M&T Realty Finances Virginia Acquisition
M&T Realty Capital Corp. secured financing to support Irvine, California-based Avanath Capital Management’s acquisition of an affordable senior apartment community in Sterling, Viriginia (Washington, D.C. MSA). Developed in 2001 with low-income housing tax credits, the 150-unit community was previously owned by a private local investor. Set in a desirable location and featuring a quality physical plant, the community was apparently financially stable. Emerging from several potential buyers, Avanath purchased the community for $27.2 million, or $181,300 per unit. Henry Mathies and Fletcher Hultman of Greysteel’s East Coast Affordable Housing... Read More »
Ohio Renovation Receives Variety of Funding
A senior apartment community in Dayton, Ohio is getting a substantial renovation with the help of financing from a variety of sources. The building is a federal historic site, originally built in 1929 as the Dayton Biltmore Hotel. It converted to affordable senior living in 1981 and currently features 230 units in 18 stories, with over 23,000 square feet of communal space and 14,000 square feet of commercial space. According to county records, Related Companies, a New York City-based developer, purchased the building in August 2020 for $4.2 million as part of a larger $590 million transaction for 51 affordable housing properties formerly owned by Aimco. Now, Related Companies and... Read More »
Blueprint Sells Washington State Community
A former JEA Senior Living-operated assisted living/memory care community in Pasco, Washington found a new owner with the help of Jacob Gehl, Humair Sabir, Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. Built in 1975 and owned by a private group, the community features 82 units of assisted living and memory care. It has positive cash flow and was close to 90% occupancy at the time of marketing, but its operating margin could be improved. Some capital improvements may also be needed. On a positive note, the building has been well maintained and the market has limited direct competition. That attracted Greenlake Management, a... Read More »
Sentara Healthcare Divesting Entire Skilled Nursing Portfolio
As Norfolk, Virginia-based hospital system Sentara Healthcare embarks on its planned merger with North Carolina-based Cone Health, it is first divesting its entire skilled nursing portfolio. The seven facilities are scattered throughout southern Virginia, with five surrounding the Norfolk/Virginia Beach market. The not-for-profit hospital chain started looking for buyers in the first quarter of 2020, before COVID-19 set in, but the process confirmed their decision to find an owner more focused on the skilled nursing market. That new owner will be Saber Healthcare Group, a private skilled nursing operator with over 125 facilities across the country. The... Read More »
National Health Investors Provides Occupancy and Rent Update
We appreciate any transparency from companies and how they are dealing with impact from COVID-19. As such, National Health Investors provided an update for its latest rent collection and occupancy results. The REIT collected 96.6% of contractual rent in September, which improved on the 95.3% success rate announced in August. In addition, 2.9% of rent was deferred, including 2.6% related to a previously disclosed deferral to Bickford Senior Living. The remaining balance reflected forecasted revenue that NHI had expected to receive from transitioned properties prior to the pandemic. Another tenant has also agreed to a deferral of approximately $560,000 in each in each the third and fourth... Read More »
The Great Re-Opening
It is fair to say that the economic shutdown, especially as it concerns senior care providers, could have been handled better (you think?). There was little consistency from state to state, and from one type of senior care provider to another. We spoke to some providers who never stopped admitting residents, and others where there was a total shut down of new admissions with no clarity on when that might change. Mayors argued with governors who argued with the White House. From the federal level to the local level, if one were grading the handling of the crisis, it would be an F. Who can forget New York Governor Cuomo forcing nursing homes to accept COVID-19 patients, issuing... Read More »
Recent Senior Care M&A Deals, Week Ending September 18, 2020
September may be slow, but check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Not disclosedKing City Senior VillageN/A Novellus Living GroupCamlu Assisted LivingN/A Not disclosedSkilled nursing facility in NY$40.6 million Greenlake ManagementTri-Cities Retirement... Read More »
Average Assisted Living Occupancy Falls To New Low
The latest occupancy numbers from NIC are in and hit another low that the industry will be spending months and probably years to rebound from. Perhaps most notably, in the three months ending in August, the assisted living market fell below an average of 80% occupancy for the first time ever, to 79.5%. That is a 60-basis point drop from July’s trailing-three month level, which may have shocked us in the past, but after the nearly 170-basis point fall from June, it could be worse. To be fair, that is just across the 31 Primary Markets that NIC tracks for its quarterly results, but with COVID-19 affecting most localities nationwide and its economic ramifications even more widespread, we... Read More »
People on the Move
Don Kelly, formerly of CapitalSource Healthcare Finance but more recently a Senior Managing Director at MONTICELLOAM, has joined Locust Point Capital as Managing Director. He will be responsible for loan originations and structuring at the asset management firm, which focuses on direct lending to the lower middle market in seniors housing and care. Mr. Kelly has experience originating, structuring and underwriting approximately $5 billion in transactions across his career, which should help in his goal of expanding Locust Point’s market reach and product offerings in the lending market. Mr. Kelly also has operating company experience, formerly working as an Executive Vice President at... Read More »
Meridian Capital Group’s End of Summer Sprint
Meridian Capital Group’s seniors housing and healthcare team is sprinting to the end of summer, with over $160 million in transactions closed in the last two weeks alone. September has been noticeably slower than even previous months, so to get that amount of transaction volume across the finish line is impressive. Managing Directors Ari Adlerstein and Ari Dobkin, along with Senior Vice President Josh Simpson, first arranged a $47.8 million loan from a finance company, plus a $3 million A/R line to refinance two skilled nursing facilities with 328 total beds in New Jersey. The trio also secured a $30.2 million acquisition loan to fund the purchase of a CCRC in Florida... Read More »Schedule a demo
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