LTC Properties Transitioning Senior Lifestyle Corp.
LTC Properties reported fourth quarter and full year earnings late last week, and while there is some uncertainty, management appears to have a good handle on how they are dealing with it. This is especially true with the 23 communities leased to Senior Lifestyle Corporation (SLC), which we will get to below. One interesting statistic that came out is that with 71% of their private pay tenants reporting, actual occupancy dropped from 79% on September 30 to 72% on December 31, one of the largest quarterly declines we have seen. The good news is that one month later occupancy stood at 71% on January 31, so the rate of decline has slowed significantly. LTC’s... Read More »
Ziegler Closes Nine-Figure Refi
Investment banking firm Ziegler closed a $114.82 million tax-exempt refinancing for Springpoint Senior Living, a major regional not-for-profit provider based in New Jersey. Springpoint operates eight CCRCs (LPCs) in New Jersey and Delaware, 19 affordable housing communities, a home care agency and a continuing care at home program. Springpoint formed a new obligated group for this refinancing, which consists of the corporate entity plus the six CCRCs in New Jersey. The new financing repaid outstanding debt and also reimbursed the obligated group for $25 million in recent capital expenditures. The $114.82 million bond issue was rated BBB+... Read More »
Another University-Based CCRC Finished Construction
We wrote last week of a major seniors housing development in the works on the campus of SUNY Purchase in Westchester County, New York (one that is estimated to cost upwards of $320 million when all is said and done), but a similar project on the campus of Arizona State University just completed construction. Mirabella at ASU is a not-for-profit CCRC with 246 units of independent living and 52 health care units, as well as a host of luxury amenities in the sleek, 20-story building. Some of those features include an indoor pool and wellness center, physical therapy gym, theater, art museum, event and lecture hall, game rooms, salon and spa, dog park, valet and... Read More »
Recent Senior Care M&A Deals, Week Ending February 19, 2021
Senior care M&A seems to be going through a slow patch, but here is our most recent deal chart. Long-Term Care AcquirerTargetPrice Harrison Street Real Estate CapitalThe Residence at Watertown Square$45 million+ Regional owner and operatorThe Terrace at Woodland$10 million Avanath Capital ManagementThe Grove Senior Apartments$19.8 million Tryko Partners, LLCRegina Community Nursing... Read More »
Ventas Census Hits Low
Things will definitely start to get better as the vaccine finishes its roll out in senior living communities, but even more ground will have to be made up as a result of the continued deterioration in census in the past few months. Ventas, which just released its fourth quarter and full-year 2020 results, has not been immune to these declines, yet they see the light at the end of the tunnel. On a same-community basis, the senior housing operating portfolio (SHOP) occupancy level dropped by 870 basis points in the fourth quarter compared to the same quarter last year, to a low of 79.6%. This is a total of 377 communities. But when the Canadian communities are removed (68... Read More »
Evans Senior Investments Sells Upstate New York Community
Evans Senior Investments handled the sale of an assisted living/memory care community in Rome, New York, about 15 miles northwest of Utica. Built in 2009, the community is licensed for 48 AL and 12 MC beds, and also holds an Assisted Living Program (ALP) Medicaid license on 16 beds. Over the past 12 months, it has averaged 90% occupancy, with an 80% private pay census. Its operating margin has also been strong, at 29% on more than $2.6 million of revenues. But that could be improved by a new and potentially larger owner. The independent owner/operator worked with Evans to find a buyer, which ended up being a regional owner/operator looking to expand its presence in the state and... Read More »
People’s United Bank Funds Connecticut CCRC
Bridgeport, Connecticut-based People’s United Bank headed upstate to refinance a CCRC in Bloomfield, just north of Hartford. Duncaster, Inc. opened in 1984 as a not-for-profit CCRC that now includes 193 independent living units, 19 assisted living units, 24 memory care units and 60 skilled nursing beds. The pandemic led to a drop in occupancy (who didn’t experience that?) and slower IL unit sales. But the property did receive a healthy amount of stimulus funds to offset the drop in revenues, and recent IL unit sales reportedly have been strong. There was about $9.2 million of maturing bond debt held by Citizens Bank on the property, plus... Read More »
Bank Leumi Refinances Prestige Care
Bank Leumi USA announced that it has booked and funded a $23.5 million refinance for Prestige Care, a third-generation family operator of 80 seniors housing and care properties across eight states in the West. The transaction will refinance one of Prestige’s asset-based lending revolvers and a real estate term loan secured on a portfolio of four skilled nursing facilities in Oregon and Washington, plus one assisted living community in Arizona, all combining for 356 operating beds. The deal also gives New York-based Bank Leumi a significant treasury management relationship on the West Coast. Read More »
Buyers Paid Premium For Strong Operations in 2020
In 2020, there was yet again a perfect correlation between the average price per unit paid for seniors housing communities and their operating margins. Throughout 2020, as occupancy and cash flow at senior care facilities dropped and costs of financing rose, we wondered exactly how the pandemic would affect the pricing of these assets. Would it have a disparate effect on skilled nursing versus seniors housing properties, older properties versus new ones, or on stabilized facilities versus non stabilized. We are almost done compiling all these statistics in the 26th Edition of The Senior Care Acquisition Report, but we wanted to highlight a historical trend that continued even through... Read More »
Newmark Arranges Acquisition Financing For Harrison Street
Harrison Street has been on an acquisition tear of late, recently acquiring a portfolio of 12 seniors housing communities operated by Atria Senior Living and owned by Healthpeak Properties. But the firm also picked up a 90-unit community in Watertown, Massachusetts (Boston MSA), thanks to acquisition financing arranged by Sarah Anderson, Ryan Maconachy, Chad Lavender, Ross Sanders and David Fasano of Newmark. Built in 2014 at a cost of nearly $28 million, the community features 19 independent living, 46 assisted living and 25 memory care units about 10 miles west of downtown Boston. Three years later, Cushman & Wakefield arranged a... Read More »Schedule a demo
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