NIC Data Shows Slow Occupancy Recovery
According to most recent aggregated NIC data, occupancy in the third quarter rose to 80.1%, after having stagnated in the previous two quarters at 78.7%. It’s great to see this positive movement, but we are still a long way away from pre-pandemic occupancy levels, and we would have hoped to see more growth heading into the holiday and flu season. This average is also not an indicator of how other institutional operators and REITs are performing, or the industry as a whole, but there are just no other comprehensive sector-wide statistics out there. As we reported last month, Sabra Health Care REIT, Inc. disclosed a 716-basis point increase in occupancy between February and July 2021. Senior... Read More »
SLIB Handles Two Transactions in Oregon
Senior Living Investment Brokerage closed a slew of sales at the end of September, including two in Oregon. Jason Punzel, Brad Goodsell and Vince Viverito worked on behalf of a local ownership group in Oregon to sell their only two seniors housing properties. There was an 87-unit independent/assisted living community in Grants Pass and a 61-unit AL community in Medford. Both were built in the early 2000s and were around 87.5% occupied. Combined EBITDAR totaled $1.44 million on about $6.77 million of revenues, resulting in a margin around 21%. An Oregon-based owner/operator purchased the communities for $17 million, or $114,900 per unit, at an 8.5% cap rate. Messrs. Punzel, Goodsell and... Read More »
Evans Senior Investments Sells Louisiana SNF
An owner/operator is exiting the long-term care industry with the sale of its 189-bed skilled nursing facility in Lafayette, Louisiana. Selling for $30 million, or $159,000 per bed, this transaction represents the highest per-bed price ever in the state of Louisiana, according to our M&A database, LevinPro LTC. Evans Senior Investments handled the transaction. Built in 1992 and expanded/renovated in 2009 and 2012, the facility has a modern physical plant with 125 private rooms and 32 semiprivate units. Historically, it has been well occupied between 93% and 95%, with a quality mix of 26%. Before the pandemic, in FY2019, the facility generated $14.7 million in revenues, but operations... Read More »
Ziegler Finances Community Expansion Project in Arizona
Ziegler closed a large bond financing for Friendship Village of Tempe to refinance its Series 2012 bonds and fund an expansion project known as Phase II of the campus’ master plan. Totaling $104.135 million, the bonds consist of A, B and C bonds issued through the Industrial Development Authority of the City of Tempe, Arizona. The A and B bonds are non-rated, tax-exempt, fixed-rate serial and term bonds that amortize over 35 years. They will also wrap around the Series 2019 bonds to create aggregate-level annual debt service. The Series 2021C-1 and C-2 Bonds are non-rated, tax-exempt short-term TEMPS-85SM and TEMPS-60SM Bonds, expected to be redeemed with initial entrance fees of the... Read More »
MidCap Closes Acquisition Loan for Community in Georgia
MidCap Financial announced the closing of an acquisition loan for a 92-unit assisted living/memory care community on St. Simon’s Island, Georgia. We learned of the deal at the end of September when Newmark disclosed its involvement as the broker representing the seller, a joint venture between AIG Global Real Estate and Thrive Senior Living (also the operator) that had originally developed the property in 2015. Occupancy had fluctuated between 50% and 70% in the last several years, with some key employee turnover prior to COVID contributing to the sub-par census. Winterpast Capital Partners, its affiliate Vitality Living and Broadview Real Estate Partners acquired the property, with... Read More »
The Battle Continues for Capital Senior Living
The saga continues for Capital Senior Living. Days after CSU announced that it had entered into an amended and restated agreement with Conversant Capital, a vocal opponent to the deal (and 12.7% stockholder of CSU) Ortelius Advisors, L.P. issued a letter to stockholders urging them to vote against the amended transactions at the October 22 special meeting. Ortelius made it clear that they thought the CSU Board’s deals with Conversant have been flawed from Day One. They called it exceedingly costly, highly dilutive, and only stood to benefit a few parties, including management, two large investors (Arbiter and Silk) and Conversant. Let’s get to the details. First, Ortelius made clear that... Read More »
Eclipse Senior Living Is Closing
Eclipse Senior Living will soon be no more, as the company, which was founded in 2017, stated that it plans to permanently shut down its operation, effective (if it goes according to plan) by the end of the first quarter of 2022. Ventas owns a 34% stake in the company and announced that it plans to transition the operations of its 90 communities managed by Eclipse to other providers. In perhaps another way of saying “good riddance,” the REIT stated that the communities “were not contributors to [Ventas’] overall NOI or its SHOP NOI in the second quarter 2021.” Ventas expects to incur certain one-time transition costs as it moves the communities to eight new operators. This will end... Read More »
SLIB Handles Sale of Three Communities
Senior Living Investment Brokerage facilitated two sales at the end of September in Missouri and Kansas. The first, handled by Jack Kemper and Jeff Binder, is for the sale of two sister residential care (assisted living) properties in Kennett, Missouri for $7.5 million. The two communities were fully occupied in 2020, with The Haven participating in the Department of Mental Health network of facilities, allowing it to always maintain nearly-full census. The Haven was built in 2011, while its affordable sister property Southaven, was constructed in 2005. The communities contain a total of 100 beds across 31,500 square feet, with the price-per-bed coming to $75,000. Combined revenues... Read More »
CBRE Refinances Michigan Community
CBRE Senior Housing arranged non-recourse financing for a 110-unit independent/assisted living community in Traverse City, Michigan. Aron Will, Austin Sacco and Tim Root arranged the transaction on behalf of a joint venture between Cordia Senior Living and Cypress Partners. CBRE had previously arranged three-year financing for the community in 2017, which surely smoothed out the process. Initially built as an asylum in 1883, the building was converted to seniors housing by the Cordia/Cypress joint venture in 2014. It is located in the Village at Grand Traverse Commons, a large historic preservation and adaptive reuse development that began redevelopment from its asylum past into a... Read More »
The Ensign Group Acquires Operations of Three Facilities
The Ensign Group will assume the operations of three skilled nursing facilities across Texas and Idaho. The facilities include the 98-bed River Pointe of Trinity Healthcare and Rehabilitation Center in Trinity, Texas, the 150-bed Park Village Healthcare and Rehabilitation in De Soto, Texas, and Skyline Transitional Care Center, an 80-bed facility in Boise, Idaho. The acquisitions are subject to a long-term, triple net lease. Plus, the deal brings Ensign’s growing portfolio to 245 healthcare operations, 22 of which also include senior living operations, across thirteen states. Read More »Schedule a demo
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