Oxford Living Acquires Another Ontario Portfolio
Institutional investment and development firm Oxford Capital Group, together with its joint venture partner, has made a large investment in the Canadian seniors housing sector, acquiring a portfolio of six private pay communities located throughout Ontario. These communities provide both independent living and supportive living services throughout the 645 total units. They are located in Toronto, Fort Erie, Niagara Falls, Kitchener and Guelph, and join Oxford’s nine other communities in Ontario (all acquired in just the last nine months). Oxford made the acquisition through its affiliate Oxford Living in a joint venture with New York-based insurance and investment firm, Starr Insurance... Read More »
Independent Living Tower Breaks Ground in Seattle
Perhaps as a sign of the strength of both the CCRC and independent living markets, a CCRC in Seattle, Washington just broke ground on a 21-story, 77-unit independent living tower on its existing campus in the First Hill neighborhood. Owned by Transforming Age, a national not-for-profit with existing communities in Washington, Minnesota and Nebraska, it announced that the project is already 70% presold two years before the expected 2021 opening. The tower will include a mix of one-bedroom and two-bedroom units, as well as penthouse apartments. There will also be a 240-seat performing arts center, full-service spa, bar, café and a club room with panoramic views of Puget Sound and the Olympic... Read More »
Therapy and PDPM
We are now one week into the new PDPM reimbursement system, and already therapist layoffs have begun. Well, we are just one week into the new Patient-Driven Payment Model (PDPM) for Medicare reimbursement for skilled nursing facilities, and already the therapist layoffs have begun. Why? Because providers are no longer paid for the amount of therapy they provide patients. The new payments will be based on patient needs, especially for higher acuity patients. So, here is my question. If the patient profile has not changed from September to October, why were patients provided with a certain number of therapy hours in September if they actually did not need that much therapy, or if the extra... Read More »
Juniper Communities Shifts Focus from Florida
Juniper Communities has completely exited the state of Florida, with Bradley Clousing and Jeff Binder of Senior Living Investment Brokerage facilitating the final sale. With the transaction, the assisted living/memory care provider will now focus on its established Northeast and Colorado markets, where it has eight communities in Pennsylvania, two in New Jersey and five in the Centennial State. The Naples community was originally built in 2000, which in the heavily developed southwestern Florida market is certainly on the older side. Age isn’t everything, but it does usually affect the rents you can charge, which has a cascading effect if any fixed or variable costs were to suddenly shoot... Read More »
Greystone Announces Three Financings and One New Hire
Running the agency gamut at the start of October, Greystone announced three financings it closed through Fannie Mae, Freddie Mac and HUD. First up, the firm refinanced an independent living community in Pearland, Texas (Houston MSA) with a 10-year, $37 million Fannie Mae loan. Cary Tremper originated the transaction on behalf of Integrated Real Estate Group (IREG) and their operating affiliate Integrated Senior Lifestyles. IREG opened the community in 2017, with 214 units that include one-bedroom, two-bedroom and three-bedroom options, plus eight villas. There are also a host of a la carte services and amenities. Development cost reached $35.1 million, or $158,100 per unit. Then, Greystone... Read More »
Newmark Knight Frank Closes Three Varied Transactions
The Newmark Knight Frank debt origination team has been hard at work this year, closing $1.6 billion in new financings so far this year. Heidi Brunet, who joined this April, and Chris Johnson handled a Freddie Mac financing for a newly built independent living community in Aurora, Colorado. The 10-year, fixed-rate, pre-stabilized loan totaled $43 million. Ms. Brunet and Laura McDonald of Protective Life also refinanced two assisted living/memory care communities in Virginia and Pennsylvania with a $43 million loan. An experienced owner/operator opened these communities in June of this year. Finally, Sarah Anderson of Newmark arranged acquisition financing for two AL/MC communities in Boca... Read More »
Recent Senior Care M&A Deals, Week Ending October 4, 2019
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Cascade Capital GroupHealthquest portfolio$10.5 million New Jersey-based family businessThe Place at Pooler$7.35 million North Carolina-based regional owner/operatorThe Waterford in Hermitage,$20.05 million Regional ownerChristian Horizons portfolio$20... Read More »
Cascade Capital Group Sizing Up South Dakota SNF Market
Cascade Capital Group clearly sees something in the South Dakota skilled nursing market, following up on its acquisition of 16 Skyline skilled nursing facilities in the state with the purchase of two SNFs and an assisted living community in Huron and Sioux Falls. Previously owned by a publicly traded REIT, this portfolio features a combined 322 skilled nursing beds and 55 assisted living beds. Two of the properties, the 163-bed SNF and the 55-bed AL community are located on the same campus in Huron, while the Sioux Falls facility is licensed for 159 SN beds. Their owner deemed the facilities to be non-core. Certainly, the properties were on the older side, having been built in the 1960s,... Read More »
Hurricane-Damaged SNF Sells in Georgia
Despite a wing still not operational since Hurricane Matthew in 2017, a skilled nursing facility in Midway, Georgia changed from one not-for-profit’s hands to another’s. Magnolia Manors, a Methodist-affiliated operator of eight other locations throughout south Georgia, acquired the 150-bed facility for a sum of $6.85 million, or $45,600 per bed. Mike Pardoll of Marcus & Millichap handled the deal. Originally built in 1972 with an addition in 1982, the facility, which is licensed for 169 beds, was 75% occupied during the marketing period, with a 15% Medicare and 9% private pay/managed care census, with the remainder made up of Medicaid patients. About $7.8 million of bond debt remains... Read More »
Gloves Come Off in Brookdale’s Proxy Fight
The proxy cards are in the mail to Brookdale Senior Living’s shareholders for the vote at the annual meeting, to be held on October 29, and it looks like CEO Cindy Baier has taken the gloves off. Brookdale has been fighting shareholder Land & Buildings’ nominee for a board position, Jay Flaherty, for many weeks. But now they are bringing up some of Mr. Flaherty’s past transgressions which, according to Brookdale, make “him unfit to serve as a member of Brookdale’s Board.” These transgressions include some foul play in 2011 when he was CEO of HCP, Inc., which resulted in a $101.7 million judgment against HCP, for which the court stated that HCP engaged in “fraudulent conduct with the... Read More »Schedule a demo
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