Bon Secours Exits Senior Care Industry in Virginia
Bon Secours Mercy Health decided to exit the skilled nursing and assisted living business in Virginia, and we learned that they hired Healthcare Transactions Group (HTG) to serve as exclusive M&A advisor. The portfolio includes two nursing facilities located in Suffolk, Virginia (Maryview Nursing Care Center, 120 beds) and Newport News (St. Francis Nursing Center, 115 beds). The acquisition also includes two assisted living communities, consisting of Province Place of DePaul in Norfolk (97 beds) and Province Place Maryview in Portsmouth (78 beds). This represents a nice little cluster for the buyer, a private equity investor based in New Jersey that wanted to expand its existing... Read More »
SLIB Facilitates AL Transaction in Upstate New York
A doctor in the field of gerontology decided to sell her only assisted living community in Saugerties, New York to another private individual owner in a transaction arranged by Dave Balow and Toby Siefert of Senior Living Investment Brokerage. The community is set in a 1900s-era house that was renovated in 2008 and 2014. It now features 40 beds in 30 units, with a license for Enhanced Care, which is a private pay-focused model providing additional care for residents in exchange for additional revenue. Occupancy was strong (above 90%), so there is an opportunity to expand the current building and increase the unit count. The community operated at a roughly 11% margin on $2.12 million of... Read More »
Active Adult Community Set to Break Ground in Texas
Edison Equity Management Corporation, a Texas-based developer and acquirer of active adult communities, has purchased land for a 182-unit development in the Houston MSA. The project is set within a master-planned community called Cypress Creek Lakes, and will sit on an eight-acre plot of land. Named 55 Resort at Cypress Creek Lakes, the community will feature a gym, fitness studio, library, resort-style pool and hot tub, and a restaurant with a coffee and wine bar. 55 Resort will also provide a program director for various activities in and around the community. Unit prices range from approximately $1,900 to $2,500 per month. Edison Equity Management currently has four listed active... Read More »
Harbert Management Corp. Acquires South Bay Partners
Alternative asset management firm and consistent seniors housing investor Harbert Management Corporation (HMC) has acquired South Bay Partners, LLC, a Dallas-based seniors housing developer. South Bay has developed over 10,000 high-end seniors housing units costing over $1 billion across the United States. The company will complement HMC’s existing seniors housing investment platform, while allowing HMC to make development investment opportunities. HMC plans to raise capital for South Bay’s development projects through separately managed accounts and commingled funds. In addition, South Bay Founder and CEO Craig Spaulding will move to an advisory role following the transaction, while... Read More »
60 Seconds with Steve Monroe: 2021: Goodbye and Good Riddance
I thought about doing my usual year-end, cutesy Christmas poem where I roast a few industry leaders and friends, but somehow I just didn’t think it was appropriate this year. Maybe next year. Even though census and operating performance improved this year compared with 2020, it is still not enough. And then we had to end the year with the rising Omicron variant. No shutdowns here yet, and I don’t really see that happening since those who have been vaccinated have had mild symptoms to date. But it is just one more strain on an already over-worked health system that we did not need. In the aftermath of the Great Recession, all we heard was how resilient our industry was during that financial... Read More »
Brookdale: Time for a Reverse Split?
Perhaps it is because of the new Omicron variant spreading like wildfire, perhaps occupancy growth has stalled, or perhaps investors are just losing patience for a recovery that would boost the share price. Whatever the reasons, Brookdale Senior Living’s share price has dropped by 30% since mid-November, and it is now below $5.00 per share for the first time since last February. And, the 52-week high was $8.95 per share. Many investors do not like stocks that are below $10 per share, with some funds even prohibited from owning them. A $4 stock, or lower, implies current weakness or poor future performance expectations. To remedy this perception, some companies complete a reverse stock... Read More »
Sonida Senior Living Begins Post-Acquisition Growth Projects
In an effort to begin large-scale growth under a new name, Sonida Senior Living has acquired two independent living communities in the Indianapolis MSA for $12.3 million. Totaling 157 units, Northfield Senior Living (built in 1982) and Southfield Senior Living (built in 2002) recently underwent significant renovations. But the approximate $79,000 per-unit price tag represents a discount to replacement cost. The two communities have an in-place November occupancy of 55.5%, as compared to Sonida Senior Living’s independent living occupancy of 82.7% for the same period. However, this is primarily the result of operational disruptions from the renovations projects taking place before the... Read More »
Regions Bank Originates Loan for L.A. Construction Project
The Regions Bank Healthcare Real Estate team, including Chris Honn and Amber Crosby, originated a $21.7 million construction and mini-perm loan for a joint venture between a Southeast-based developer/operator, an Arizona-based partner/operator and a Midwest-based private equity firm. The project, located in Los Angeles County, is expected to include 80 units, comprising 58 assisted living and 22 memory care units. The loan amount is approximately $271,250 per unit. It has a floating rate across a five-year initial term, four years of interest only and a staged reduction in loan repayment recourse. At or prior to maturity, Regions may also provide an agency permanent debt solution for the... Read More »
HHC Finance Refinances Two Idaho Communities
Housing & Healthcare Finance (HHC Finance), which recently announced that it is now part of and will be known as NewPoint Real Estate Capital going forward, closed a $19.5 million HUD refinance for Homestead Senior Living in Rexburg, Idaho. The loan refinanced conventional debt with a much higher rate and allowed the borrower to get an interest rate in the low-mid two’s. Homestead has 178 units of assisted living, memory care and independent living services across two campuses in Rexburg and nearby St. Anthony. Both properties were built in the early 2000s and have undergone several expansion projects over the last 15 years. Helios Healthcare Advisors brokered the deal, and Charles... Read More »
Ziegler Provides Financing for Ohio Not-For-Profit
Ziegler announced it has priced Series 2022 bonds on behalf of Ohio Living, a not-for-profit owner/operator of twelve seniors housing communities in Ohio. Nine of the properties are full-service life plan communities offering independent and assisted living units, along with skilled nursing beds. Proceeds from the bonds will be used to refund Series 2013A bonds and pay costs of issuance associated with the financing. The bonds will realize net present value savings on the Series 2013A refunding in excess of $15 million, or greater than 30%. The Series 2022 Bonds consists of tax-exempt fixed interest rate serial bonds and a final term bond. They have a 19-year maturity that “wraps” around... Read More »Schedule a demo
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