Naples CCRC Embarks on Expansion
Suffolk Construction has plans in place to tear down a trio of vacant independent living apartment buildings at Vi at Bentley Village, in Naples, Florida, as part of a redevelopment project on the Naples campus. Demolition is expected to start August 22, and the renovations are to be completed by the end of February 2024. The redevelopment project will bring the community four new buildings comprising 64 independent living units, in five potential floor plans. Each unit ranges in size from 2,400 to 4,500 square feet. The independent living community offers resort-like amenities, as well as lake and golf course views. Each new residence will offer a spacious, screened-in outdoor living... Read More »Two High-Quality Michigan Communities Sell
Two newly built assisted living/memory care communities in the Detroit, Michigan area found new owners thanks to the team at Evans Senior Investments. Built between 2019 and 2020, the communities were smaller in size, with less than 65 units at each location. That meant that ownership (a growing regional operator) could quickly fill the communities, even during the pandemic, with occupancy standing at 88% at the time of marketing. The communities also boasted a 34% operating margin at that time, and in January 2022 the seller implemented inflation-based rental rate increases for existing residents that averaged an increase of 12%. An added $400,000 of revenue as a result surely made the... Read More »KIRCO/Phoenix Open Alabama Community
Michigan-based KIRCO, a commercial real estate development and investment firm with operations in 17 states, and Phoenix Senior Living, a Georgia-based operator with over 50 communities across the Southeast, announced the opening of Madison Crossings in Madison, Alabama, 10 miles outside of downtown Huntsville. Operated by Phoenix, the community offers 105 independent living and 27 memory care units, beginning to welcome residents this April. Amenities include an outdoor pool, wellness center, pub, beauty salon and spa, yoga studio, pickleball and bocce ball courts. The project represented the 10th Alabama property under the Phoenix Senior Living brand. Read More »Atlas Healthcare Acquires Connecticut Portfolio
Atlas Healthcare, a skilled nursing provider based in central New Jersey, acquired a portfolio of 3 senior care properties in the greater Hartford, Connecticut area. Evans Senior Investments represented them in the transaction. Featuring one independent living community and two skilled nursing facilities in Manchester and Vernon, the portfolio totals 114 independent living units and 246 skilled nursing beds. Prior to the pandemic, the properties were 92%+ occupied and featured a strong post-acute rehab census mix within the skilled nursing portion. But operations took a hit, and the portfolio overall was losing money. Paul Liistro, CEO and administrator of the three properties, sold the... Read More »CCRCs Continue to Outperform
Investment banking firm Ziegler just came out with its quarterly analysis of the CCRC (LPC) market, using the NIC MAP census data. For the 99 NIC primary and secondary markets, CCRC average census increased by 50 basis points to 86.0% from the first to the second quarter. This is about 690 basis points higher than non-CCRCs. The analysis covers 1,097 not-for-profit and for-profit CCRCs, both entrance-fee and rental in the 99 markets. We do not know about the other 900+ CCRCs in the country. Occupancy growth since the bottom of the pandemic has been slower in CCRCs than the rest of seniors housing mostly because census did not fall as much during the pandemic, with a relatively healthier... Read More »Tailwind Investment Group Buys Active Adult Community
California-based investment group, Tailwind Investment Group has acquired the active adult community Vista Grande in Rio Rancho, New Mexico. Built in 1972, the community comprises 168 units and sits on 11 acres just outside of Albuquerque. Cooper Street Capital (the seller) utilized Northmarq Investment Sales to help them sell the fully leased community. Tailwind purchased the asset with the intention of making renovations to the property as well as planning for future acquisitions in New Mexico. The location of Rio Rancho appealed to Tailwind because about 100,000 people in the area hold a median household income about 20 percent higher than the rest of the Albuquerque metro area.... Read More »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 »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
