Pandemic-Driven Change in Senior Care

by | Jul 22, 2020 5:01 am | 60 Seconds, Opinion

This pandemic is lasting longer than some people hoped for, and the longer it does, the greater likelihood of more change. I remember in April talking to a few industry professionals (you know who you are) who thought this “coronavirus thing” would be mostly history by July. So did President Trump. The problem is, hope is never a good business plan. I took the unpopular opinion back then that it was going to be a long, tough slog for the industry. I wish I had been wrong. Because of the pandemic, there have been all sorts of news stories about what is going to happen to the nursing home business. No one can predict the future, not even me. The reality is, however, that the number of beds... Read More »

Acquisition Offerings Coming Alive

by | Jul 21, 2020 5:00 pm | Acquisitions

As you are aware by now, not only has the seniors housing and care M&A market seen a significant drop in volume, but most of the limited sales activity we have seen is from deals negotiated before the pandemic really started. Now, a few deal offerings have just been disclosed, almost simultaneously.  First, the Tampa office of Cushman & Wakefield just went to market with a 187-unit community outside Springfield, Massachusetts that has 129 independent living cottages, 40 IL apartment units and 18 assisted living units, all on 46 acres. The cottage homes average 1,200 square feet. The C&W team was hired through a bankruptcy court mandated process. The occupancy is... Read More »

Ziegler Closes Largest Bond Financing of 2020

by | Jul 21, 2020 4:59 pm | Financings

We mentioned in June that Ziegler had successfully priced about $199.4 million in Series 2020A-D fixed-rate bonds for Acts Retirement-Life Communities, and now the specialty investment bank and closed the transaction on behalf of the not-for-profit provider. Secured on 20 senior living communities in seven states, including eight locations in Pennsylvania, four in Florida, three in Delaware, two in North Carolina and one each in Georgia and Alabama, the bond issue comprised $115.1 million of tax-exempt bonds issued through and $84.3 million of taxable bonds. That makes this the largest senior living bond financing to-date in 2020.  The Public Finance Authority... Read More »

V 3 Capital Group Acquires Memory Care Portfolio

by | Jul 21, 2020 8:59 am | Acquisitions

After opening its first senior living community earlier this year, V 3 Capital Group, a boutique real estate investment firm based in Florida is more than doubling down on the market, acquiring a portfolio of seven small memory care communities from a family owner/operator who was looking to retire. The company will also use the purchase to launch its Sanctuary by Strive memory care brand through its operating subsidiary, Strive Senior Living. Frank Ricci of Healthcare Realty & Development Services, LLC represented the seller, Sutton Homes, while Bobby Bridges of V 3’s own full-service commercial real estate firm, V 3 Commercial Advisors,... Read More »

A True Success Story in Oregon

by Steve Monroe | Jul 20, 2020 9:33 am | Acquisitions

About 35 years ago, an Ivy League educated pioneer decided to buy a senior living community. His friends and family thought he was nuts. In 1985, after all, it wasn’t exactly the industry where aspiring entrepreneurs went to seek their fame and fortune. So, one Shelly Smith and a financial partner bought a relatively new retirement community that only had independent living at the time, as “assisted living” was not yet in the industry vernacular.   Located in Salem, Oregon, Smith started expanding the campus in the early 1990s and built one of the first assisted living communities in Oregon. After that, he added IL cottages in 1997, more assisted living units in 1997, and picked... Read More »

Ziegler Refinances Virginia CCRC With Bank Placement

by | Jul 20, 2020 9:28 am | Financings

Ziegler announced another bank financing after a spate of recent closings, including a construction financing for a Michigan CCRC, a refinance of a Pennsylvania CCRC and one for a CCRC in Texas, just to name a few. The most recent deal was arranged for Warm Hearth Village, a not-for-profit CCRC in Blacksburg, Virginia that was founded in 1974. It has since grown to 259 independent living units, 55 active adult units, 150 assisted living units and 60 skilled nursing beds on a 220-acre campus.   There were nine outstanding direct bank placements with three different banks on the property, so ownership sought to consolidate debt and also fund about $2 million in planned campus... Read More »

Connecticut CCRC Plans Independent Living Expansion

by | Jul 20, 2020 9:26 am | Developments

A large not-for-profit CCRC located outside of Hartford, Connecticut is expanding its independent living offering with a $68 million project. Set on a 125-acre campus in the town of Simsbury, the community, owned by McLean Affiliates, currently consists of 88 independent living units split between 48 apartments, 13 villas and 27 cottages. There are also 74 assisted living/memory care units and 89 skilled nursing beds, bringing the total to 251 units/beds across the property.   However, the expansion will add 55 new IL apartments while also taking away 12 cottages. The new units will average around 1,242 square feet in size, with monthly fees coming in at about $4,184 on... Read More »

Recent Senior Care M&A Deals, Week Ending July 17, 2020

by | Jul 20, 2020 9:23 am | Acquisitions

Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice The Springs LivingLancaster Village$31.5 million Local owner/operatorSkilled nursing facility in KYN/A Americana SeniorsBrookdale DavisonN/A Regional owner/operatorIndependent living community in... Read More »

Blueprint Announces Three Senior Care Closings

by | Jul 16, 2020 4:32 pm | Acquisitions

Blueprint Healthcare Real Estate Advisors previously announced a total of six transactions closing at the end of June and beginning of July, and now the details on a few of those are coming out.  Michael Segal and Ben Firestone have now sold every skilled nursing facility in the eastern Kentucky town of Pikeville. Two years ago, the pair sold a 106-bed SNF located near the 250-bed Pikeville Medical Center, representing the publicly traded REIT seller. Earlier this month, they sold the other. Built in 1979 and renovated in 1987, the 120-bed facility features mostly semi-private rooms. It maintained steady occupancy above 90% and generated consistent revenues over $9... Read More »

Grandbridge Finances Florida Assisted Living Sale

by | Jul 16, 2020 4:29 pm | Financings

Earlier this year, we learned of the sale of an 89-unit assisted living/memory care community in Pensacola, Florida. Now, it has been revealed that Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Group arranged the acquisition financing for the deal.  Previously owned by CNL Healthcare Properties II, the property was sold alongside a 92-unit AL/MC community in Tampa to Waypoint Residential for a combined $48.85 million, or about $270,000 per unit, at a roughly 5.5% cap rate. These were the last two properties owned by CNL II, whose shareholders had approved the company’s plan for dissolution in September 2019. Both communities were... Read More »

Engel Burman Opens 15th Long Island Community

by | Jul 16, 2020 4:04 pm | Developments

The Bristal Assisted Living just opened its 20th seniors housing community, and 15th on Long Island alone. The property is located in Mount Sinai, adjacent to Port Jefferson, and features 76 assisted living units and 44 memory care units within the “Reflections” neighborhood.   Engel Burman, the developer/owner, will also include a movie theater, card room and a fitness center. Programming will also include creative arts, physical fitness classes and educational seminars, among others. Residents will be able to choose from studio to two-bedroom options, with rents ranging from $5,200 a month to $8,400 per month. Plus, there will be a memory care component in... Read More »