Marcus & Millichap Handles Senior Apartment Transaction
Greg Parker and Greg Price of Marcus & Millichap’s Denver office represented a private investor in the sale of its low-income senior apartment community in Lakewood, Colorado. Built in 1999 under the low-income housing tax credit program, the community has 58 units with a mix of studio, one- and two-bedroom units. It also offers assisted living and independent living options. Community amenities include housekeeping services, activities, a library, beauty salon and restaurant-style dining. An undisclosed buyer acquired the property for $8.3 million, or $143,100 per unit. Phillip Gause of Marcus & Millichap Capital Corp. arranged acquisition financing for... Read More »
“Going Concern” Problem For Capital Senior Living
Perhaps in an effort not to rattle the market, Capital Senior Living filed its first quarter 2021 10-Q after the markets closed on Friday, May 14. Perhaps they thought no one would notice as many were out celebrating the removal of their masks. Not that it should have been a surprise, but in the filing the company reiterated its dreaded “Going Concern” statement, meaning there are enough uncertainties about current events and conditions that raise substantial doubt about the company’s ability to continue as a going concern within a year. No one should be surprised, other than those who have been pushing the price up in the past month. Helloooo. Last week after reviewing the financial... Read More »
Canadian Seniors Housing Market
The Canadian seniors housing market has fared a bit better than its U.S. counterpart during the past year or so, but it also started in a better place. Take the Canadian SHOP portfolio of Ventas. It currently has 74 communities that operated in the first quarter 2021 with net operating income of $171.8 million, or just over $2.3 million per community (all amounts in U.S. dollars). This compares with 364 communities with $272.7 million of NOI in the first quarter for the U.S. SHOP portfolio, or $749,000 per community. So, Canada makes up 17% of the communities but 39% of the NOI. Hmmm. On a same-community basis, there were 68 Canadian communities in the first quarter last year... Read More »
SavaSeniorCare Sells a Couple of Illinois SNFs
SavaSeniorCare sold a couple of its Illinois properties, part of its plan to transfer the operations of some 48 facilities in its portfolio by the end of 2021. The deal represents the company’s last two properties in the Land of Lincoln. First, it is handing over the keys of its 74-bed subacute/skilled nursing facility in Mount Vernon, Illinois, to a Midwest-based regional owner/operator. Built in the 1960s with additions throughout the 1970s, the facility provides a range of services from post-op rehab, stroke recovery and respiratory care to advanced therapy modalities like diathermy, heat and cold therapies and electrical stimulation, just to name a few. Lab and X-ray services are also... Read More »
Monarch Advisors Secures Revolving Line of Credit
Alec Blanc of Monarch Advisors closed a revolving line of credit for the operator of five skilled nursing facilities in southern Illinois, the purpose being to fund working capital costs across the portfolio. The borrower is based in Chicago and has operated the buildings for more than 10 years. They total about 600 beds and tended to be older, more rural facilities. Mr. Blanc secured a commitment from a national commercial finance company to provide a $2.75 million loan that allows advances up to 85% of the net collective value of accounts receivable. The non-recourse financing also came with a two-year, interest-only term and a floating rate. Read More »Recent Senior Care M&A Deals, Week Ending May 14, 2021
Senior care M&A activity seems to have picked up a bit this month. Here is our latest deal chart. Long-Term Care AcquirerTargetPrice Bickford Senior Living6 seniors housing communities$52.9 million Fortress Investment Group, LLC5 assisted living communities$64 million Crest Healthcare GroupNature Trail Health Care Center & Odin Healthcare Center N/A Carlyle Senior CareFountain Inn Nursing & Rehabilitation... Read More »
Are More Capital Senior Living Problems Coming Due?
Capital Senior Living released its first quarter earnings this week, and the results were sort of a mixed bag. Of course, the occupancy results were great news, with April average census rising 140 basis points from the Q1 average to 76.95%. And spot occupancy increased from 75.3% at the end of February to 78.5% by the end of April, for a 320-basis point increase. We’re not sure if we’ve seen a steeper increase. About 93% of residents are now vaccinated, COVID cases fell to zero across the 60 owned communities, and 100% of communities are open to new residents, so the runway to recovery is smoother. Looking forward, CSU will also not be encumbered by the 39... Read More »
Blueprint Capital Markets Closes First Transaction
Blueprint Healthcare Real Estate Advisors’ Capital Markets Group, which is led by Alex Florea, has the first closing under its belt, as it was revealed the group secured acquisition financing for Chicago Pacific Founders’ purchase of an assisted living/memory care community in Tucson, Arizona. In addition, Blueprint’s Amy Sitzman, Jacob Gehl and Humair Sabir represented the developer and owner in the transaction. Opened in May 2018 and about 90% occupied by the time of the sale, the community features 87 assisted living and 20 memory care units. Willis Development, in partnership with Dekel Capital which provided $8.4 million of equity, developed the community, and Milestone Retirement... Read More »
JLL Represents Healthpeak in Two More Divestments
JLL announced its role in a couple more Healthpeak Properties seniors housing divestments. Most notably, Mike Garbers and Cody Tremper represented PEAK in the sale of five SHOP communities that were operated by Florida-based Sonata Senior Living. All five communities are in Florida, with locations in Delray Beach (80 units), Boynton Beach (92), Boca Raton (74), Coconut Creek (94) and Vero Beach (104). There were a total of 328 assisted living, 107 memory care and nine independent living units, and the communities averaged around 20 years in age. However, the properties were well maintained, and Healthpeak Properties had invested over $13 million of capex in... Read More »
United Community Bank Closes Two Loans
United Community Bank (UCB) closed two new loans in the month of April, both for senior care facilities in the Southeast. First, in Terra Bella, Florida, the UCB team originated a $24.8 million loan for Keystone Senior Living to refinance its 140-unit independent living, assisted living and memory care community. Renasant Bank partnered with UCB on the transaction, which featured a 36-month term and variable interest rate. Keystone built the community in 2016 with a construction loan and mezzanine debt. The new 75% loan-to-value loan from UCB, plus additional sponsor equity, took out that debt. The bank also originated acquisition financing for Carlyle Senior Care to exercise a lease... Read More »Schedule a demo
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