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 »
Recent Senior Care M&A Deals, Week Ending June 5, 2020
Senior care M&A came roaring back this week, with two major sales by Welltower totaling more than $1 billion. Check out our recent deal chart. Long-Term Care AcquirerTargetPrice Joint venture6 senior living communities$300 million Kayne Anderson Real Estate AdvisorsSeniors housing & medical office building portfolio$1 billion FairsteadFederation Sunrise Apartments$29.5 million Front... Read More »
Foundry Commercial and Foster Senior Living Form JV
Orlando, Florida-based Foundry Commercial has formed a new joint venture with Missouri-based Foster Senior Living to manage, acquire and develop seniors housing communities. The JV will be known as FSL Senior Living Ventures, LLC, and Kevin Maddron, CFO of Foundry Commercial and long-term player in the senior living market (most recently with CNL Retirement) will be leading the charge for the JV. He is well positioned for the role given his CNL background and some work he did with Foster after leaving CNL three years ago. Foundry Commercial is a real estate services and investment firm that was founded in 2007 and has grown to 350 employees and more... Read More »
Evans Senior Investments Wraps Up Michigan Portfolio Sale
Evans Senior Investments kicked off June with the sale of a seniors housing/skilled nursing portfolio in Michigan. With Welltower’s major sale also coming to light at the start of the month, hopefully that’s a sign of a more fruitful summer for the industry as a whole. The portfolio consisted of two seniors housing/skilled nursing campuses and one stand-alone skilled nursing facility, with a total of 88 assisted living units, 36 memory care units and 270 skilled nursing beds. Built in 1997, 2007 and 2008, the senior living portion of the portfolio was 100% private pay, while the skilled nursing census boasted a high mix of Medicare patients. The transaction represented the second closing... Read More »
Blueprint Facilitates Royal Senior Care’s Invesque Exit
Blueprint Healthcare Real Estate Advisors helped Invesque exit its entire Royal Senior Care portfolio. That included the sale of two properties and transition of the other four properties to another existing operating partner. One of the sold properties was a 60-unit assisted living/memory care community in Eatonton, Georgia. Built in 2014 with 42 AL and 18 MC units, this community was originally purchased by Care Investment Trust for $15.5 million, which was then taken over by Invesque. Royal also owned a 35% interest in the property and is acquiring the remaining interest for an undisclosed price. The other property was located in Florida and sold to a third party. The four... Read More »Schedule a demo
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