• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
PGIM Arranges Two HUD Refinances

PGIM Arranges Two HUD Refinances

PGIM’s Seniors Housing and Healthcare Group arranged refinances for two seniors housing communities in the Southeast, the third and fourth properties refinanced for the same client during the pandemic. Christopher Fenton, Catherine Eby, Adrian Hartman, and Robyn Cunningham originated the loans.  The first, totaling $7.93 million, went to a 112-bed skilled nursing facility in Bastrop, Louisiana. Rather than a loan modification, Mr. Hartman and Ms. Cunningham secured a loan to maximize annual cash flow through term extension and a rate savings of 0.8% when considering the lowered MIP.  In the other deal, Mr. Fenton and Mrs. Eby provided a $15.94 million loan for a... Read More »
California Dreamin’

California Dreamin’

In a different sort of transaction than Senior Living Investment Brokerage’s recent Oregon deal, the team of Brad Goodsell, Jason Punzel and Vince Viverito handled the sale of a value-add property in California. Located about 12 miles southeast of Los Angeles, this 77-unit assisted living and memory care community was built in 1984 with a renovation in 2017. Occupancy was closer to where the rest of the industry has been near the end of the pandemic at 76%.  A local owner/operator paid $7.7 million, or an even $100,000 per unit (certainly makes the math easy), with an in-place cap rate of about 7.7%. With the low occupancy, the operating margin is just under 19%, which certainly... Read More »
The Stahler Group Sells Monterey County Memory Care Community

The Stahler Group Sells Monterey County Memory Care Community

The Stahler Group of Marcus & Millichap just closed the sale of a 69-unit assisted living/memory care community in Monterey County, California. Well located with strong demand and limited competition, the 22-year-old community was owned by a not-for-profit healthcare provider and originally leased by Emeritus, then ultimately by Brookdale Senior Living. Brookdale chose to not renew their lease for the community, which brought in sufficient cash flow but also offered significant operational upside with occupancy at 65%.  After multiple full-price, competitive offers, a buyer with a strong regional presence stepped in to buy the community, using acquisition debt from a regional... Read More »
NORC Releases New Study On COVID Mortality

NORC Releases New Study On COVID Mortality

Just after we had wrapped up one of our lead stories in the June issue of The SeniorCare Investor on the nursing home comeback and some COVID myths, NORC at the University of Chicago released its analysis about mortality rates in five states across the senior care spectrum. With funding from NIC, they looked at five states – Colorado, Connecticut, Florida, Georgia and Pennsylvania – and 3,817 seniors housing properties in 113 counties in those states.   Perhaps the key finding, at least for the independent living and CCRC providers (and their residents) was that 67% of the IL communities never experienced a COVID-related death. Better yet, the COVID mortality rate... Read More »
Senior Living Investment Brokerage Sells CCRC in Erie

Senior Living Investment Brokerage Sells CCRC in Erie

Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the sale of a Type C CCRC in Erie, Pennsylvania, working on behalf of the local not-for-profit seller. The original building was constructed in 1929, but the campus has undergone numerous additions and renovations over the years, most recently in 2010. It now has 139 skilled nursing beds and 58 residential/personal care beds in 29 units. Even though there are no independent living units, the CCRC designation is particular to Pennsylvania licensing.   Currently, 100 of the skilled beds are used for skilled nursing (and they are dually certified), while 39 beds are in a separate building dedicated to... Read More »
Evans Senior Investments Sells Profitable SNF in Indiana

Evans Senior Investments Sells Profitable SNF in Indiana

The transactions keep on coming from Evans Senior Investments, which followed up on its value-add deal in Pennsylvania with a skilled nursing sale in Indiana. This facility was built in three phases in 1964, 1978 and 1998, and now features 204 licensed beds, although 180 are currently functional. The owner/operator has other skilled nursing facilities but primarily on the West Coast. This was its only Indiana facility, the closest facility in its portfolio being 122 miles away. So, it was slated for sale.  At the time of marketing, the facility was 60% occupied and profitable, generating $2.2 million of NOI at a 22.1% margin. Helping that strong margin (despite the low census) was the $1.9... Read More »
Oxford Finance Secures Senior Credit Facility

Oxford Finance Secures Senior Credit Facility

Oxford Finance closed a $24 million senior credit facility with Lantern Group, an owner/operator of both skilled nursing and assisted living facilities headquartered in northeast Ohio. The funds were used to acquire three assisted living/memory care communities in Ohio, in the towns of Chagrin, Madison and Saybrook.   Totaling 219 units, they had been operated by Lantern since their original construction. Lantern will continue to operate them, no surprise there. The buyout had been in the works for some time, but Oxford helped navigate some hiccups along the way that come with getting deals done these days.  Read More »
What A Feeling!

What A Feeling!

One big benefit of the country opening up is in-person conferences. It does feel good. Last week, I attended my first conference, in person, since March of 2020. And boy did it feel great! Shaking hands again, hugging people I haven’t seen in person in 15 months, or more, was like a celebration for everyone there. All because we were vaccinated. Thank you, Senior Living 100. I was invited to moderate a panel on, what else, the M&A market. Two weeks earlier, I was a panelist at their sister conference, The LTC 100, but I was virtual, as was one other panelist in my session, and it just was not the same. My two takeaways were that people are pretty optimistic about the comeback for... Read More »
Evans Senior Investments Sells Value-Add Property in Pennsylvania

Evans Senior Investments Sells Value-Add Property in Pennsylvania

The team at Evans Senior Investments represented an independent owner/operator in the sale of its value-add senior care campus in Rochester, Pennsylvania. Numbering 122 skilled nursing beds and 22 operational personal care units (out of a total of 62), the property sold for $9.2 million, or $63,900 per functional bed/unit.   Originally built in 1965, the campus received a $2.5 million renovation from 2015 to 2019, leaving it with a modern physical plant and all rooms being either private or semiprivate. However, it was not profitable at the time of marketing, with occupancy averaging 69% and the community generating an NOI loss of over $1.0 million on $10.45 million of revenues. High... Read More »
CBRE Finances Active Adult Development in Chicagoland

CBRE Finances Active Adult Development in Chicagoland

A new active adult development that is set to break ground just received financing courtesy of CBRE and a national bank. Aron Will, Austin Sacco and Matthew Kuronen of CBRE Senior Housing partnered with CBRE Chicago’s Debt and Structured Finance’s John Parret and Peter Marino to arrange the $43 million construction loan.   The to-be-built community is located in Chicagoland and will feature around 190 units. It is considered to be “A” quality, which we imagine are easier projects for lenders to get behind right now, especially with an active developer in the space. A national bank provided the loan, which comes with a five-year term, 42 months of interest only and a floating... Read More »
People’s United Bank Refinances Two New England Communities

People’s United Bank Refinances Two New England Communities

Bridgeport, Connecticut-based People’s United Bank announced a couple of refinances for seniors housing clients in New England, working with participating banks on both deals. First, up the coast in Mystic, Connecticut, Masonicare of Chester Village is a 179-unit seniors housing campus with independent living, assisted living and memory care services. It opened in 2016. Masonicare received $45 million of debt, with People’s United Bank as the lead holding $30 million and Washington Trust participating with a $15 million hold. There is a seven-year term and 30-year amortization on the debt, which was came in under 67.5% loan-to-value. The transaction replaces mortgages previously held by... Read More »