60 Seconds with Swett: Previewing Our Capital Markets Conversation
We know that the capital markets have made the biggest impact on M&A activity and property valuations in the last several years, changing the size of possible deals, the makeup of the properties sold and the buyers that could actually buy. Now that the capital markets have substantially improved and are getting better, barring a sudden and lasting trade war with China, how is the psyche of lenders, buyers and sellers changing in the senior care industry? What terms are now possible to refinance your seniors housing community? Are deals possible that did not pencil last year? Should sidelined sellers jump back into the M&A market? And how are growth strategies going to change in... Read More »
Seller Exits Seniors Industry with Divestment to REIT
A single-asset seniors housing owner is exiting the industry with the sale of their property in Murrieta, California. Built in 2016 and 2018, Renaissance Village Murrieta has 142 units of assisted living and memory care in three stories. It was operating just below 70% occupancy, so there is plenty of room for a new owner to improve performance and increase value. That buyer was a REIT, which will be partnering with an established West Coast operator that has a growing presence in California. Brad Goodsell, Jason Punzel and Vince Viverito of Senior Living Investment Brokerage handled the transaction, continuing an incredibly active October for the firm. Read More »
Deal Closes Following Buyer Withdrawals
After a long process that saw multiple buyers pull out from the deal, the sale of Sarah Neuman Skilled Nursing Facility in Mamaroneck, New York, has closed with the help of Mark Myers at Kiser Group. Owned by a religious not-for-profit organization, The New Jewish Home, the facility features 301 beds and was losing money. Myers had previously facilitated the 2016 sale of the seller’s 744-bed SNF in The Bronx for $110 million and, earlier this year, the sale of a 300-unit independent living community on the same Bronx campus for $40.5 million. The transaction faced some hurdles, including a challenging financing environment and stringent regulatory requirements from New York State that... Read More »
Community Trades Hands and Secures Freddie Mac Financing
Berkadia announced the sale and financing of Appletree Court, a 118-unit assisted living and memory care community in Richardson, Texas, in the Dallas MSA. The building was built in 1999 and underwent renovations in 2018 and 2023. Ross Sanders, Dave Fasano, Cody Tremper and Mike Garbers of Berkadia Seniors Housing & Healthcare closed the sale on behalf of the seller, a joint venture between Marquee Capital (a Milwaukee-based family office affiliate of Marcus Investments) and Winterpast Capital Partners (a Nashville-based real estate investment company). The community will continue to be operated by Vitality Senior Living, Winterpast’s operating partner. Austin Sacco, Steve Muth,... Read More »
October Kicks Off with Multiple Financings
VIUM Capital announced a slew of closings at the start of October, ranging from HUD refinances to acquisition loans. The largest was a $72 million bride loan that refinanced four skilled nursing facilities in Pennsylvania totaling 525 beds. Proceeds will be used to take out senior debt and senior mezzanine debt. The facility will be structured as an initial advance of $58.75 million with earnouts totaling $13.25 million. Both the sponsor and the operator are recurring clients of VIUM. For the purchase of Eden Heights, a 30-year-old, 120-unit assisted living/memory care community in upstate New York, VIUM arranged a $7.95 million loan plus earnouts that could reach $5.7 million. The... Read More »
Newmark Negotiates Several Large Financings
Sarah Anderson of Newmark has closed some notable financing transactions in the last couple of months, in addition to arranging acquisition financing for numerous deals handled by the Newmark investment sales team. One of the closings was for Vivante at Turtle Creek, a to-be-built seniors housing community on the prestigious Turtle Creek Boulevard in Dallas, Texas. Set on 1.37 acres and rising 20 stories, the property will be one of the most luxurious seniors housing communities in the country. It will feature 193 total units, with 164 assisted living and 29 memory care units ranging in size from 900 to 3,000 square feet. There are also high-end finishes and unique amenities, such as a... Read More »
Funding Arranged for Skilled Nursing Clients
MONTICELLOAM, LLC, a specialized multifamily and seniors housing bridge lending platform, announced a couple of financings for skilled nursing clients in New England and North Carolina. First, for eight skilled nursing facilities in Massachusetts and Rhode Island, the firm closed a $70 million senior bridge loan with a 24-month initial term. It will be used by the sponsor, a returning MONTICELLOAM client and established operator across the Northeast, to refinance the existing debt on the portfolio, comprising more than 700 licensed beds. MONTICELLOAM and firm affiliates also funded $47.15 million in total bridge and working capital financing for three skilled nursing facilities... Read More »
Newly Constructed Community Secures Financing
BWE arranged refinancing for Clarendale Arcadia, a newly constructed senior living community in the Arcadia neighborhood of Phoenix, Arizona. The financing was arranged on behalf of a repeat client joint venture between Harrison Street Asset Management, LCS, and Ryan Companies US, Inc., with LCS serving as the operator. Ryan Stoll, National Director of Seniors Housing and Care at BWE, and Taylor Mokris, Senior Vice President of Seniors Housing and Care, arranged the non-recourse financing, which features full-term interest-only payments, an initial 36-month term, and two one-year extension options, providing flexibility as the sponsor group continues to stabilize the community. Developed... Read More »
Brookdale Shares Hit Seven-Year High
Brookdale Senior Living has posted occupancy increases for several consecutive months. The operator has lagged behind the industry for a decade now, so it is about time. Weighted average occupancy has increased each month since January, beginning at 79.2% and reaching 82.5% in September. The third quarter’s average of 81.8% is up 290 basis points year-over-year, and 170 basis points sequentially. Same-community weighted average occupancy of 82.7% increased 270 basis points year over year, and 40 basis points sequentially. Third quarter same community occupancy of 82.3% increased 260 basis points year over year, and 150 basis points sequentially, reflecting the highest sequential... Read More »
Newmark’s Nearly $2 Billion Third Quarter
Newmark is in the middle of a banner year for both investment sales and debt financings, and both its deal volume and activity appears to be accelerating as the year progresses. In the year to date, the team has closed nearly $3.6 billion in investment sales, and $1.9 billion in the third quarter alone. Excluding the Amica Senior Lifestyles portfolio that Newmark is selling in Canada for over $3 billion, the team has also secured enough deals under agreement to nearly double its year-to-date volume. There are some stabilized, Class-A deals at high per-unit prices, as well. One of those was the sale of Project Aurora, a three-property portfolio in New Jersey (2) and New York that was owned... Read More »Schedule a demo
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