60 Seconds with Steve Monroe: Big-Time CCRC Development
For those of you who know me, you know I have been a big fan of the CCRC model, and have been for decades. And for those of you who still think the entrance-fee CCRC model is dead, well, think again when you hear this. HJ Sims recently closed on what may be one of the largest tax-exempt bond financings for a single-site CCRC new development, if not the largest. The total bond issuance comes to $398 million, or just over $1.5 million per unit, with maturities ranging from four years to 35 years. The interest rates range from 2.875% to 4.625%. It is located in Westchester County, New York. The community will be situated on the campus of Purchase College, State University of New York. There... Read More »
The Ensign Group Acquires Five-Property Portfolio
The Ensign Group has acquired a five-property portfolio from Invesque Inc. for $93 million. Spanning California, Kansas and Arizona, the transaction includes four skilled nursing facilities totaling 436 beds and a 144-bed assisted living community. The SNF portfolio was operated by Ensign, and The Pennant Group operated the AL community up until this sale. BMO Capital Markets advised Invesque on the deal. The portfolio sale was part of Invesque’s Jaguarundi Ventures, LP joint venture between Invesque and Magnetar Capital, of which Invesque owns an approximately 65% ownership interest. Jaguarundi Ventures will receive $22 million of net proceeds from the sale after the repayment of... Read More »
Central Illinois SNF Sells
Ryan Saul and Jeff Binder of Senior Living Investment Brokerage closed on the sale of a 70-bed skilled nursing facility in central Illinois at the start of November. Built in 1970 but with an effective age of 25 years, the facility was in good condition at the time of the sale. Occupancy was trending positively at 75% (hopefully that continues heading into winter) and the quality mix was 30%. But stabilized occupancy was around 87%, with margins in the mid-teens. Its regional owner/operator, which had operated the facility for several years, was looking to exit a non-core asset, while the undisclosed buyer was looking to expand their presence in central Illinois. No other details were... Read More »
Evans Senior Investments Facilitates Sale of AL Community
Evans Senior Investments is continuing its busy month, representing a private equity company for the $6.5 million sale of Quail Creek, a 103-unit assisted living and memory care community. Built in 1999, this community in Quail Creek, Oklahoma is in the Oklahoma City metropolitan area. The community averaged 41% occupancy at the time of marketing (100% private pay) and had revenues of $1.76 million. However, it was not profitable due to the low census and lost over $1 million of net operating income in the last 12 months. Quail Creek also had below-average rental rates compared to competing communities in the area, trailing their competitors by over 40% and contributing to the negative... Read More »
Livingston Street Adds to Dallas-Area Portfolio
Livingston Street Capital continued its active adult community buying streak by adding a 183-unit community in Prestonwood to its growing portfolio. The purchase brings Livingston Street’s active adult investment in the Dallas-Fort Worth area to $150 million across four properties in just six months. This also represents the firm’s fourth acquisition of the year, and seventh since the start of 2020. In that time, Livingston Street has picked up seven communities in Texas, Illinois, Maryland and Florida. Built in 2017, Atlas Point at Prestonwood contains 183 units with one-, two-, and three-bedroom options that feature walk-in closets, granite countertops, hardwood-style flooring, and... Read More »Roy E. Christensen, Industry Pioneer, 1934-2021
We learned at the end of last week that skilled nursing facility pioneer Roy Christensen passed away at the age of 87 after a short illness. Most recently, he was the Chairman of The Ensign Group, but his history in the skilled nursing industry goes back nearly 60 years. In 1963, he founded Beverly Enterprises, which grew to be the largest nursing home company in the country, with more than 1,000 facilities across the country. At the time, the company had a two-rate structure: $7.35 per day and $9.10 per day. That was certainly another era. He left Beverly in the mid-1970s and started teaching full time at Brigham Young University. He returned to the... Read More »
Genesis HealthCare Makes Changes
Just after announcing that its CEO would be stepping down, Genesis HealthCare revealed more changes. The current COO, Paul Bach, the Chief Nursing Officer, JoAnne Reifsnyder, and the CFO, Tom DiVittorio, have all announced they will be leaving the company. They have spent the past 38 years, 10 years and 25 years, respectively, at the company, so a lot of institutional knowledge will be walking out the door. The new COO will be Melissa Powell, who most recently was the President and COO of The Allure Group, a New York City-based nursing home operator. Orrin Feingold joins Genesis as the new CFO. He has had similar positions... Read More »
Chartwell Retirement Residences Sees Census Slowdown
North of the border, Canada-based Chartwell Retirement Residences has seen a small uptick in its weighted average occupancy rate for its retirement residences, but nothing like what we have seen in the U.S. For Chartwell’s same-community portfolio, occupancy ended July at 76.3%, gained 30 basis points in August and 10 basis points in September, to end the third quarter at 76.7%. But October saw just a 10-basis point increase again to 76.8%, and they are forecasting occupancy to remain there through the end of the year. We have not heard any U.S. companies believing they would remain flat for the rest of the year. Management claims that move-ins have... Read More »
Labor Woes to Continue?
The American Health Care Association and the National Center for Assisted Living issued a report last week which showed that the long-term care industry is facing its worst job loss ever, and has not showed any kind of recovery like other healthcare sectors. Industry employment in the nursing home sector has fallen by 14%, a loss of 221,000 jobs, while assisted living employment fell by 8%, a loss of 38,000 jobs during the pandemic. Initially, hospitals saw a huge drop in employment, caused by the sharp reduction in elective surgeries. But it has mostly recovered, and total employment sits at just 1.6% below pre-pandemic levels. Even though that means hospitals are down 86,000... Read More »
The Goodman Group Assumes Operations of Montana Community
Montana-based seniors housing operator The Goodman Group has assumed the operations of Discovery Care Centre in Hamilton, Montana. The community offers 58 licensed skilled nursing beds and 35 assisted living and memory care units. While Discovery Care Centre is The Goodman Group’s newest addition to its Montana portfolio, it also currently operates Valley View Estates Health & Rehabilitation in Hamilton, Hillside Health & Rehabilitation, Riverside Health & Rehabilitation, The Village Senior Residence and The Village Health & Rehabilitation in Missoula, and Westpark Village in Billings. Read More »Schedule a demo
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