PGIM Arranges Array of HUD Financings
PGIM’s Seniors Housing and Healthcare Group was busy on the HUD front this month, closing three loans totaling more than $33 million for three senior care facilities. Christopher Fenton, Corley Audorff, Catherine Eby and Josh Williams originated the loans and all worked on the largest transaction, which was a $21.9 million loan for a 238-unit assisted living/skilled nursing campus in Connecticut. Utilizing HUD’s 232/223(a)(7) program, the not-for-profit owner was able to lower its current interest rate by 81 basis points, and the loan term was extended to 35 years. Then, Messrs. Audorff and Williams funded a $10.9 million loan for a 141-unit senior care... Read More »
SLIB Facilitates Family’s Exit From Seniors Housing Industry
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage headed to Forest Grove, Oregon (Portland MSA) for their latest seniors housing sale. Previously owned by a family who is retiring from the industry, the property includes 92 units and 134 beds of assisted living and memory care. The AL portion was first built in 1996, with the memory care added in 2000. The building was nearly full (occupancy was at 98%), and it brought in nearly $1.28 million of EBITDAR on about $5.63 million of revenues. A regional owner/operator will be taking over that healthy cash flow and paid $15.7 million, or $170,650 per unit, for the... Read More »Recent Senior Care M&A Deal Chart, Week Ending January 29, 2021
Senior care M&A continues to plod along, here is our recent deal chart! Long-Term Care AcquirerTargetPrice Regional owner/operatorThe Grove and Gardens$15.7 million Peak Capital PartnersThe Estates at Arbor Oaks$18.75 million Not disclosedThe Handmaker Senior Living$15.5 million Owner/operatorRosewood Rehabilitation & Nursing... Read More »
Blueprint Handles Upstate New York Transaction
Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the sale of an 80-bed skilled nursing facility in upstate New York, representing the private ownership group seller in the process. Originally developed in the mid-1970s in Rensselaer, New York (across the Hudson River from Albany), the facility recently received significant capital investments that included interior renovations, operational equipment upgrades and technological enhancements. Ownership also made improvements to the majority of private rooms, which helped keep the quality mix very strong at around 50%. Operations were also solid (and improving before COVID-19), with... Read More »
JLL Sells A 55+ Community in Minnesota
The JLL Capital Markets team of Dan Linnell, Mox Gunderson, Josh Talberg and Adam Haydon represented the seller of a 66-unit active adult community near Minneapolis, Minnesota, with another JLL team financing the deal too. Set on 12.5 acres in the town of Andover, this community consists of one-, two- and three-bedroom apartments, which are newly constructed with screened-in balconies, in-unit washer and dryers and full kitchens. Amenities include continental breakfast every morning, social and recreational programs, a bistro, salon, fitness center, underground parking and car wash station, pickleball court, outdoor patio with grills and fireplaces and an outdoor... Read More »
Grandbridge’s San Diego Team Announces Tucson CCRC Closing
Grandbridge Real Estate Capital’s new San Diego-based seniors housing investment sales team including David Rothschild and Mary Christian closed the sale of a Tucson, Arizona CCRC. The not-for-profit community originally opened with 40 skilled nursing beds in 1963 to provide care to the local Jewish community. It received numerous additions over the years, most recently in 2015, and now includes 74 skilled nursing beds, 12 independent living units, 80 assisted living units and 10 memory care units on over six acres. This was the not-for-profit’s only senior living community, so both census and operating margin likely could be improved under ownership with some... Read More »
Buying Big In The CCRC Market
In case you haven’t noticed, there has been an ad for the past several weeks on these pages for the sale of a large CCRC in Michigan. When we say large, we mean 852 IL units, 96 AL/MC units and 89 skilled nursing beds. The community was substantially constructed between 1993 and 1998 and sits on 35 acres. This is Erickson Living big, and that is because the original Erickson Retirement was the developer and manager back in the 1990s. The CCRC, known as Henry Ford Village, filed for Chapter 11 bankruptcy protection in October 2020. The reason, we assume, was the low occupancy. The IL units as of November were at 69.0% and the healthcare units combined were at... Read More »
Carnegie Capital Finances Western Seniors Housing Deal
JD Stettin of Carnegie Capital announced a couple of loan closings that funded the acquisition of two senior living communities in Montana and Wyoming. If that deal sounds familiar, it’s because we covered Senior Living Investment Brokerage’s involvement in it earlier this week. Totaling a combined 107 units, split between 61 independent living and 46 assisted living units, the deal included a community built in 1995 in Cody, Wyoming and one in Great Falls, Montana that opened in 2003. They’re in good condition and reported positive cash flow, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. Both... Read More »
People on the Move
Early last year, we were surprised when Torey Riso told us he was leaving Blueprint Healthcare Real Estate Advisors, where he had been serving as President and CEO. He was brought in by the founders to add experience and his contacts to the growing firm. And grow it did. He figured he had done what was needed and it was a good time to leave. And then the pandemic hit, which we are sure altered his post-Blueprint plans. It was just announced that he has joined Huron Consulting Group as a Managing Director specializing in healthcare services, but particularly the senior care market. He has helped small and mid-size operators scale their operations, and in particular will... Read More »
The Vaccine and Census
The COVID-19 vaccine was supposed to solve the census crisis brought on by the virus, but it is not happening fast enough. Optimism still exists, however. A lot has been riding on the success of the vaccine rollout, for everyone personally as well as for the entire senior care industry. But I am worried. When I hear that certain areas are running out of vaccines, when I hear that it may not be as effective with some of the new strains entering our country, when I hear from some providers that up to 50% of their staff have decided not to get vaccinated, well, what does that say about how and when we will recover from this devastating virus? There is some optimism out there, with one... Read More »Schedule a demo
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