‘Tis the Season for Takeovers
One group of investors essentially took control of Genesis HealthCare, another group is trying to do the same thing with Capital Senior Living, and a third group wants to buy Diversicare Healthcare Services, and just may get its way. All three are different, but only one involves giving existing investors a major premium, which is one big reason why it may go through. An entity called MCS Plan, along with its controlling owner Ephram Lahasky, has offered to buy Diversicare for $10.10 per share. The offer letter came from DAC Acquisition LLC, which is also managed by Mr. Lahasky. There are the obvious contingencies and due diligence that needs to be completed, but... Read More »
Knapp-Stahler Group Handles Two Deals
The Knapp-Stahler Seniors Housing Group of Marcus & Millichap announced a couple of seniors housing sales, led by Jim and Justin Knapp. Jim first sold a CCRC in Waterville, Maine for $10.2 million, or $69,400 per bed. Located on an entire city block, the campus includes a 111-bed skilled nursing facility plus 27 assisted living/memory care beds and nine independent living units. It was originally built in 1922 and renovated in 1970 and 1995. Five years ago, it was acquired by a regional not-for-profit. Occupancy has consistently been above 90% for all levels of care, and revenues were just below $13.8 million, so the unidentified new owner is coming into a strong operation. They used... Read More »
National Health Investors Divests Eight Holiday Properties
National Health Investors completed the sale of eight independent living communities operated by Holiday Retirement for $115 million, or $126,500 per unit. The REIT expects to realize a gain on the sale of up to $2 million, and there is one more property to sell of the original nine that NHI had slated for divestment earlier this month. Rental income for these eight properties, excluding the impact of any straight-line rents, for the six months ended June 30, 2021 was $4.2 million. The purchase price for that property should be close to $15 million. The institutional buyer of the portfolio was not named. There may be further action on NHI’s remaining 18 Holiday... Read More »60 Seconds With Ben Swett: Staffing Scarcity Stunting the Recovery?
Driving through New England this past weekend, I was struck by the number of “help wanted” and “we’re hiring” signs across dozens of storefronts and billboards advertising job fairs for many types of businesses. All I kept thinking about was how senior care facilities were faring across the country with finding help. Not only that – qualified help. We know that senior care jobs paying somewhere just above minimum wage can be difficult, emotionally draining and receive little positive recognition from the public. So higher overall wages and hiring bonuses could easily sway a chunk of the labor force to other industries and away from senior care, which will need many... Read More »
CBRE Finances Harrison Street/Anthology Joint Venture
CBRE Senior Housing’s Aron Will, Austin Sacco and Tim Root have arranged construction financing on behalf of a joint venture between Anthology Senior Living and Harrison Street. The five-year floating rate loan with 42 months of interest only was provided through a regional bank for Anthology Boynton Beach, a 130-unit senior living community in Boynton Beach, Florida. It comprises 98 assisted living units and 32 memory care units on 5.3 acres within a larger planned development named Main Street at Boynton. The to-be-built community will be operated by Anthology Senior Living, a seniors housing-focused subsidiary of CA Ventures. Amenities will include a fitness center, spa,... Read More »
High-End Medicaid Assisted Living
More than 25 years ago, when private-pay assisted living burst on the scene, there was a large percentage of nursing home residents that had no other choice in their local communities, but had the financial resources to pay out-of-pocket. Many of them turned to assisted living. For those on Medicaid, the choices were slim. We have long advocated that states could save money with their Medicaid-funded residents if Medicaid covered more assisted living for those who truly can’t afford any private pay living arrangement, especially those needing any kind of nursing care. The fear, of course, was that the Medicaid pie would expand as opposed to merely shifting where the money... Read More »
Marcus & Millichap Arranges Refinancing for Arizona Portfolio
Marcus & Millichap pulled double duty for a Tucson, Arizona-area owner for several of its assisted living communities, arranging a refinance for their existing AL/memory care portfolio in the area and acquisition financing for two others. Representing a limited liability company and seniors housing operator, Volt Migrino and Alex Snyder of Marcus & Millichap worked on deal, which resulted in total consideration of $4.61 million, for a loan-to-value of 125%. Part of the proceeds will help fund working capital needs at the properties. Both acquired communities feature 30 beds. Read More »
Link/MedCore Join to Develop Arizona Active Adult Community
Link Senior Development and MedCore Partners announced the development of Ativo of Sundance, a 202-unit senior living community inside Sundance Active Adult master planned community in Buckeye, Arizona. The 1,100-home community is managed by Associate Asset Management (AAM) and boasts an 18-hole public golf course, community center and more than 20 different clubs from which homeowners can become members. It is also located in Buckeye, the fastest growing small city in the United States. The new senior living campus will offer 103 independent living, 75 assisted living and 24 memory care units immediately adjacent to the Sundance Adult Village... Read More »
Saudi Investment Team Adds to Florida Portfolio
Real estate giant Madison Marquette has teamed up with Saudi Arabia-based Arbah Capital to build a $37 million senior living community in Punta Gorda Isles, Florida. This high-quality, 135-unit community has 116,000 square feet, making the total price per square foot $319. It is scheduled for completion in early 2023 and will be operated by Meridian Senior Living. Banesco USA provided the debt for the project. Tampa-based Diaz Fritz Group is the project’s general contractor and St. Louis-based CASCO+R|5 is the architect. This is the second enterprise for the Madison Marquette-Arbah Capital duo. They previously joined together to build a 117,000-square foot, 144-unit... Read More »
JLL Represents BIG in Seniors Housing Sale
Earlier this week, we covered private equity firm Bridge Investment Group’s (BIG) sale of its 79-unit senior living community in Savannah, Georgia to a 1031 investor. But some additional details came out that we can reveal now. The JLL Capital Markets investment advisory team including Mike Garbers, Cody Tremper and Michael Sivewright, represented BIG in the deal. Located on Wilmington Island, an affluent suburb located about 10 miles southeast of downtown Savannah, the 1998-era community features 28 independent living, 39 assisted living and 12 memory care units. It offers restaurant-style full-service dining, a full-service salon, community library, and... Read More »Schedule a demo
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