LTC Properties’ Quarter of Flux
With its most recent earnings results out, LTC Properties reported a quarter of flux, transition and ongoing rent relief for its tenants. These can all certainly be good things for the company going forward, but we’re sure they would have liked to report some good operating news as well. To start off, the REIT transitioned 11 assisted living communities previously leased to Senior Lifestyle to two new operators: Randall Residences, which is taking over six of them, and Encore Senior Living which took over the remaining five. This was not new news, as LTC announced the change in its fourth quarter earnings report in February. And the release of the other 12 properties could not come soon... Read More »
Merrill Commercial Real Estate Handles Two-Community Deal in California
It took over a year, but Tyler Merrill of Merrill Commercial Real Estate successfully closed the sale of two assisted living communities in Redding, California. One of the communities in particular was hit hard by COVID-19, and occupancy dropped by a combined 20% across the two properties. Despite that, the same private equity buyer remained interested throughout the difficult year and kept to the same agreed-upon purchase price of $18 million, albeit with an approximate $1 million holdback in escrow until the new owner reaches pre-COVID NOI levels and 75% occupancy. Before the pandemic, the communities maintained around 88% occupancy, but there is a lot of upside in expense management.... Read More »Recent Senior Care M&A Deals, Week Ending April 30, 2021
April ended with a bit of a whimper in senior care M&A activity, but check out our recent deal chart. Long-Term Care AcquirerTargetPrice Private equity firmSkilled nursing/assisted living facilityN/A MA-based owner/operatorAssisted living/memory care communityN/A Private equity firm2 assisted living communities in Redding, CA$18... Read More »
Blueprint Sells Down East
Steve Thomes and Ben Firestone of Blueprint Healthcare Real Estate Advisors sold an assisted living/memory care community on the scenic Maine coast. Located just south of Portland, the property consists of a 57-unit assisted living and a 41-unit memory care building developed in 1996 and 1997, respectively. They were owned by a REIT and endured fluctuations in their occupancy throughout the pandemic. Eventually, a Massachusetts-based owner/operator with communities throughout New England emerged as the buyer, paying an undisclosed sum. Read More »
Welltower Sees Light at End of Tunnel
Welltower was the first REIT out of the gate with its first quarter earnings release, something the market has been waiting for to see if there are any signs that a turnaround is on the way. The answer is…sort of. First the bad news. Average first quarter 2021 occupancy in its seniors housing owned portfolio declined by about 310 basis points from the fourth quarter, which was near the middle of management’s forecast, so totally expected. The occupancy at the end of March was 73.6%, or 1,210 basis points lower than at the end of January 2020. That’s a big hole their operators have to dig out of. Assisted living and independent living revenue per occupied room... Read More »
Welltower Announces New Investments
At the same time it released first quarter earnings results, Welltower announced a major recapitalization of HC-One, the largest UK-based seniors housing platform, where it previously had a mezzanine loan investment with one of the owners. Formation Capital has been a 50-50 owner in HC-One, along with partner Safanad. Formation rolled most of its capital into the recapped company. Welltower has provided a $750 million secured loan and a $76 million equity investment into HC-One. The loan will refinance existing debt and will help to simplify the company’s capital structure. It has a five-year term and is fully collateralized by HC-One’s real... Read More »
Joint Venture Acquires Former Brookdale Community in Florida
Owner/operator Inspirit Senior Living and investment/asset management firm Venue Capital co-sponsored a joint venture with Drake Real Estate Partners to acquire a seniors housing community in Lecanto, Florida. Immediately after the deal, the three parties are also planning a substantial renovation and rebranding of the property. Built in 1988, the community consists of 79 assisted living and memory care units. Welltower previously owned the property, with Brookdale Senior Living operating it. However, Inspirit will take over management going forward, bolstering its presence in the Southeast. In early 2020, Inspirit and Venue Capital also acquired a portfolio of four... Read More »
Blueprint Handles Another Ohio Transaction
Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors have been on a roll lately, closing transaction after transaction in the state of Ohio. The latest one features a skilled nursing/assisted living facility located near the University of Akron campus. Originally built in 1917 and comprehensively renovated in the mid-2000s, the facility was previously owned by a regional owner/operator that decided to focus on other aspects of their portfolio. Straightforward transactions have been few and far between during the last year, and Messrs. Doherty and Kelly did encounter some acquirer hesitancy. However, negotiations continued, and the deal closed in early April. A... Read More »
Greystone Refinances Long Island SNF
Greystone’s HUD streak continues in the Northeast, following up on its refinance of a Yonkers, New York skilled nursing facility with a financing closed for a large skilled nursing facility on Long Island. Featuring 214 beds, the facility was originally built in 1972 on Long Island’s North Shore. It provides care for high-acuity, medically complex patients, with services ranging from cardiac care and post-surgery orthopedic rehab to physical and occupational therapy. Fred Levine arranged a $17.3 million HUD loan through the agency’s Section 223(a)(7) program, thereby lowering the borrower’s interest rate and extending their amortization period. The borrower was also able to raise... Read More »
Waiting To Sell, Or Buy, Or Lend
If census has indeed bottomed in the senior care industry, investors may still want to wait for several months of sustained growth before buying again. Although “consensus” on anything is dangerous to rely on, it does seem that either we have hit that bottom of the occupancy plunge, and if not, we are very close to it. After a year of turmoil and uncertainty, a rising national occupancy level for seniors housing will be quite a relief. What we are hearing is that some lenders want to see at least three months of consistent, increasing census for their new loans, and we suspect some buyers will want to see that as well. I guess you could say they want to see it before they will believe it.... Read More »Schedule a demo
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