Walker & Dunlop Handles Advantage Living Centers Divestment
Advantage Living Centers recently divested six of its senior care facilities in southeastern Michigan, with Walker & Dunlop’s Josh Jandris and Mark Myers handling the transaction. An undisclosed, New Jersey-based regional owner/operator bought the properties, which total around 750 beds of primarily skilled nursing, with some assisted living units as well. Ranging in size from 100 to 179 beds, the properties were built more than 50 years ago. Prior to the pandemic, occupancy had been in the mid-70s and fell to the low-60s in 2020. The properties still brought in positive EBITDAR of $1.4 million on nearly $50.7 million of revenues. To fund the deal, VIUM Capital provided a... Read More »
Active Adult Development Market Stays Strong
We’ve been hearing all about increased interest in the active adult sector, and we’ve been seeing a lot of it too as many new communities have broken ground or opened their doors within the past month. In July, we reported on Trez Capital providing $48 million in construction financing for a new active adult development in Sarasota, Florida, and now the project has officially begun vertical construction. The 178-unit development named The Alloro at University Groves has been spearheaded by United Group of Companies. Development costs are estimated at $64.5 million, and project partners include Current Builders and Trez Capital. Adam Horowitz of Cooper Horowitz LLC brokered the... Read More »Another Year to be Thankful
It has been another difficult year for the senior care industry, but there are certainly things to be thankful for and reasons to be optimistic for 2022. First, that the vaccines, booster shots and therapeutics are so successful at treating COVID, and that 98.5% of seniors aged 65 and older have received at least one shot, according to the CDC. A year ago, when the vaccine was only just announced as effective but how it would be distributed was still not known, that sort of figure seemed like a dream. Amid all the labor issues facing the country, we are also thankful for all the senior care workers that are showing up every day to do a difficult, unglamorous and often thankless job. They... Read More »Private Equity-Owned SNFs
Here we go again. According to a new study published by JAMA Health Forum, private equity-owned nursing homes are not cutting it compared to those nursing homes owned by other for-profits. In addition, PE-owned homes were more likely to have an acute coronary syndrome ER visit and more likely to have a resulting hospitalization. In addition, total Medicare costs (revenues) were higher. This needs some context. First of all, the size of the PE-owned group was just over 3% (300+ facilities) of the size of the larger for-profit group, so a pretty small group. Second, most PE firms, after a skilled nursing acquisition (and usually a portfolio) do try to change things to increase the... Read More »
BMO Harris Bank Closes Loan for SNF Portfolio
BMO Harris Bank’s Healthcare Real Estate Finance group closed a $30 million term loan and a $35 million revolving line of credit for a portfolio of skilled nursing facilities operated by Life Generations Healthcare LLC. Headquartered in Santa Ana, Life Generations operates 28 communities in California and Nevada with over 3,100 licensed beds. In addition, the company offers behavioral health programs, assisted living and memory care services. Further details on the financing were not disclosed. This news follows BMO Harris Bank’s announcement that it provided a $123 million loan to an affiliate of The Inland Real Estate Group of Companies, Inc. That loan provided... Read More »
Evans Senior Investments Facilitates Sale in West Virginia
Hamister Group, a Buffalo, New York-based owner/operator, entered the West Virginia seniors housing market with the acquisition of a 65-unit assisted living/memory care community located outside of Charleston in the town of Dunbar. Originally built in 1990 but with expansions in 1999, 2003 and 2007, community has 75 functional beds and 85 licensed beds, with a 100% private pay census. At the time of marketing, occupancy averaged 95% based on functional beds, but the pandemic caused census to plummet to 69%. However, at the time of the sale, occupancy had rebounded to 87%. In the trailing-12-month period before the sale, the community operated at a roughly 10% margin on more... Read More »
Diversicare Healthcare Services Acquired by DAC Acquisition LLC
Several months after the deal was first announced, Diversicare Healthcare Services has now been acquired (through a merger) by DAC Acquisition LLC, a privately held Delaware limited liability company managed by Ephram Lahasky. Mr. Lahasky has significant affiliations with in excess of 100 owned and/or leased skilled nursing and similar facilities in over 20 states. Per the deal, Diversicare’s stockholders will receive an amount of cash equal to $10.10 per share of Diversicare common stock, which represents a premium of approximately 256% from Diversicare’s closing share price of $2.84 on August 19, the last trading day prior to... Read More »
Five Star Senior Living Exits the SNF Business
Five Star Senior Living has completed its planned exit from the skilled nursing business by transitioning the operations of 107 properties owned by Diversified Healthcare Trust. Originally, there were 108 properties in the transition, but the parties decided to close one. Five Star will also work with Diversified to close one more property in Delaware. The RMR Group, an alternative asset management company, provides management services to both Diversified and Five Star. The amended management arrangement with Diversified, first announced this April, will leave Five Star with 140 senior living communities (120 of which are owned by Diversified) and approximately 20,000 units under... Read More »
New York CCRC Development Receives Financing
A major CCRC project being built on the campus of SUNY Purchase College in Purchase, New York just got a major boost after receiving a $398.1 million bond issue arranged by HJ Sims. The tax-exempt and taxable bonds were closed for Purchase Senior Learning Community, Inc., which was formed to develop the community with 68 assisted living/memory care beds and 220 independent living units and villas. Of those IL units, 20% will be reserved for local residents earning no more than 80% of the area’s median income. Integrated into the community will be a “learning commons” consisting of classrooms, studios, gathering and performance spaces utilized by the residents but also students for... Read More »
Legacy Senior Living Acquires Tennesee Community
Legacy Senior Living announced its acquisition of a 58-unit assisted living/memory care community in Hendersonville, Tennessee for $5 million, or $86,000 per unit. The deal brings Cleveland-based Legacy’s portfolio to 16 senior living communities across the eastern United States. We learned about the sale earlier this month when Evans Senior Investments announced its role in brokering the deal, although the private equity seller has still not been disclosed. Built in 2000, the community was just 62% occupied at the time of market and losing over $900,000 in NOI on revenues of $1.525 million. Once it turns operations around, Legacy will then expand the community into the excess land... Read More »Schedule a demo
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