Construction Costs Go Up for Indiana Senior Living Project
Rising construction costs have stymied a number of senior living construction projects (much to the relief of thousands of operators looking to quickly recover their occupancies), but one development is still going ahead, albeit with a $3 million increase in financing. Evergreen Real Estate Group is building a 120-unit Medicaid assisted living community in Goshen, Indiana, which will feature 49 studio and 71 one-bedroom units, with Gardant Management Solutions serving as operator. Development costs were originally estimated to be $28 million, or $233,300 per unit. The plan was approved in late 2019, and the Goshen City Council approved the issuance of up to $22 million in tax-exempt... Read More »
Recent Senior Care M&A Deals, Week Ending May 21, 2021
Senior care M&A activity is still plodding along, so here is our recent deal chart. Long-Term Care AcquirerTargetPrice Chicago Pacific FoundersThe Shores at Clear LakeN/A Not disclosedThe Homestead at Lakewood$8.3 million Regional owner/operatorThe Parks Senior LivingN/A WindRiver CompaniesBloom at Hilton Head and Bloom at Bluffton$12.25... Read More »
Ziegler Closes “Green Bond” Financing
Ziegler announced that it will soon issue the first ever “Green Bond” financing for a senior living development. And it is for quite a sum. Enso Village, located in Healdsburg, California, is set to open in 2023 with 221 independent living units, 30 assisted living units and 24 memory care units on a 16-acre campus. It is being sponsored by the San Francisco Zen Center, a network of affiliated Sōtō Zen practice and retreat centers in the Bay area, and The Kendal Corporation, a national not-for-profit provider of senior living services. Greenbrier Development is building the campus, which has already achieved 94% reservations two years out from opening. Quite impressive. Enso Village will... Read More »
Welltower Making Investment In 55+ Market
Welltower is diving into the active adult market with its new investment relationship with Treplus Communities, a Columbus, Ohio-based developer of high-quality 55+/active adult communities. Currently, there are three Treplus communities already open in central Ohio, and there are more in the works for 2021. Treplus also has eyes on expanding in the Midwest, and this partnership with Welltower will certainly help those ambitions. Treplus’ communities consist of 90 to 150 units that range from 1,200 to 1,600 square feet. Each community also features resort-style amenities such as a fully equipped gym, café, business center, billiards, liquor lockers and catering kitchen. The communities... Read More »
Blueprint Sells Entrance-Fee CCRC in West Texas
An entrance-fee CCRC in Odessa, Texas, with a major turnaround opportunity at its on-campus skilled nursing facility, just sold to a regional owner with the help of Amy Sitzman, Jacob Gehl, Giancarlo Riso and Humair Sabir of Blueprint Healthcare Real Estate Advisors. Originally built in 1987 with additions made in 1992 and 1997, the Type-C community features 55 independent living units, 23 high-acuity assisted living units and a 90-bed SNF, although just 71 beds were in operation. The independent living portion was almost always fully occupied (or close to it, even during the pandemic), but the SNF struggled with census in the last year, starting in the high-80s and eventually falling... Read More »
Monarch Advisors Sources Financing for Monterey Community
Alec Blanc of Monarch Advisors continues his Spring activity with the closing of a bank refinance for a small assisted living community in Monterey, California. Featuring 33 beds in 20 units, the community is owned by Songbird Care Homes, a locally-based family owner/operator. Built in 1992, it typically operates at full capacity. There was both SBA debt and a seller note on the property, and the borrower wished to reduce its debt service costs. So, to refinance the company’s debt and provide additional growth capital, Mr. Blanc sourced a $4.6 million senior loan from a local bank. It came with a seven-year term and competitive fixed interest rate. Proceeds from the loan will provide... Read More »
Guardian Pharmacy Services Expands with Acquisition
One of the country’s largest long-term care pharmacy companies just broadened its reach in Ohio and eastern West Virginia with the acquisition of Hutcheson Homecare Pharmacy. Guardian Pharmacy Services, based in Atlanta, announced the deal in partnership with Mullaney’s, a pharmacy and medical equipment supplier (and locally-owned member of the Guardian family of companies) based in Cincinnati, Ohio. The newly acquired pharmacy, which will operate as Hutcheson, A Guardian Pharmacy, will serve residents in assisted living and skilled nursing, as well as individuals with intellectual and development disabilities, inpatient and outpatient substance abuse rehabilitation facilities, and... Read More »
Is Connecticut The Future For Wage Hikes?
In order to avert a strike by unionized nursing home workers, a deal is being struck with the state that will send hourly rates soaring. In order to avoid a union strike at dozens of Connecticut nursing facilities, the Governor stepped in to help the two sides reach a deal. And what a deal for employees. Most hourly workers will have a pay raise set at a minimum of $20 per hour. CNAs will be increased from a $12 to $15 range to $20 per hour, while LPNs will have a minimum of $30 per hour. There are also increases in pension contributions and health and wellness programs. Most of the money will come from the state, with an extra $47.3 million in 2021 and $121.1 million in 2022, all going... Read More »
Chicago Pacific Founders Acquires Texas Community
Chicago Pacific Founders has added another Texas community to its portfolio, its first acquisition in the Lone Star State since announcing two separate deals in 2019. Opened in September 2019, this Houston community features 85,400 square feet and 100 units of assisted living and memory care. Meridian Realty Advisors developed it, with Integral Senior Living coming in as operator. However, Chicago Pacific Founders’ subsidiary Grace Management will operate the community going forward. Additional terms of the deal were not disclosed, but Chicago Pacific will invest in capital improvements at the property. Read More »
Lument Closes USDA Loan for Pennsylvania SNF
Lument secured a $35.6 million loan from the USDA CF (Community Facilities) program to fund the construction of a replacement 240-bed skilled nursing facility in Bellefonte, Pennsylvania. The previous 240-bed facility was more than 80 years old and had received some renovations over the years, but it was deemed unsuitable for substantial renovations due to both its age and location. So, Miles Kingston of Lument worked with Complete Healthcare Resources Eastern (CHRE), which has been operating the facility since 2013, to arrange the financing necessary for the project. It ended up being a multiyear strategy. First, CHRE obtained a $35.6... Read More »Schedule a demo
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