Evans Senior Investments Closes SNF Sale in Rhode Island
The recent senior care deal drought mercifully ended with a closing from Evans Senior Investments, which seems to have figured out how to get a deal across the finish line these days, closing four SNF transactions so far since the onset of the pandemic. The most recent target was a 57-bed skilled nursing facility in East Providence, Rhode Island. Originally built in 1962, it was acquired by the seller, an East Coast owner/operator, with the intent of moving the licensed beds to another county in the state. However, regulatory hurdles prevented that plan from going forward, so an exit was pursued. At the time of the sale, the facility was 89% occupied, with a 14% quality mix, but was... Read More »
Cushman & Wakefield Arranges Construction Financing
Seniors housing construction may be slowing to a crawl, as is the lending market, but Cushman & Wakefield has bucked the trend and arranged both construction financing and joint venture equity for a development in South Portland, Maine. The team of Richard Swartz, Jay Wagner, Tim Hosmer and Sam Dylag advised the developer, Confluent Senior Living, on the deal. The project will feature 123 units of assisted living and memory care, with an array of amenities, at a cost of $40 million, or $325,000 per unit. Its operator, Harbor Retirement Associates, broke ground on the community last month, and its location is ideal near both the largest mall in the state and Old Port... Read More »
Housing & Healthcare Finance Handles HUD Refinance
The team at Housing & Healthcare Finance has closed a couple of HUD financings totaling $57 million. There was a $34.1 million loan for a portfolio of five skilled nursing facilities located throughout Minnesota. The experienced borrower was able to replace conventional debt on the portfolio with a substantially higher interest rate. They came with 30- and 35-year terms. The loan amount came in at about $120,000 per bed/unit. Built from 1958 to 2008, averaging 38 years old, the portfolio totals 464 total beds. Two of the facilities also feature assisted living units. Occupancies ranged from the low-80s to the high-90s. Finally, HHC Finance closed a $22.8 million rate modification... Read More »
Genesis HealthCare & Capital Senior Living Put On Notice By NYSE
So far, two of the publicly traded senior care companies have received notices from the New York Stock Exchange warning them that they are out of compliance with the continued listing standard that requires a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period: Capital Senior Living Corporation (April 10) and Genesis HealthCare (April 17). CSU dropped as low as $0.45 per share, while GEN fell to $0.78 per share. Genesis was still in compliance with the minimum market capitalization threshold of $50 million over a 30 trading-day period (at more than two times that level), but CSU’s average market cap did fall below the threshold. Both companies will... Read More »
Where Will Independent Living Values Go?
Here’s the good news and the bad news regarding the independent living market today. The good news is that the fundamentals of the sector were stronger than ever as recent as this March, with values nearing a peak, occupancy consistently above 90% nationally, rents staying strong, and the labor problems largely avoiding IL communities. The bad news is that move-ins may be delayed for months, a recession may make selling and moving out of one’s home (and into an IL community) less feasible, and the socialization benefit of these communities may change significantly for some time. Anecdotally, we do hear of move-ins continuing at a steady pace, depending on the locality and... Read More »
Recent Senior Care M&A Deals, Week Ending April 24, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Local partnershipTwin Cedars Senior Living$5.91 million Not disclosed6 senior living communitiesN/A Waypoint ResidentialSummer Vista & The Crossings at River View$48.85... Read More »
A Conversation with South Coast Improvement Company
We have been saying for years that there is a huge market for renovating any kind of senior living community, and that market will only grow as yesterday’s new development becomes today’s renovation project. And now, with the coronavirus pandemic, there will be a new emphasis on infection control and how to embed that into construction and renovation design. One company seems to have been ahead of the curve on this front, and we suspect their clients will be listening very closely in the future. We sat down with Tom Quinlan, the founder and President of Marion, Massachusetts-based South Coast Improvement Company, and Sean Whalen, Senior Vice President, to get their views on renovations in... Read More »
Where Were Assisted Living Values At Their Pre-Pandemic Peak?
Seniors housing values were at (or very close to) a peak by the beginning of March. Then, COVID-19 shut down the country, and those communities were forced to shut their doors, halt move-ins, and deal with the pandemic and their residents as best they could. Keeping those seniors safe and healthy is, of course, the first priority. But the drop in occupancy and cash flow is also a serious matter (how else can these communities stay open to care for seniors if they are not profitable, after all?) and may lead to a correction in values. Just how large of a correction, we cannot be sure, but we do know where values were right before the pandemic hit. According... Read More »
Construction Continues in Southwest Florida
Two senior living construction projects just finished in Naples, Florida, probably not in the lease-up environment they were expecting. But you never know; we certainly hear of communities continuing to move in residents at a steady pace. The first development completed was a 127-unit assisted living/memory care community called The Pineapple House at Sapphire Lakes. It is being developed by Michael Kerner of Development Consulting LLC and Andy Baldo, with Guest Services Senior Living operating the community. Amenities include fitness and massage areas, a hydrotherapy room, beauty salon and a swimming pool, among others. Another joint venture announced the completion of Phase I for a CCRC... Read More »
Where Occupancy May Be By July
The coronavirus was much worse then expected, as was its impact on senior care providers. I have to admit I was wrong, but just the third time in 34 years. In late February, I referred to the coronavirus as the flu on steroids, and that the senior care industry was prepared to deal with it. I was wrong on both accounts. It was much worse than anything on steroids, and many providers were not prepared for this one. I am not sure anyone could have adequately prepared for a deadly disease that can be quickly spread by asymptomatic staff and visitors. Some people think they have escaped the worst part of the coronavirus, and they may be right. But this is not going to be a short-term problem.... Read More »Schedule a demo
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