Northeast Operator Grows Midwest Portfolio
Daniel Geraghty, Vince Viverito and Jason Punzel of Senior Living Investment Brokerage sold a couple of Kentucky seniors housing communities on behalf of the REIT owner that was divesting the properties for strategic consolidation purposes. The buyer, a Northeast-based operator looking to add to its growing Midwest portfolio, purchased Arcadian Cove in Richmond and Willow Creek Senior Living in Elizabethtown, located about 125 miles from each other. Built in 2009, Arcadian Cove features 49 units of assisted living, while Willow Creek, built in 1998, has 65 AL and memory care units. There were multiple offers for the communities from both local and regional buyers before the... Read More »
REIT Divests Two Florida Communities
Grandbridge Real Estate Capital’s Senior Housing Investment Sales team sold two seniors housing communities in Florida on behalf of a national REIT. Totaling 420 units of independent living, assisted living and memory care, the communities include Spring Haven (297 units) in Winter Haven and Lake Morton Plaza (123 units) in Lakeland. Both older-vintage assets are located between Tampa and Orlando. They were deemed to be non-core by the REIT owner, which was able to improve its overall portfolio operating metrics and simultaneously reallocate capital to other initiatives. A Florida-based owner/operator with a growing portfolio in the region was the eventual buyer, purchasing the communities... Read More »
Plains Commercial Arranges SNF Lease
Plains Commercial arranged the lease of Davis West Nursing Home, a 177-bed skilled nursing facility in Pine Bluff, Arkansas. Daniel Morris of Plains was engaged to market the facility on a confidential basis at the request of the landlord. The exiting operator is a not-for-profit that made the decision to exit the SNF operating business. The facility was also suffering from a depressed census which had not fully recovered from the pandemic. So, it offered a new operator significant upside through further lease-up and operational changes. After the bidding process, the landlord chose to engage with a Chicago-based operator, which is taking on its first facility in Arkansas with this lease.... Read More »
Vermont SNF Gets a HUD Refinance
Capital Funding Group closed a $13.4 million HUD refinance of a 144-bed skilled nursing facility in Vermont. The new loan replaced an existing bridge loan that had been executed by CFG and had seasoned for two years before being brought to HUD. The nationally recognized borrower was able to take cash out as a result. Managing Director, Real Estate Finance Tim Eberhardt and Senior Associate Ava Julio originated the transaction for the company. The financing follows CFG’s recent closing of $207 million in financing to support the refinancing of 10 skilled nursing facilities across Maryland, Virginia, and North Carolina. Read More »
60 Seconds with Swett: Welltower Increases Guidance
Welltower came out with a business update for June, and there was some good news on the financial front, particularly in regard to labor cost trends. First, the REIT was able to raise guidance for both its 2023 net income attributable to common stockholders and 2023 normalized FFO on the back of better-than-expected operating results in its SHOP portfolio and a bolstered balance sheet. Operationally, the REIT reported that same-store RevPOR continued to grow at a faster rate than ExpPOR in the first quarter of this year, the fifth consecutive quarter of margin expansion. This was helped in part by agency labor expense as a percentage of total compensation dropping to 3.4% in the first... Read More »
Solid Price Achieved for Struggling Seniors Housing Community
The guys at Senior Living Investment Brokerage have been on a roll lately, announcing nine transactions in the month of May and another four in the first week of June. And there are more to come this month. The latest was the sale of The Waterford in Smyrna, a 92-unit assisted living/memory care community in Smyrna, Tennessee. Dave Balow and Patrick Burke sold the community on behalf of a local ownership group/operator that decided to exit the asset to deploy capital into other real estate ventures. Built in 2009 about 25 miles southeast of Nashville, the community was 57% occupied around the time of marketing. It generated nearly $2.48 million of revenues but lost $57,000 in EBITDAR... Read More »
Allen McMurtry Retires
After an exceptional 35-year career representing seniors housing owners and operators, our good friend Allen McMurtry has finally decided to retire and enjoy life in North Carolina, where he has been biking and hiking for years. Most recently he was head of seniors housing investment sales at Grandbridge Real Estate Capital, but had been passing the torch to Dave Kliewer and Jay Jordan for the past several years. Hmm, sound familiar? He also spent time at Cushman & Wakefield (13 years) and CLW Realty Group (17 years). I first got to know Allen in the late 1980s when we competed against him to represent Barnett Banks of Florida in the sale of two retirement communities in default in... Read More »
Blueprint Finds a Behavioral Health Buyer for Texas Transaction
Sometimes in seniors housing, the better buyer comes from behavioral health. That was the case in Blueprint Healthcare Real Estate Advisors’ sale of an assisted living/memory care community near Dallas, Texas. Featuring 65 units, the community was originally developed in 1996 but received substantial renovations in 2020. It consisted of large units, amenity spaces and outdoor areas. However, intense market competition and surrounding labor pressures negatively impacted the community. Although occupancy was decent, RevPOR was still low (albeit improving) and the community (while profitable) was not covering its debt payments. So, Blueprint implemented a tiered marketing campaign... Read More »
Meridian Capital Group Reports Latest Activity
Meridian Capital Group’s Senior Housing and Healthcare Team closed $310 million in transaction volume in May for a combination of 17 facilities in six states. These transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson. The team’s recent closings include a $169 million acquisition loan from a commercial bank and mezzanine lender for seven skilled nursing facilities comprising 1,112 beds in Maryland and New Jersey; a $34.2 million acquisition loan from a commercial bank for three skilled nursing facilities in Illinois totaling 515 beds; and a $31 million acquisition loan from a commercial bank along with a $3.5 million A/R... Read More »
Diversified Healthcare Trust – Not So Fast
It has been nearly two months since Diversified Healthcare Trust announced its merger with Office Properties Income Trust, two REITs basically controlled by external manager RMR Group. This was about the most self-serving transaction we have seen in a long time. But at least one DHC shareholder is not going to stand by. Flat Footed LLC, which with its affiliates owns about 7.4% of DHC’s shares, wants shareholders to vote against the deal, believing DHC should be (will be) worth between $9 and $10 per share if they let their SHOP portfolio continue to improve. The shares closed May 31 at $1.36 per share. That is a huge valuation differential, and it all seems to rest on DHC’s management’s... Read More »Schedule a demo
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