Capital Senior Living Update
On Wednesday we wrote about the sudden rise in the share price of Capital Senior Living, doubling in value in a couple of weeks, which usually indicates rumors of some sort of a potential capital transaction. But the only news that came out was the stockholders’ approval of a 1-for-15 reverse stock split. What was weird was that at the annual shareholders’ meeting they were given three options. Including the one above, there was also a 1-for-10 and a 1-for-20 split, approving all three and letting the Board decide which one to go with. We have never seen that happen. With the 1-for-15 reverse split, Capital Senior Living will now have just 2,084,596 shares... Read More »
Oxford Finance Secures Credit Facility for Missouri Acquisition
Oxford Finance announced its role in funding SRZ Management’s (Reach LTC) acquisition of a large skilled nursing facility in the St. Louis suburb of Town & Country, Missouri. The buyer received a $7.4 million senior credit facility and revolving line of credit to support the purchase and general working capital. Jeff Binder and Patrick Byrne of Senior Living Investment Brokerage represented the seller, National HealthCare Corporation (NHC), in the deal. Built in the 1960s, the facility was set to be replaced by a 187-unit senior living community, which would be developed by Ryan Companies at a cost of about $60 million. However, NHC couldn’t get the project through planning and zoning... Read More »
Blueprint Sells Two Vacant Assisted Living Communities in New Jersey
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors handled the sale of two vacant assisted living communities in New Jersey, thereby completing the seller’s exit of its entire vacant seniors housing portfolio, of which Blueprint successfully advised on eight of the transactions in states including Arizona, Idaho and Texas. This deal featured two purpose-built, 39-unit assisted living communities located within 45 miles of each other. They also have similar floorplans and layouts. Blueprint positioned the properties as an opportunity for an incoming investor to acquire both communities below replacement cost, implement a capex/renovation... Read More »
Capital Senior Living Zooms
After spending the summer and fall months trading at 50 to 70 cents a share, Capital Senior Living’s shares zoomed up last week. If anyone was watching the stock market last week, you had to notice that Capital Senior Living’s shares just zoomed. Since November 20, the price has almost doubled to $1.38, and last week alone they were up about 50%. Now, we do need some perspective, since the starting point was just 73 cents a share, so any movement results in an exaggerated percentage increase. Still, an increase is an increase. But why? I am sure there were some mutterings about someone buying the company. But if you do the math, it just doesn’t work. Using third quarter occupancy and... Read More »
Newmark Strikes Again, and Again
We had reported a few months ago that Newmark (formerly Newmark Knight Frank) was going to have a big fourth quarter. And they have, with five sales transactions worth well in excess of $400 million, plus a few financings, and we still have a few weeks to go before the end of the year, and a few more deals. The largest sale this quarter, which we previously reported on, was the six communities in Massachusetts that sold for about $200 million in a recap of the portfolio previously owned by Welltower. Most recently (early December), however, was one of the larger skilled nursing portfolio sales of the year. Details will be available soon, but let’s just say it will be... Read More »
Occupancy at Brookdale Senior Living Slides
In a sign of the times, tough times, Brookdale Senior Living just announced its November occupancy results, and the numbers are sobering. Average occupancy for the month was 72.8%, a drop of 100 basis points from October, which was double the October drop of “just” 50 basis points. That is a cumulative decline in occupancy of 990 basis points since March. If the winter months are going to be as bad as Dr. Fauci is predicting, it is quite possible that we will start to see sub-70% occupancy levels. That will be a disaster. What is interesting in the case of Brookdale is that 89% of its communities were still open for move-ins as of November 30, so that is not the... Read More »
It’s Not Just A U.S. Problem
The nursing home sector came under heavy criticism, and we might say “heavy-handed” criticism, during this pandemic, especially in the early months. Many of the naysayers, especially the media (hey New York Times, are you listening?), blamed the huge spike in deaths at nursing homes on the providers themselves and the so-called “lax” regulations, especially under the Trump administration. But in the more socialist-leaning countries of Europe, the death rate in nursing homes was not only high, but has been spiking again. This is despite the staff being better equipped than they were eight months ago during the first wave when no one really knew what was hitting them. ... Read More »
CCRCs Outperforming The Market
Just like in the skilled nursing industry, every 10 years or so there seems to be a movement that predicts the end of the CCRC market (or LPC for the not-for-profits). They claim that CCRCs are a dying breed, an old-style model, and no one wants to put down $300,000 and up to $1 million and more for an entrance fee. The reality, however, is that plenty of people want to. But, of course, no one “wants” to move into skilled nursing, while a CCRC is the ultimate mix of want, lifestyle and future need. The people who move into CCRCs are planners and looking at the long term. And long term it is, since the average length of stay surpasses anything else in seniors housing. It is not... Read More »
Evans Senior Investments Sells Evansville SNF
A skilled nursing facility with strong UPL revenues sold in Evansville, Indiana thanks to Evans Senior Investments. The owner/operator primarily operated in the Southeast, and this facility represented its only asset in the Midwest, with the nearest property nearly 300 miles away. So, an Indiana exit was arranged, and a new regional owner/operator looking to expand its presence in the state emerged as the new owner. COVID-19 unfortunately hit the 113-bed facility earlier this year, leading to 66 total cases and increased expenses. Also, occupancy dropped from 73% to 67%, but cash flow remained strong at $1.1 million in NOI, for a 13% margin on approximately $7.83 million of revenues.... Read More »
JCH Handles Difficult Southern California Sale
It took a couple of tries, but JCH Senior Housing Investment Brokerage sold a senior care facility in Riverside County, California. Featuring 64 skilled nursing and 49 assisted living beds, the facility was owned and operated by a family business. Occupancy was relatively stable at the SNF, but census at the assisted living portion was virtually non-existent. So, the appraiser allotted no value to the ALF. The facility was originally in escrow when COVID-19 hit and the first-time buyer decided not to proceed. JCH immediately began marketing the property again and in less than two weeks had five competitive offers. The seller decided to give another first-time buyer the go-ahead, with a... Read More »Schedule a demo
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