Brookdale Reports and Provides Guidance
Not since the pandemic hit has Brookdale Senior Living provided guidance on adjusted EBITDA and RevPAR growth. It is something that has been missing for investors and analysts, but Brookdale was not alone in suspending guidance. It just became too difficult for anyone in the senior care business to predict with any amount of certainty what the next quarter or year would bring. Full year adjusted EBITDA is projected to be between $240 million and $260 million, while RevPAR is expected to grow by 10% to 12% in 2022. Adjusted EBITDA in 2021 was $138.5 million, but $283.6 million in 2020. The good news is that this means management has more confidence with where their operations are going. We... Read More »
60 Seconds with Swett: Deciphering the 2021 M&A Market
What to make of the 2021 senior care M&A market? Amid stagnant census, rising labor costs and media glare, average skilled nursing facility values went up last year, according to our in-house statistics. Meanwhile, seniors housing values fell slightly and remain well off pre-pandemic levels. But there has to be more behind these numbers. What factor does building age play in pricing, or location, trailing occupancy? What did buyers care about in 2021, and make them push their bids up? Or down? We’ll cover these topics in our annual Senior Care Acquisition Report, to be published later this month, but for those of you who want a preview of our 2021 M&A statistics, plus expertise... Read More »Lloyd Jones Expands Senior Housing Presence with Help From CBRE
CBRE National Senior Housing arranged acquisition financing for Lloyd Jones’ acquisition of River Bend Assisted Living and Memory Care in Rochester, Minnesota. Aron Will, Austin Sacco and Matthew Kuronen of CBRE worked on the deal. Built in 2014, the Class-A community has 89 assisted living and memory care units on 2.8 acres about 1.5 miles away from the original Mayo Clinic in Rochester. There are landscaped walking paths with direct access to scenic Zumbro River trails, and Lloyd Jones plans to enhance the property through technology and amenity improvements. In addition, it will implement an acuity mix shift, converting 16 out of the total 18 memory care units to transitional... Read More »
Bellwether Refinances for HRA
Bellwether Enterprise Real Estate Capital LLC (BWE), a national commercial and multifamily mortgage banking company, closed a $21 million Freddie Mac loan to refinance HarborChase of Naperville, an assisted living and memory care community located in Naperville, Illinois. BWE’s Ryan Stoll and Taylor Mokris originated the loan on behalf of the borrowers, affiliates of Bourne Financial Group and HRA Senior Living (Harbor Retirement Associates). Opened in 2016, the community has 101 units in two stories. HRA Senior Living operates it, in addition to four others in the state of Illinois. Its original construction loan was taken out as a result of this transaction. The new loan has a... Read More »
Koelsch Communities Expands with New California Community
Koelsch Communities has opened a new independent living community in Elk Grove, California. The community broke ground in May of 2019, but completion was delayed due to the pandemic. The $75 million Park at Laguna Springs sports 135 senior apartments and 16 casita apartments. Koelsch is vertically integrated with a construction arm, and three memory care communities have come online in the last 12 months: an 80-unit community in Kirkland, Washington, a 72-unit community in Elk Grove, California, and a 72-unit community in Puyallup, Washington. Koelsch has been adding independent living and assisted living offerings, preferring to build out continuum-of-care options on a given campus... Read More »
Another Home Builder Launches New 55+ Brand
Dream Finders Homes (DFH), a publicly traded homebuilding company, is expanding into the active adult market with a new brand of communities called “Reverie.” The company is leveraging its sales success in their existing active adult community, Reverie TrailMark, in the St. Augustine, Florida area. The word “reverie” means daydream and reflects the idyllic lifestyle that DFH hopes to represent with their amenity-laden properties. The company is not alone in seeing robust demand from empty-nesters and those 55 and over (really 75 and older) as an avenue of growth and hopes to leverage their experience with homebuilding to provide well-planned communities. A competitor of theirs, Toll... Read More »
The Ensign Group Reports Another Solid Quarter
The Ensign Group did not disappoint yet again with its latest quarterly results. The senior care provider reported an increase in GAAP diluted earnings per share of $3.42 for 2021, an increase of 11.8% over the prior year, while adjusted EPS rose 16.3% year over year to a record-high $3.64. Consolidated GAAP revenues increased by 9.5% to $2.6 billion in 2021, with GAAP net income reaching $194.7 million for the year, an increase of 14.2% compared with 2020. Those are all healthy increases in a year of numerous operational headwinds, with large companies especially susceptible to high employee turnover and stagnant census. That is the beauty of the decentralized operating model that Ensign... Read More »
McFarlin Group Buys Value-Add Florida Community
Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Parkside Assisted Living and Memory Cottage, a three-story 65-unit/94-bed seniors housing community in Port Charlotte, Florida. The community was developed by a local neurologist and managed by his family upon his untimely death in early 2017. Nevertheless, it opened in October 2017 and reached 62% occupancy prior to the pandemic. However, occupancy decreased through 2020 and reached its low at the end of 2021. The buyer is an affiliate of Dallas-based McFarlin Group, which develops, owns, and asset manages senior housing communities throughout the Sun Belt. For an undisclosed price,... Read More »
Lument Closes Nearly $1.5 Billion in 2021 Seniors Housing Transactions
Lument announced today that it closed 137 seniors housing and care transactions in 2021 totaling $1.49 billion, a record for the company, representing financings in 31 states. The volume included 18 HUD 232/223(f) transactions totaling $154.4 million, eight HUD 223(a)(7) refinances totaling $114.4 million, two HUD 223(f) refinances totaling $30.5 million, and a new construction loan from HUD for an assisted living community in Illinois. The firm closed deals across the country, with 21 transactions for clients based in Ohio, 17 in Indiana, 12 in Illinois, eight in Virginia, and six each in California, Minnesota and Oklahoma, among others. In all, Lument also originated 92 rate... Read More »
Walker & Dunlop Provide Funds to SNF Portfolios Struggling During COVID
Walker & Dunlop, Inc. announced that it structured a little over $77 million in financing for two skilled nursing portfolios totaling ten properties and 848 units. The Cascades Portfolio, located throughout Utah, totals seven properties and 693 units. The Rollins-Nelson Portfolio includes three properties and 155 units located in Englewood, Long Beach, and Perris, California. Walker & Dunlop’s Kevin Giusti, Brian Neal, and Andrew Westling arranged financing from HUD, a regional bank and a finance company to provide for the Cascades portfolio. For the Rollins-Nelson portfolio, the team refinanced the existing HUD loan, capitalizing on a low interest rate and extending the term... Read More »Schedule a demo
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