60 Seconds with Swett: OHI Soars After Q1 Earnings
Omega Healthcare Investors came out with its first quarter earnings on Monday May 2nd, and its share price soared throughout Tuesday, peaking at 28.89 per share (as of this filming), or up 14.8% from its previous close at $25.13. Granted, that is still not far off of its 52-week low of $24.81, but good news is good news. First off, the company announced that it successfully sold 22 of its struggling Gulf Coast Health Care skilled nursing facilities, representing the majority of that portfolio for $318 million in cash. Gulf Coast had stopped paying contractual rent in the second quarter of 2021 as it was in the process of filing for chapter 11, so getting these facilities off its plate... Read More »
Another Mom & Pop Retires from SNF Business
An older skilled nursing facility sold in Vincennes, Indiana, with multiple offers ultimately yielding an Indiana-based owner/operator as the buyer. Built in 1965, GentleCare of Vincennes features 60 licensed and 52 functional beds. It boasted one of the longest-running five-star ratings from CMS, and occupancy was around 80% with a 70% quality mix. Those kinds of numbers would intrigue many investors. The facility also operated at a decent 11% margin on nearly $3.95 million of revenues, based on 2020 figures. However, its mom & pop owners were looking to retire, bringing on Ryan Saul of Senior Living Investment Brokerage to sell the property. The Strategies, an Indiana-based provider... Read More »
Montgomery Intermediary Group Sells in the Southeast
Andrew Montgomery, Co-Founder and Vice President of Montgomery Intermediary Group, announced a couple of senior care sales in the Southeast. First, in Georgia, Mr. Montgomery represented the buyer of a 96-unit assisted living/memory care community that was previously owned by a mom & pop organization. Built in 2016, the community was 85% occupied when the LOI was signed. The buyer, made up of a new seniors housing management company based in Dallas, Empower Living, and its private equity capital partner, Aspire Ventures, also based in Dallas, acquired the community at a mid-7% cap rate based on 2021 figures. Both Mark Reisman (Empower Living) and Ramana Korada (Aspire Ventures) have... Read More »
Rood Investments Sells Washington State Portfolio
Cushman & Wakefield served as exclusive advisor to Rood Investments, LLC to sell its three high quality seniors housing communities in Vancouver, Washington. Totaling 703 units, the portfolio spans the care continuum with active adult apartments, independent living, assisted living and memory care services. Rood Investments developed all three communities between 2001 and 2017, which are located in urban areas surrounded by plenty of amenities. Cushman & Wakefield’s Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker and Jack Griffin represented the seller in the transaction. The buyer and purchase price were not disclosed. Read More »
SLIB Handles Two Peach State Purchases
Bradley Clousing and Dan Geraghty of Senior Living Investment Brokerage announced a couple of deals in the Peach State involving four total properties. First was the sale of Oaks Senior Living Portfolio, which included two assisted living/memory care communities about 90 miles apart in Leesburg and Columbus. Built in 2019 and 2018, respectively, they total 154 units and are operating well with 91% combined occupancy. The owner, Oaks Senior Living, also operated the properties, and will continue to do so under new ownership. The buyer was revealed to be a 1031 exchange called 1031 Crowdfunding LLC, which represents investors with 1031 exchange-qualified properties through Delaware... Read More »
Merrill Arranges Large Arizona Acquisition
Merrill Commercial Real Estate arranged the sale of a 301-unit seniors housing community in Phoenix, Arizona with a unique history. Originally built in 1986 as a hotel, the 300,000-square foot building had 168 guestrooms where every unit was a two-room suite. After a $20 million capital improvements/conversion project by an independent owner/operator, it now features 301 units of independent living and assisted living. It is billed as a “resort-style” community with two outdoor pools, tennis courts and other amenities. A development group motivated to increase their footprint in Arizona paid $45 million, or $149,500 per unit, at a 4.5% cap rate, for the community. Tyler Merrill led the... Read More »
LTC Properties Comes Out with Q1 Earnings
LTC Properties’ first quarter earnings report was a mixed bag of news. The company is still dealing with some operator problems resulting in rent deferral and abatements, which affected its earnings. Rental income dropped year over year from $30.97 million in Q1:21 to $30.32 million in Q1:22, caused also by the transition of the Senior Care Centers and Abri Health Services portfolio. There was also the sale of a SNF in Washington and a lease incentive balance write-off related to a terminated lease that led to the drop in rental income. However, offsetting the drop were new properties transitioned from Senior Lifestyle Corporation, rental income from completed development projects... Read More »
REITs: After Divesting Billions, They Are Back in Acquisition Mode
On April 28, 2022, Ben Swett, Editor of The SeniorCare Investor, spoke with three expert panelists on REITs, their strategies and their positive impact on the senior care market, post-pandemic. Those panelists included Mark Lamb, Chief Investment Officer of CareTrust REIT, Alex Florea, Head of Capital Markets at Blueprint Healthcare Real Estate Advisors and Kevin Pascoe, Chief Investment Officer of National Health Investors. They discussed a wide range of topics, including how to improve REITs’ relationships with their tenants, considerations for acquiring amid high valuations, and when to expect a return to “good” occupancy. Mr. Swett kicked off the webinar by asking the panelists how... Read More »
Low-Cost Financing by Sims as Rates Rise
As interest rates are rising, one lucky borrower was able to lock in a 2.25% interest rate for 35 years. And that loan won’t be funded until construction is completed on an expansion project. This sounds better than HUD financings of a year ago. HJ Sims announced the closing of a $32.2 million bank financing for a CCRC in Pontiac, Illinois called Evenglow Lodge. The loan proceeds will be used for the construction of 76 new assisted living units, the demolition of the existing assisting living building, as well as new common space and other space used by the health center. Phase one is the assisted living project, which broke ground in 2021. Phase two will consist of the construction of 24... Read More »
Senior Living Tower Going Up in Vancouver, Washington
PMB, a leading healthcare real estate developer, joint ventured with The Springs Living to break ground on a new 12-story seniors housing community in Vancouver, Washington, to be fully open by the first half of 2024. The urban community is set in the Vancouver Waterfront master plan, which includes 32 acres of parks, residential units, office space, retail and hotels. The seniors housing community, called The Springs at The Waterfront will feature 250 units and 360,000 square feet of independent living, assisted living and memory care. Amenities will include a spa and wellness center, indoor pool, and multiple dining venues including a pub and full bar. The community commands views of the... Read More »Schedule a demo
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