LPCs/CCRCs Do It Again
According to a new report from investment banking firm Ziegler, based on information provided by NIC, the LPC/CCRC market is on the rebound. Not that it had too far to rebound from, however. Not-for-profit and entrance-fee LPCs/CCRCs (we will refer to them all as CCRCs) had average occupancy between 90% and 92% in the 99 primary and secondary markets for the 10 years prior to the pandemic. Rental CCRCs were not too far behind but started to diverge (trend lower) between 2014 and 2015, according to the data. With the onset of the pandemic, all forms of CCRCs, whether not-for-profit, for-profit, rental or entrance fee, saw similar drops in census that were seen across the industry and all... Read More »
Low Census SNFs Trade Hands in Illinois
CIBC Bank USA closed on a $12.44 million acquisition loan for two skilled nursing facilities totaling 253 beds in northern and central Illinois. An absentee manager had operated the facilities for several years, and occupancy was low as a result. Both facilities had an effective age of roughly 20 years, which is not too old in the SNF market. So, the borrower/buyer saw an opportunity to reduce expenses and bring occupancy to a stabilized level, thereby generating a margin in the mid-teens. One facility will be owner-operated, and the second will be leased to a regional operator. CIBC’s financing included a three-year term loan arranged at 80% loan-to-value, with earn-out... Read More »
BMO Harris Provides $380 Million Credit Facility for Institutional Investor
BMO Harris Bank’s Healthcare Real Estate Finance group announced its role as lead arranger and administrative agent on a portfolio term loan refinancing facility in excess of $380 million for 15 seniors housing communities throughout the United States. The properties are managed by five regional operating partners and include over 1,700 units of independent living, assisted living, and memory care. BMO partnered with Capital One, N.A., which served as joint lead arranger, to form the syndicate for the facility, which will be offered at a floating rate. The properties’ owner is a national senior housing real estate investor. Read More »
New SNF Sells in Texas
A brand-new skilled nursing facility changed hands in central Texas, with the help of Nick Stahler and Austin Diamond of The Knapp-Stahler Group at Marcus & Millichap. Opened in 2019, the 88-bed facility was built as a replacement property by its regional owner. The pandemic took a toll on operations. Occupancy was 50%, and there was some positive cash flow, but the facility was heading towards stabilization. Given its newer vintage and lack of new competition in the area, we imagine once stabilized, it could operate at a healthy margin. The facility is also enrolled in QIPP, which should help. Another regional owner with a presence in the state bought the facility for $7.0 million,... Read More »
Sonida Makes First Purchase Since 2016
We learned last month of Sonida Senior Living’s first acquisition since November 2016, when it purchased two independent living communities around Indianapolis, Indiana. But, a few more details have come out on the deal since then. First, it was revealed that Walker & Dunlop Investment Sales’ Alex Vice was the lead broker on the deal. He represented the seller, Core Redevelopment, a local multifamily developer/manager that acquired the communities (in distress) in 2019. Core embarked on a significant renovation to the community’s interior and exterior in addition to rebranding and repositioning the communities. Totaling 157 units, the IL communities were not well occupied at the time... Read More »
Sabra and Sienna Senior Living Join Up In Canada
Sienna Senior Living has announced a strategic joint venture with Sabra Health Care REIT to purchase a $243 million (C$307.5 million) portfolio of eleven private-pay retirement residences in Ontario and Saskatchewan. This will be Sienna’s first venture into the Saskatchewan retirement market, with four of the 11 properties located in the province. The other seven properties are in various cities in the Greater Toronto Area of Ontario, where Sienna already maintains properties. Extendicare Inc. is the seller, and the portfolio represents all of its currently owned private-pay retirement properties in Canada. Both Sienna and Sabra will have 50% ownership of the high-quality, entirely... Read More »
Sabra Health Care REIT Resets With Major Tenant
The healthcare REITs and their triple net lease tenants, as well as their RIDEA managers, have had a tough two years. Some companies have been forced out of business completely, others have lost a portion of their portfolio, but many others have been able to work things out with their landlords. Such appears to be the case with Sabra Health Care REIT and Avamere Group. Our feeling has always been if you like your provider and do not think someone else could have done a better job, especially during this pandemic, then stick with them and work out a plan. Avamere is a substantial company, with 62 properties in eight states and a combination of skilled nursing facilities and... Read More »
Lloyd Jones Expands Senior Living Portfolio
Lloyd Jones announced the acquisition of River Bend Assisted Living and Memory Care, an 89-unit Class-A senior living community in Rochester, Minnesota (Minneapolis MSA). The Miami-based real estate investment firm will enlist their senior care management division, Lloyd Jones Senior Living, to manage the property under their proprietary AVIVA brand. The sale closed on January 31 at a purchase price of $26.5 million, or just shy of $300,000 per unit. The community sits on 2.8 acres and includes landscaped walking paths with direct access to scenic Zumbro River trails. Lloyd Jones plans to enhance the property through technology and amenity improvements. In addition, it will implement an... Read More »
Blackstone Sells Class-A Property in Florida
Newmark recently announced a closing on Mangrove Bay in Jupiter, Florida, and while we’ve heard of some high per-unit prices over the last year, this purchase is rumored to set a new state record for per-unit price. Blackstone divested the Class-A community to an undisclosed buyer. The Mangrove opened in the early 2000s and has 160 assisted living, independent living, and memory care units in six stories. The community is reportedly in high demand among potential residents and was doing very well at the time of sale, with occupancy near 100%. We hope to disclose the purchase price soon, but we know that according to public records, the property originally sold for $49.5 million to Health... Read More »
Illinois-Based Owner/Operators Exchange Underperforming SNF
An undisclosed Illinois owner/operator recently purchased Cotillion Ridge in Robinson, Illinois. Located three hours east of St. Louis and two hours west of Indianapolis, this smaller, 67-bed skilled nursing facility was an outlier for its previous owner, also an Illinois-based owner/operator. The property was built on two acres in 1972 with additions in 1982 and 2001, and was 54% occupied at the time of sale. The buyer plans to bring ancillary services into the facility and focus on building census. Whereas the seller was focused on quality mix (29% private pay and 24% Medicare), the buyer specializes in operating with all types of payors and should be able to improve occupancy though... Read More »Schedule a demo
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