Montgomery Intermediary Group Closes Tennessee Transaction
Andrew Montgomery, Co-Founder and Vice President of Montgomery Intermediary Group, closed the sale of an assisted living community in Tennessee. The community’s owner and operator was looking to retire from the seniors housing business and sold it to another owner/operator in the Nashville area that was looking to expand on its existing portfolio. When stabilized, the community could be operating above 20% margins, which would amount to more than a 10% cap rate on the deal. That is the opportunity for the buyer, as well as the risk. The purchase price was not disclosed, but we understand it to be around $40,000 per unit. Read More »Chartwell Retirement Residences to Sell Two Facilities
Chartwell Retirement Residences, the largest Canadian seniors housing company, has agreed to sell two of its long-term care facilities for C$112 million, or C$424,000 per bed (or US$331,000 per bed). Net proceeds to Chartwell are expected to be C$56.8 million after paying off C$41.9 million of mortgage debt. The two facilities are located in British Columbia. The buyer of the 264-bed portfolio is AgeCare Health Services Inc. and Axium Infrastructure Inc. and its affiliates. The closing is expected to occur before the end of the year. Axium is an independent portfolio management firm with approximately C$9.4 billion in assets under management, as well as C$1.7 billion in co-investments.... Read More »Alabama Assisted Living Community Sells
Senior Living Investment Brokerage’s Brad Clousing and Daniel Geraghty have successfully closed the sale of Heritage Assisted Living & Memory Care in Madison, Alabama. Built in 2015, the 46-unit (30 AL, 16 MC units) assisted living community sits on five acres near the Alabama-Tennessee border. The community maintained an occupancy rate of 96% at the time of sale but struggled with rental rates and other expenses. The seller was a local group of physicians who divested the asset for $5.1 million, or $110,900 per unit, at a cap rate of 7.2% based on annualized trailing figures. At the time of sale, the community was bringing in around $2.2 million in revenue and $370,000 of EBITDAR,... Read More »60 Seconds With Swett: SNF Values Soar Post-Pandemic, AL Falls
We continue to observe the post-pandemic senior care M&A market with curiosity, with many crosscurrents of headwinds and tailwinds to make sense of. And our most recent valuation statistics, which includes prices and financials both publicly announced and confidentially disclosed to us, shed some light on the currentmarket.First, the average price for skilled nursing facilities in the last four quarters soared 19% to $118,600 per bed from $98,000 per bed in calendar year 2021. Taking out the exceptionally high estimated price for Stonerise Healthcare’s SNFs, we still see the average price rising above $100,000 per bed for the four-quarter period. With more facilities coming up for sale... Read More »Ziegler Closes Bank Acquisition Financing
The transactions keep coming from Ziegler, which closed $17.7 million in taxable bank financing for the acquisition of The View Alexandria by Goodwin Living, formerly Goodwin House. Goodwin Living acquired the property from Pinnacle Living this spring, adding to its two other senior living communities in northern Virginia. The $17.775 million taxable loan was placed with Truist Bank. It has a five-year commitment period at pricing of 1 Month SOFR plus 2.00% with three years of interest only and a 25-year amortization. To mitigate interest rate risk, Goodwin Living worked with Ziegler Structured Products to implement a fixed payor swap for the five-year commitment period on the entire... Read More »Joint Venture Building High-End Nashville Community
A joint venture between Ryan Companies, LCS and Harrison Street Real Estate Capital broke ground on Clarendale West End, a planned 261,000-square-foot, five-story seniors housing community in Nashville’s West End district. Situated near Vanderbilt University and downtown Nashville, the property will offer 172 independent living, assisted living and memory care units, with plentiful amenities. Rents will start at $4,400 a month for independent living, $6,000 for assisted living and $7,200 for memory care. Ryan Cos. is the developer and builder for the project, Ryan A+E Inc. is the architect of record, and Direct Supply Aptura is the development’s interior designer. Plus, upon completion in... Read More »Del Webb Adds Another Active Adult Development
Active adult developer Del Webb has announced plans for the development of a state-of-the-art active adult community in southeast Michigan, The community, Kensington Ridge by Del Webb, will include over 600 homes and resort-style amenities. Plans are also in place for a 15,000-square-foot clubhouse on a 43-acre lake with a dock for fishing, kayaking and paddleboarding, an indoor pool, a fitness center, pickleball courts, walking paths, a community garden and gazebos. Kensington Ridge by Del Webb will serve as the third active adult community in Michigan under Del Webb developments. Bluffs at Spring Hill and Turtle Creek in Lyon Township are two recent active adult communities built within... Read More »Sonida Senior Living Announces Earnings
We are truly glad to see that Sonida Senior Living (formerly Capital Senior Living) is seeing improvements in census, contract labor use, rates and revenues. We are sure outgoing CEO Kim Lody wanted to leave with some upbeat news. Census (84% at quarter end) is now just 50 basis points below the pre-pandemic level. But as we have repeatedly said, pre-pandemic was not so good for the industry. We really have to look at three to four years before the pandemic as a goal. Several quarters ago we found a “typo” in the quarterly earnings release, which made the financial performance look better. After our reporting, they then issued a corrected release. In this second quarter 2022 earnings... Read More »Dwight Mortgage Trust Closes Acquisition Loan
Dwight Capital’s affiliate, Dwight Mortgage Trust, has successfully closed acquisition financing totaling $27 million for four assisted living communities in the state of New York. The portfolio consisted of three communities in Jamestown: Tanglewood Manor, Memory Garden and Comfort Today. There was also The Magnolia in Frewsburg, New York. Altogether, the four communities combined for 293 units of assisted living and memory care. Dwight’s Josh Levin originated the transaction. The buyer of the portfolio was Culture Care Senior Living, led by CEO Gary Rohinsky. Read More »Berkadia Provides Pacific Northwest Financing
Berkadia Seniors Housing & Healthcare announced a combined $48 million in financing for three seniors housing communities in the Pacific Northwest. First, in Washington, Berkadia refinanced a 105-unit assisted living community through Freddie Mac. The borrower secured a $27 million, sub-60% LTV loan, with a 10-year interest-only term. Built in 2015 in Washington, the community was 92% occupied at the time of the refinancing, performing well during the pandemic. Next was a $16.21 million acquisition bridge loan arranged for an assisted living/memory care community in Washington. Berkadia provided the loan plus funding for capex and closing costs through its proprietary lending program.... Read More »Schedule a demo
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