Meridian Announces Slew of Senior Care Transactions
So far in 2022, Meridian Capital Group’s Senior Housing and Healthcare Team has closed $2.2 billion in transaction volume, following a record year in 2021 where they closed nearly $5.6 billion. The latest transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson, along with Vice Presidents, Matt Lesnik, Jesse Rauch, and Rafi Sod, and Senior Associates, David Gottlieb, Jacob Scott, and Yuval Hananya, as well as Associate, Dylan O’Connor. Starting with the sales, the team sold two skilled nursing facilities in New York totaling 515 beds for $129.3 million, or $251,000 per bed, and arranged a $129.5 million loan, which... Read More »Optalis Healthcare Moves Into Ohio
An Ohio-based senior care operator was looking to exit the skilled nursing business and sold a portfolio of five facilities while subleasing another two SNFs in the Columbus, Ohio market. The five facilities sold for a total of $81 million, or roughly $130,000 per bed/unit. Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors handled the transaction. Since the start of operations in 1984, the seven facilities have consisted of roughly 750 dually certified skilled nursing beds and 200 senior housing units. And they historically operated near stabilized levels with consistent $70+ million of annual revenue, but performance drastically declined during the pandemic. Amid... Read More »Creativcap Secures Two Construction Financings
With interest rates rising and inflation not slowing down, the seniors housing construction market is definitely becoming a riskier venture. However, Scott Kavel of Creativcap successfully arranged two construction financings for a couple of clients where the lenders decided to hold the entire exposure on their balance sheets, despite participation interest. These must be high-quality projects in strong markets with “best-in-class” operating partners to justify that confidence level. First, Mr. Kavel arranged a $70 million construction/permanent loan for a to-be-built 157-unit independent/assisted living community in California. Building the community in an opportunity zone, the buyer... Read More »CarePartners Acquires Bremerton, Washington Property
An established Seattle-based owner/operator of memory care communities emerged to acquire a 50-unit MC community in Bremerton, Washington whose national owner/operator seller had deemed it to be a strategic outlier. Previously operating as a skilled nursing facility, the building was completely gutted and renovated in 2016 to reopen as essentially a brand-new memory care community in 2017 with 62 beds in 50 units. Each unit has a private bathroom, and the building as a whole is in very good condition with Pacific Northwest design elements. However, it operated as a private pay community and consistently did not draw a high census, averaging around 66% in the last couple of years,... Read More »Helios Closes Two Assisted Living Transactions
Helios Healthcare Advisors has been hard at work arranging a sale, securing acquisition financing and finding a new operator for a couple of clients. First, the team structured the sale of Harvest View of Herscher, a 42-unit assisted living community on an 8-acre site in Herscher, Illinois. Family-owned and developed in 2008, the community was supposed to expand in order to include market-rate multifamily apartments. The seller engaged Helios to run a process to find an acquirer who could see value in continuing the original mission of the venture, ultimately moving forward with Peoria, Illinois-based Petersen Healthcare. Helios next arranged both an operating partner and... Read More »
Northmarq Arranges Large Refinance for South Carolina Community
Northmarq’s Seattle office arranged a $39 million refinance of Merrill Gardens at Carolina Park, a 158-unit independent living, assisted living and memory care community located in Mt. Pleasant, South Carolina. The high-quality community sits on 14.8 acres with monthly rent starting at $4,200 a month. Built in three phases from 2018 to 2021, the main building was completed in 2018 with 130 units, 28 cottages were delivered in 2019, and in 2021, a swimming pool and fitness center addition were completed. Built in 2021, the community is only 16 miles north of Charleston providing quick access to the city’s attractions and restaurants. The loan entails a 5-year fixed rate and 18 months of... Read More »
The Rise of Active Adult
We’ve talked about the new active adult sector a lot lately because a lot of people are talking about it. First, several years ago, our inboxes began filling with announcements of groundbreakings for this new product type, and as those accelerated in the last couple of years, we started to see more acquisitions of the communities, which had in many cases reached 100% occupancy in a matter of months. More seniors housing and multifamily investors took notice, and as construction slowed throughout the pandemic and as operators dealt first with COVID then with lower occupancy and labor costs, the sector was seen as a supremely safe investment. And we had to agree. But as the sector begins to... Read More »
Blueprint Closes NHI Sale of 4 Comfort Care Communities
Comfort Care Senior Living bought four of its assisted living/memory care communities from its landlord National Health Investors, and brought on Alex Florea, Michael Segal and Brooks Blackmon of Blueprint Healthcare Real Estate Advisors to advise them on the deal. Centered around Detroit and Saginaw, Michigan, the portfolio consists of 236 total units of varying vintages. Two communities opened around 2013, and two opened more recently, with one property completed in 2019 and still in lease-up going into the pandemic. The communities exhibited strong performance trends pre-COVID, but faced occupancy and profitability declines during the pandemic which created friction within the lease... Read More »
SLIB Handles Wisconsin Assisted Living Portfolio Deal
A private owner that acquired a portfolio of eight value-add assisted living communities in Wisconsin over the years and turned them around has decided to sell, enlisting the help of Jason Punzel, Ryan Saul and Bradley Clousing of Senior Living Investment Brokerage to do so. An experienced assisted living owner with an existing portfolio in Florida, Tennessee and Minnesota and plans to grow in the Midwest emerged as the buyer. Totaling 449 units, the portfolio is concentrated around Milwaukee and includes properties built from 1906 to the mid-2000s. Occupancy also ranged widely from 65% to 95%, averaging 84% across the portfolio. Given the vintages, we imagine some work needs to be... Read More »
Assisted Living Portfolio Sells in Midwest
The Knapp-Stahler Group at Marcus & Millichap has closed the sale of a portfolio comprising four assisted living communities within Iowa and Illinois. The purchase price for the 160-unit portfolio was $23.8 million, or $148,750 per unit, with a 7.2% cap rate. Built between 2013 and 2017, the four identical 40-unit communities were performing well at the time of the sale, with average occupancy at 91%. They also earned more than $1.7 million in NOI. Three of the buildings are located in Iowa and operate with 30 assisted living and 10 memory care units, while the western Illinois property has 24 assisted living and 16 memory care units. Justin Knapp and Andrew VanZee of The Knapp-Stahler... Read More »Schedule a demo
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