CapSenior: Ready For a New Beginning
It has been a tumultuous year for Capital Senior Living, more so than for many other large providers. Not only did management have to deal with the pandemic, like everyone else, but they also had to deal with questions about solvency, liquidity and a shareholder battle over the future of the company and its capital structure. Well, that is now all behind them (except the pandemic), as will be the company name effective November 15 when they become Sonida Senior Living with a new ticker “SNDA.” We suppose they decided that a new name was appropriate for a new financial beginning. One week before announcing third quarter earnings results, the company closed its hotly... Read More »
Grandbridge Sells Portfolio
Grandbridge Real Estate Capital’s seniors housing sales team in the Tampa office closed on a portfolio of three newly-constructed senior living communities, known as the Woodland Terrace portfolio. The properties offer independent living, assisted living and memory care services in the Indianapolis, Indiana market area. They were developed, owned and operated by The Justus Companies, which is a well-established multifamily and residential building family business in the local market that has been in business for 100 years. The buyer a partnership between a “national investor” and Purpose First Partners, a venture between New Perspective Senior Living and Boldt... Read More »
Diversicare Merger Moves Ahead Following Troubling Third Quarter
It seemed to be a difficult third quarter for Diversicare Healthcare Services, at least operationally, when it reported drops in its NOI, EBITDA, patient revenue and its Medicare, private pay and hospice average daily census when compared with the third quarter of 2020. But the planned merger with DAC Acquisition LLC, a privately held Delaware limited liability company managed by Ephram Lahasky and owning/leasing 100 skilled nursing and similar facilities in over 20 states, is still on track to close later this quarter. The price is for $10.10 per share in cash, or a premium of approximately 256% to the closing price of $2.84 for Diversicare’s common stock on August 19, 2021,... Read More »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 »Schedule a demo
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