Diversified Healthcare Trust Update
Diversified Healthcare Trust is feeling the pain that most of the REITs also have been feeling: census is still dropping. Its senior housing operating portfolio (SHOP) posted a 380-basis point decline in census in the fourth quarter. While not good, the progression was worse. It started with a 70-basis point drop in October, growing to 130 basis points in November and then a plunge of 180 basis points in December alone. And this when 93% of its SHOP communities, the vast majority managed by Five Star Senior Living, are open for new admissions. What this means is that just because you are open for business, it does not necessarily mean people will move, even if it is safer... Read More »
Blueprint Closes Kerrville, Texas SNF Deal
Jacob Gehl and Humair Sabir of Blueprint Healthcare Real Estate Advisors kicked off the firm’s 2021 M&A activity with a memory care sale in Kerrville, Texas. Built in 2001 with 36 units, the community was last acquired in 2014 by a private partnership for $2.4 million, or $66,700 per unit, according to our M&A deal database. It was losing money at the time because of high staff turnover, but thanks to a good reputation in the local market and vastly increasing its staff tenure, the community was operating well, with occupancy regularly above 90% and the operating margin around 30%. Still, a new owner could take advantage of scale to grow cash flow even more, and that... Read More »
Senior Living Investment Brokerage Handles Oregon Sale
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage worked together to sell a 70-unit independent living community in Medford, Oregon. Set amongst the Cascade and Siskiyou Mountains, the community was originally built in 1975 and renovated in 1980. Its operations could be improved, as occupancy fell just below 60%, and the operating margin was just 9% on more than $1.33 million of revenues. The community’s vintage could make that task harder, but age isn’t everything. A local owner/operator bought the property and is planning to remodel and reposition the community. They paid $3.5 million, or $50,000 per unit, which should leave plenty... Read More »
PGIM Arranges Array of HUD Financings
PGIM’s Seniors Housing and Healthcare Group was busy on the HUD front this month, closing three loans totaling more than $33 million for three senior care facilities. Christopher Fenton, Corley Audorff, Catherine Eby and Josh Williams originated the loans and all worked on the largest transaction, which was a $21.9 million loan for a 238-unit assisted living/skilled nursing campus in Connecticut. Utilizing HUD’s 232/223(a)(7) program, the not-for-profit owner was able to lower its current interest rate by 81 basis points, and the loan term was extended to 35 years. Then, Messrs. Audorff and Williams funded a $10.9 million loan for a 141-unit senior care... Read More »
SLIB Facilitates Family’s Exit From Seniors Housing Industry
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage headed to Forest Grove, Oregon (Portland MSA) for their latest seniors housing sale. Previously owned by a family who is retiring from the industry, the property includes 92 units and 134 beds of assisted living and memory care. The AL portion was first built in 1996, with the memory care added in 2000. The building was nearly full (occupancy was at 98%), and it brought in nearly $1.28 million of EBITDAR on about $5.63 million of revenues. A regional owner/operator will be taking over that healthy cash flow and paid $15.7 million, or $170,650 per unit, for the... Read More »Recent Senior Care M&A Deal Chart, Week Ending January 29, 2021
Senior care M&A continues to plod along, here is our recent deal chart! Long-Term Care AcquirerTargetPrice Regional owner/operatorThe Grove and Gardens$15.7 million Peak Capital PartnersThe Estates at Arbor Oaks$18.75 million Not disclosedThe Handmaker Senior Living$15.5 million Owner/operatorRosewood Rehabilitation & Nursing... Read More »
Blueprint Handles Upstate New York Transaction
Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the sale of an 80-bed skilled nursing facility in upstate New York, representing the private ownership group seller in the process. Originally developed in the mid-1970s in Rensselaer, New York (across the Hudson River from Albany), the facility recently received significant capital investments that included interior renovations, operational equipment upgrades and technological enhancements. Ownership also made improvements to the majority of private rooms, which helped keep the quality mix very strong at around 50%. Operations were also solid (and improving before COVID-19), with... Read More »
JLL Sells A 55+ Community in Minnesota
The JLL Capital Markets team of Dan Linnell, Mox Gunderson, Josh Talberg and Adam Haydon represented the seller of a 66-unit active adult community near Minneapolis, Minnesota, with another JLL team financing the deal too. Set on 12.5 acres in the town of Andover, this community consists of one-, two- and three-bedroom apartments, which are newly constructed with screened-in balconies, in-unit washer and dryers and full kitchens. Amenities include continental breakfast every morning, social and recreational programs, a bistro, salon, fitness center, underground parking and car wash station, pickleball court, outdoor patio with grills and fireplaces and an outdoor... Read More »
Grandbridge’s San Diego Team Announces Tucson CCRC Closing
Grandbridge Real Estate Capital’s new San Diego-based seniors housing investment sales team including David Rothschild and Mary Christian closed the sale of a Tucson, Arizona CCRC. The not-for-profit community originally opened with 40 skilled nursing beds in 1963 to provide care to the local Jewish community. It received numerous additions over the years, most recently in 2015, and now includes 74 skilled nursing beds, 12 independent living units, 80 assisted living units and 10 memory care units on over six acres. This was the not-for-profit’s only senior living community, so both census and operating margin likely could be improved under ownership with some... Read More »
Buying Big In The CCRC Market
In case you haven’t noticed, there has been an ad for the past several weeks on these pages for the sale of a large CCRC in Michigan. When we say large, we mean 852 IL units, 96 AL/MC units and 89 skilled nursing beds. The community was substantially constructed between 1993 and 1998 and sits on 35 acres. This is Erickson Living big, and that is because the original Erickson Retirement was the developer and manager back in the 1990s. The CCRC, known as Henry Ford Village, filed for Chapter 11 bankruptcy protection in October 2020. The reason, we assume, was the low occupancy. The IL units as of November were at 69.0% and the healthcare units combined were at... Read More »Schedule a demo
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