Genesis HealthCare & Capital Senior Living Put On Notice By NYSE
So far, two of the publicly traded senior care companies have received notices from the New York Stock Exchange warning them that they are out of compliance with the continued listing standard that requires a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period: Capital Senior Living Corporation (April 10) and Genesis HealthCare (April 17). CSU dropped as low as $0.45 per share, while GEN fell to $0.78 per share. Genesis was still in compliance with the minimum market capitalization threshold of $50 million over a 30 trading-day period (at more than two times that level), but CSU’s average market cap did fall below the threshold. Both companies will... Read More »
Where Will Independent Living Values Go?
Here’s the good news and the bad news regarding the independent living market today. The good news is that the fundamentals of the sector were stronger than ever as recent as this March, with values nearing a peak, occupancy consistently above 90% nationally, rents staying strong, and the labor problems largely avoiding IL communities. The bad news is that move-ins may be delayed for months, a recession may make selling and moving out of one’s home (and into an IL community) less feasible, and the socialization benefit of these communities may change significantly for some time. Anecdotally, we do hear of move-ins continuing at a steady pace, depending on the locality and... Read More »
Recent Senior Care M&A Deals, Week Ending April 24, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Local partnershipTwin Cedars Senior Living$5.91 million Not disclosed6 senior living communitiesN/A Waypoint ResidentialSummer Vista & The Crossings at River View$48.85... Read More »
A Conversation with South Coast Improvement Company
We have been saying for years that there is a huge market for renovating any kind of senior living community, and that market will only grow as yesterday’s new development becomes today’s renovation project. And now, with the coronavirus pandemic, there will be a new emphasis on infection control and how to embed that into construction and renovation design. One company seems to have been ahead of the curve on this front, and we suspect their clients will be listening very closely in the future. We sat down with Tom Quinlan, the founder and President of Marion, Massachusetts-based South Coast Improvement Company, and Sean Whalen, Senior Vice President, to get their views on renovations in... Read More »
Where Were Assisted Living Values At Their Pre-Pandemic Peak?
Seniors housing values were at (or very close to) a peak by the beginning of March. Then, COVID-19 shut down the country, and those communities were forced to shut their doors, halt move-ins, and deal with the pandemic and their residents as best they could. Keeping those seniors safe and healthy is, of course, the first priority. But the drop in occupancy and cash flow is also a serious matter (how else can these communities stay open to care for seniors if they are not profitable, after all?) and may lead to a correction in values. Just how large of a correction, we cannot be sure, but we do know where values were right before the pandemic hit. According... Read More »
Construction Continues in Southwest Florida
Two senior living construction projects just finished in Naples, Florida, probably not in the lease-up environment they were expecting. But you never know; we certainly hear of communities continuing to move in residents at a steady pace. The first development completed was a 127-unit assisted living/memory care community called The Pineapple House at Sapphire Lakes. It is being developed by Michael Kerner of Development Consulting LLC and Andy Baldo, with Guest Services Senior Living operating the community. Amenities include fitness and massage areas, a hydrotherapy room, beauty salon and a swimming pool, among others. Another joint venture announced the completion of Phase I for a CCRC... Read More »
Where Occupancy May Be By July
The coronavirus was much worse then expected, as was its impact on senior care providers. I have to admit I was wrong, but just the third time in 34 years. In late February, I referred to the coronavirus as the flu on steroids, and that the senior care industry was prepared to deal with it. I was wrong on both accounts. It was much worse than anything on steroids, and many providers were not prepared for this one. I am not sure anyone could have adequately prepared for a deadly disease that can be quickly spread by asymptomatic staff and visitors. Some people think they have escaped the worst part of the coronavirus, and they may be right. But this is not going to be a short-term problem.... Read More »
Monarch Advisors Secures Bank Refinance For Illinois Property
Alec Blanc of Monarch Advisors announced the successful closing of a bank refinance for a 99-unit assisted living/memory care community in central Illinois. April closings have been few and far between, so, well done Mr. Blanc. Built in three phases from 2001 to 2009 and then renovated in 2017, the community was acquired about a year ago by a St. Louis-based real estate investment group and its operating partner, Compass Senior Living. The community is still stabilized but has seen improvements to both census and profitability in the last year. To refinance the acquisition debt and return capital to the investors, Monarch Advisors secured $6.4 million in senior debt from a regional... Read More »
Live Oak Bank Announces Two SBA Loan Closings
SBA lender Live Oak Bank has been hard at work recently arranging coronavirus relief loans through the Paycheck Protection Program, but the bank also announced a couple of SBA loans that closed earlier this year. First, Live Oak secured acquisition financing for a partnership to buy a 37-unit assisted living community in the town of Shohola, Pennsylvania (in the northeastern part of the state near the New York border). Previously owned and operated by a local individual, the stabilized community was built in 1990 on a 16-acre site. It is the first property directly owned by the acquirer. To fund the deal and limit the equity requirement of the borrowers, Live Oak provided a $5.2 million... Read More »
Berkadia Shows Variety With Latest Four Financings
Berkadia recently closed four separate financings for a total of 10 properties, with a range of purposes from refinances to acquisition financing to a construction loan. First, Ed Williams secured a $5.5 million Fannie Mae refinance for a 51-unit assisted living/memory care community in Georgia. Built in two phases, the latter of which completed in 2008, the community was historically occupied above 90%. Its Southeast-based owner obtained 10-year term, two years of interest only and was able to take advantage of the Streamlined Early Rate Lock option to refinance its existing HUD debt and capture trapped equity in the property. With those funds, they will be able to pursue other... Read More »Schedule a demo
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