What Do REIT Investors Know?
Remember back in March 2020 when the financial world was falling apart, rapidly? March 18 was the bottom for most of the healthcare REIT stocks, when investors thought the pandemic might wipe out a good portion of their investment value in senior care properties. At the time, they weren’t too far off, when top-quality REITs such as Ventas plunged to market values that had not been seen in years. But it was much more of a knee-jerk panic attack based on worst-case scenarios. Hindsight is always great, isn’t it? Within two weeks, most REITs had recovered 30% to 80% of that initial loss, and then steadily rose for the rest of the year. The odd thing was that this nine-month... Read More »
Is New Development Back Sooner Than Thought?
Rick Swartz, Jay Wagner and Sam Dylag of Cushman & Wakefield represented Barberry Homes in their sale of two entitled seniors housing sites in Massachusetts. One site in Natick will consist of 86 assisted living and memory care units on 5.53 acres, while the other in Millis will feature 105 independent living, assisted living and memory care units on 7.697 acres. The sales price came to $14,550,000, or just over $76,000 per unit that will be built. That is a relatively high price, but they are both located in the Boston suburbs where land values are high the entitlement process can be tough. As originally proposed, the Natick building will have... Read More »
Greystone Secures HUD Financing in San Diego County
If you own an old seniors housing community in a good market, now is the time to refinance and make the necessary improvements before the next wave of demand hits. Otherwise, you may be left in the back of the line for customers. Perhaps this was the thinking of an owner in Escondido, California with a 105-bed assisted living and memory care community, that also offers short-term stays and was built more than 30 years ago. For skilled nursing, that is practically new, but for assisted living, it is becoming ancient. The owner turned to Leor Dimant, Managing Director at Greystone, to help consolidate some debt on the property and obtain additional funds for renovations and... Read More »
Second Quarter Occupancy Results
NIC MAP just released its second-quarter occupancy trends results, and unfortunately, it was not what the industry had hoped for. For the overall seniors housing industry, average occupancy remained flat at 78.7% from the first quarter to the second quarter. Given the reports of bottoming out by March for several of the large operators and the REITs with large operating portfolios, and strong census increases in April and May, we were a bit surprised that the quarter-to-quarter change was stagnant. We figured maybe at least a 50-basis point increase or higher. The one thing this tells us is that the early spring momentum did not carry over into June. Or possibly it was the... Read More »
Ziegler Finances Another CCRC Expansion
Investment banking firm Ziegler just closed on a $115.63 million bond financing for a Florida CCRC called Vicar’s Landing. The not-for-profit community is located in Ponte Vedra Beach on a 24.3-acre site within Sawgrass, a 4,800-acre private resort and residential community. The community currently includes 227 independent living units, 38 assisted living units and 60 skilled nursing facilities. The new funds will be used to pay off some existing bond debt and partially finance a new project that will be located a mile from the current campus, to be called Vicar’s Landing at Oak Bridge. The proceeds will also be used to fund a debt service reserve fund, fund capitalized interest and pay... Read More »
Summit Healthcare REIT Buys Three SNFs
A wholly-owned subsidiary of Summit Healthcare REIT purchased three skilled nursing facilities in San Bernardino County, California with a total of 191 beds. The purchase price came to $20,055,000, or $105,000 per bed, higher than the average but well below the highest prices paid in the state. The facilities will be triple-net leased to California-based Rockwell Healthcare, a new tenant for Summit Healthcare REIT. Summit is a registered non-traded REIT that focuses on seniors housing and care real estate in the U.S. Its current portfolio includes interests in 46 seniors housing facilities in 13 states. Read More »
Blueprint Gets Top Dollar for Empty Building
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold a 70- unit empty building (70 beds) in the Texas Panhandle for $10 million, or nearly $143,000 per unit. That is an extraordinary price given that it was empty, was never licensed and never opened. Built by Mainstreet in 2019 with 49,959 square feet and fully furnished at the time of the sale (probably needed to dust off the furniture), the facility never opened and was eventually foreclosed on by the bank lender. Mainstreet had built many of these transitional care facilities over the years, several of which never opened as competition for high-acuity, post-acute patients soared, as did the... Read More »
Cureus Expands Senior Care Portfolio
Consolidation is not just under way in the United States. In Europe and the United Kingdom, the acquisition market seems to be heating up. Cureus GmbH, based in Germany, has significantly expanded its healthcare real estate portfolio with the acquisition of 35 leased care homes and one under construction with a combined 3,750 beds with a portfolio value of about $733 million, or about $195,000 per bed. This will bring the company’s total care home portfolio to 38 leased properties with 4,069 beds, 28 projects under construction with 2,743 beds and 70 additional projects in the planning stages with about 7,070 beds. All of these projects are scheduled for completion by... Read More »
Alta Senior Living Expands Into Florida
Alta Senior Living, with corporate offices in Santa Monica, California and West Palm Beach, Florida, purchased its first senior living community in Florida. Located in Margate, the 175-unit Waterside Landing currently has 175 independent and assisted living units. But 22 units on the first floor will be converted to secured memory care. Alta will spend about $6.5 million on this conversion plus other upgrades to the building. Waterside Landing was built in 1989 and had partial renovations a few years ago. It has a total of 187,000 square feet, or just over 1,050 gross square feet per unit, which is quite large for that vintage. Currently, the second and third floors are not... Read More »
Newly Developed Arkansas Community Trades
Arkansas-based Beaty Capital Group has purchased a 125-unit independent living community, Grand Village at Clear Lake, located in Fayetteville, Arkansas. The community was completed in March 2020 and consists of 109 independent living apartments in the main building surrounded by 16 IL cottages. Despite opening just as the pandemic was gaining speed, occupancy at closing was 73%. The purchase price was approximately $37 million, or $296,000 per unit. The city planners have already approved a second phase which will consist of 33 additional cottages and a clubhouse. Construction on this phase is expected to begin in the first quarter of 2022, just when the first phase should... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
