Wishing Tom Well(tower)
An unexpected announcement by Welltower that CEO Tom DeRosa stepped down with COO Shankh Mitra named as his replacement. I was not the only one surprised by Welltower’s announcement that CEO Tom DeRosa was stepping down effective immediately. My cell phone was buzzing Monday night with questions, mostly centered around why. Whatever the reason, we wish him well. No one was surprised, however, that COO, Vice Chair and Chief Investment Officer Shankh Mitra has been named as CEO, but will retain his CIO role. He has been spearheading the REIT’s portfolio realignment the past two years, a process that has given Welltower $2.2 billion of cash on its balance sheet and a revolver with $3.0... Read More »
CBRE Handles Sarasota-Area Sale and Financing
It was all hands on deck at CBRE for the sale of an Englewood, Florida (Sarasota MSA) senior living community. We wrote about the deal earlier this week when Chicago Pacific Founders (CPF) announced its acquisition of the property. Featuring 118 units of assisted living and memory care, this community opened in 2017. It is located just minutes from the water and a number of shopping centers and medical facilities. There is also an adjacent 50-acre plot that CPF also acquired to add independent living units and cottages. After leasing up at a rate of approximately six move-ins per month until stabilizing in 2019, the community was 93% occupied at the time of closing. Grace Management will... Read More »
Sinai Residences of Boca Raton Embarks on IL Expansion
Sinai Residences of Boca Raton, a 366-bed/unit CCRC in southeast Florida managed by Life Care Services, obtained a large bond financing to fund an independent living expansion that will grow its IL offering by nearly 50%. Just four years ago, the community opened with 234 independent living units, 48 assisted living units, 24 memory care units and a 60-bed skilled nursing facility, all at a cost of $265 million, or nearly $725,000 per unit/bed. Upon the ribbon cutting, all of the IL residences were already sold, and about $90 million of entrance fee principal redemption bonds helped fund the project in addition to another $124 million fixed-rate bond financing, both arranged by HJ Sims.... Read More »
Lancaster Pollard Charges Into Chambersburg
Lancaster Pollard, a division of ORIX Real Estate Capital, recently refinanced a senior living community in Chambersburg, Pennsylvania. Providence Place Senior Living, a family-owned operator that is headquartered in Hershey, Pennsylvania, owns the 17-acre campus, which features a mix of independent living, assisted living and memory care units. Monthly rates start at $3,082 for independent living, $4,122 for assisted living and $4,411 for memory care. It is located three miles from the Chambersburg Hospital. Miles Kingston, Doug Harper and Casey Moore of Lancaster Pollard secured an $11.5 million loan through its Fannie Mae Seniors Housing program. The loan came with a long term and... Read More »
Welltower Continues To Divest
For news on Welltower’s leadership change, please watch “60 Seconds with Steve” above. The REIT did this week finally disclosed (what we broke last week) its $702 million sale of 11 senior living properties in California, Washington and Nevada to a joint venture between AEW Capital Management and Merrill Gardens, which has been operating the portfolio for Welltower. We reported that the cap rate of pre-COVID cash flow was about 5% based on trailing-12 months ended March 31, 2020. But with the occupancy decline in the past six months, August’s cash flow annualized had dropped to about $25.3 million, producing a cap rate based on that annualized number of 3.6%. The... Read More »
Senior Living Investment Brokerage Brokers Bankruptcy Sale
The Senior Living Investment Brokerage team of Ryan Saul, Patrick Burke and Toby Siefert put in the hours to work through a bankruptcy sale of a 130-bed skilled nursing facility in Bristol, Tennessee. Originally built in 1986 and 1990, this facility was owned by a regional skilled nursing operator. Over the last couple of years, it faced challenges with occupancy and cash flow, and as a result, both the OpCo and PropCo were placed into bankruptcy for liquidation. In came the SLIB team, which ran an extensive marketing campaign during the height of the pandemic, and despite a few extended deadlines, they found a buyer in a Mid-Atlantic-based regional skilled nursing owner with operating... Read More »
Turnaround Texas Senior Living Portfolio Sells
There is plenty of potential to add value in a portfolio of three seniors housing properties in Texas that recently sold. That is mainly because two of the communities are currently vacant. Located in eastern Texas within a two-hour drive of each other, the portfolio comprises 132 total units of assisted living. The one property that is operational was performing well, with positive cash flow and 90% occupancy at closing. But a new owner will have the chance to acquire the vacant communities below replacement cost, while also adding a stabilized property to its portfolio. That buyer ended up being Dallas area-based WindRiver Companies, a seniors housing developer, owner and... Read More »
Chicago Pacific Founders Adds Florida Community
We’ve written about how private equity firms are likely the buyers best equipped to acquire senior care assets in this current environment, given their deep pockets and penchant for value-add deals. One of those firms, Kayne Anderson Real Estate Advisors, has already shown its interest by closing several deals, including the $500 million acquisition of seven senior living properties from Welltower in June and the $97 million purchase of two brand-new senior living communities in the St. Louis, Missouri area announced just last week. AEW Capital Management is another that threw its muscle around with its $700+ million acquisition of another Welltower seniors housing operating portfolio made... Read More »
M&T Realty Closes Slew of HUD Deals
The team at M&T Realty Capital Corporation has been busy lately with a number of HUD refinances and loan modifications. M&T entered the third quarter with a pipeline of over $225 million in potential financings covering multiple HUD products. Recently, the firm has closed eight of those transactions, totaling $126 million. The senior care facilities receiving the financings were spread out across the country in Maryland, Mississippi, New York, Pennsylvania, Utah, Washington, Connecticut and Virginia. The borrowers were able to take advantage of the low interest rate environment, securing fixed rates below 2.75%. Also, in one case, M&T had to close a HUD deal when a COVID-19... Read More »
Recent Senior Care M&A Deals, Week Ending October 2, 2020
The third quarter ended with just 57 publicly announced deals, but the start of October was a little more active than usual. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Kayne Anderson Real Estate AdvisorsThe Boulevard Senior Living at St. Charles & The Boulevard Senior Living at Wentzville$97 million National Health InvestorsThe Courtyard at Bellevue$12.3 million Chicago Pacific FoundersHeritage Oaks of EnglewoodN/A WindRiver Companies3 senior living... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
