Monticello In Music City
One of Monticello Asset Management’s investment vehicles originated $16.48 million in first lien debt to finance the acquisition of a 119-bed skilled nursing facility in Nashville, Tennessee, with the experienced owner/operator buyer looking to refinance through HUD in the coming years. Built in 1970 and completely renovated and expanded in 2013, this facility has a 48-bed short-term care unit, made up of all private rooms, and the remaining 71 beds are dedicated to long-term care patients. There is also a 4,000-square foot therapy gym that, along with the state-of-the-art upgrades received in 2013, helps the facility compete in the area. It was acquired by a public REIT as part of a large... Read More »
LTC Properties, Affinity Living Group & Sunwest Management
The story of Sunwest Management keeps creeping up in the news, although not in a bad way this time, as a former Sunwest assisted living/memory care community in Spartanburg, South Carolina, just sold to a joint venture between LTC Properties and Affinity Living Group. Originally built by the former Manorhouse Retirement Communities in 1999, the 87-unit community was sold to Sunwest in 2005 for approximately $6 million, or about $69,000 per unit. The lender, however, foreclosed on the property when the community was just 50% occupied and sold it to private investor Chris Brogdon in 2010 for $4.95 million, or about $57,000 per unit. Average monthly rents fell to $2,400, from $2,625 per month... Read More »
New Owner At New Albany Skilled Nursing Facility
Ryan Saul of Senior Living Investment Brokerage facilitated the sale of a 156-bed skilled nursing facility in New Albany, Indiana, on behalf of the same investor he sold the property to roughly 10 years ago. Located across the Ohio River from Louisville, Kentucky, this one-story facility was built in 1974 with 152 beds. The current seller, TMV Properties (a private partnership), purchased the facility in early 2007 for $5.7 million, or $37,500 per bed, when occupancy was 80% and quality mix was just 20%. TMV, which operated one other facility in Indiana at the time, invested in improvements and brought therapy services in-house. Both occupancy and quality mix have improved since then, and... Read More »
HCR ManorCare Continues to Fight
We are not sure what HCR ManorCare’s end game is in its battle with landlord Quality Care Properties, which owns the vast majority of its properties. HCRMC recently filed a motion in court to dismiss certain claims in QCP’s receivership complaint. We are not sure what leg they have to stand on. The provider is so far behind on its contractual rent payments that it is a wonder that QCP has not done what other REITs have done when their tenants have not been able to pay the rent. On January 25th, HCRMC did not pay the reduced rent of $14 million that was due. The past dues are simply piling up, and while we understand there is a difficult operating environment, it does not mean you can... Read More »
Senturian Senior Housing Brokerage Sells Alabama Assisted Living Community
Watson McCollister of Senturian Senior Housing Brokerage handled the sale of a 56-unit assisted living community in Anniston, Alabama. Built in 2000 on 24 acres, this community includes 32 assisted living and 24 memory care units. It was owned by a local operator and operated at a 26% margin on approximately $2.46 million of gross revenues. Occupancy was 91% when the initial offer was accepted, but shot up to 100% by closing, with NOI substantially improving as well. With the help of an $830,000 mezzanine loan provided by United Community Bank and arranged by Contemporary Healthcare Capital, the out-of-state buyer (based in Charleston, South Carolina) purchased the community for $7.86... Read More »
Blueprint Healthcare Real Estate Advisors Hires CEO
Blueprint Healthcare Real Estate Advisors had some big news this week. Founded in 2013 by Ben Firestone, Jacob Gehl and Chris Hyldahl, the brokerage company just named Torey Riso as its first President and CEO. Riso brings 25 years of real estate and senior care experience to the young firm. He was part of the team that founded Care Investment Trust in 2007, where he served as President and CEO from 2009 until its sale late last year for $425 million. At the time of the sale, Care Investment Trust had investments in 42 senior living communities in 11 states. Blueprint has grown dramatically in its first three years, and we suspect that Riso’s experience and contacts will help bring in some... Read More »
The Avery Company Announces Pair Of Acquisitions
The Avery Company kicked off their 2018 in a strong way, closing two transactions in succession for clients in Tennessee and Connecticut. Jolyon Wilde first sold two senior living buildings located across the street from each other in Murfreesboro, Tennessee. Both built in 2001, there was a 68-unit assisted living community with 90% occupancy and a 26-unit memory care community just 75% occupied. Both were 100% private pay and operated at a combined 22% margin on approximately $4.03 million of revenues. A local doctor decided to sell the communities to Virginia-based Inspirit Senior Living for $12.45 million, or $132,450 per unit, with a 7.1% cap rate. Mr. Wilde was then joined by Larry... Read More »
Senior Living Investment Brokerage Makes It Happen In Mississippi
After developing and stabilizing its 40-unit assisted living community in Richland, Mississippi, a local owner/operator decided to exit the asset with the help of Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage. The seller built the community in 2014 and licensed it for 55 beds in a mix of private and semi-private units. Occupancy was 91%, and it operated at a solid 34% margin. The incoming owner/operator, based in Tennessee, will undoubtedly look to add value to the property as it grows its existing portfolio and economies of scale in the state. They acquired the Richland community for $4 million, or $100,000 per unit, with an 8.75% cap rate. Read More »
Altercare Grows With Greystone
Ohio-based Altercare Integrated Health Services is significantly expanding operations in its home state, taking over management of eight skilled nursing facilities and 541 total licensed beds. Owned by Greystone Healthcare Management (who also previously operated them), these facilities are located in the towns of Adena, Cambridge, Coshocton, Newark, Somerset, Thornville and Zanesville. The deal expands Altercare’s coverage in Ohio to 27 facilities, in addition to its one location in Michigan. Six of the facilities are expected to sell on February 1, with the remaining two to close in the next several months. Read More »
Clearwater Living Develops In Familiar Territory
Cushman & Wakefield Capital Markets Group arranged $20.6 million in construction financing on behalf of Clearwater Living to build a 90-unit/104-bed assisted living/memory care community in Rohnert Park, California. PNC Bank provided the financing, which was arranged by C&W’s Richard Swartz, Aaron Rosenzweig, Timothy Hosmer and Alex Petrosian. The new community will feature amenities including a community pub, display kitchen, outdoor dining, theater and dog park, and is located next to a 207-unit 55+ community that was developed by Clearwater Living’s CEO, Tony Ferraro, back in the early 2000s. Clearwater clearly knew the area well. Read More »Schedule a demo
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