SLIB Sells Performing Senior Living Community
Six years after it last traded hands, a stabilized senior living community in Sedalia, Missouri, sold to an owner/operator with the help of Jeff Binder of Senior Living Investment Brokerage. Located about 90 miles southeast of Kansas City, the community was built in stages in 2007, 2010 and 2015, and now features 129 units of independent living and assisted living, including some high-acuity AL units. In 2017, it was divested by a regional operator to a Texas-based private investment group for $15 million, or $116,300 per unit, and at an 8.0% cap rate. SLIB worked on that deal, as well. At the time, occupancy was above 95%, and the community was operating at a... Read More »
Mounting Troubles For Sonida Senior Living
When we read Sonida Senior Living’s recent fourth quarter earnings report, we had already heard that it contained the dreaded “going concern” caveat. While not surprising, what was surprising was how glowing the highlights were. Management “was thrilled with what our team has accomplished in Q4 and throughout 2022,” but five pages later it is disclosed that the company may run out of cash and fail to meet its obligations. Hmmm. Investors sent the share price tumbling by 40%. We were not surprised because in our November 2022 issue we stated that we thought the company would run out of money by April of this year based on its cash burn rate. We are now at the end of March, and cash... Read More »
Struggling Stand-Alone Memory Care Sells in Texas
A private equity group divested its struggling, standalone memory care community in Plano, Texas, hiring Jeff Binder and Matthew Alley of Senior Living Investment Brokerage to handle the deal. Built in 1996 and remodeled in 2013, the community has 32 beds in 20 units. Occupancy was low, at 41% based on beds, and the community was not profitable for some time. A private investment group based in Texas emerged as the buyer, having switched from a development focus to acquisitions in light of the rising construction costs. The purchase price was not disclosed. Read More »
Blueprint Finds Tenant (and Buyer) in Large SNF Portfolio Deal
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors were tasked with finding a new tenant for a portfolio of 12 skilled nursing facilities in Utah that were under contract to be sold. Their owner, a Utah-based owner/operator, was in the process of executing on a strategic firm-wide recapitalization, hence the portfolio sale, which included a total of 1,275 licensed beds. Blueprint launched a strategic process on behalf of its long-standing client that resulted in the identification of a Nevada-based operator which had strong interest in leasing the portfolio from the future buyer. Read More »
60 Seconds with Steve Monroe: Here I Go Again
Ziegler recently came out with its quarterly analysis of the CCRC market (LPC for the not-for-profit world, but we still prefer to use CCRC), and once again, their performance is rocking. Ziegler uses statistics provided by NIC MAP. CCRC occupancy far exceeds assisted living and independent living communities on average, and not-for-profit CCRCs are performing better than for-profits. In the fourth quarter of 2022, occupancy at NFP CCRCs averaged 88.2%, while for profits were 84.3%. Not bad, right? CCRCs in general performed better during the pandemic than other senior living property types partly because their residents tend to be healthier. This makes sense. Two months ago, I toured a... Read More »
Hamister Group Acquires Fully Stabilized Memory Care Community
We have not seen many stabilized seniors housing deals close in the last several months, since most owners of these properties would rather collect the cash flow or rent instead of exiting in a higher-cap-rate environment. Other owners of these properties could see the latest interest rate increase by the Fed as a sign that we will be in this higher-rate environment for longer, and see the cost of holding onto the asset for another 18 months or two years as too expensive for their taste. One possible advantage of selling now is the scarcity of stabilized assets on the market, meaning one could still command a high price for their community. Arbor Terrace Fairfax in Chantilly, Virginia, was... Read More »
Institutional Owner Sells Three Vacant Seniors Housing Communities
An institutional owner divested a portfolio of three seniors housing communities in Florida and Ohio after closing them down in 2022 due to unsustainable operational losses. All were 1990s-vintage communities combining for 179 total units. The buildings also required a good amount of capex to reopen. There were three separate buyers that emerged to buy the communities, including a seniors housing, a behavioral health and a multifamily investor. The future of these communities is also varied, from seniors housing to behavioral. Originally engaged in December 2022, the Blueprint Healthcare Real Estate Advisors team of Kyle Hallion, Andrew Sfreddo, Ryan Kelly and Gunnar Raney closed... Read More »
Partnership Acquires Active Adult Community Near Orlando
Virtus Real Estate Capital and Blaze Capital Partners partnered to acquire The Pointe at Siena Ridge, a 163-unit active adult community in Davenport, Florida, a suburb southwest of Orlando. Built in 2021, the community features a mix of one- and two-bedroom units that range in size from 753 to 1,046 square feet. Blaze Capital Partners has made three other acquisitions in the active adult space in the last five months, including Hardy Springs in the Paulding County submarket of Atlanta, Annabelle on Main in the Duluth submarket of Atlanta, and Sage Stone Oak in San Antonio, Texas. However, The Pointe at Siena Ridge is Blaze’s first active adult investment in Florida. Blaze’s partner... Read More »
Cardinal Senior Management Expands Its Midwest Portfolio
The team at Newmark represented a family owner in their sale of Byron Center Manor, a 102-unit senior living community in Grand Rapids, Michigan. With the sale, the family exited the industry, except for a piece of seller financing that they provided on the deal. The Cook Family built the community in stages over the years, opening the independent living portion in 1989, followed by the assisted living in 1992 and the memory care unit in 2003. In the last several years, the community operated at around breakeven, with nearly $5.5 million of in-place revenues at the time of marketing. Occupancy was 90%, but a new owner could trim expenses to help make the community profitable going forward.... Read More »
High-Quality SNF Sold by Blueprint
Jacob Gehl of Blueprint Healthcare Real Estate Advisors landed in Roswell, New Mexico to sell a 52-bed skilled nursing facility to a private owner/operator based in Los Angeles. Built in 1965, Sunset Villa Care Center has been well maintained over the years and boasted an impressive operation. At the time of marketing, the facility was generating revenues of approximately $6 million with a high operating margin and a quality mix of more than 40%. It is helped by being located in a growing submarket near two regional acute care hospitals. Its owner was looking to maximize proceeds and ensure a smooth operational transition, both of which were accomplished. The final purchase price was not... Read More »Schedule a demo
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