Shifting Sales and Marketing Strategies in Seniors Housing: A Q&A with Joe Roche
The COVID-19 pandemic has likely changed the way seniors housing operators do business for some time to come, So, how do social distancing measures and a new threat to resident safety impact the sale and marketing strategies of these communities? We asked Joe Roche of The Roche Associates for answers. We’re more than a couple of months into the COVID-19 crisis, and the seniors housing industry has experienced a bit of a PR problem. Given the virus’ effect on the frail and elderly, the media’s coverage of outbreaks at communities (mostly unfair, but also sometimes fair), and some people’s comingling of skilled nursing facilities with seniors housing, what would you say to a potential... Read More »
Brookdale and Capital Senior Volatile
During the course of this pandemic, the entire stock market has been extremely volatile. The quick 35% plunge was followed by a nearly as quick return, with the NASDAQ hitting new highs this week. This happened despite more than 40 million people recently hitting the unemployment lines. This week, however, we saw volatility reaching new highs in the senior living sector. As an example, Brookdale Senior Living hit a near-term low of $2.66 per share on May 13. By June 5, it jumped by 64% to $4.37 per share. Maybe the turnaround was coming around. But by June 11 (just four trading days later), it plunged by 35% to $2.82 per share. After all that volatility, between May 13 and... Read More »
Strawberry Fields REIT Back in Buying Mode
After making seven acquisitions in 2019, Strawberry Fields REIT has finally reentered the acquisition arena in 2020, announcing its purchase of a 107-bed senior care facility in Danville, Kentucky. We imagine some time had to be spent on managing and consolidating its growing portfolio, and the skilled nursing industry has been preoccupied in the last several months with the COVID-19 crisis, but it is good to see them back buying again, bringing their current portfolio to 76 senior care facilities. Previously owned and operated by several individuals (dba Marlin K. Sparks Management Company, Inc.), the Danville facility consists of 90 skilled nursing beds, 16 assisted living beds and one... Read More »
HHC Finance Posts Strong Financing Activity in May
The team at Housing & Healthcare Finance (HHC Finance) reported a strong May, closed a couple of HUD loans and a number of rate modifications for senior care clients across the country. The two HUD loans totaled $31 million. A 108-unit assisted living community in Minnesota obtained the first. Built in 1996, it boasted an occupancy rate in the mid-90s. HHC Finance arranged the second HUD loan for a 191-bed skilled nursing facility in California. Built in 1991, it was also occupied in the mid-90s. Both refinances took out higher rate bank debt. HHC Finance didn’t stop there, taking advantage of near-record-low interest rates by closing five loan... Read More »
Assisted Living: Recession Resistant or Not?
Assisted living emerged from the Great Recession largely unscathed. Will history repeat itself 10 years later? Well, I just found out on Monday we are officially in a recession. Not that anyone needed to get the official notice, since we all know what 40 million recently unemployed means for the economy. But what does it mean for assisted living? In the “Great Recession” assisted living came out looking pretty good because of its need-driven characteristics. In the ensuing 10 years, average per-unit prices soared to record levels even as over-development caused some census issues. So, is this recession, or potential depression, going to be different? The elderly will continue to need care,... Read More »
Colliers International Announces Two Closings
Colliers International closed a couple of sales involving assisted living communities that also cared for adults with mental disorders or developmental disabilities. First, the Tampa, Florida team led by Ken and Damien Carriero worked on behalf of Loving Care of St. Petersburg, Inc. to sell a 60-unit/120-bed AL community in St. Petersburg, Florida. It came with a Limited Mental Health Specialty License and was 80% occupied at the time of the sale. Best Care Senior Living at St. Pete, LLC was revealed as the buyer, but no purchase price was disclosed. Then, Elena Bakina of Colliers International represented the seller of a similar community in southwest Houston, Texas. Classified as a Type... Read More »
Cushman & Wakefield Finances South Carolina Community
Two years after financing a senior living project in Rock Hill, South Carolina (Charlotte MSA), Cushman & Wakefield returned to refinance the newly opened community. Operated by Harbor Retirement Associates, the community comprises 88 units and 92 beds of assisted living and memory care within the Riverwalk master planned development, which will encompass more than 1,000 single-family homes and 550 apartments, as well as extensive retail and an award-winning restaurant. Private equity firm BridgeForth Capital, the owner, only had the community open for a month before the pandemic hit, but lease-up was luckily strong beforehand. In October 2018, Richard Swartz, Aaron Rosenzweig and... Read More »
Monticello Secures Working Capital For Southeast SNF Portfolio
Just a week after arranging first lien debt for a portfolio of three skilled nursing facilities in Kentucky and North Carolina, MONTICELLOAM, LLC and its affiliates (Monticello) went back and secured a working capital loan to the portfolio’s operating companies. Averaging nearly 50 years in age, the portfolio totals 312 beds. Two of the facilities were refinanced with the debt, while a 114-bed facility in Kentucky was acquired. Given the age, we image some of that working capital will be put to use modernizing and refurbishing the physical plants. The first lien debt totaled $30 million, with a 36-month term, while the working capital loan totaled $2.50 million. They were arranged on... Read More »
Kayne Anderson Closes Another Acquisition
Cushman & Wakefield’s Tampa-based seniors housing team led by Allen McMurtry and David Kliewer sold a 117-unit independent living community in Trinity, Florida (about 20 miles northwest of Tampa). The seller, a development group comprised of Walt Chancey of Gulf Coastal Development, Ricky Rookis of Rookis Development and Watermark Retirement Communities, recently built the five-story community adjacent to a 97-unit assisted living/memory care property that they also developed in 2016. There are one-and two-bedroom unit options ranging in size from 737 to 1,162 square feet. Designed by Chancey Architecture and Chancey Interior Design, it also features numerous amenities including... Read More »
Blueprint Finds New Tenant for Kansas City-Area SNF
Working on behalf of a REIT landlord, Blueprint Healthcare Real Estate Advisors found a new tenant for a 140-bed skilled nursing facility in Liberty, Missouri (Kansas City MSA). Built in 1971 with all semi-private units, the facility was approximately 80% occupied. Cash flow was also near stable levels, but rent coverage was limited. Owned by Omega Healthcare Investors, it was the only facility in Missouri for the operator, Consulate Health Care. As a result, Consulate sought an exit in order to focus on other core markets, but previous efforts proved ineffective. However, right after the onset of COVID-19, Michael Segal and Ben Firestone initiated the lease transition to REACH LTC, an... Read More »Schedule a demo
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