SLIB Facilitates IL Sale in Idaho
Senior Living Investment Brokerage recently facilitated the sale of a successful independent living community in Chubbuck, Idaho. Comprising 82 units and one single-family home, the community was built in 1987 and has 117,828 square feet on five acres. The community, named Cottonwood Cove, was purchased for $3.75 million, or $45,000 per unit, at an 8.75% cap rate. It earned annualized revenues of $1 million and an EBITDA of $328,000. Cottonwood Cove has a 99% occupancy and also has a surplus of land, allowing the new owners to capitalize on their success and expand into this extra space. In fact, the property has consistently performed over the years, even through the pandemic, with an... Read More »
Portfolio of 15 AL Communities in Wisconsin Sells
Senior Care Realty is finishing the year strong with the sale of 15 assisted living communities in Wisconsin for $13.35 million, or about $60,000 per unit and $54,700 per licensed bed. Most of the communities are located in rural, northern Wisconsin towns and were built from the mid-1990s to the early-2000s, with a few newer communities in the mix too. Occupancy was in the low-80s before the pandemic but dropped to around 70%, with a roughly 85% Medicaid census. Nevertheless, the portfolio produced a healthy amount of cash flow, or nearly $1.27 million on $7.4 million of revenues, for a 17% margin. That results in a 9.5% cap rate. The seller owns a number of other communities in the state... Read More »
Former Hospice Facility to Transition to Seniors Housing
After an owner/operator and a group of investors bought a 24-unit hospice facility in Georgetown, South Carolina from a local hospital, then gutted, expanded and converted it to a two-story, 62-unit assisted living/memory care community, the group decided to sell before opening day. There are now all studio units ranging from 255 to 471 square feet, split between 44 assisted living and 18 memory care units. Patrick Burke, Bradley Clousing and Dan Geraghty of Senior Living Investment Brokerage marketed the property, which received a certificate of occupancy and Department of Health and Environmental Control (DHEC) construction approval prior to the sale. A regional operator with a... Read More »
Blueprint Facilitates Refinancing of Two Communities
Green Lake Senior Living, a Washington State owner/operator, was able to procure a cash-out refinance on two of its seniors housing communities in the Tri-Cities area with the help of Alex Florea and Dan Mahoney at Blueprint Healthcare Real Estate Advisors’ Capital Markets group. Green Lake acquired the communities during the pandemic as value-add investments from a pair of national operators. Both were older, “C” quality communities combining for 160 beds. Green Lake was able to quickly improve performance through its regional presence and by leaning into the state’s Medicaid program. Such an improvement made a cash-out refinance a no-brainer, and Blueprint marketed the... Read More »
SLIB Sells Struggling SNF in Pennsylvania
The owner of a struggling skilled nursing facility in northwestern Pennsylvania looking to sell has decided to add another performing facility to the deal in order to sweeten the pot. In the end, both sold to a New York-based investor with a growing presence in the Keystone State. Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the transaction. The first facility in Erie features 80 beds and was deemed to be non-core due to occupancy being below 50% and cash flow being negative. It was built in 1963 and 1968 and had a union in place. The other facility, located about two and 1/2 hours away in Clearfield, had 240 beds, but only 180 were functional because one floor... Read More »
Bon Secours Exits Senior Care Industry in Virginia
Bon Secours Mercy Health decided to exit the skilled nursing and assisted living business in Virginia, and we learned that they hired Healthcare Transactions Group (HTG) to serve as exclusive M&A advisor. The portfolio includes two nursing facilities located in Suffolk, Virginia (Maryview Nursing Care Center, 120 beds) and Newport News (St. Francis Nursing Center, 115 beds). The acquisition also includes two assisted living communities, consisting of Province Place of DePaul in Norfolk (97 beds) and Province Place Maryview in Portsmouth (78 beds). This represents a nice little cluster for the buyer, a private equity investor based in New Jersey that wanted to expand its existing... Read More »
SLIB Facilitates AL Transaction in Upstate New York
A doctor in the field of gerontology decided to sell her only assisted living community in Saugerties, New York to another private individual owner in a transaction arranged by Dave Balow and Toby Siefert of Senior Living Investment Brokerage. The community is set in a 1900s-era house that was renovated in 2008 and 2014. It now features 40 beds in 30 units, with a license for Enhanced Care, which is a private pay-focused model providing additional care for residents in exchange for additional revenue. Occupancy was strong (above 90%), so there is an opportunity to expand the current building and increase the unit count. The community operated at a roughly 11% margin on $2.12 million of... Read More »
Active Adult Community Set to Break Ground in Texas
Edison Equity Management Corporation, a Texas-based developer and acquirer of active adult communities, has purchased land for a 182-unit development in the Houston MSA. The project is set within a master-planned community called Cypress Creek Lakes, and will sit on an eight-acre plot of land. Named 55 Resort at Cypress Creek Lakes, the community will feature a gym, fitness studio, library, resort-style pool and hot tub, and a restaurant with a coffee and wine bar. 55 Resort will also provide a program director for various activities in and around the community. Unit prices range from approximately $1,900 to $2,500 per month. Edison Equity Management currently has four listed active... Read More »
Harbert Management Corp. Acquires South Bay Partners
Alternative asset management firm and consistent seniors housing investor Harbert Management Corporation (HMC) has acquired South Bay Partners, LLC, a Dallas-based seniors housing developer. South Bay has developed over 10,000 high-end seniors housing units costing over $1 billion across the United States. The company will complement HMC’s existing seniors housing investment platform, while allowing HMC to make development investment opportunities. HMC plans to raise capital for South Bay’s development projects through separately managed accounts and commingled funds. In addition, South Bay Founder and CEO Craig Spaulding will move to an advisory role following the transaction, while... Read More »
60 Seconds with Steve Monroe: 2021: Goodbye and Good Riddance
I thought about doing my usual year-end, cutesy Christmas poem where I roast a few industry leaders and friends, but somehow I just didn’t think it was appropriate this year. Maybe next year. Even though census and operating performance improved this year compared with 2020, it is still not enough. And then we had to end the year with the rising Omicron variant. No shutdowns here yet, and I don’t really see that happening since those who have been vaccinated have had mild symptoms to date. But it is just one more strain on an already over-worked health system that we did not need. In the aftermath of the Great Recession, all we heard was how resilient our industry was during that financial... Read More »Schedule a demo
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