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 »
Senior Living Investment Brokerage Closes Rocky Mountain Transaction
An institutional owner engaged Brad Clousing, Jason Punzel and Jeff Binder of Senior Living Investment Brokerage to sell two senior living communities in two western states. 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. Both were former Emeritus properties that have since been operated by Brookdale Senior Living. They’re in good condition, but occupancy could be improved, currently sitting at 72% at the Cody location and 87% in Great Falls. An Oregon-based regional owner/operator believes its... Read More »
Marcus & Millichap Duo Sell Tucson Community
Alex Snyder and Hamid Panahi of Marcus & Millichap’s Tucson, Arizona office didn’t have to go far for their latest seniors housing deal, selling an 80-unit assisted living community in their hometown of Tucson. They represented both the merchant developer seller and regional owner/operator buyer (both also based in Tucson), the latter of which paid $5.6 million, or $70,000 per unit, for the property. The buyer utilized a combination of a seller carryback, bridge debt and conventional debt to finance the acquisition. Opening in 2018 and still leasing up when the pandemic hit, the community was just 42.5% occupied at the time of the sale. However, new ownership made their... Read More »
Northmarq Refinances Washington State Seniors Housing
Northmarq’s Stuart Oswald, senior vice president and managing director of the firm’s Seattle office, arranged a $35 million refinance of a 136-unit senior living community in Tacoma, Washington. Built in phases from the 1980s to the 1990s, the community provides independent living, assisted living and memory care services in a combination of 61 studios, 33 one-bedroom units, five two-bedroom units and 37 units dedicated to memory care. A family has owned and operated it since opening, with the third generation now in charge, and operations have been consistently strong, even during the pandemic. Occupancy was in the 90% range. Northmarq originally refinanced the property... Read More »
JLL Announces Seniors Housing Portfolio Deal
The JLL team got off to a prolific start this January, already handling a couple of transactions across 17 seniors housing properties. The big one involved the sale of 16 seniors housing communities previously owned by a publicly traded REIT. Totaling more than 1,800 units, these communities were located in three states and consisted of a mix between independent living, assisted living and memory care units, with some skilled nursing beds too. They were not new, averaging more than 20 years in age, and did not escape the effects of COVID-19. Occupancy dropped from around the mid-80% range to the mid-70s, and we imagine cash flow was affected too. A non-traded REIT... Read More »
Blueprint Sells a SNF in Louisiana
Brooks Blackmon of Blueprint Healthcare Real Estate Advisors headed down to the bayou to sell a 120-bed skilled nursing facility in Oak Grove, Louisiana (near the border of Arkansas). Built in stages from the 1960s through 1987, the facility had been owned by multiple generations of a local family since its opening, and now they are seeking to exit the industry. Occupancy was just under 50%, and it was operating a little above breakeven. Blueprint started the marketing process in late-2019, and a buyer was found in a Southeast-based regional owner/operator, but the pandemic led to numerous delays. Eventually, the deal closed with no purchase price reduction,... Read More »
Recent Senior Care M&A Deal Chart, Week Ending January 22, 2021
The M&A market was on fire in the last month of 2020, and got off to a fast start in 2021. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Non-traded REIT16 seniors housing communitiesN/A Local individualAssisted living community in San Antonio, TXN/A Regional owner/operatorCarroll Nursing HomeN/A Owner/operatorThe Village of GoshenN/A Out-of-state groupTender Hearts Assisted Living$9.2... Read More »
Lakeland Bank Finances Skilled Nursing Expansion in NJ
A skilled nursing owner/operator in Morris County, New Jersey (New York City MSA) obtained financing from Lakeland Bank to expand and improve its services in the state. The $4.1 million loan will help fund renovations to underutilized space and increase the number of available licensed beds at the unnamed facility. The projects were not expected to disrupt day-to operations, according to Ron Krauskopf of Lakeland’s Healthcare Banking group, who worked on the transaction. Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc., which has over $7 billion in total assets. Read More »
Jon Harder Gets Sentence Commuted
When was the last time anyone thought about Jon Harder, the founder and CEO of Sunwest Management who was sentenced to 15 years in prison for the “misuse of investment funds during the real estate crisis” of 2007 to 2009? Well, that is an understatement if we ever saw one. At its height, Sunwest was one of the largest senior living companies in the country. Back in the day, in the 2000s, when Mr. Harder was building his empire, overpaying for properties and then not properly managing them, people often wondered, “how is he doing it?” We heard from many brokers that the runner up bids were often 10% to 20% below what Sunwest was offering, not even close enough to ask anyone... Read More »
Senwell Sells Indiana “Green House” SNF
A month after closing an assisted living community sale in North Carolina, Senwell Senior Investment Brokerage switched gears to the skilled nursing market to sell a small facility in Goshen, Indiana. Opened in 2018 by an owner/operator, the facility consists of four homes in the “Green House” style, each with 12 private rooms. Each home has a family room, dining room and kitchen, with an open concept. That separation may have also played a role in reducing the risk of COVID-19 outbreaks too. And it clearly worked at this location, as it quickly filled up with mostly Medicare and private pay residents. The community also operated at a strong EBITDAR margin. Ben Bohland... Read More »Schedule a demo
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