Marcus & Millichap Duo Sell Tucson Community
Alex Snyder and Hamid Panahi of Marcus & Millichap’s Tucson, Arizona office didn’t have to go far for their latest seniors housing deal, selling an 80-unit assisted living community in their hometown of Tucson. They represented both the merchant developer seller and regional owner/operator buyer (both also based in Tucson), the latter of which paid $5.6 million, or $70,000 per unit, for the property. The buyer utilized a combination of a seller carryback, bridge debt and conventional debt to finance the acquisition. Opening in 2018 and still leasing up when the pandemic hit, the community was just 42.5% occupied at the time of the sale. However, new ownership made their... Read More »
Northmarq Refinances Washington State Seniors Housing
Northmarq’s Stuart Oswald, senior vice president and managing director of the firm’s Seattle office, arranged a $35 million refinance of a 136-unit senior living community in Tacoma, Washington. Built in phases from the 1980s to the 1990s, the community provides independent living, assisted living and memory care services in a combination of 61 studios, 33 one-bedroom units, five two-bedroom units and 37 units dedicated to memory care. A family has owned and operated it since opening, with the third generation now in charge, and operations have been consistently strong, even during the pandemic. Occupancy was in the 90% range. Northmarq originally refinanced the property... Read More »
JLL Announces Seniors Housing Portfolio Deal
The JLL team got off to a prolific start this January, already handling a couple of transactions across 17 seniors housing properties. The big one involved the sale of 16 seniors housing communities previously owned by a publicly traded REIT. Totaling more than 1,800 units, these communities were located in three states and consisted of a mix between independent living, assisted living and memory care units, with some skilled nursing beds too. They were not new, averaging more than 20 years in age, and did not escape the effects of COVID-19. Occupancy dropped from around the mid-80% range to the mid-70s, and we imagine cash flow was affected too. A non-traded REIT... Read More »
Blueprint Sells a SNF in Louisiana
Brooks Blackmon of Blueprint Healthcare Real Estate Advisors headed down to the bayou to sell a 120-bed skilled nursing facility in Oak Grove, Louisiana (near the border of Arkansas). Built in stages from the 1960s through 1987, the facility had been owned by multiple generations of a local family since its opening, and now they are seeking to exit the industry. Occupancy was just under 50%, and it was operating a little above breakeven. Blueprint started the marketing process in late-2019, and a buyer was found in a Southeast-based regional owner/operator, but the pandemic led to numerous delays. Eventually, the deal closed with no purchase price reduction,... Read More »
Recent Senior Care M&A Deal Chart, Week Ending January 22, 2021
The M&A market was on fire in the last month of 2020, and got off to a fast start in 2021. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Non-traded REIT16 seniors housing communitiesN/A Local individualAssisted living community in San Antonio, TXN/A Regional owner/operatorCarroll Nursing HomeN/A Owner/operatorThe Village of GoshenN/A Out-of-state groupTender Hearts Assisted Living$9.2... Read More »
Lakeland Bank Finances Skilled Nursing Expansion in NJ
A skilled nursing owner/operator in Morris County, New Jersey (New York City MSA) obtained financing from Lakeland Bank to expand and improve its services in the state. The $4.1 million loan will help fund renovations to underutilized space and increase the number of available licensed beds at the unnamed facility. The projects were not expected to disrupt day-to operations, according to Ron Krauskopf of Lakeland’s Healthcare Banking group, who worked on the transaction. Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc., which has over $7 billion in total assets. Read More »
Jon Harder Gets Sentence Commuted
When was the last time anyone thought about Jon Harder, the founder and CEO of Sunwest Management who was sentenced to 15 years in prison for the “misuse of investment funds during the real estate crisis” of 2007 to 2009? Well, that is an understatement if we ever saw one. At its height, Sunwest was one of the largest senior living companies in the country. Back in the day, in the 2000s, when Mr. Harder was building his empire, overpaying for properties and then not properly managing them, people often wondered, “how is he doing it?” We heard from many brokers that the runner up bids were often 10% to 20% below what Sunwest was offering, not even close enough to ask anyone... Read More »
Senwell Sells Indiana “Green House” SNF
A month after closing an assisted living community sale in North Carolina, Senwell Senior Investment Brokerage switched gears to the skilled nursing market to sell a small facility in Goshen, Indiana. Opened in 2018 by an owner/operator, the facility consists of four homes in the “Green House” style, each with 12 private rooms. Each home has a family room, dining room and kitchen, with an open concept. That separation may have also played a role in reducing the risk of COVID-19 outbreaks too. And it clearly worked at this location, as it quickly filled up with mostly Medicare and private pay residents. The community also operated at a strong EBITDAR margin. Ben Bohland... Read More »
Capital Funding Group Announces 2020 Financing Total
When the figures were tallied, Capital Funding Group (CFG) had quite a successful 2020, financing in excess of $1.8 billion for its long-term care and assisted living clients across the country. Nearly double the $1 billion in closings in 2019, that total includes more than $1.8 billion across 51 bridge loans, 63 HUD loans and 23 lines of credit. In addition, CFG closed over $68.2 million in A/R lines of credit. During the tumultuous year, CFG also launched a new off-balance sheet financing program called CFG Captial Partners, which significantly expanded its bridge lending capability. On to 2021. Read More »
The Welltower Census Decline
Welltower’s seniors housing partners continue to suffer from census declines and operating costs. We do appreciate the transparency that Welltower has been providing investors, but boy does it provide a window onto what is happening. In its monthly update, Welltower informed us that it suffered its worst monthly census decline since May. December’s SHOP occupancy fell 100 basis points from November, compared with -70 basis points in November and -170 basis points in May. With the pandemic spreading, census dropped another 85 basis points to just 75.3% as of January 15. Not looking forward to everyone’s fourth quarter earnings calls. Move-ins were the lowest in six months, and... Read More »Schedule a demo
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