Centra Health Sells Virginia Senior Care Portfolio
After deliberation by its board and senior leadership, Centra Health plans on selling its five Virginia senior care facilities. The Lynchburg, Virginia-based not-for-profit healthcare system decided it was time to focus on its core services and hand over its senior care operations to a more senior care-focused operator. Cascade Capital Group agreed to purchase the four skilled nursing facilities and have its subsidiary, Hill Valley Healthcare, operate them going forward. Then, Centra Health sold its CCRC to not-for-profit LifeSpire of Virginia, which owns and operates four CCRCs in Virginia. All parties have signed letters of intent and plan to close the sale around August... Read More »
Standard Companies Acquires Again
Standard Companies, an apartment and affordable housing real estate investment firm, has been on an acquisition roll lately in the low-income senior apartments sector. The company followed up its acquisition of a large senior apartment building in Chesapeake, Virginia with the purchase of another community located up the coast in Atlantic City, New Jersey. Built in 1982, the community’s 169 units are supported by Section 8 Housing Assisted Payment (HAP) contracts. Standard paid roughly $28 million, or $165,700 per unit, for the property and plans to spend an additional $10 million to renovate it. The project will update the residents’ units, upgrade the common areas and amenity spaces,... Read More »
ORIX Secures Bond Financing for Minneapolis-Area Acquisition
ORIX Corporation USA secured a bond financing to support the acquisition of five seniors housing communities in the Minneapolis, Minnesota metro area. The transaction consisted of both tax-exempt and taxable debt and totaled $44.8 million. Coventry Properties of Minnesota, a fully integrated real estate development community that focuses on high-acuity seniors housing in Minnesota, was the borrower, adding 153 units of assisted living and memory care to its portfolio. ORIX’s Municipal and Infrastructure Finance business, which is led by Rob Wetzler, handled the transaction. Read More »
Walker & Dunlop Represents WindRiver in Seniors Housing Deal
Duncanville, Texas-based WindRiver Companies sold an active adult community in its hometown with the help of the seniors housing team at Walker & Dunlop. Jordyn Berger, Joshua Jandris, Mark Myers, Brett Gardner and Nick Hall worked on the deal and found the buyer, Dallas-based multifamily real estate investor Edison Equity Management Corp. (Edison). WindRiver originally developed the property in 2004 and has managed it ever since. They seem to have been ahead of the game in the growing active adult market. The community features 150 units, with rents ranging from $1,200 for one-bedroom units to nearly $2,100 per month for two-bedroom options. Occupancy was close to 100% throughout... Read More »
Blueprint Ventures into MOBs
After a busy year of closing seniors housing and care transactions (with 72 separate sales announced in 2020), Blueprint Healthcare Real Estate Advisors is now expanding its services into the medical office building brokerage world. They have brought on medical office veterans Eric Lee and Chris Lashmet to lead the practice. The market for MOBs certainly showed plenty of activity in 2020, and that doesn’t seem to be slowing down in 2021. According to search results in our Healthcare Deals Database, there have been at least 19 transactions publicly announced since January 1, driven primarily by announcements from Montecito Medical Real Estate, which reported nine of those deals. MOBs... Read More »
The Prestige Group Closes Two Senior Care Sales
Joe Shallow of The Prestige Group went up and down the East Coast to sell a couple of senior care communities. First, Mr. Shallow worked with President Richard Natow to arrange the sale of a vacant personal care facility in Philadelphia. Originally built in 1920 as a rest home for retired actors, the community featured 51 beds in 24 units. Several years ago, the family owner/operator decided to close and renovate the community, while transferring all of the residents to its sister facility in Philadelphia. However, the owner decided to sell and enlisted Prestige to run the process after the brokerage firm originally sold them the property. A local contractor with a number of apartment... Read More »
JLL Capital Markets Does Double Duty
JLL Capital Markets successfully sold and arranged acquisition financing for a large independent living community in the northern Detroit suburb of Southfield, Michigan. Featuring 298 units, the community is also primed to be converted into active adult, but we will wait and see if the new regional owner/operator (who is focused on that market) will do that. They paid $17 million, or $57,000 per unit, for the property and received $25.35 million in non-recourse financing to cover both the purchase and planned renovations. JLL’s David Gaines, Joel Mendes and Dav Macdonald worked on behalf of a private investor seller to complete the sale, while Trent Niederberger and Stephen Van Leer... Read More »
The Divergence of the “A” vs. “B” Communities
Prior to the pandemic, investment demand was high for the so-called “value-add” properties, with the potential for much higher returns than for “A” properties. With crashing occupancy all around, did this dynamic change, and will the disparity between “A” and “B” values grow wider post pandemic? The COVID-19 pandemic hit the seniors housing industry hard, and while no community was immune from the difficulties, there are probably going to be winners and, unfortunately, losers coming out of this. Lower acuity communities appear to have performed better in the last year, and properties with strong existing census had a leg up going into the pandemic. But in 2020, buyers seemed to have... Read More »
Newmark Sells Chesapeake, Virginia Community
The Newmark team has closed the sale of a seniors housing community in Chesapeake, Virginia (Virginia Beach MSA). Opened in 2000, the community features 47 assisted living and 26 memory care units. It averaged occupancy of 77% in 2020, which provided moderate cash flow for ownership. But that level could be improved, so a new regional owner/operator stepped in to acquire the property for $12 million, or $165,000 per unit. They expect to invest capex into the community and improve the physical plant. Their regional presence should also help provide scale to increase the operating margin. Read More »
Dwight Capital’s Strong Q1 Activity
Dwight Capital’s first quarter is in the books, and it was an active three months for them to say the least. The firm financed $121.6 million across 12 transactions, including four HUD loans, seven bridge financings and one additional financing. Starting with the HUD deals, Dwight Capital first closed a $21.3 million loan for a 195-bed skilled nursing facility in Long Grove, Illinois. Built in 1996, the facility received a substantial renovation in 2016 and now includes a therapy gym, family lounges, spa and salon services, and sound proofing to promote rest. It last sold in 2016 to Cascade Capital Group for around $14.4 million, or close to $75,000 per bed. After the deal, Legacy... Read More »Schedule a demo
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