Three Class-A Active Adult Communities Sell in Oklahoma City MSA
Blueprint Healthcare Real Estate Advisors recently handled the sale of three, fully stabilized Class-A active adult communities in Moore, Mustang, and Edmond, all in the Oklahoma City MSA. Owned and developed by Oklahoma City-based Walters Construction Company, the “Thunder Portfolio” was constructed in phases between 2010 and 2021 and contains 350 total units. This includes a newly constructed 35-unit component on the Moore campus which will provide the buyer an opportunity to realize a significant increase in EBITDAR. The portfolio maintained stable occupancy and cash flows throughout the COVID pandemic, and operations even continued to strengthen during marketing and throughout... Read More »Valeo Recapitalizes South Carolina Community with MidCap Financial
MidCap Financial closed a first mortgage loan for Vineyard Bluffton, a newly built seniors housing community in Bluffton, South Carolina. Owned by Valeo Groupe Americas, LLC, the Class-A community consists of 96 assisted living and memory care units. It was one of five projects in the works for Valeo and opened in October 2020. To recapitalize the property, Valeo received a $20.55 million floating rate first mortgage loan from MidCap. Peter Martz arranged the transaction for MidCap (its first with Valeo), while Noam Kaminetsky of Meridian Capital Group also handled the transaction. Read More »Activists Strike Again, But Fall On Deaf Ears
You have to hand it to Jonathan Litt of Land & Buildings, he has not given up on the senior care sector. After going after a few provider companies in the pre-COVID past, he recently set his sights on Ventas. But, Big Deb did not quake in her heels. She never does. As is his way, Litt tried to get a position on the Ventas Board, and after meeting with two separate groups of directors, he apparently thought that he made a good impression and had swayed them. Wrong. Right after his March 7 letter to Ventas shareholders, Ventas announced the appointment of a new board member, but his name was not Litt. Extremely qualified, yes, but not Litt. In Litt’s letter, he indicated his “tremendous... Read More »A Conversation on the Bridge Lending Market with Oxford Finance
The industry is emerging from the pandemic, but new issues are always arising, so how are lenders reacting and how do they distinguish pandemic problems from provider problems? Ben Swett sat down with Kevin Harbour and Tracy Maziek of Oxford Finance to discuss the state of the bridge lending market in a rising interest rate environment. Read More »Brookdale Provides Update
Brookdale Senior Living just released its occupancy update for February, and our first take was that things need to be better than that. Then, we remembered our late 2020 analysis which showed that assisted living occupancy has never increased in the first quarter for each of the past 10 years. Therefore, we should not expect too much this quarter. In this light, Brookdale’s census outlook is not too bad. From January to February, the weighted average occupancy dropped just 10 basis points to 73.3%. Even better, the month-end occupancy increased by 20 basis points from the end of January to 74.4%. The problem is that census at the end of September was 74.2%, so we have seen little overall... Read More »Behavioral Health Provider Buys Hometown Senior Living
A national behavioral health provider acquired a Minnesota-based assisted living/memory care provider and its seven locations in the Minneapolis-St. Paul metro area. Yet again, we are seeing a combination of these healthcare service sectors, as several of the senior care REITs announced plans to grow their behavioral health holdings in their recent earnings announcements. The target was Hometown Senior Living, a family-owned and operated provider that has grown over the past 10 years to be one of the largest memory care operators in the Minneapolis area. It was acquired by Beacon Specialized Living, one of the biggest behavioral health providers in the country with over 190 locations.... Read More »CIBC Finances Texas SNFs
CIBC Bank USA recently closed on a $1.5 million revolving line of credit that provides working capital to support three recently acquired skilled nursing facilities in Texas totaling 316 beds. The seller was local and looking to divest some of their skilled nursing assets. The facilities performed with good operating margins despite census being between 55-60% throughout 2020 and 2021. The buyer identified a significant opportunity to improve operations and quality of the homes, with a focus on increasing census while maintaining healthy margins. Read More »Two Years After The Start
It has now been two years since the official start of the declared pandemic, and the entire seniors housing and care industry has been rising from the bottom of last March. But what now? It seems that from a census perspective we have clawed back up to 50% of what was lost, but the pace of census expansion has slowed. The labor shortages are causing some providers to put their own hold on new admissions, and the ever-increasing labor costs are putting a permanent dent into operating margins. All of this is happening at a time when the industry really needs to prepare for the aging baby boomers, and not worry about how it is going to provide the needed staffing. Next Thursday, March... Read More »NHI and Welltower Agree to Memorandum of Understanding
Following a late-February announcement that they would work out a settlement to their rent dispute, National Health Investors and Welltower announced that they have entered into a memorandum of understanding on the matter. The MOU stipulates that: NHI and Welltower wish to transition the 16 legacy Holiday Retirement properties to new tenants and that Welltower will use commercially reasonable efforts to complete this by April 1, 2022.NHI desires to sell one legacy Holiday property and that Welltower will use commercially reasonable efforts to facilitate the sale’s closing.Welltower will pay NHI approximately $6.9 million, to be held in escrow until the execution of the final settlement... Read More »Monarch Advisors Finances Assisted Living Addition
An assisted living community in Salinas, California is more than tripling its size with financing in hand from a national SBA lender. Alec Blanc of Monarch Advisors arranged a multi-stage lending strategy for the owner, Songbird Care Homes, and sourced the debt. The $4.6 million senior loan comes with a term of 25 years and a rate of Prime plus 1.0%, with an option to convert to a fixed rate equal to Prime plus 1.2% upon completion of the addition. Originally built in 1952, but renovated and converted to assisted living in 2017, the existing six-unit/12-bed community will see 28 new beds in 14 units added thanks to the funding. Occupancy was 92%. Read More »Schedule a demo
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