CBRE Refinances Stabilizing Seniors Housing Portfolio
CBRE refinanced a portfolio of three seniors housing communities owned by a joint venture between LCS and Nuveen Real Estate, an affiliate of the investment management arm of TIAA. These communities feature a combination of assisted living and memory care, with 328 units in total. Developed by a not-for-profit in 2017 and 2018, they were acquired by the joint venture in 2018 as part of a seven-property portfolio that included four other stabilized communities around the Louisville and Indianapolis MSAs totaling 360 units of assisted living and memory care. The deal represented one of the first large-scale investments in the joint venture’s $300 million capital raise, which CBRE... Read More »
St. Louis-Area Senior Living Community Sells
A St. Louis, Missouri-based developer/owner/operator did not have to go far for its latest acquisition, picking up a large senior living community in a nearby suburb. Built in 1986, the private pay community features 116 independent living and 63 assisted living units. It has been renovated twice since opening. Occupancy was in the mid-70s, which dipped slightly during the pandemic, but in-place cash flow was strong. Incorporating the property into its regional footprint, the buyer is planning a substantial, multi-million-dollar capital improvement project. Newmark Knight Frank handled the deal on behalf of the seller and also procured a lender in Regions Bank to provide... Read More »
Berkadia Refinances Mississippi Skilled Nursing/Alzheimer’s Facility
Berkadia headed to Byram, Mississippi to refinance a senior care facility. Featuring 88 beds, the facility was built in 2000 with 88 skilled nursing beds, comprised of 44 private and 22 semi-private units. There is also a 20-bed secure Alzheimer’s unit in the facility and a new 4,000-square foot therapy gym and spa. WCR, LLC, controlled by the Rotolo family, owns the property and has worked with Berkadia three previous times to finance the property for over a decade. They recently completed an addition/renovation that was approved by HUD and consisted of almost 15,000 square feet, using their own funds to pay for it. Now, ownership has secured a $9.75 million HUD refinance from Berkadia’s... Read More »
What Covid-19 Has Done
The American Seniors Housing Association, together with HealthTrust, contacted over 30 seniors housing operators that operate more than 180,000 units about what has happened to their occupancy levels, revenues, expenses and additional costs pertaining to the pandemic between March 1 and June 30. The results were eye-opening. One interesting result was that despite being the most need-driven, assisted living and memory occupancy dropped by 661 and 651 basis points, respectively, compared with 404 basis points for independent living in the four-month period. In addition, large operators (more than 3,500 units) appeared to fare worse than small (less than 2,000 units) or... Read More »
Recent Senior Care M&A Deal Chart, Week Ending October 15, 2020
The fourth quarter M&A blitz continues with a number of new deal announcements. Check out our latest senior care M&A chart. Long-Term Care AcquirerTargetPrice Taurus Investment Holdings and Northbridge Asset Management6 seniors housing communities in Boston, MA area$200 million Regional groupRoseleaf Portfolio$14.6 million Southeast-based owner/operatorTranquility of DaltonN/A Northeast-based owner/operatorTranquility of CartersvilleN/A CiminoCareAssisted living community in Stockton, CA$3... Read More »
How Many Waves Will There Be?
Anyone watching the news these days is well aware that we are seeing either the second or third wave of the coronavirus pandemic. Six months ago, it was all about when the “second” wave was going to hit. Not to be a Debbie Downer, but why not three or four waves, or more, before a vaccine is approved and distributed. And the last poll we saw indicated that perhaps up to 50% of the population would not get the vaccine. Will the waves then keep on rolling in? Less than 2.5% of the U.S population has tested positive for COVID-19, and while the percentage may not grow, the absolute numbers will. No matter how careful providers are being, it could still enter their buildings. What... Read More »
Ventas Buys Big
Ventas announced one of its largest acquisitions in a while, a billion-dollar deal. Unfortunately, it is not in seniors housing. And we probably will not see a billion-dollar deal in seniors housing this year. The Ventas Life Science and Healthcare Real Estate Fund bought a “trophy” life science portfolio in the South San Francisco life science cluster for $1.0 billion. The portfolio consists of a campus of three newly developed or renovated buildings totaling nearly 800,000 square feet that are 96% leased. For the quantitatively challenged, that comes to $1,250 per square foot, which is much more expensive than any seniors housing portfolio that has sold. The tenant... Read More »Seniors Housing Occupancy Hits A New Low
NIC wrapped up its virtual conference this week, and it’s safe to say that those in attendance got a good education on what it’s like to close a deal during the pandemic, to operate communities safely and successfully, and (hopefully) when business will be back to normal. At the end of the conference, NIC also released its third-quarter occupancy numbers, and they showed the industry has a long road to recovery. Across the 31 primary markets, seniors housing average occupancy fell from 84.7% in the second quarter to 82.1% in the third quarter, a drop of 260 basis points. That followed a 280-basis point decline in the second quarter. Clearly, COVID-19 and the resulting lockdowns... Read More »
People’s United Bank Closes Several Financings
People’s United Bank announced several closed loans for clients in the Northeast. First, to finance the development of a brand-new, 60-unit/80-bed assisted living and memory care community in Manalapan, New Jersey, the bank provided a $14.3 million construction loan, which comes out to $233,300 per unit of debt. HJ Sims led the solicitation process. The loan comes with a five-year commitment, 30-year amortization and 30 months of interest-only payments for both the construction and lease-up periods. The borrower was MRC Manalapan, a newly formed not-for-profit special purpose entity formed to build and operate the community. It is controlled by two principals, including LV Development,... Read More »
CBRE Secures Bridge Financing For Orange County Community
Bridge lending may be in a period of relative inactivity not seen for some time, but CBRE got creative working with a multifamily bridge lending program to refinance a brand-new senior living community in Orange County, California. The luxury community in Laguna Niguel features 176 independent living/ assisted living flex units and 22 units for memory care on an irreplaceable 11.6-acre site. It was built in 2018 and consists of numerous amenities, including a 15,000-square foot rooftop with a lounge, sunroom, open-air art studio and putting green. Atria Senior Living operates the community under its “Signature” brand on behalf of the joint venture owners Fremont Realty Capital and... Read More »Schedule a demo
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