Avanath Capital Management Moves Into Orange County
Avanath Capital Management, an investment firm that acquires, owns, renovates and operates affordable housing across the country, added another property to its portfolio in California, and its first in Orange County. Originally built in 1959 in the town of Garden Grove, the target features 85 units in four stories. It is located adjacent to the Garden Grove Hospital and Medical Center, and that probably helps the property’s popularity, as it has been consistently 100% occupied. The seller, Los Angeles-based Meta Housing, originally developed the building but has now sold it for $19.85 million, or $233,500 per unit. Read More »
Fairstead Acquires Naples Senior Community
Fully-integrated real estate firm Fairstead secured several sources of financing to fund its purchase of a 250-unit affordable senior apartment community in Naples, Florida. Chicago-based developer Full Circle Communities sold the 45-year-old community for $59.5 million, or $238,000 per unit. Currently, there are a variety of supportive services including health and wellness programs, on-site meals, van transportation to doctor’s appointments, pharmacy visits, education programs and other activities. Fairstead is also planning a $25 million renovation of the property, which will include improvements made to common areas and every residential unit, with a... Read More »
Recent Senior Care M&A Deal Chart, Week Ending February 12, 2021
The senior care M&A market keeps chugging along, here is our most recent deal chart. Long-Term Care AcquirerTargetPrice Private investorSachem Adult Home & South Bay Adult Home$9.0 million Avanath Capital ManagementThe Grove Senior Apartments$19.85 million Hill Valley Healthcare3 skilled nursing facilitiesN/A Tryko Partners, LLCRegina Community Nursing... Read More »
SLIB Sells Two More ALPs in New York
Senior Living Investment Brokerage’s Dave Balow has been crisscrossing the state of New York lately, selling an upstate ALP (Assisted Living Program) facility last week and represented the seller of two ALP facilities just this week on Long Island. CIBC Bank USA also provided $6.75 million in acquisition financing to support the purchase. CIBC’s Fritz Kieckhefer arranged the debt. Located in Holbrook and Center Moriches, the two properties combine for 85 beds in 46 units. The private seller had owned them for over 40 years and was able to produce consistently strong cash flow over the years. In fact, it operated at a roughly 40% margin on more than $2.56 million... Read More »Tryko Partners Adds Pennsylvania SNF to Portfolio
Tryko Partners acquired a 121-bed skilled nursing facility in Norristown, Pennsylvania, in the greater Philadelphia region and is planning a significant capital investment project to the 40-year-old building. Set on five acres, the four-star facility is located about 12 miles from downtown Philadelphia and is within a 10-mile radius of nine short-term acute-care hospitals. It had been previously owned by a faith-based not-for-profit for 50 years, and Timothy Bonjo has been the facility’s administrator for 36 years. It’s not often you see that kind of tenure in this industry. Planned upgrades to the three-story building, which should cost around $2.5 million,... Read More »
Hill Valley Healthcare Announces Tidewater Transaction
The team at Meridian Capital Group consisting of Ari Adlerstein, Ari Dobkin and Josh Simpson secured acquisition financing for a portfolio of three skilled nursing facilities in Virginia. Located along the Chesapeake Bay coast in Warsaw, West Point and Hampton, the facilities feature 80, 60 and 130 beds, respectively. Built between 1975 and 2001, they were all previously owned and operated by Riverside Health System, a not-for-profit based in Newport News, Virginia. Hill Valley Healthcare, a national skilled nursing operator, was able to acquire the facilities with the help of a $21.7 million loan from a commercial bank, plus a $3.5 million A/R line and... Read More »
Boosting Your Census Now
Occupancy levels continue to decline, yet demand seems to be increasing as customers are coming back to take a look. There is a disconnect between the seller and the buyer that needs to be fixed now. The public companies are about to start releasing their earnings and census reports, and it may not be pretty. But, it does not have to stay that way. My gut tells me that a lot of sales staff have been blaming the virus on their inability to sell and fill units. Makes sense, right? But what if how they are selling, and communicating, or not communicating with customers, is the real problem? Do you think management and salespeople have adapted to the new environment, the new mentality of... Read More »
Healthpeak Properties Completes More Sales
As the healthcare REITs start their quarterly reporting season, of course all eyes will be on the occupancy trend, which for most of them will not be so great. But one aspect about what is happening, and often little noticed, is that the news is showing that the demand for seniors housing assets is still quite strong, pandemic be damned. Obviously, Healthpeak Properties would rather not be selling off its seniors housing portfolios, especially if they had been performing well, since in years past they provided the highest yield to support the REIT’s dividend and growth. But performance had suffered, and the decision was made to sell. No one is crying for them,... Read More »
Welltower Still Sees Opportunity
We all know that Welltower has been selling a few billion of seniors housing assets just like Healthpeak Properties has. But the difference is that Welltower is still buying. Not only that, they picked up a 790-unit portfolio operated by Harbor Retirement Associates for $132 million, or $167,000 per unit. The seller? Healthpeak (see story above). Even though the portfolio had negative lease coverage, we are sure Welltower is looking at that well-below-replacement-cost pricing. But Welltower needs to pay attention to its own operating portfolio, where occupancy continues to decline. The average census was 77.3% in November, falling to 76.3%... Read More »
Redwood Senior Living Doubles Its Golden State Portfolio
Redwood Senior Living, a growing assisted living provider based in the Bay Area and run by Anthony M. Barbato, announced that it doubled its portfolio in one day, closing escrow on two properties at the start of February to bring its total portfolio to four communities. Redwood secured lease-option-to-purchase agreements from two separate mom & pop sellers in California. The Santa Rosa property was built in the 1970s before being taken over by the current seller in the late-1990s. It features 22 beds in 11 units, including a hospice waiver on five beds. Another mom & pop acquired the 21/unit/41-bed Bakersfield community (also built in the 1970s) in the early 2000s. The... Read More »Schedule a demo
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