Activists Strike Again, But Fall On Deaf Ears
You have to hand it to Jonathan Litt of Land & Buildings, he has not given up on the senior care sector. After going after a few provider companies in the pre-COVID past, he recently set his sights on Ventas. But, Big Deb did not quake in her heels. She never does. As is his way, Litt tried to get a position on the Ventas Board, and after meeting with two separate groups of directors, he apparently thought that he made a good impression and had swayed them. Wrong. Right after his March 7 letter to Ventas shareholders, Ventas announced the appointment of a new board member, but his name was not Litt. Extremely qualified, yes, but not Litt. In Litt’s letter, he indicated his “tremendous... Read More »A Conversation on the Bridge Lending Market with Oxford Finance
The industry is emerging from the pandemic, but new issues are always arising, so how are lenders reacting and how do they distinguish pandemic problems from provider problems? Ben Swett sat down with Kevin Harbour and Tracy Maziek of Oxford Finance to discuss the state of the bridge lending market in a rising interest rate environment. Read More »Brookdale Provides Update
Brookdale Senior Living just released its occupancy update for February, and our first take was that things need to be better than that. Then, we remembered our late 2020 analysis which showed that assisted living occupancy has never increased in the first quarter for each of the past 10 years. Therefore, we should not expect too much this quarter. In this light, Brookdale’s census outlook is not too bad. From January to February, the weighted average occupancy dropped just 10 basis points to 73.3%. Even better, the month-end occupancy increased by 20 basis points from the end of January to 74.4%. The problem is that census at the end of September was 74.2%, so we have seen little overall... Read More »Behavioral Health Provider Buys Hometown Senior Living
A national behavioral health provider acquired a Minnesota-based assisted living/memory care provider and its seven locations in the Minneapolis-St. Paul metro area. Yet again, we are seeing a combination of these healthcare service sectors, as several of the senior care REITs announced plans to grow their behavioral health holdings in their recent earnings announcements. The target was Hometown Senior Living, a family-owned and operated provider that has grown over the past 10 years to be one of the largest memory care operators in the Minneapolis area. It was acquired by Beacon Specialized Living, one of the biggest behavioral health providers in the country with over 190 locations.... Read More »CIBC Finances Texas SNFs
CIBC Bank USA recently closed on a $1.5 million revolving line of credit that provides working capital to support three recently acquired skilled nursing facilities in Texas totaling 316 beds. The seller was local and looking to divest some of their skilled nursing assets. The facilities performed with good operating margins despite census being between 55-60% throughout 2020 and 2021. The buyer identified a significant opportunity to improve operations and quality of the homes, with a focus on increasing census while maintaining healthy margins. Read More »Two Years After The Start
It has now been two years since the official start of the declared pandemic, and the entire seniors housing and care industry has been rising from the bottom of last March. But what now? It seems that from a census perspective we have clawed back up to 50% of what was lost, but the pace of census expansion has slowed. The labor shortages are causing some providers to put their own hold on new admissions, and the ever-increasing labor costs are putting a permanent dent into operating margins. All of this is happening at a time when the industry really needs to prepare for the aging baby boomers, and not worry about how it is going to provide the needed staffing. Next Thursday, March... Read More »NHI and Welltower Agree to Memorandum of Understanding
Following a late-February announcement that they would work out a settlement to their rent dispute, National Health Investors and Welltower announced that they have entered into a memorandum of understanding on the matter. The MOU stipulates that: NHI and Welltower wish to transition the 16 legacy Holiday Retirement properties to new tenants and that Welltower will use commercially reasonable efforts to complete this by April 1, 2022.NHI desires to sell one legacy Holiday property and that Welltower will use commercially reasonable efforts to facilitate the sale’s closing.Welltower will pay NHI approximately $6.9 million, to be held in escrow until the execution of the final settlement... Read More »Monarch Advisors Finances Assisted Living Addition
An assisted living community in Salinas, California is more than tripling its size with financing in hand from a national SBA lender. Alec Blanc of Monarch Advisors arranged a multi-stage lending strategy for the owner, Songbird Care Homes, and sourced the debt. The $4.6 million senior loan comes with a term of 25 years and a rate of Prime plus 1.0%, with an option to convert to a fixed rate equal to Prime plus 1.2% upon completion of the addition. Originally built in 1952, but renovated and converted to assisted living in 2017, the existing six-unit/12-bed community will see 28 new beds in 14 units added thanks to the funding. Occupancy was 92%. Read More »Helios Arranges Sale in Massachusetts
A family-run organization is getting out of the skilled nursing business (along with many other mom & pops across the country) and sold its 63-bed facility in northwest Massachusetts. Built in the mid-1960s, the facility was also operated by the seller but recently experienced a census decline from the mid-80s to the high-60s. That is because the Massachusetts Department of Public Health recently proposed and implemented a removal of all three- and four-bed wards at SNFs in the state. The industry has been moving past wards for a while now, but some operators of older, mostly Medicaid facilities rely on them to fill beds and cover their overhead costs. With Medicaid reimbursement rates... Read More »Northbridge Refinances Massachusetts Community
Greystone has provided a $24.8 million Freddie Mac Optigo loan to refinance Laurentide at Mashpee Commons in Mashpee, Massachusetts, minutes from the Cape Cod shoreline. The Freddie Mac fixed-rate, non-recourse financing carries a 10-year term and a 30-year amortization. Managing director Shailini Nehra handled the transaction on behalf of owner Northbridge Companies. Ten percent of the units at the 2018-built, 70-unit senior housing community have been designated affordable by the Cape Cod Housing Authority. With independent living, assisted living and memory care services, the senior housing community features studio, one- and two–bedroom residential units. Amenities include a full... Read More »Schedule a demo
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