Affordable Housing Deal Gets Multiple Financing Sources
Community Preservation Partners and Hampstead Development Partners turned to KeyBank to secure capital to acquire and renovate an affordable senior apartment community in New Haven, Connecticut. Originally built in 1973, the Section 8 community consists of 121 units, split between 106 one-bedroom and 15 two-bedroom units. Plus, there is one ground-level retail bay, which includes a KeyBank branch, in the nine-story building. Going forward, the property will have a Housing Assistance Payments (HAP) Contract covering 112 units for 20 years, and the other nine units will also operate as tax-credit units. KeyBank Community Development Lending and... Read More »
The 55+ Market Builds Momentum
Coming out of the pandemic, investors are enamored with the 55+ or active adult market, but we will see if that enthusiasm turns into overexuberance. Perhaps the brightest star in seniors housing coming out of the pandemic has been the active adult market, and investors took notice. Census stayed strong relative to the other sectors, and owners tout their lower average move-in age, more approachable rents for residents, lower labor costs and higher operating margins. As a percentage of seniors housing deals announced, according to our deal database, active adult has grown its share from a paltry 2% in 2019 to 6.4% in 2020 and 8.2% so far in 2021. Plenty of firms have also announced... Read More »
Healthcare Trust Divests Two Florida Facilities
Cushman & Wakefield’s Senior Housing Capital Markets team completed the sale of two skilled nursing/assisted living facilities on behalf of the public, non-traded REIT, Healthcare Trust, Inc. These two properties represent the last of the three strategically planned majority-skilled nursing property sales in the state of Florida, after having already sold its SNF in Lutz earlier this year for $20 million, or a gain on sale of real estate investments of $3.8 million. Cushman & Wakefield handled all three property sales. Healthcare Trust acquired one of the communities, The Addington at Wellington Green in Wellington, Florida, seven years ago. Built in 2011, it features a 120-bed... Read More »
Ziegler Sells Two Healthpeak Properties/Brookdale Senior Living CCRCs
Ziegler’s Dan Revie Tedd Van Gorden represented Healthpeak Properties in the sale of its last two entrance-fee CCRCs that were part of its joint venture with Brookdale Senior Living. The deal includes Foxwood Springs, a 434-unit campus in Raymore, Missouri, and Robin Run, a 457-unit campus in Indianapolis, Indiana. Both were originally part of the National Benevolent Association portfolio that went through bankruptcy proceedings over a decade ago. And after Healthpeak bought out Brookdale’s interest in the joint venture in Fall 2019, these were the only two campuses excluded from that transaction. Subsidiaries of the Texas-based not-for-profit Boncrest Resource Group acquired the... Read More »
Evans Senior Investments Sells Vacant Community in Indiana
The team at Evans Senior Investments sold a vacant seniors housing community in Valparaiso, Indiana for $9.15 million, or $93,000 per unit, which at first glance is a strong value for an empty building. After opening its doors in March 2018, the community struggled to lease up and went through two different management companies. The pandemic only made things worse, and ownership decided to shutter the community in September 2020. It currently features 98 units that were set aside for assisted living and memory care. A regional private equity group was able to buy the property at below replacement cost and hired Priority Life Care to operate and oversee the leasing of it. Before Priority... Read More »
Blueprint Sells SNF in Erie, Pennsylvania
Blueprint Healthcare Real Estate Advisors handled the sale of a 120-bed skilled nursing facility in Erie, Pennsylvania. Connor Doherty, Michael Segal and Ryan Kelly handled the deal on behalf of the seller. Located in a competitive submarket, the facility was originally built in 1950 and underwent a major expansion in 1982. It had been steadily improving its operations and census prior to the pandemic, reaching about 85% occupancy. However, like at many facilities across the country, census dropped to around 60% by the time of closing. Its regional owner/operator owner deemed the facility to be non-core to its long-term growth plans and hired Blueprint to handle the marketing and sale... Read More »
Greystone Handles HUD Refinance of Wisconsin SNF Portfolio
Fred Levine of Greystone arranged a total of $34.96 million in HUD loans for a portfolio of five skilled nursing facilities spread across southeastern Wisconsin. Totaling 558 beds, the facilities are located in Antigo, Burlington, Manitowoc and Kenosha. The in-state borrower, Champion Care, purchased them in 2017 and will continue with ongoing property improvements. So, to refinance existing debt and help support those improvements, they obtained 30-year debt with a low fixed interest rate from HUD. Read More »
Bloom Senior Living Sells Two South Carolina Communities
Kandu Capital and its operating affiliate Bloom Senior Living just sold two of their South Carolina assisted living and memory care communities. Bloom at Hilton Head and Bloom at Bluffton have been part of the Bloom family of communities since they were purchased from Brookdale Senior Living in 2013 for $7.2 million, or $61,500 per unit. They were struggling at the time with just $3.5 million of revenues and Bloom turned them around and grew revenues and EBITDA significantly, with EBITDA reaching $1.2 million in 2016. Then, several new communities were opened in the market and COVID-19 appeared. Occupancy dipped but the communities remained very cash... Read More »
Construction Costs Go Up for Indiana Senior Living Project
Rising construction costs have stymied a number of senior living construction projects (much to the relief of thousands of operators looking to quickly recover their occupancies), but one development is still going ahead, albeit with a $3 million increase in financing. Evergreen Real Estate Group is building a 120-unit Medicaid assisted living community in Goshen, Indiana, which will feature 49 studio and 71 one-bedroom units, with Gardant Management Solutions serving as operator. Development costs were originally estimated to be $28 million, or $233,300 per unit. The plan was approved in late 2019, and the Goshen City Council approved the issuance of up to $22 million in tax-exempt... Read More »
Recent Senior Care M&A Deals, Week Ending May 21, 2021
Senior care M&A activity is still plodding along, so here is our recent deal chart. Long-Term Care AcquirerTargetPrice Chicago Pacific FoundersThe Shores at Clear LakeN/A Not disclosedThe Homestead at Lakewood$8.3 million Regional owner/operatorThe Parks Senior LivingN/A WindRiver CompaniesBloom at Hilton Head and Bloom at Bluffton$12.25... Read More »Schedule a demo
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