Trustwell Living Getting Started
Earlier this week, Larry Cohen announced the formation of his new company, Trustwell Living, LLC. As most of you know, Larry was the CEO of Capital Senior Living (CSU) for about 20 years. What you may not know is that he was very popular with his team, from EDs to the C-suite. It looks like those relationships have held, as several former CSU employees are putting their trust in Larry and joining forces once again. This includes Greg Boemer, who spent 15 years at CSU, the last four as VP of Operations, who will be SVP of Operations. Then there is Colleen Honnors who was with the company from 2013 to 2020 as National Quality and Clinical Director, and... Read More »
Blueprint Sells Pair of Massachusetts Communities
Blueprint Healthcare Real Estate Advisors found a new owner for two seniors housing communities in Massachusetts, also introducing the buyer to a lending intermediary to help the deal close. Connor Doherty, Amy Sitzman, Ryan Kelly and Giancarlo Riso handled the sale, which was a rare one these days in that it featured two stabilized properties. Combining for 195 units, the communities are located across the state in Fall River (built in 1997 with 90 units) and West Springfield, the latter being a former 1890s-era monastery that was converted to a 105-unit assisted living/memory care community in 2001. Occupancy was strong, exceeding 96%, and combined EBITDAR was approximately... Read More »
SLIB Sells Sacramento-Area Seniors Housing Community
Eskaton, a California-based not-for-profit provider of senior care services, decided to sell its Sacramento-area seniors housing community, enlisting the help of Brad Goodsell, Jason Punzel and Vince Viverito of Senior Living Investment Brokerage to get the deal done. Built in 1981 with several renovations since then, the Orangevale community features 90 units and 136 beds of both assisted living and memory care services. Occupancy was 77%, and the facility reported negative EBITDAR on about $4.86 million of revenues. Eskaton divested the facility after a 2019 verdict forced the company to pay $42.5 million in punitive and compensatory damages to the family of a woman who... Read More »
Dwight Capital Announces Both Bridge Loans and Agency Financings
Dwight Capital ended 2020 with a bang, with more than $117 million of healthcare financings closed during the fourth quarter. The volume included a few bridge acquisition loans for senior care facilities across the country, starting with $15 million in bridge and mezzanine debt for the acquisition of three assisted living/skilled nursing facilities in Kansas. Adam Sasouness originated the transaction as well as a $13.95 million bridge loan for the Laurels Portfolio, which consists of three properties in northeast Ohio with 313 beds of assisted living and skilled nursing. Previously owned by a REIT, the facilities were originally built in the 1960s and... Read More »
Assisted Living Is Not A Nursing Home
The media continues to throw all seniors housing into the nursing home basket. It has to stop now, especially in this time of COVID. Here I go again, or better yet, here goes the uninformed New York Times again. In a story last week called, “Voices From Inside Nursing Homes,” I didn’t know whether these would be the voices of workers, or the residents who felt isolated with little social interaction. It was mostly neither. It was voices from children of residents, and in two cases, the resident; one “voice” was that of a staffer. The problem was that most were not voices from nursing homes. They were from a residential care facility, a seniors housing complex, an assisted living community,... Read More »
HealthPeak Sells 10 Aegis Living Communities
HealthPeak Properties continues its exit from the seniors housing business, both its sale/leaseback portfolio as well as its RIDEA assets. In a large transaction, HealthPeak has sold 10 assisted living and memory care communities to its tenant, Aegis Living, which partnered with Blue Moon Capital Partners in the deal. The purchase price for the real estate (to HealthPeak) was $350 million, but the total price for the entire transaction was closer to $440 million, or about $626,700 per unit. Not too bad during a pandemic. The 10 properties are located in California (6), Washington (3) and Nevada (1). Average occupancy in the third quarter... Read More »
Brookdale’s Census Continues To Tumble
Although not unexpected, occupancy levels at Brookdale Senior Living have continued to decline, much like the rest of the industry. But with Brookdale, occupancy at the end of December had tumbled to 71.5%, a 160-basis point decline from the end of November. This was the worst month-to-month decline since the end of April to May period, which was 150 basis points. The worst month came in April 2020 when the drop was 220 basis points. That was the previous COVID height, but the numbers nationally today are much worse. Average occupancy in December declined by 150 basis points to 71.5%. We are not sure what to expect after the Christmas and New Year’s holidays and the associated spike in... Read More »
Ziegler Secures Bond Refinance for Adventist Healthcare
Utilizing a relationship stretching back nearly two decades, not-for-profit Adventist Healthcare worked with the team at Ziegler to refinance its outstanding bonds. Issued through the Maryland Health and Higher Educational Facilities, the transaction consisted of $18.725 million in fixed-rate bonds and another fixed-rate bond issue of $48.12 million with a delivery date in October 2021. Proceeds of this financing will be used to current refund the Series 2014A bonds, forward refund the Series 2011A bonds, and pay costs of issuance. Adventist HealthCare, which operates three acute care hospitals, a behavioral/psychiatric hospital, and a rehabilitation hospital, was also able to achieve... Read More »
Senior Living Investment Brokerage Handles Memphis-Area Sale
Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage handled the sale of a skilled nursing facility in West Memphis, Arkansas. Consisting of 85 beds in 49 units, the facility is situated along the Mississippi River on the Arkansas-Tennessee border. It was built in 1975 and includes a well-maintained physical plant. Occupancy was low, at 55%, and since the census has dropped due to COVID, plus this facility being a geographic outlier, we can’t imagine it was overly profitable. It was owned by an Arkansas-based regional owner/operator that decided to divest this asset from its portfolio. Another regional owner/operator stepped in to acquire the facility, closing at the... Read More »
Q&A With Bluma Broner of CIBC Bank USA: Lending In The Current COVID Climate
Banks and other lenders will play a deciding role in when the senior care M&A and construction markets return to some sort of “normal.” Transaction activity was quite strong in the fourth quarter of 2020, particularly in December, but will we see that continue into 2021? And investors may have to change how they arrange their capital stacks. We asked Bluma Broner of CIBC Bank USA for her thoughts on lending in 2020 and how her team adapted to the unique crisis facing the industry. Was your breakdown between acquisition loans, construction loans and refinancings similar to previous years? If not, what changed? And if you know, why? Between March and December 2020,... Read More »Schedule a demo
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