hope to provide you with some solutions. The panelists include the founder of Matchwell, a relatively new company whose goal is to rid every community of agency labor and overtime. Wouldn’t that be nice. Plus, we have someone from Benchmark Living which has some of the most innovative practices out there to keep and recruit new employees. Finally, the manager of a 105-unit community will explain how for 25 years she has kept annual turnover at just 20%, something most of... Read More »
Blueprint Closes Two Senior Care Deals
M&A is chugging along in the senior care market, at last, and two teams from Blueprint Healthcare Real Estate Advisors handled a couple of transactions this week. First, in Ohio, Connor Doherty, Brian Payant and Ryan Kelly advised the estate and its advisory board in the sale of two senior care assets in the Cincinnati MSA. The campuses consist of 400 dually certified skilled nursing beds and 232 seniors housing units. Both also brought in positive cash flow. A New York-based private equity group with a strong presence in the local market emerged from the bidding process as the buyer, paying a price per bed that was high for the state. The deal brings Blueprint’s total 2020 Ohio... Read More »
CBRE Refinances Stabilizing Seniors Housing Portfolio
CBRE refinanced a portfolio of three seniors housing communities owned by a joint venture between LCS and Nuveen Real Estate, an affiliate of the investment management arm of TIAA. These communities feature a combination of assisted living and memory care, with 328 units in total. Developed by a not-for-profit in 2017 and 2018, they were acquired by the joint venture in 2018 as part of a seven-property portfolio that included four other stabilized communities around the Louisville and Indianapolis MSAs totaling 360 units of assisted living and memory care. The deal represented one of the first large-scale investments in the joint venture’s $300 million capital raise, which CBRE... Read More »
St. Louis-Area Senior Living Community Sells
A St. Louis, Missouri-based developer/owner/operator did not have to go far for its latest acquisition, picking up a large senior living community in a nearby suburb. Built in 1986, the private pay community features 116 independent living and 63 assisted living units. It has been renovated twice since opening. Occupancy was in the mid-70s, which dipped slightly during the pandemic, but in-place cash flow was strong. Incorporating the property into its regional footprint, the buyer is planning a substantial, multi-million-dollar capital improvement project. Newmark Knight Frank handled the deal on behalf of the seller and also procured a lender in Regions Bank to provide... Read More »
Berkadia Refinances Mississippi Skilled Nursing/Alzheimer’s Facility
Berkadia headed to Byram, Mississippi to refinance a senior care facility. Featuring 88 beds, the facility was built in 2000 with 88 skilled nursing beds, comprised of 44 private and 22 semi-private units. There is also a 20-bed secure Alzheimer’s unit in the facility and a new 4,000-square foot therapy gym and spa. WCR, LLC, controlled by the Rotolo family, owns the property and has worked with Berkadia three previous times to finance the property for over a decade. They recently completed an addition/renovation that was approved by HUD and consisted of almost 15,000 square feet, using their own funds to pay for it. Now, ownership has secured a $9.75 million HUD refinance from Berkadia’s... Read More »
What Covid-19 Has Done
The American Seniors Housing Association, together with HealthTrust, contacted over 30 seniors housing operators that operate more than 180,000 units about what has happened to their occupancy levels, revenues, expenses and additional costs pertaining to the pandemic between March 1 and June 30. The results were eye-opening. One interesting result was that despite being the most need-driven, assisted living and memory occupancy dropped by 661 and 651 basis points, respectively, compared with 404 basis points for independent living in the four-month period. In addition, large operators (more than 3,500 units) appeared to fare worse than small (less than 2,000 units) or... Read More »