Buying Big In The CCRC Market
In case you haven’t noticed, there has been an ad for the past several weeks on these pages for the sale of a large CCRC in Michigan. When we say large, we mean 852 IL units, 96 AL/MC units and 89 skilled nursing beds. The community was substantially constructed between 1993 and 1998 and sits on 35 acres. This is Erickson Living big, and that is because the original Erickson Retirement was the developer and manager back in the 1990s. The CCRC, known as Henry Ford Village, filed for Chapter 11 bankruptcy protection in October 2020. The reason, we assume, was the low occupancy. The IL units as of November were at 69.0% and the healthcare units combined were at... Read More »
Carnegie Capital Finances Western Seniors Housing Deal
JD Stettin of Carnegie Capital announced a couple of loan closings that funded the acquisition of two senior living communities in Montana and Wyoming. If that deal sounds familiar, it’s because we covered Senior Living Investment Brokerage’s involvement in it earlier this week. Totaling a combined 107 units, split between 61 independent living and 46 assisted living units, the deal included a community built in 1995 in Cody, Wyoming and one in Great Falls, Montana that opened in 2003. They’re in good condition and reported positive cash flow, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. Both... Read More »
People on the Move
Early last year, we were surprised when Torey Riso told us he was leaving Blueprint Healthcare Real Estate Advisors, where he had been serving as President and CEO. He was brought in by the founders to add experience and his contacts to the growing firm. And grow it did. He figured he had done what was needed and it was a good time to leave. And then the pandemic hit, which we are sure altered his post-Blueprint plans. It was just announced that he has joined Huron Consulting Group as a Managing Director specializing in healthcare services, but particularly the senior care market. He has helped small and mid-size operators scale their operations, and in particular will... Read More »
The Vaccine and Census
The COVID-19 vaccine was supposed to solve the census crisis brought on by the virus, but it is not happening fast enough. Optimism still exists, however. A lot has been riding on the success of the vaccine rollout, for everyone personally as well as for the entire senior care industry. But I am worried. When I hear that certain areas are running out of vaccines, when I hear that it may not be as effective with some of the new strains entering our country, when I hear from some providers that up to 50% of their staff have decided not to get vaccinated, well, what does that say about how and when we will recover from this devastating virus? There is some optimism out there, with one... Read More »
Senior Living Investment Brokerage Closes Rocky Mountain Transaction
An institutional owner engaged Brad Clousing, Jason Punzel and Jeff Binder of Senior Living Investment Brokerage to sell two senior living communities in two western states. Totaling a combined 107 units, split between 61 independent living and 46 assisted living units, the deal included a community built in 1995 in Cody, Wyoming and one in Great Falls, Montana that opened in 2003. Both were former Emeritus properties that have since been operated by Brookdale Senior Living. They’re in good condition, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. An Oregon-based regional owner/operator believes its... Read More »
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 »Schedule a demo
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