CBRE Closes Financing For Carlton Senior Living Portfolio
The CBRE team has certainly kept busy lately, closing a number of transactions since the outbreak of COVID-19 including a $200+ million cash-out refinance of three luxury senior living communities in lease-up, a non-recourse construction loan for a to-be-built community in California, and four agency loan closings. More recently, the team that included Andrew Behrens, Aron Will, Austin Sacco and Adam Mincberg refinanced a portfolio of three senior living communities in the San Francisco Bay area on behalf of Carlton Senior Living. The three communities consist of 315 total units, split between 251 assisted living and 64 memory care units. Two of the communities are located in Pleasant... Read More »
Bashing Our Senior Care
Getting tired of the media and politicians bashing the senior care sector. Is anyone else tired like I am. I don’t know whether it is the worry about the economy, being infected with COVID-19, having no social life, wondering when the next wave will hit. I could go on. But what I am really tired of is CNN’s relentless bashing, and the politicians who are piling on, looking for someone to blame, like they always do. But what really ticked me off was the April 29 letter that Senators Elizabeth Warren and Ed Markey, along with Congresswoman Carolyn Maloney, sent to the leaders of a half dozen of the largest senior living providers. They had a laundry list of more than 50 questions they... Read More »
A Conversation With HealthTrust
Last week, we sat down with Alan Plush and Colleen Blumenthal, partners at national valuation and consulting firm HealthTrust, based in Sarasota, Florida, to talk about how the coronavirus pandemic will impact valuations and how they will go about their work. We all know that COVID-19 is taking a toll on the senior care sector, particularly skilled nursing. Why are appraisals and valuation consulting in general more important today than ever before, when done by professionals who have been through a few crises before? Alan Plush – It allows moderation on both sides. First, values don’t decrease too much (as if assuming this lasts forever), and... Read More »
Evans Senior Investments Represents Receiver in First Phase of Ohio Sale
The closings keep on coming from Evans Senior Investments, with the firm announcing two seniors housing deals in the last week. Those make the sixth and seventh properties sold by Evans since the pandemic started. The first deal was a small one, but certainly wasn’t straightforward. Evans represented the court-appointed receiver of a six-unit independent living community that sits on a larger 171-bed senior care campus with mostly skilled nursing beds, and assisted living units too. Built in phases from 1963 to 2006, the campus had been owned and operated by a second-generation family member for over 30 years, until they decided to sell in 2016 in order to focus on their existing assisted... Read More »
Brooklyn Skilled Nursing Facility Acquired by Joint Venture
Affiliates of TL Management and Fortis Business Holdings have acquired a 240-bed skilled nursing facility in Brooklyn, New York. Public records first revealed the deal in April 2019, revealing Fortis acquiring a 50% interest, Zevi Kohn (of TL Management) a 40% interest, and Eliezer Jay Zelman the remaining 10% interest. The facility was previously owned by the not-for-profit RiseBoro Community Partnership. Occupancy was consistently in the mid-90 percent area, with a majority Medicaid census. The most recent financials from 2017 show a loss of nearly $3.9 million, even with that strong occupancy. But as soon as TL took over management, the facility had positive cash flow within months. ... Read More »
Ventas Makes Changes, Dividend Is Not One Of Them
The earnings reporting season is coming to an end, and the odds were that Ventas would cut their second quarter dividend payable in July, much like what Welltower, Sabra Health Care REIT and Diversified Healthcare Trust have done. They would have every reason or excuse to do it. A cut was already somewhat embedded into their share price. Their funds available for distribution were shrinking. But it didn’t happen. A decision will be made about the next dividend sometime in June. Investors were pleased, sending the shares up by 10.5% on May 8, driving the yield down a bit to 10.5%. That is still double its recent “normalized” dividend yield, which has been in the 4.5% to 5.5% range in... Read More »
Healthpeak Properties’ Florida Sale Handled By Newmark
Newmark Knight Frank has closed another seniors housing sale in the middle of the COVID-19 crisis, representing Healthpeak Properties in its sale of a community in Lantana, Florida. Originally built in 1986, the property features 173 total units, with 115 for independent living and 58 for assisted living residents. Occupancy was around 83%. Operated by Atria Senior Living, the community was bought by Pacifica Senior Living, which paid $12.35 million, or under $72,000 per unit. Ryan Maconachy, Chad Lavender, David Fasano and Ross Sanders of Newmark handled the transaction, and Bank of the West provided a $10.4 million mortgage to fund the deal. Apparently, the property... Read More »
Going Concern Problems at Capital Senior Living
Late last Friday, Capital Senior Living announced that it expects to disclose its first quarter earnings results before the market opens on May 21, and then hold its conference call with analysts. It will not be pretty. Also late Friday, the company filed an 8-K with the SEC stating that the coronavirus was taking its toll, and we quote: “The sudden onset of COVID-19 has had a significant adverse impact on occupancy levels, revenues, expenses and operating results at our communities. Although we are unable to predict the full nature and extent of the impact of COVID-19 at this time, we expect COVID-19 will continue to have a significant adverse effect on our business, financial... Read More »
Welltower Reports Q1 Earnings
Welltower announced its first quarter earnings last week, and the REIT caused a bit of a buzz by cutting its May 2020 dividend to $0.61 per share from the previous dividend of $0.87 per share. Cutting dividends is not as rare an event these days, just ask Sabra Health Care REIT or Diversified Healthcare Trust, but if you’re a REIT, this may be the best time to do it. Welltower further added to its liquidity by settling forward equity sales agreements totaling $588 million and closing a $1 billion unsecured, two-year term loan that bears interest at LIBOR plus 120, and adding $110 million of incremental cash flow retained per quarter by cutting the dividend. The REIT also completed pro rata... Read More »
Blueprint Closes Ohio SNF Deal
Connor Doherty, Ryan Kelly, Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors closed a skilled nursing deal in Ohio on May 1. It took a motivated seller, experienced buyer and a willing lender to get the deal done, not always an easy combination these days. An older vintage with some recent updates, the 150-bed skilled nursing facility is located near Youngstown, Ohio. It was owned by a REIT and managed by a large national operator, but the time had come to sell. Turnover in key leadership positions had caused occupancy to decline, which we are sure added to the motivation to exit. Blueprint positioned the property as a value-add opportunity, if a new... Read More »Schedule a demo
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