Many Impacts of COVID, But “Stupidity” Factor May Grow
The views on where we are in this pandemic are bifurcating, just like in the acquisition market, but we are also dealing with the “stupidity” factor. Just like in the acquisition market, where values and cap rates have been bifurcating between the top “A” properties and the rest of the market, so are opinions as to the current state of the market and what we can expect next year and beyond. There are those who believe operating costs are getting back to normal, the lending market has strengthened with pent up demand to provide financing, and that values are firming, helped by historically low interest rates. Then there are those who see a long slog through this pandemic mess,... Read More »
SLIB Facilitates Owner/Operator’s Senior Living Exit
A Lexington, Kentucky-based developer, owner and operator exited the senior living business with the sale of its only asset thanks to the work of Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage. This community was previously an elementary school in Mt. Sterling, Kentucky, but was converted to senior living by the current seller in 2014. The gut renovation resulted in 30 spacious assisted living units. Occupancy quickly rose to 90% after opening and hovered between 85% and 90% until COVID brought census down to about 80% and the operating margin down to about 7% on over $1 million of revenues. The owner was looking to exit the sector and... Read More »
Ziegler Secures Large Bond Financing for Texas Project
Ziegler announced a large bond financing to fund the development of a not-for-profit senior living community in Fort Worth, Texas. The sponsor, Methodist Retirement Communities (MRC), will add 172 independent living, 40 assisted living and 24 memory care units to its portfolio with the project, which is set on about 19 acres in Tavolo Park, a new master-planned commercial and residential community in southwest Fort Worth. MRC also brought in Greystone to act as development consultant and operator for the community until the end of the second fiscal year after it achieves stabilized occupancy. Thereafter, MRC will assume management of the... Read More »
M&T Realty Finances Virginia Acquisition
M&T Realty Capital Corp. secured financing to support Irvine, California-based Avanath Capital Management’s acquisition of an affordable senior apartment community in Sterling, Viriginia (Washington, D.C. MSA). Developed in 2001 with low-income housing tax credits, the 150-unit community was previously owned by a private local investor. Set in a desirable location and featuring a quality physical plant, the community was apparently financially stable. Emerging from several potential buyers, Avanath purchased the community for $27.2 million, or $181,300 per unit. Henry Mathies and Fletcher Hultman of Greysteel’s East Coast Affordable Housing... Read More »
Ohio Renovation Receives Variety of Funding
A senior apartment community in Dayton, Ohio is getting a substantial renovation with the help of financing from a variety of sources. The building is a federal historic site, originally built in 1929 as the Dayton Biltmore Hotel. It converted to affordable senior living in 1981 and currently features 230 units in 18 stories, with over 23,000 square feet of communal space and 14,000 square feet of commercial space. According to county records, Related Companies, a New York City-based developer, purchased the building in August 2020 for $4.2 million as part of a larger $590 million transaction for 51 affordable housing properties formerly owned by Aimco. Now, Related Companies and... Read More »
Blueprint Sells Washington State Community
A former JEA Senior Living-operated assisted living/memory care community in Pasco, Washington found a new owner with the help of Jacob Gehl, Humair Sabir, Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. Built in 1975 and owned by a private group, the community features 82 units of assisted living and memory care. It has positive cash flow and was close to 90% occupancy at the time of marketing, but its operating margin could be improved. Some capital improvements may also be needed. On a positive note, the building has been well maintained and the market has limited direct competition. That attracted Greenlake Management, a... Read More »
Sentara Healthcare Divesting Entire Skilled Nursing Portfolio
As Norfolk, Virginia-based hospital system Sentara Healthcare embarks on its planned merger with North Carolina-based Cone Health, it is first divesting its entire skilled nursing portfolio. The seven facilities are scattered throughout southern Virginia, with five surrounding the Norfolk/Virginia Beach market. The not-for-profit hospital chain started looking for buyers in the first quarter of 2020, before COVID-19 set in, but the process confirmed their decision to find an owner more focused on the skilled nursing market. That new owner will be Saber Healthcare Group, a private skilled nursing operator with over 125 facilities across the country. The... Read More »
National Health Investors Provides Occupancy and Rent Update
We appreciate any transparency from companies and how they are dealing with impact from COVID-19. As such, National Health Investors provided an update for its latest rent collection and occupancy results. The REIT collected 96.6% of contractual rent in September, which improved on the 95.3% success rate announced in August. In addition, 2.9% of rent was deferred, including 2.6% related to a previously disclosed deferral to Bickford Senior Living. The remaining balance reflected forecasted revenue that NHI had expected to receive from transitioned properties prior to the pandemic. Another tenant has also agreed to a deferral of approximately $560,000 in each in each the third and fourth... Read More »
The Great Re-Opening
It is fair to say that the economic shutdown, especially as it concerns senior care providers, could have been handled better (you think?). There was little consistency from state to state, and from one type of senior care provider to another. We spoke to some providers who never stopped admitting residents, and others where there was a total shut down of new admissions with no clarity on when that might change. Mayors argued with governors who argued with the White House. From the federal level to the local level, if one were grading the handling of the crisis, it would be an F. Who can forget New York Governor Cuomo forcing nursing homes to accept COVID-19 patients, issuing... Read More »
Recent Senior Care M&A Deals, Week Ending September 18, 2020
September may be slow, but check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Not disclosedKing City Senior VillageN/A Novellus Living GroupCamlu Assisted LivingN/A Not disclosedSkilled nursing facility in NY$40.6 million Greenlake ManagementTri-Cities Retirement... Read More »Schedule a demo
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