Harrison Street Announces the Largest Seniors Housing Deal Since 2019
In the June issue of The SeniorCare Investor, we wondered when private equity would get off the M&A sidelines in a major way, with so much dry powder available to them. On cue, Harrison Street Real Estate Capital announced the largest seniors housing and care deal in two years, spending approximately $1.2 billion on a portfolio of 24 assisted living/memory care communities in California and Nevada. The portfolio totals 2,195 units, resulting in a per-unit price of $546,700 per unit. Oakmont Management Group operated the whole portfolio, Healthpeak Properties owned half of the properties and California-based real estate developer Gallaher... Read More »
Senior Living Investment Brokerage Handles Three More Transactions
As of the writing of this, Senior Living Investment Brokerage has now closed 39 seniors housing and care transactions in 2021. Their total for the whole year of 2020: 39 deals. To hit that mark before the end of June is impressive, to say the least. Pushing them to that number were three transactions in the Southwest announced in quick succession. The first was an assisted living/memory care sale in Las Vegas, Nevada, handled by Vince Viverito, Jason Punzel and Brad Goodsell. Built in 2016 by a local developer (who is now the seller), the community has 119 beds in 98 units. A third-party operator managed the community, but the buyer, a national private equity fund, will bring in a... Read More »
Welltower Acquires Portfolio Well Below Replacement Cost
Earlier this week, Welltower announced it had acquired 22 seniors housing communities in partnership with Pathway to Living for a purchase price of $97 million, amid a flurry of other announcements. Now, more details have emerged on the deal. Totaling 1,103 units, the portfolio consists of 156 independent living, 835 assisted living and 112 memory care units. That results in a per-unit price of $87,900 per unit. Welltower had said that the deal went for well below replacement cost, and they were not kidding. The REIT plans on investing an additional $15,000 to $20,000 per unit, which should help improve the portfolio’s value. Newmark handled the deal. The seller was an... Read More »
National Health Investors Expands Navion Relationship
National Health Investors expanded its relationship with Navion Senior Solutions, announcing an acquisition, funding of a community expansion project and funding of a corporate loan for the operator to put towards future development costs. The investments total approximately $13.2 million. First, NHI acquired a 48-unit assisted living/memory care community in Manchester, Tennessee, adding it to an existing master lease with Navion which has a 12-year maturity, 2.5% annual escalators, and two five-year extensions. The community was purchased for $6.5 million, or $135,400 per unit, excluding about $100,000 of closing costs. That results in an initial yield of 7.5%. NHI also provided... Read More »
Presbyterian Senior Living Selling Two Communities to Tryko Partners
In an effort to expand their already large portfolio of more than 6,000 skilled nursing and assisted living beds, Tryko Partners has entered into a contract of sale under which they will purchase two senior care communities from Presbyterian Senior Living, a not-for-profit senior care provider. The target communities include Westminster Village, a 178-bed CCRC in Allentown, Pennsylvania, and Heritage Run, a 34-unit independent living community in Baltimore, Maryland. Upon the anticipated summer 2021 closing, Tryko plans to launch a capital improvement program to fully modernize Westminster Village, which was built in 1967 and saw additions in 1982, 1988, 1989 and 2008. The Baltimore... Read More »
More Good News from Welltower and Ventas
Census is on the rise at the SHOP portfolios of the biggest healthcare REITs. After more than a year of mostly depressing news, it is nice to see that more good news keeps on coming. With a year of canceled earnings forecasts by most public companies and REITs, Welltower announced that it raised the low end of its second quarter earnings per share estimate by nearly 10%, and its normalized FFO by just over 4%. Now that’s some good news! In addition, they had forecast a 130-basis point increase in their SHOP portfolio for the full second quarter, and by June 4th they had already reached 120 basis points. Spot occupancy is now 150 basis points higher than the pandemic low. Ventas is also... Read More »
Welltower Announces Investments, Credit Facilities & a New Hire
Welltower came out with a flurry of announcements yesterday, all significant and all seemingly good news. To start, John Burkart was appointed Executive Vice President, Chief Operating Officer and will start on July 19. Already ensconced in the REIT world, Mr. Burkart comes from the multifamily sector, having spent 25 years at Essex Property Trust where he rose to Senior Executive Vice President and Chief Operating Officer. At Welltower, he will assume responsibilities for platform-wide operations, asset and portfolio management, data analytics, research and joint venture partnerships, utilizing a data-driven approach to drive platform efficiencies, capital allocation decisions and... Read More »
LTC Properties Divests Three ALFs in Wisconsin
In the ongoing plan to reposition its relationship with Senior Lifestyle Corporation, LTC Properties has sold three assisted living communities in Wisconsin. The sales price was $35.0 million, or about $133,100 per unit. The three communities had a combined net book value of $28.3 million, and the estimated gain for LTC on the sale is approximately $5.6 million. There was no debt on the communities, so the net sales proceeds of $34.0 million were used to pay down the REIT’s unsecured revolving line of credit. In the first quarter this year, LTC had transitioned 11 Senior Lifestyle assisted living communities in Wisconsin, Ohio and Illinois to two... Read More »
Walker & Dunlop Assists in Oregon Assisted Living Sale
Tony Cassie & Sam Thompson of Walker & Dunlop closed the sale of a 64-unit assisted living/memory care community in the Olympia, Washington area. The team went from escrow to closing in just four months. A local investor was the seller and planned to exit the seniors housing business altogether with the deal. A regional private investor paid an undisclosed sum for the property. Built in 2005, the community was 91% occupied at the time of sale. Read More »
CIBC Bank USA Refinances California Portfolio
CIBC Bank USA recently closed a $76 million transaction for a California-based operator to refinance acquisition debt on three formerly distressed properties in the Golden State. Those properties include two skilled nursing facilities and one assisted living community. The deal included a $60 million term loan and a $16 million working capital facility. The term loan will also help support the company’s overall balance sheet, while the working capital will be used across the 13 properties and more than 1,000 beds in the operator’s portfolio. Read More »Schedule a demo
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