Getting to the Truth with COVID and Senior Care
We all know that COVID-19 was not kind to the senior care industry. But we also have to be vigilant in communicating that it wasn’t as bad as the media portrayed it to be, at least with regard to mortality rates. Even the most respected media outlets, whether in print or on television, made it sound like all senior care facilities were death traps. This was all far from the truth. The reality is that slightly more than 50% of all facilities nationwide, from skilled nursing to assisted living to independent living, never experienced a COVID death. This is according to a study by NORC at the University of Chicago sponsored by NIC. Now, if they had been able to remove from the... Read More »
Active Adult Development Breaks Ground in South Dakota
Essex Corporation, a national developer, contractor and operator of active adult and independent living communities, has broken ground on a new community in South Dakota. The completed project, set to open in spring 2023, will be called The Parkwood and will feature 133 apartments. Amenities will include one- and two-bedroom rental apartments with the option of a den, open floor plans, walk-in closets, in-unit washers and dryers, covered balconies or terraces, climate-controlled under-building parking, coffee shop, salon, library, theater, guest suite, transportation, light housekeeping, weekday evening meal options and continental breakfasts, a dog wash station, and a car wash bay. ... Read More »60 Seconds with Steve Monroe: Winners and Losers
As we have mostly finished with the third quarter earnings results, it does appear that the market continues to bifurcate between the winners and losers. Or, at least, between those who are successfully coming out of the pandemic and those who are maybe struggling to recover more than their peers. One example is CareTrust REIT which believes that its tenants will be above pre-pandemic occupancy levels by summer 2022, while others are looking at a year or two beyond that, or longer, and that is if they can successfully deal with the labor shortages and increasing wages. If they can’t deal with the labor problems, then their census issues will most likely remain a major headwind. Look, all... Read More »
Providence Group Acquires Plum Healthcare Group
Providence Group has acquired Plum Healthcare Group, California’s second-largest skilled nursing facility operator, in an effort to expand Providence’s reach in the western United States. The deal includes Plum’s 58 properties that sold for an undisclosed amount, including 57 nursing homes and one assisted/independent living community, plus the real property on ten of the assets. There are 54 facilities in California and four in Nevada. Capital Funding Group provided financing for the deal. Plum’s average census as of November 5 was 83%, which is an enviable figure for many in the industry. Helping with the transition is the fact that Providence’s C-Suite leadership have worked with... Read More »
Omega Healthcare Investors Announces Development in D.C.
In its third quarter earnings report, Omega Healthcare Investors (OHI) revealed a $68 million property purchase in Washington, D.C. for a major seniors housing development. The existing 173,932-square-foot building was previously home to The Fairfax Embassy Row, a historic hotel that will now become a luxury 174-unit assisted living community called Inspir Embassy Row. OHI has entered into a single-facility lease for the property with Maplewood Senior Living through August 2045, which will be its second Inspir location after first opening a community in New York City. But this also represents Maplewood’s entry into the Washington, D.C. market. Substantial construction of the community is... Read More »
Harrison Street/Revera Joint Venture Acquires Four Communities
Harrison Street is expanding its presence north of the border, announcing a joint venture with Revera Inc. to acquire four high-quality senior living communities in southern Ontario. Comprising three communities around Toronto and one in Cambridge, the portfolio consists of 537 total units of senior apartments, independent living, assisted living and memory care. Revera will continue to operate the communities going forward. As part of the transaction, the JV will share ownership of the portfolio, but no ownership share or purchase price was disclosed. The deal marks the third investment by Harrison Street’s recently launched Canada Alternative Real Estate Fund, which has the initial... Read More »
CIBC Bank Closes Two Acquisition Loans
CIBC Bank USA closed on a couple of acquisition loans. First was a $5 million loan for a 70-bed skilled nursing facility in central Illinois. With an effective age of 25 years, the facility has been run by a regional operator for several years. The undisclosed buyer saw an opportunity to cut expenses and improve occupancy, with stabilized occupancy of 87% and margins in the mid-teens. Bank financing included a five-year term loan, with earn-out potential, plus a $750,000 working capital line of credit. Fritz Kieckhefer and Kyle Doran handled the financing for CIBC. The same CIBC duo next provided $10 million in acquisition financing for a 42-unit behavioral residential care... Read More »
Brookdale Soars on Q3 Earnings
As the largest seniors housing company, all eyes are always on Brookdale Senior Living and how it is performing. Investors seemed to like what they heard and saw after the company released its third quarter earnings report last Friday, sending the shares up by 14% to close at their highest level since August 2. Part of the good news was that the company will start issuing earnings and cash flow guidance moving forward, something that Brookdale and most other companies suspended with the onset of the pandemic. In addition, they reported their eighth straight month of census increases dating back to the bottom in February. In February, the weighted average occupancy was 69.4%... Read More »Ventas Reports an Up and Down Quarter
Several publicly traded REITs announced their third quarter earnings results at the end of last week, and the results were a mixed bag. Welltower released some very positive occupancy news, as well as four major portfolio acquisitions, signaling its confidence in the seniors housing industry. On the flip side, WELL’s total portfolio same store NOI declined 5.3% year over year, and 7.1% from the previous quarter, while its operating margins and lease coverages continued to deteriorate. For more details on the REIT’s third quarter results, read about them here. Ventas followed soon afterwards with its own earnings release, and there was also both good news and bad. The company reported its... Read More »
CIBC Closes Transactions for Two Portfolios
CIBC Bank closed transactions for two portfolios, comprising a total of seven seniors housing and care communities. CIBC first closed a $73.4 million acquisition loan for a four-property portfolio in eastern Pennsylvania, including a total of 675 skilled nursing beds and 100 senior living units. The facilities, which have an effective age of 30 years, were acquired by an experienced local operator. Historical occupancy for the home has been approximately 70%, and without stimulus, historical EBITDAR had been negative. In addition to the five-year mortgage loan, a $6.0 million revolving line of credit was provided for working capital. Matthew Tyler and Daniela Miranda handled the... Read More »Schedule a demo
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