JLL Lands Financing for Luxury Chicago Senior Living Project
The JLL team has secured both construction debt and joint venture equity for a joint venture to build a new luxury senior living community in Evanston, Illinois (Chicago MSA). Located on an irreplaceable 0.77-acre infill site just north of downtown Evanston, the nine-story project will consist of a mix of private independent living, assisted living and memory care units. It’s set to open in 2021 with a host of amenities that include multiple terraces with views of Lake Michigan. The total cost is estimated to be about $75 million, or $460,000 per unit. That’s a high figure, but given the location and Class-A finishes/amenities, we think the owners will be able to increase that... Read More »
O&M Investments Acquires California Skilled Nursing Facility
Following a busy 2019 with five announced acquisitions, O&M Investments just announced its third off-market transaction of 2020. The deal included a 124-bed skilled nursing facility in Hanford, California, which was acquired at a 12% cap rate (although no purchase price was disclosed). The facility underwent a full remodel three years ago, and occupancy consistently hovered around 90% across its 91 operational beds. O&M assumed the existing lease with the operator. Read More »
Monday’s Massacre
Providers got hurt in Monday’s stock market massacre, but healthcare REITs across the board suffered. We all know that Monday’s massacre in the stock market affected almost all companies. In our sector, the focus has been on providers, since they take care of the highest-risk people as this coronavirus/Covid-19 epidemic spreads. The unprecedented 2,013-point drop in the Dow was bad enough, and providers plunged as well. But so did the healthcare REITs that own their properties. Most of the REITs in our universe dropped by double digits, compared with 7.8% with the Dow and 7.6% with the S&P 500. Diversified Healthcare Trust plunged the most, falling 17.7% on Monday. It was... Read More »
When in Need of Renovations
How often have you heard that the vast majority of skilled nursing facilities need substantial renovations in order to compete? Now, we are hearing it about all those assisted living communities built in the 1990s, and even the early 2000s. All of the new development in the past six or seven years has really caused owners and operators to take a hard look at their real estate and decide what to do. What needs to be done to compete and how much will it cost? One of the nice things about going to a NIC conference is meeting new companies and people. One of the companies we met with, South Coast Improvement Company, specializes in renovating senior living buildings while the residents are... Read More »
Newly Renovated Assisted Living Community Refinances with IDB Bank
Lisa Silvers, SVP of IDB Bank, headed to the Jacksonville, Florida suburb of Green Cove Springs to refinance a fully renovated assisted living community on behalf of its single-asset owner/operator. Originally built in 1993, the 49-unit community was previously owned by a local doctor, who sold it in 2015 for around $2 million, or $40,800 per unit. The buyer, who had previously third-party operated other assisted living communities in the Orlando area but was making his first acquisition, closed the community and gutted it in a $2 million renovation. The community has since stabilized at 85% occupancy, geared towards the middle market. To fund the acquisition and renovation, the buyer had... Read More »
People’s United Bank Finances New Jersey Development
People’s United Bank announced that its Healthcare Finance Division provided a credit facility to support Brightview Senior Living’s development of a new senior living community in Wayne, New Jersey (New York City MSA). Being built on the 9.6-acre site of a vacant retail structure, Brightview knocked that building down to replace it with a 190-unit community that will consist of 97 independent living, 58 assisted living and 35 memory care units, with 200,000 total square feet. People’s had an existing relationship with Brightview, allowing for a smooth closing of a $61 million credit facility to fund the community’s construction. Already operating more than 40 communities in eight states... Read More »
From the Front Lines at NIC
As the hordes descended on San Diego for the Spring NIC conference, we soon learned that hotel rooms suddenly became available at the last minute. Why? Cancelations and no shows, perhaps 10% to 15%, as fears of the coronavirus spread. Larger conferences in the next several weeks have been canceled. For those of us braving the unknown, it was business as usual, elbow bumps instead of handshakes, and no problem finding meeting space in the networking lounge. Obviously, the biggest topic of conversation was the coronavirus, the potential impact on the economy in general, and specifically whether it would be a huge problem for the senior living sector. The worry was that if there were more... Read More »
Senior Living Investment Brokerage Sells Illinois Portfolio
It’s not always easy to get a senior care deal done in Illinois. But Patrick Byrne and Jeff Binder of Senior Living Investment Brokerage took the challenge and sold a portfolio of three skilled nursing facilities and two assisted living communities in the central and southern part of the state. Built between 1976 and 2004, with various capital improvements made in 2011, 2014 and 2016-2018, these properties are located within 100 miles of each other. The SNFs total 286 beds, while the AL buildings combined for 97 units, with an overall average occupancy of 79%. Operations at the skilled nursing facilities had been very stable in the last three years, averaging $2.8 million in annual... Read More »
Another Financing From Monticello Asset Management
What a six months it has been for Monticello Asset Management. In that time span, the firm and its affiliates have closed around $450 million in five-, seven- and 10-year fixed-rate loans, all of which were non-recourse. And in February alone, Monticello announced $278.7 million in first lien debt financings across seven transactions, plus a number of supplemental working capital loans. Now, Monticello has kicked off March with a loan totaling $35.9 million to fund the acquisition and renovation of four assisted living/memory care communities in Florida and South Carolina. Totaling 345 units, the communities averaged more than 20 years in age. About $2.7 million will be spent to renovate... Read More »
Seniors Housing Stocks Crash
You can blame the overall plunge in the stock market, but seniors housing stocks crashed disproportionately more than the market as a whole. Capital Senior Living ended Thursday down 22% for the day at just $1.87 per share. This represents a market value of $57.6 million. Brookdale Senior Living plunged 12% to $5.01 on volume seven times its average. Brookdale’s market value is now $923 million. When will it all end? The problem is that it may not end until there is some clarity on when the coronavirus will run its course and what the ultimate economic impact will be. With both Washington state and California declaring a state of emergency, fears among senior living providers grow. If the... Read More »Schedule a demo
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