Trilogy Building Senior Care Campus in Ohio
Trilogy Health Services is building a brand-new community with a full continuum of care services in the greater Cincinnati area. Located in Liberty Township, the community will feature 25 independent living units, 23 assisted living units, 18 memory care units, and 42 skilled nursing beds, 12 skilled memory care beds. Amenities include a full-service bistro, multiple dining areas served by a certified executive chef, an activity room, a beauty and barber salon, theater room, a physical therapy and rehab gym and a resident fitness center. It will be Trilogy’s third community in Butler County when it opens next year, and sixth in the Cincinnati MSA. Louisville-based DMK Construction is... Read More »
M&T Realty Capital Finances Northeast Portfolio Acquisition
M&T Realty Capital Corporation recently announced that it provided $51.579 million of Fannie Mae financing for the acquisition of a two-property portfolio with 225 units located in the Hartford, Connecticut MSA. The 10-year floating rate loans were structured with three years of interest only followed by 30 years of amortization. The communities have independent living, assisted living and memory care units and were built in the past five to seven years. The communities were built and operated by Everbrook Senior Living, which joined with White Oak Healthcare REIT in a joint venture to acquire the communities, with Everbrook retaining a small minority position in the... Read More »
SLIB Wraps Up Two Western Transactions
Two senior care communities sold in the western United States thanks to the Senior Living Investment Brokerage trio of Jason Punzel, Brad Goodsell and Vince Viverito. First up was an independent living/assisted living community in Logan, Utah that was owned by an in-state owner/operator whose investors wanted to recycle capital for new investments. Built in 1981 and 2015, it features 82 units and was 95% occupied. In addition, the community earned about $700,000 of EBITDAR on $1.845 million of revenues in trailing-three-month annualized figures, for a healthy 38% margin. A California/Colorado-based private owner paid $8.2 million, or $100,000 per unit, at an 8.5% cap rate, for the... Read More »
Blueprint Sells Two SNFs and a CCRC
Blueprint Healthcare Real Estate Advisors announced a couple of deals this week, its seventh and eighth announcements of the month so far. First was a CCRC sale in Easley, South Carolina. Built in 1985 and now including 222 units of independent living, assisted living and skilled nursing, Easley Place was previously operated by Brookdale Senior Living before being acquired by Frontline Management and Onelife Investments in 2019 as part of a three-CCRC portfolio. However, Frontline/Onelife’s turnaround plan was negatively impacted by COVID with operations experiencing a 30% reduction in occupancy which was further compounded by the labor shortage in the market. So, Elevation... Read More »
Owner/Operator Refinances Community with Fannie Mae
HJ Sims recently refinanced a newly built senior living community in the Mountain West with a Fannie Mae loan. An owner/operator/developer with 25 communities in its portfolio located across the West operates the assisted living/memory care community. Sims acted as financial advisor and took advantage of a short-term dip in interest rates to secure an attractive, fixed interest rate before the property was considered fully stabilized. The non-recourse loan was also structured at 70% loan-to-value with a 12-year term versus the standard 10-year term, which provides additional flexibility for the borrower in pushing out any need to refinance or exit the investment. Plus, there are two... Read More »
60 Seconds with Steve Monroe: Uncontrolled Spread: Why Covid-19 Crushed Us
If there is one book you should read to really understand what happened with the COVID-19 pandemic, it is former FDA Commissioner Scott Gottlieb’s excellent book on this topic, called Uncontrolled Spread. I just finished it, and while dense in some parts on the scientific aspects, it does a lot to explain, and expose, why so much went wrong in our healthcare system, and why nursing homes should not necessarily get the blame that has been heaped on them. This is important because the lawsuits are starting to pile up, and the blame game is going to get intense, with the federal government not helping matters. The reality is that no on really knew anything about this new coronavirus,... Read More »
Sonida Senior Living Making Progress
Better late than never. Sonida Senior Living (formerly Capital Senior Living) just released its fourth quarter and full year 2021 financial results, just when companies are starting to release first quarter 2022 results. The best news, however, is their progress in the first quarter of 2022, bucking the norm of a first quarter census drop, much like many companies are doing. Getting back to the recent results, as a result of their major recapitalization late last year, raising $154.8 million, there is no longer a “going concern” issue for the company, which was a major problem. Check that one off the list. Next up is census, which like everyone else hit bottom last Spring, but has been... Read More »
Blueprint Closes Tennessee Deal
Blueprint Healthcare Real Estate Advisors recently closed on the sale of a 132-unit retirement community outside of Nashville, Tennessee. Its claim to fame is that Johnny Cash built it in 1984 for his mother-in-law, Maybelle Carter, although we do not know how long she lived there. That age, however, had an impact on pricing, as apparently it is very limited as to what one can do with the current layout. It didn’t help that several years ago the operator of the community filed for bankruptcy protection. But this was before the pandemic. Surprisingly, occupancy was 80% before the pandemic struck, and then remained around 80% during the pandemic, but then skipped down to 70% for the three... Read More »
Grandbridge Closes ChampionsGate Community Sale
Grandbridge Real Estate Capital’s Tampa-based Senior Housing Investment Sales team arranged the sale of a recently-constructed 223-unit senior living campus in the ChampionsGate submarket of Orlando, Florida. Opened in 2017, the community offers independent living, assisted living and memory care. Grandbridge’s David Kliewer and Jay Jordan facilitated the sale to funds managed by Fortress Investment Group for $45 million, or $201,800 per unit. Fortress will bring in Watermark Retirement Communities to manage the community. The community was developed through a 142(d) bond issuance and opened in December 2017. However, following challenges in meeting the operating covenants of the bond... Read More »
PE Firm Divests Denver-Area Property
An institutional private equity firm engaged Evans Senior Investments to sell its 120-unit independent living community in Arvada, Colorado (Denver MSA). The Kipling Meadows was built in 2008 and renovated in 2018. In the three months prior to its sale, the community averaged 86% occupancy (based on units) and was producing positive cash flow. Occupancy actually increased to 90% in the latest month, so Evans could forecast a 6% rental rate increase to a new owner, who was not disclosed. Read More »Schedule a demo
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