The New Skilled Nursing Investment Landscape
How have skilled nursing valuations changed, and when (if ever) will we get back to normal? Those were a couple of key questions in our November 19th webinar titled “Valuing SNFs During The Pandemic.” Our Managing Editor, Steve Monroe, hosted a panel with panelists Laca Wong-Hammond, Managing Director of M&A at Lument, Dan Booth, Chief Operating Officer of Omega Healthcare Investors, and David Reis, Chief Executive Officer of Senior Care Development, in which they discussed a range of topics on how the skilled nursing M&A market has been affected by COVID-19. Another question may be how has the business not changed? First, looking... Read More »
Merrill Commercial Real Estate Closes Another Oregon Transaction
The second property in the receivership sale of a four-facility portfolio in Oregon has sold, with Mike Merrill of Merrill Commercial Real Estate representing the receiver in the deal. This transaction involved a 69-unit independent living community in North Bend, near Coos Bay where the first property of the portfolio sold in August (handled by Tyler Merrill). In fact, the four properties represented a continuum of care for the local area. The North Bend community was built in 1986 and its census steadily improved throughout due diligence to reach 80% at the time of the sale. It was bringing in around $340,000 in NOI on approximately $1.74 million of trailing 12-month revenues... Read More »
Harborview Arranges Bridge Financing
Harborview Capital Partners arranged a bridge-to-HUD loan for a seniors housing community in Oregon. The property consists of 55 beds of assisted living and memory care. It received a $10.275 million loan, which comes out to $186,800 per bed. The loan features a 24-month, interest-only term, with a historically low rate. We know the demand for that sort of relatively cheap debt is out there, but the supply has been hit somewhat by the heightened caution surrounding the pandemic. Eli Osdoba of Harborview originated the transaction. Read More »
Another Bank Bond Financing From Ziegler
The bank bond financings keep coming from Ziegler, which recently closed another one on behalf of Presbyterian Village North located in Dallas, Texas. The not-for-profit CCRC was originally built in 2007 and now includes 89 buildings with 253 independent living units, 101 assisted living units, 44 memory care units and a skilled nursing facility with 106 operating beds and 172 licensed beds, all on a 66-acre campus. Its sponsor is Presbyterian Communities and Services, Inc., d/b/a Forefront Living, which is planning an expansion project that will include 112 independent living units in a new five-story building, in addition to renovations to the existing campus common... Read More »
Where Are The Gray Panthers?
Seniors in and out of seniors housing communities need to mobilize, and AARP has not been doing its job representing their members. Where are the Gray Panthers when you need them? Many of you may not remember this 1970s activist group that got its start when someone really objected to forced retirement at 65. This was a full 50 years ago today. As winter approaches and senior living providers prepare for another round of potential shutdowns, lockdowns, admission and tour bans because this pandemic is not going away, when will our senior citizens rise up and revolt? Senior living communities are “their” homes, and it is about time they stood up and said, hands off our homes. Yes, we... Read More »
Welltower Provides Update Amid COVID Spread
Once again, we are not picking on Welltower, but as the largest healthcare REIT, and the one with the largest seniors housing owned portfolio (or SHOP/RIDEA), we believe they represent a pretty decent proxy as to what is happening. Occupancy in its SHOP portfolio has been steadily declining since February, but the rate of decline seemed to be abating. Gone are the days of 100+ basis point monthly drops, but October was the first month where the rate of decline (-40 basis points) actually increased since April. Month to date in November, it has already dropped by another 30 basis points (to 77.7%), so if that trend continues, we could see November at a 50-basis point... Read More »
Private Equity Investor Acquires Dallas Seniors Housing Community
Joshua Salzman, Michael Segal and Alex Florea of Blueprint Healthcare Real Estate Advisors represented a REIT in its divestment of a 170-unit seniors housing community in Dallas, Texas. Originally built in 1987, community received a thorough renovation in 2013 and additional capital improvements since 2016. Following a previous operator transition, the REIT owner converted the remaining assisted living units to independent living, resulting in the community being fully focused on independent living. Occupancy had initially dropped after the conversion, but the community was repositioned as an affordable independent living option, and census steadily improved as a... Read More »
Meridian Capital Group Reports Active Month
The last month has seen the team at Meridian Capital Group close $672.4 million in transaction volume across 56 total properties. Comprising both financings and investment sales, that’s some impressive action. The Meridian team for these transactions comprised Ari Adlerstein, Ari Dobkin, Josh Simpson, Matt Lesnik, Jesse Rauch and David Gottlieb. First, Meridian handled the sale of five skilled nursing facilities and 527 beds in Vermont for $46.6 million, or $88,400 per bed. Gleaned from local news reports, the seller was Genesis HealthCare. Four years ago, the large provider acquired the Vermont portfolio for $39 million from Revera, Inc. Located in Bennington,... Read More »
Another Major SNF Acquisition Closes
When it rains, it pours, we suppose. Last week, Eagle Arc Partners acquired a portfolio of 20 skilled nursing facilities in the Southeast, the largest SNF deal that we had seen for some time. Just a day later, Evans Senior Investments announced that it handled the sale of 21 skilled nursing facilities across three separate transactions in three Midwest states. The combined purchase price for the portfolio was $86 million, or around $54,000 per functional bed. Eleven of the facilities are located in Indiana and combined for 751 licensed skilled nursing beds (692 functional beds) and 109 senior living units. At the time of marketing, average occupancy was around 78%, with total revenues... Read More »
Keybank Finances Renovation of Senior Apartment Community
KeyBank Real Estate Capital and KeyBanc Capital Markets worked on behalf of National Church Residences to secure acquisition financing for the not-for-profit’s renovation of an affordable senior apartment community in Cleveland, Ohio. Built in 1976, the community sits on two acres next to the Cleveland Clinic. It features 12 stories and 171 total Section 8 units, which came in one- or two-bedroom configurations. National Church Residences’ renovation project will preserve the building as affordable housing in the long term. So, KeyBank provided $14 million in HUD construction financing, with a 40-year term, and also sold $17 million of required tax-exempt bonds. In addition, KeyBank... Read More »Schedule a demo
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