Two CCRCs Sell in Great Lakes Region
Ray Giannini of Marcus & Millichap reported a strong second half of 2021, with a couple more deals to report on. First, he sold a 110-bed CCRC in Ladysmith, Wisconsin. Called Ladysmith Care Community, the property was built in stages from the 1950s and 60s to 1991 and most recently in 2012. It features 62 skilled nursing beds and 20 residential care (assisted living) units with 48 beds. Occupancy was good at closing, helped in part by the community’s proximity to Marshfield Clinic, part of the regional Marshfield Clinic Health System. The original owner sold the community for $6 million, or $54,500 per bed. Then before New Years Eve, Mr. Giannini sold a CCRC in Gaylord, Minnesota... Read More »
Ten-Property Portfolio Sells in the Southeast
As the year comes to an end, many companies are announcing big portfolio deals, including Evans Senior Investments representing a regional owner/operator in their sale of a ten-property seniors housing portfolio located in Louisiana, Mississippi and South Carolina. The communities, which were built between 1972 and 2016 with a median year-built of 2007, comprise 590 seniors housing units (117 independent living, 293 assisted living and 180 memory care) and 666 functional beds. All of the communities have undergone significant renovations and capital improvements over recent years. The portfolio had an average bed occupancy of 91% in 2019 and produced a net operating income margin of 34%.... Read More »
Newmark Closes Active Adult Portfolio Deal in Texas
As the active adult market has grown considerably in the last couple of years, so has Newmark’s involvement in the sector, having closed a number of transactions in 2021, including one recent three-property portfolio deal. The three Texas communities are on the higher end and were sold by a joint venture between two developers – Sparrow Partners and Entrepreneurial Properties Corporation. The Carlyle Group purchased the entire portfolio. Built in 2017, Solea Copperfield is a 129-unit active adult community in Houston. It sold for $25.25 million, or $195,700 per unit. Solea Cinco Ranch, also located in Houston, was sold for $38 million, or $251,700 per unit. It was built in 2018... Read More »
SLIB Facilitates IL Sale in Idaho
Senior Living Investment Brokerage recently facilitated the sale of a successful independent living community in Chubbuck, Idaho. Comprising 82 units and one single-family home, the community was built in 1987 and has 117,828 square feet on five acres. The community, named Cottonwood Cove, was purchased for $3.75 million, or $45,000 per unit, at an 8.75% cap rate. It earned annualized revenues of $1 million and an EBITDA of $328,000. Cottonwood Cove has a 99% occupancy and also has a surplus of land, allowing the new owners to capitalize on their success and expand into this extra space. In fact, the property has consistently performed over the years, even through the pandemic, with an... Read More »
Portfolio of 15 AL Communities in Wisconsin Sells
Senior Care Realty is finishing the year strong with the sale of 15 assisted living communities in Wisconsin for $13.35 million, or about $60,000 per unit and $54,700 per licensed bed. Most of the communities are located in rural, northern Wisconsin towns and were built from the mid-1990s to the early-2000s, with a few newer communities in the mix too. Occupancy was in the low-80s before the pandemic but dropped to around 70%, with a roughly 85% Medicaid census. Nevertheless, the portfolio produced a healthy amount of cash flow, or nearly $1.27 million on $7.4 million of revenues, for a 17% margin. That results in a 9.5% cap rate. The seller owns a number of other communities in the state... Read More »
Former Hospice Facility to Transition to Seniors Housing
After an owner/operator and a group of investors bought a 24-unit hospice facility in Georgetown, South Carolina from a local hospital, then gutted, expanded and converted it to a two-story, 62-unit assisted living/memory care community, the group decided to sell before opening day. There are now all studio units ranging from 255 to 471 square feet, split between 44 assisted living and 18 memory care units. Patrick Burke, Bradley Clousing and Dan Geraghty of Senior Living Investment Brokerage marketed the property, which received a certificate of occupancy and Department of Health and Environmental Control (DHEC) construction approval prior to the sale. A regional operator with a... Read More »
Blueprint Facilitates Refinancing of Two Communities
Green Lake Senior Living, a Washington State owner/operator, was able to procure a cash-out refinance on two of its seniors housing communities in the Tri-Cities area with the help of Alex Florea and Dan Mahoney at Blueprint Healthcare Real Estate Advisors’ Capital Markets group. Green Lake acquired the communities during the pandemic as value-add investments from a pair of national operators. Both were older, “C” quality communities combining for 160 beds. Green Lake was able to quickly improve performance through its regional presence and by leaning into the state’s Medicaid program. Such an improvement made a cash-out refinance a no-brainer, and Blueprint marketed the... Read More »
SLIB Sells Struggling SNF in Pennsylvania
The owner of a struggling skilled nursing facility in northwestern Pennsylvania looking to sell has decided to add another performing facility to the deal in order to sweeten the pot. In the end, both sold to a New York-based investor with a growing presence in the Keystone State. Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the transaction. The first facility in Erie features 80 beds and was deemed to be non-core due to occupancy being below 50% and cash flow being negative. It was built in 1963 and 1968 and had a union in place. The other facility, located about two and 1/2 hours away in Clearfield, had 240 beds, but only 180 were functional because one floor... Read More »
Bon Secours Exits Senior Care Industry in Virginia
Bon Secours Mercy Health decided to exit the skilled nursing and assisted living business in Virginia, and we learned that they hired Healthcare Transactions Group (HTG) to serve as exclusive M&A advisor. The portfolio includes two nursing facilities located in Suffolk, Virginia (Maryview Nursing Care Center, 120 beds) and Newport News (St. Francis Nursing Center, 115 beds). The acquisition also includes two assisted living communities, consisting of Province Place of DePaul in Norfolk (97 beds) and Province Place Maryview in Portsmouth (78 beds). This represents a nice little cluster for the buyer, a private equity investor based in New Jersey that wanted to expand its existing... Read More »
SLIB Facilitates AL Transaction in Upstate New York
A doctor in the field of gerontology decided to sell her only assisted living community in Saugerties, New York to another private individual owner in a transaction arranged by Dave Balow and Toby Siefert of Senior Living Investment Brokerage. The community is set in a 1900s-era house that was renovated in 2008 and 2014. It now features 40 beds in 30 units, with a license for Enhanced Care, which is a private pay-focused model providing additional care for residents in exchange for additional revenue. Occupancy was strong (above 90%), so there is an opportunity to expand the current building and increase the unit count. The community operated at a roughly 11% margin on $2.12 million of... Read More »Schedule a demo
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