What Covid-19 Has Done
The American Seniors Housing Association, together with HealthTrust, contacted over 30 seniors housing operators that operate more than 180,000 units about what has happened to their occupancy levels, revenues, expenses and additional costs pertaining to the pandemic between March 1 and June 30. The results were eye-opening. One interesting result was that despite being the most need-driven, assisted living and memory occupancy dropped by 661 and 651 basis points, respectively, compared with 404 basis points for independent living in the four-month period. In addition, large operators (more than 3,500 units) appeared to fare worse than small (less than 2,000 units) or... Read More »
Recent Senior Care M&A Deal Chart, Week Ending October 15, 2020
The fourth quarter M&A blitz continues with a number of new deal announcements. Check out our latest senior care M&A chart. Long-Term Care AcquirerTargetPrice Taurus Investment Holdings and Northbridge Asset Management6 seniors housing communities in Boston, MA area$200 million Regional groupRoseleaf Portfolio$14.6 million Southeast-based owner/operatorTranquility of DaltonN/A Northeast-based owner/operatorTranquility of CartersvilleN/A CiminoCareAssisted living community in Stockton, CA$3... Read More »
How Many Waves Will There Be?
Anyone watching the news these days is well aware that we are seeing either the second or third wave of the coronavirus pandemic. Six months ago, it was all about when the “second” wave was going to hit. Not to be a Debbie Downer, but why not three or four waves, or more, before a vaccine is approved and distributed. And the last poll we saw indicated that perhaps up to 50% of the population would not get the vaccine. Will the waves then keep on rolling in? Less than 2.5% of the U.S population has tested positive for COVID-19, and while the percentage may not grow, the absolute numbers will. No matter how careful providers are being, it could still enter their buildings. What... Read More »
Ventas Buys Big
Ventas announced one of its largest acquisitions in a while, a billion-dollar deal. Unfortunately, it is not in seniors housing. And we probably will not see a billion-dollar deal in seniors housing this year. The Ventas Life Science and Healthcare Real Estate Fund bought a “trophy” life science portfolio in the South San Francisco life science cluster for $1.0 billion. The portfolio consists of a campus of three newly developed or renovated buildings totaling nearly 800,000 square feet that are 96% leased. For the quantitatively challenged, that comes to $1,250 per square foot, which is much more expensive than any seniors housing portfolio that has sold. The tenant... Read More »Seniors Housing Occupancy Hits A New Low
NIC wrapped up its virtual conference this week, and it’s safe to say that those in attendance got a good education on what it’s like to close a deal during the pandemic, to operate communities safely and successfully, and (hopefully) when business will be back to normal. At the end of the conference, NIC also released its third-quarter occupancy numbers, and they showed the industry has a long road to recovery. Across the 31 primary markets, seniors housing average occupancy fell from 84.7% in the second quarter to 82.1% in the third quarter, a drop of 260 basis points. That followed a 280-basis point decline in the second quarter. Clearly, COVID-19 and the resulting lockdowns... Read More »
People’s United Bank Closes Several Financings
People’s United Bank announced several closed loans for clients in the Northeast. First, to finance the development of a brand-new, 60-unit/80-bed assisted living and memory care community in Manalapan, New Jersey, the bank provided a $14.3 million construction loan, which comes out to $233,300 per unit of debt. HJ Sims led the solicitation process. The loan comes with a five-year commitment, 30-year amortization and 30 months of interest-only payments for both the construction and lease-up periods. The borrower was MRC Manalapan, a newly formed not-for-profit special purpose entity formed to build and operate the community. It is controlled by two principals, including LV Development,... Read More »
CBRE Secures Bridge Financing For Orange County Community
Bridge lending may be in a period of relative inactivity not seen for some time, but CBRE got creative working with a multifamily bridge lending program to refinance a brand-new senior living community in Orange County, California. The luxury community in Laguna Niguel features 176 independent living/ assisted living flex units and 22 units for memory care on an irreplaceable 11.6-acre site. It was built in 2018 and consists of numerous amenities, including a 15,000-square foot rooftop with a lounge, sunroom, open-air art studio and putting green. Atria Senior Living operates the community under its “Signature” brand on behalf of the joint venture owners Fremont Realty Capital and... Read More »
SLIB Closes Another Southeast Sale
A senior living community in Dahlonega, Georgia that managed to stay fully occupied throughout the pandemic found a new owner thanks to Brad Clousing and Daniel Geraghty of Senior Living Investment Brokerage. Consisting of 58 assisted living and 14 memory care units, the community was completed in September 2019 with high-end finishes and amenities. Because lease-up went so well (six months to a waitlist is pretty darn good), there is also the opportunity to expand, with 20 shovel-ready units to add on a rough graded pad with stubbed utilities. The seller was a local owner/operator who was looking to divest the community and exit the industry altogether. A not-for-profit owner/operator... Read More »
Cain Brothers Finances North Carolina CCRC Expansion
A CCRC in Greensboro, North Carolina is about to embark on a massive expansion with the backing of a bond financing underwritten by Cain Brothers, a division of KeyBanc Capital Markets. Founded over 100 years ago as the first Masonic retirement community, the not-for-profit WhiteStone, which is owned by The Masonic and Eastern Star Home of North Carolina, is set on a 43-acre campus. It has been managed by Life Care Services since 2006. LCS Development is handling the expansion, which will feature 67 additional independent living units, a 36-unit assisted living/memory care building and an extensive renovation of the existing 20-year-old skilled nursing facility which will convert many... Read More »
People’s United Bank Closes Two More Financings
Continuing the series of closings from People’s United Bank that we first covered last week, the bank then closed a $9 million construction loan to cover renovations at a newly merged senior living community in Connecticut. An existing customer of People’s United Bank for many years, Pierce Memorial Baptist Home is a rental CCRC in Brooklyn, Connecticut that features independent living, assisted living, short-term rehab and long-term care services. It recently merged with Connecticut Baptist Homes (CBH) but will continue to maintain a separate state license and cost reports, as per the state. A plan to renovate and convert an empty SNF wing to a 10-unit AL/memory care building, as well... Read More »Schedule a demo
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