Brookdale vs Capital Senior Living
Not that there is a competition, but since the end of 2020, Capital Senior Living has outperformed Brookdale Senior Living with a price gain of 345% compared with 93% for Brookdale. It helped that Capital Senior was starting from a very low point. But for both companies that is pretty good, and both beat the overall market. They have both benefitted from the vaccine impact, with increases in leads, tours, move-ins and census. For each of the last three months, Brookdale has posted a 50-basis point increase in month-end occupancy, which is great, but will it be enough? Investors think they are on the right track, and have pushed the share price up by more than 25% in the... Read More »
Livingston Street Capital Acquires Another Active Adult Community
Livingston Street Capital is continuing its expansion in the active adult space with another community acquisition that brings its unit tally close to 1,000. The deal also marks Livingston’s entry in the Dallas-Fort Worth market. Newmark handled the transaction. Originally built in 2002 with a significant renovation in 2018, the community has 180 total units. It is located in Lewisville, which is between Dallas and Fort Worth in Denton County. The community features a resort-style pool, heated spa, poolside lounge, resident clubhouse, game room and a fitness center. Occupancy was 93%. This transaction follows three deals in 2020, when Livingston picked up three independent... Read More »
Institutional Property Advisors Sells Iowa SNF Portfolio
In a strategic move to build its presence in the Midwest, Beacon Health Management acquired 10 skilled nursing facilities in Iowa last month. Ryan Fleming of Institutional Property Advisors represented the seller in this $24.2 million, or $42,600 per bed, transaction. Todd Lindblom was the broker of record. The targeted properties within the Pearl Valley Rehab & Healthcare portfolio include 568 beds and currently generate total revenue of $35 million and EBITDA of $3.5 million. That results in a 14.5% cap rate on the deal. Occupancy across the portfolio fluctuated around 75 to 80% during the sale process. Some COVID cases towards the end of the transaction resulted in a delay in... Read More »
Ziegler Closes Massive Bond Financing For Sonoma County Construction Project
Ziegler brought out the big guns for a nearly $300 million bond financing closed for Ensō Village, a to-be-built CCRC in Healdsburg, California. The Kendal Corporation, a national not-for-profit provider of senior living services, is spearheading the project, which will be a Zen-inspired community set on 16 acres in the heart of Sonoma wine country. Kendal has planned for 221 independent living, 30 assisted living and 24 memory support units. Of the 221 IL units, 20 are low-income rental apartments for retired Buddhist teachers, and 10 are moderate-income apartments, which will all be mixed among the market-rate units on campus. Common areas and amenities will include a central lobby,... Read More »
BMO Harris Bank Finances New Jersey Development
BMO Harris Bank’s Healthcare Real Estate Finance group announced that it led and closed a $73.4 million construction financing for a joint venture between LCS and an institutional partner to develop a 220-unit senior living community in Florham Park, New Jersey. People’s United Bank was also a $30 million participant in the deal. Set to open in March 2023, the community will feature 128 independent living units (53 one-bedroom and 75 two-bedroom options), 58 assisted living units (10 studio, 40 one-bedroom and eight two-bedroom options) and 34 memory care units (32 private and two semi-private units). Read More »
Ziegler Arranges Debt For Invesque Illinois Sale
Ziegler served as capital structuring advisor in the $48.95 million debt placement to support the acquisition of two skilled nursing facilities and one supportive living facility in the Lincoln Park and South Shore neighborhoods of Chicago, Illinois. Symphony Care Network is the buyer, after having already operated the communities for some time on behalf of the landlord, Invesque. There are 475 licensed skilled nursing beds and 118 supportive living beds. The deal is part of Invesque’s plan to streamline its relationship with Symphony. These three facilities sold for approximately $55.5 million, or $93,600 per bed, providing about $10.5 million of net cash proceeds... Read More »
Monarch Advisors Finances Two Texas Transactions
Alec Blanc of Monarch Advisors helped finance a couple of Senior Living Investment Brokerage’s latest deals in Texas, which we highlighted last week. Cascades Healthcare, a Provo, Utah-based owner/operator, announced two separate acquisitions for four total skilled nursing facilities in Texas for a combined $26.545 million, or $41,400 per bed. Mr. Blanc secured a $21 million acquisition loan from a national commercial finance company to support the deal. There is also a $3.5 million earn-out feature that brings the loan-to-cost to around 92%. We’re not seeing leverage like that very often these days. The loan comes with a three-year term and interest only payments for the first two years.... Read More »
JLL Sells Oregon Assisted Living Community
Mike Garbers and Cody Tremper of JLL successfully sold an 85-unit assisted living community in Portland, Oregon. The seller and buyer were not disclosed, but the community has an almost entirely Medicaid census. It was built in 2005 with 81 private rooms and four semi-private rooms. Occupancy was in the high-90s in the fall of 2019, but has since dropped to about 88%. Many operators would love to have their communities that full. But, operations were close to breakeven, so there is some room for improvement, clearly. The property was subject to a ground lease controlled by a local family. Read More »
Newmark Team Handles Canadian Portfolio Deal
Newmark brokers BJ Bhal, Mark Gallagher and David Kalinowsky, who are widely regarded as the most active real estate brokers for seniors housing in Canada, recently aided Revera in selling eight senior living communities. The portfolio consists of 584 combined units and sold at a capitalization rate of 6.75% based on 2019 net operating income. There are locations in Richmond Hill, Oshawa, Mississauga, Kitchener and Ottawa, Ontario. A purchase price has not been disclosed. Marlin Spring, a Toronto-based real estate company, acquired the properties. They have acquired more than 30 projects since 2013, consisting of 9,000 residential units in various stages of development,... Read More »
Harrison Street Announces the Largest Seniors Housing Deal Since 2019
In the June issue of The SeniorCare Investor, we wondered when private equity would get off the M&A sidelines in a major way, with so much dry powder available to them. On cue, Harrison Street Real Estate Capital announced the largest seniors housing and care deal in two years, spending approximately $1.2 billion on a portfolio of 24 assisted living/memory care communities in California and Nevada. The portfolio totals 2,195 units, resulting in a per-unit price of $546,700 per unit. Oakmont Management Group operated the whole portfolio, Healthpeak Properties owned half of the properties and California-based real estate developer Gallaher... Read More »Schedule a demo
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