What A Feeling!
One big benefit of the country opening up is in-person conferences. It does feel good. Last week, I attended my first conference, in person, since March of 2020. And boy did it feel great! Shaking hands again, hugging people I haven’t seen in person in 15 months, or more, was like a celebration for everyone there. All because we were vaccinated. Thank you, Senior Living 100. I was invited to moderate a panel on, what else, the M&A market. Two weeks earlier, I was a panelist at their sister conference, The LTC 100, but I was virtual, as was one other panelist in my session, and it just was not the same. My two takeaways were that people are pretty optimistic about the comeback for... Read More »
Evans Senior Investments Sells Value-Add Property in Pennsylvania
The team at Evans Senior Investments represented an independent owner/operator in the sale of its value-add senior care campus in Rochester, Pennsylvania. Numbering 122 skilled nursing beds and 22 operational personal care units (out of a total of 62), the property sold for $9.2 million, or $63,900 per functional bed/unit. Originally built in 1965, the campus received a $2.5 million renovation from 2015 to 2019, leaving it with a modern physical plant and all rooms being either private or semiprivate. However, it was not profitable at the time of marketing, with occupancy averaging 69% and the community generating an NOI loss of over $1.0 million on $10.45 million of revenues. High... Read More »
CBRE Finances Active Adult Development in Chicagoland
A new active adult development that is set to break ground just received financing courtesy of CBRE and a national bank. Aron Will, Austin Sacco and Matthew Kuronen of CBRE Senior Housing partnered with CBRE Chicago’s Debt and Structured Finance’s John Parret and Peter Marino to arrange the $43 million construction loan. The to-be-built community is located in Chicagoland and will feature around 190 units. It is considered to be “A” quality, which we imagine are easier projects for lenders to get behind right now, especially with an active developer in the space. A national bank provided the loan, which comes with a five-year term, 42 months of interest only and a floating... Read More »
People’s United Bank Refinances Two New England Communities
Bridgeport, Connecticut-based People’s United Bank announced a couple of refinances for seniors housing clients in New England, working with participating banks on both deals. First, up the coast in Mystic, Connecticut, Masonicare of Chester Village is a 179-unit seniors housing campus with independent living, assisted living and memory care services. It opened in 2016. Masonicare received $45 million of debt, with People’s United Bank as the lead holding $30 million and Washington Trust participating with a $15 million hold. There is a seven-year term and 30-year amortization on the debt, which was came in under 67.5% loan-to-value. The transaction replaces mortgages previously held by... Read More »
M&A in May Falls Flat
Despite the positive occupancy news coming out of seemingly every earnings announcement in May, buyers held back this month, announcing just 26 transactions. To be fair, that total beat’s February’s 25 publicly announced transactions (albeit being a 28-day month), and tied January. But it was off of March’s 29-deal tally and April, when a “whopping” 32 deals were announced. We know that plenty of both buyers and sellers are waiting for a three- to six-month period of sustained occupancy and NOI growth before either risking the purchase or getting the desired price. But with a surge of deals closed at the end of April, we also thought a certain barrier had been broken and... Read More »
Newmark Announces Closing in Kansas
The Newmark team has been quite active lately, and an early May closing recently rose to the surface. The deal included an 89-unit seniors housing community in Wichita, Kansas. Built in 1997 with 22 independent living, 51 assisted living and 16 memory care units, the community was around 80% occupied, and there was land available for expansion. It also brought in nearly $500,000 of NOI. The purchase price was not disclosed, but the buyer was a Kansas-based regional operator. The seller was also not known. We learned of some other closings from the Newmark team, which we will detail in the June issue of The SeniorCare Investor. Read More »
Watermark & Hines Partner On Mid-Rise Development in Houston
Watermark Retirement Communities and Hines have partnered to develop a large, seven-story seniors housing community in Houston’s Greater Heights neighborhood. The community will include 222 units of independent living, assisted living and memory care, with rents starting between $3,500 and $5,500 per month for IL. There will also be a host of amenities, two whole floors of dedicated amenity space, in fact. The community will also be the tallest building in the neighborhood and will have views of the downtown skyline. This is Watermark’s fifth Élan property, which is the operator’s upscale brand. Other partners on the project include Munoz + Albin Architecture and Planning (the design... Read More »
Recent Senior Care M&A Deals, Week Ending May 28, 2021
Perhaps the summer dealmaking doldrums have come early, as senior care M&A activity dipped this week. Here is our latest deal chart. Long-Term Care AcquirerTargetPrice Private equity Journey Senior Living of Valparaiso$9.15 million Private fund2 skilled nursing facilities$8.5 million National owner/operatorThe Residence at Legacy Park$18... Read More »
Senior Living Investment Brokerage Handles Active Adult Deal
Their ears must have been burning, because after we discussed the rise in M&A activity in the active adult/55+ market, Matthew Alley and Bradley Clousing of Senior Living Investment Brokerage announced the sale of an 81-unit community in Granbury, Texas. Developed in stages from 2018 to 2020 by a local mom & pop, it was already fully occupied with a wait list by the end of 2020. Talk about strong demand! It helps that the community is located near Lake Granbury and the lakefront activities there, along with many restaurants and shopping downtown. We’ve talked about the strong operating margins that active adult can offer, and indeed, this community brought in $950,000 of EBITDAR... Read More »
Carnegie Capital Closes Acquisition Financing
JD Stettin of Carnegie Capital has announced another acquisition financing, this time for two skilled nursing facilities in north central Texas. Combining for 206 licensed beds and 54,000 square feet, the facilities were built in the mid-1970s. Occupancy could be improved, but that is not surprising given the past year. A national private fund emerged as the buyer, partnering with regional and local operators to manage the facilities. They paid $8.5 million, or $41,300 per bed. Mr. Stettin secured a hybrid bank/private loan at 80% loan-to-cost (so, $6.8 million), which came with a three-year, interest-only term and a rate in the mid-4s. Read More »Schedule a demo
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