Despite COVID-19, HUD Lean Records Strong 2020 Fiscal Year
This was not another ordinary fiscal year for HUD ended September 30, but the LEAN program still ended with nearly $4.4 billion in closings. That follows more than $3.7 billion in closings in the fiscal year 2019, which itself represented a slight increase over 2018’s volume. To reach such a high under the current circumstances, with in-person property inspections virtually impossible for months and HUD employees adjusting to working at home like so many of us, took great flexibility and a lot of hard work to get done. Greystone was head and shoulders atop the list this fiscal year, both in terms of transactions closed and in dollar volume. The firm closed 75 loans totaling more than... Read More »
Blueprint Handles Tacoma, Washington Transaction
A well performing assisted living community in Tacoma, Washington found a new owner with the help of Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. The seller has owned and operated the community for two decades, and is leaving behind a community with strong operations and cash flow. The 110-unit community caters to the middle market. Blueprint sourced a number of small owner/operators in Washington to take over and eventually found a local company with two other Tacoma communities. They worked with Harvest Bank to secure acquisition financing at 85% of the purchase price, which was not disclosed. The buyer plans to utilize its economies of scale in the Tacoma... Read More »
CBRE Refinances Tennessee Senior Living Community
The team at CBRE was in tune working through a Freddie Mac refinance of a senior living campus in Murfreesboro, Tennessee (Nashville MSA). According to our public M&A database, Deal Search Online, the borrower, a joint venture between Venue Capital LLC and Inspirit Senior Living, acquired the property from a local doctor and operator in January 2018 for $12.45 million, or $132,500 per unit. Built in 2001 with 68 assisted living and 26 memory care units, the community was around 85% occupied and operated at a 22% margin on $4.03 million of revenues at the time of that sale. There was an opportunity to especially improve the memory care census, so in came Inspirit and Venue... Read More »
Recent Senior Care M&A Deals, Week Ending October 9, 2020
The start of the fourth quarter came with a slew of senior care M&A closings, check out our recent deal chart! Long-Term Care AcquirerTargetPrice Real estate investor3 skilled nursing facilities in Houston, TX area$27 million Capri CommunitiesAster Senior Communities of Cottage Grove & Drumlin ResidenceN/A Private buyerRockport Senior Living$4.8 million Regional owner/operatorAmara Place$5.5... Read More »
McFarlin Group Raises Fund For Distressed Debt Deals
One result of the pandemic that we are sure of will be a rise in the number of sales for distressed assets in the next couple of years. Many communities that were already struggling before COVID-19, because of overbuilding, increased labor costs and other factors, will certainly have difficulty generating the cash flow necessary to service their debt or lease obligations, especially if the occupancy recovery is as slow as some at the NIC Conference are estimating. One company, McFarlin Group, has already announced that they will be committing $100 million to the purchase of distressed loans for seniors housing communities and has so far closed on two deals. McFarlin Group, which was... Read More »
SLIB Closes Columbia, South Carolina Transaction
Bradley Clousing and Jason Punzel of Senior Living Investment Brokerage handled the sale of a senior living community in Columbia, South Carolina. Its private partnership owner was looking to exit the sector, which prompted the transaction. Originally built in 1996, this community was extensively renovated in 2006, 2013 and finally 2016, the last of which saw $2 million invested. It now features 38 independent living, 32 assisted living and 22 memory care units, with a full range of amenities and an attractive physical plant. There are seven buildings on the 6.86-acre site. Occupancy was just 66%, while the community operated at an 8% margin on nearly $2.1 million of... Read More »
Blueprint Sells SNF Portfolio in Receivership
After already serving as interim manager of a portfolio of four skilled nursing facilities in receivership, an East Coast-based skilled nursing operator found a capital partner to acquire the portfolio. Steve Thomes, Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors were engaged by the Massachusetts-based court-appointed receiver to handle the sales process. All built between 1967 and 1975, these facilities total 572 beds and are located throughout eastern Massachusetts. Following a slight rebound in operations when the current operator stepped into its role in mid-2019, COVID-19 negatively impacted operations across the portfolio (no surprise there given the... Read More »
Evans Senior Investments Announces Two Deals
Evans Senior Investments kicked off the fourth quarter with a couple of deals involving seniors housing properties. The first involved a 154-unit campus in Cottage Grove, Wisconsin that has grown over the last 15 years to include 60 independent living, 70 assisted living and 24 memory care units. It initially opened in 2006 with the AL community, then added the memory care in 2016 and finally the independent living community in January 2018. Occupancy exceeded 93% across the campus for the past few years, and even higher at the brand-new IL portion. Revenues and EBITDAR consistently hovered over $6 million and $2.2 million on an annualized basis, respectively, although we imagine there... Read More »
Helios Handles Houston-Area Portfolio Deal
A skilled nursing portfolio located around the Houston, Texas metro area with some operational and financial struggles found a new owner and operator with the help of the team at Helios Healthcare Advisors. Totaling 390 beds, these facilities were built in the last 10 years by the seller, a regional developer. However, newer vintage is no guarantee for successful operations, and the regional operator that leased the facilities faced difficulty maintaining high census and a good quality mix. There were also some clinical issues that further depressed referrals. These problems resulted in negative lease coverage and cash flow at the time of the sale. So, Helios sourced a real estate... Read More »
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 »Schedule a demo
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