Senior Care M&A Tanks In Q1
After a strong fourth quarter, senior care M&A activity cooled off this winter. We thought that after 59 seniors housing and care M&A transactions were announced in December 2020, a monthly record, we had returned to some kind of “normal” in terms of dealmaking. Well that just didn’t happen in the first quarter of 2021, when despite widespread vaccination of the senior care population investor activity cooled to just 77 publicly announced deals. That is just a preliminary total but is well off Q4’s total of 127 deals. M&A in the skilled nursing sector especially slowed down, accounting for just 32% of the deals announced during the quarter. But it makes sense. If various... Read More »
Welltower Census Bottoming Out
Usually, a few weeks does not translate into a long-term trend, but for Welltower’s SHOP portfolio, it may just be the case. And it is one we have all been waiting for since it is the largest portfolio in the senior living sector to make some forecasts from. After plummeting by approximately 1,200 basis points since February 2020, average occupancy has seemed to have bottomed out in March 2021 at 73.7%. The monthly declines in occupancy in the first quarter were already slowing, with March being the best of the pandemic era with just a 10-basis point drop. But for the weeks ended March 12 and March 19, it rested at 73.7%, before rising 20 basis points the next week and 10 the week after... Read More »
Senior Living Investment Brokerage Closes Two Value Add Deals
The Senior Living Investment Brokerage trio of Jason Punzel, Brad Goodsell and Vince Viverito sold three seniors housing communities across the country. Both deals involved properties with a good amount of upside, which is certainly not uncommon these days. The first deal involved a 73-unit assisted living/memory care community in central California. Their REIT owner decided to realign its portfolio, hence the sale. A regional owner/operator plans to remodel both communities. The SLIB team then sold a 67-unit independent living/assisted living community in Wayzata, Minnesota (Minneapolis MSA), that had been vacant since the early days of the pandemic. A number of COVID-19 illnesses caused... Read More »
Locust Point Closes Second Seniors Housing & Care Fund
Locust Point Capital just closed its second fund focused on direct lending in the seniors housing and care sector. Locust Point Seniors Housing Debt Fund II, L.P. closed above its target at $428 million, receiving strong interest from a combination of pension funds, endowments, foundations, insurance companies and wealth advisors. Three quarters of the commitments came from United States-based investors, while European investors provided the balance. The fund well exceeds Locust Point’s first, which launched in 2016 with a $312 million debut total, but the strategies will be roughly the same. Fund II will provide subordinate debt, preferred equity and opportunistic senior... Read More »
HHC Finance Closes Three More HUD Refinances
Housing & Healthcare Finance (HHC Finance) is continuing to take advantage of historically low interest rates by arranging HUD refinances for its clients. The company’s most recent activity saw it secure three loans totaling more than $33 million for three senior care facilities. There was a 100-bed skilled nursing facility in Delaware and two assisted living communities totaling close to 200 units in New Jersey (100 units) and New York (95 units). The refinances replaced existing HUD loans and extended the clients’ terms. HHC Finance also closed another $37 million in loan modifications for its (happy) clients. Read More »
Capital Funding Group Secures Another Bridge Loan
Capital Funding Group continues its run of activity with a bridge refinance of two assisted living communities in two New York City boroughs. Totaling $88.9 million, the loan was secured on a 239-bed community in Queens and a 184-bed community in Brooklyn. Both properties hold Assisted Living Program licenses and are owned by an undisclosed major provider. Director Craig Casagrande and Senior Associate Andrew Jones originated the transaction. Despite nearly reaching $90 million, this financing represents just a fraction of Capital Funding Group’s bridge lending haul so far this year, totaling over $500 million across 11 separate loans (in addition to more than $235 million in... Read More »
Henry Ford Village Gets Stalking Horse Bidder
A couple of months ago, we wrote about a bankruptcy sale/auction for a large CCRC in Michigan, and we’ve just learned the property has entered into a stalking horse asset purchase agreement with MED Healthcare Partners, in accordance with bid procedures approved by the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division. MED agreed to acquire substantially all of the community’s assets for $69 million, or $66,500 per unit/bed, unless a higher or better offer in accordance with the bid procedures and deadlines (and approved by the court) is accepted. The deadline for competing offers to be submitted is set for April 30. A hearing to approve the sale transaction is... Read More »
Recent Senior Care M&A Deals, Week Ending April 2, 2021
The second quarter started with a whimper, with few senior care deals announced, but here is our M&A deal chart. Long-Term Care AcquirerTargetPrice Owner/operatorMidtown Manor N/A Private operator4 skilled nursing facilitiesN/A Sabra Health Care REIT, Inc.The Claiborne at West LakeN/A National Owner/Operator16 skilled nursing... Read More »
Long Island Development Obtains Bond Financing
HJ Sims secured more than $100 million in tax-exempt bond debt for a brand-new independent living community adjacent to Gurwin Healthcare System’s skilled nursing facility and assisted living community in Commack, New York. When completed, the new IL building will transform the whole campus to a full-fledged CCRC, the fourth on Long Island. Gurwin has been providing health care services since 1988 and has now grown to include a 460-bed skilled nursing facility and a 201-bed assisted living community, plus a host of other services like memory care, palliative and hospice care, respiratory care, on-site dialysis and infusion therapy and two home health care... Read More »
Capital Senior Living Comes Out With Fourth Quarter Earnings
Better late than never, we suppose. On the last day of the first quarter, Capital Senior Living (CSU) came out with its fourth quarter earnings results, and the leaner (much leaner) company will hopefully be better able to navigate the numerous issues still facing it. Investors seemed somewhat optimistic, sending CSU shares up 3% in the hours immediately after the earnings call and up 12% early the next day, with the share price reaching a high of $42.00 per share on April 1. There is some reason to be optimistic. Since CSU announced it had exiting all of its triple-net leases on January 7 (which resulted in reduced lease liabilities of $265.4 million and improved... Read More »Schedule a demo
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