60 Seconds with Steve Monroe: Record M&A Year, Again
You may start to get tired of hearing us talk about all the records being set, but we will never tire of it. As of November 11, we have passed last year’s record of total acquisitions in the seniors housing and care sector, now standing at over 720 deals, according to LevinPro LTC. And we thought last year was an amazing year! The good news is that pricing has been relatively reasonable so far, mostly because of still-high interest rates and lenders not getting too aggressive. What we don’t know is how long this will last. “Stupid” money that has appeared in previous rising markets has not yet reared its ugly head, but that will probably change. Everyone is looking for a growing market,... Read More »
Regional Owner/Operator Acquires in North Carolina
A skilled nursing facility with 130 beds recently sold in North Carolina. It was 53% occupied and not stabilized at the time of sale. According to LevinPro LTC, the purchase price was one of the highest per-bed prices we have seen in the state, at $21 million, or $161,500 per bed. The seller, a North Carolina-based owner/developer that had owned the facility since its construction in 1991, was divesting to exit the business and retire. The company that was managing the facility at the time of the sale was a multi-generational, one-state operator with multiple facilities in its portfolio. Despite volatility in the Medicaid rate, and capex needs, Stan Klos III of 3G Healthcare Real Estate... Read More »
Tennessee Community Trades in Receivership Sale
Blueprint recently announced a few closings involving a prominent lender and special services seller. The first was in Raleigh, North Carolina, and was handled by Kyle Hallion, Kory Buzin and Steve Thomes. Buzin and Thomes facilitated the second deal, selling Knollwood Point in Mobile, Alabama. The pair also sold The Pointe at Kirby Gate in Memphis, Tennessee. The Pointe at Kirby Gate is a 1996-vintage, 52-unit, distressed assisted living and memory care community that was struggling to rebound from pandemic-era lows. Blueprint highlighted its location and proximity to three major short term acute hospitals, targeting buyers with a presence and/or interest in Memphis. The marketing... Read More »
Northeast-Based Owner/Operator Expands in Georgia
Daniel Geraghty, Bradley Clousing and Nick Cacciabando of Senior Living Investment Brokerage were engaged in the sale of a skilled nursing facility with 100 beds in College Park, Georgia. At the time of sale, the facility was operating at a loss. The seller was a national owner of long-term care and seniors housing assets across the country, and the ultimate buyer was a Northeast-based owner/operator that is expanding its Georgia portfolio. They plan to relocate the beds within the county. Read More »
Provident Bank Funds Portfolio Refinance and Recapitalization
Tom Cassidy of Provident Bank’s Healthcare Lending team provided funding to a regional owner/operator in the Southeast. The new client, a family business, secured a $29.84 million portfolio refinance and recapitalization of four stabilized seniors housing communities in Florida. The well-performing portfolio totals more than 250 units across a mix of independent living, assisted living and memory care. The properties are located in close proximity within an extended Central Florida MSA, supporting operational and staffing synergies. At the time of underwriting, occupancy was in the 90s, and no agency staffing was utilized. As part of the recapitalization, the borrower had completed a... Read More »
Did Blackstone Sell Too Soon?
According to recent media reports, real estate investor The Blackstone Group has sold and is in the process of selling about $1.8 billion in seniors housing assets. It wants to completely exit the seniors housing business which they claim has been a disaster for them. One report stated that they have lost upwards of $600 million across the portfolio. Apparently, they were a bit befuddled that seniors housing is not a simple real estate business, that it has a lot of moving parts, is management intensive and that you need good managers. Oh, and then there was that problem with the pandemic. All we have heard, from one source, is how seniors housing has outperformed all other real... Read More »
Brookdale Continues Winning Streak
The big question is, why did this not happen earlier? We are talking about Brookdale Senior Living’s occupancy recovery, and why the previous leadership seemed unable to move the needle, but as soon as they were gone, everything has been on an upward trend. Hmmmmm. Things are not perfect at Brookdale, but they never were. However, same-community occupancy is up by 260 basis points year over year to 82.3%. Even though it lags the rest of the industry, we will take it. Same-community month-end occupancy in October was 84.2%, the highest in years, and a great sign, especially going into the historically tough fourth and first quarters. That represents a 400-basis point increase since... Read More »
National Health Investors Adjusts Its SHOP Portfolio
National Health Investors, Inc. announced some adjustments to its SHOP portfolio, raising its full-year guidance for the third consecutive quarter due to the contribution of recently transitioned and newly acquired SHOP properties, along with continued strength in its investment pipeline. The REIT also had an update on its lease agreement with National HealthCare Corporation. First, NHI transitioned seven properties from the real estate investments segment to its SHOP portfolio, which resulted in consolidated SHOP NOI year-over-year growth of roughly 63%. However, the REIT’s same-store SHOP portfolio, comprising 15 legacy Holiday Retirement properties, saw NOI decline 2.2% with lower... Read More »
Strawberry Fields’ Three Separate SNF Transactions
Strawberry Fields REIT, Inc. announced three separate skilled nursing transactions that closed during the third quarter. Two previously announced acquisitions were in Missouri, and the recently announced purchase was in Oklahoma. In July, the REIT completed the acquisition of nine skilled nursing facilities with 686 beds in Missouri. The acquisition was for $59.0 million and the company funded it utilizing working capital. Eight of the facilities were leased to Tide Group and were added to their existing master lease that Strawberry Fields entered into in August 2024. This acquisition increased Tide Group’s annual rents by $5.5 million with rents structured to rise 3% per year. The... Read More »
Receivership Estate Sells in Alabama
Kory Buzin and Steve Thomes of Blueprint handled another successful sale on behalf of a lender and special servicer, this time involving a receivership estate in Mobile, Alabama. Knollwood Point, a 2001-vintage, 46-unit assisted living and memory care community, struggled in recent years as a result of challenged occupancy and volatile staffing. The deal was positioned as an opportunity for an incoming regional owner/operator to acquire a well-maintained community, with the potential to stabilize the community’s operating cash flow through the implementation of expense control measures. Multiple competitive offers were procured, with the ultimate buyer being an owner/operator with an... Read More »Schedule a demo
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