SLIB Handles Illinois MC Deal
A small, rural memory care community traded in Illinois, and for a market cap rate. Built in 2012, the community features just 46 units in the town of Taylorsville in central Illinois. It was 87% occupied, and was operating at a 14% margin on more than $2.9 million of revenues. That maybe could be improved, but it is a rural market and a small facility, as well. The private equity seller was divesting to redeploy capital into other projects. They sold the building for $4.5 million, or $97,800 per unit, at a 9.2% cap rate. The buyer was looking to continue growing their portfolio in the state. Vince Viverito, Ryan Saul and Jeff Binder of Senior Living Investment Brokerage handled the... Read More »
Texas AA Community Trades
Active adult deals have been relatively rare this year, as interest rates rose above AA’s typical cap rates, but we’ve seen a smattering of older assets trade in recent weeks. Institutional Property Advisors, a division of Marcus & Millichap, announced the sale of Encore at Buckingham, a 242-unit active adult community in Richardson, Texas. Built in 2001, the asset has four stories in a garden style, with a swimming pool, heated spa, movie theater, elevator and library. The average unit size is 806 square feet. Occupancy was strong in the past year, averaging 98% occupancy. And it was operating at a healthy margin, with some room to improve. The asset sold for $36.2 million, or... Read More »
CCRC Switches From Not-For-Profit to Private Hands
Ziegler facilitated the sale of a not-for-profit, Episocopal Church-based, rental CCRC in Waterford Township, Michigan. Built in 1994, Canterbury on the Lake is a 273-bed/unit senior living campus with seniors housing and skilled nursing services. Nick Glaisner handled the transaction, which closed on October 31. The campus encountered obstacles with the physical plant over the past year, compounded by a difficult economic climate. Ziegler identified a group of qualified buyers capable of managing the campus and absorbing interim operational losses until the transaction was completed. The acquiring party, a private owner/operator based in Lakewood, New Jersey, took over as interim manager... Read More »
Not-for-Profit Buys Richmond Communities
Blueprint’s Brooks Blackmon, Kory Buzin and Lauren Nagle handled the sale of two assisted living/memory care communities in Richmond, Virginia. A national owner/operator decided to divest the properties, which could improve their occupancies. Average revenue per occupied room did remain near $8,000. Opened in 2004 and 2015, respectively, Spring Arbor of Richmond offers 70 units of assisted living and memory care while Spring Arbor Cottage of Richmond offers 48 units of memory care. The ultimate buyer emerged from a healthy bidder pool spanning private equity, local and regional operators, and there were five offers before a regional not-for-profit owner/operator was selected in an all-cash... Read More »
60 Seconds with Swett: October Broke the Monthly M&A Record
For those of us who track the seniors housing and care M&A market, October was like drinking from a firehose from the start of the month to the finish. And an active earnings week kicked things into another gear. We have to start with the 73 deals made public throughout October, which is still a preliminary number that we expect to rise, but also a record for any month, ever. That is just the sixth month ever that has surpassed 60 transactions, and only the second to surpass 70. Annualized, it also equates to 876 deals. We don’t expect that to continue, especially with earnings skewing October’s numbers slightly, but we could be entering a new era of transaction activity. The previous... Read More »
JLL Capital Markets Handles CPF Divestment
On Thursday, Ventas had announced its acquisition of 20 seniors housing communities from Chicago Pacific Founders, one of the largest deals of the year so far, at $725 million, or $244,000 per unit in cash. Now, JLL Capital Markets has revealed that it represented CPF in the transaction. JLL’s Jay Wagner had this to say on the deal: “As one of the largest seniors housing transactions closed year to date, it is a meaningful indicator that appetite for scaled seniors housing portfolios is back.” With other nine-figure deals like CareTrust REIT’s acquisition of 31 skilled nursing facilities for $500 million, The Inland Real Estate Group of Companies’ acquisition of the Clarendale Portfolio... Read More »
980Investments Finances Partnership Buyout
Capital Funding Group announced the closing of a major bridge loan for a skilled nursing client to finance the partnership buyout of a large skilled nursing portfolio in Florida. CFG’s Andrew Jones and Ava Julio originated the loan on behalf of 980Investments, a nationally recognized real estate investment company and the landlord of the 13 skilled nursing facilities in question. CFG closed a $207.1 million bridge-to-HUD loan and also provided $15 million in accounts receivable financing to support the working capital needs of the portfolio. There are a total of 1,423 beds across the facilities. CFG closed both deals on October 21, 2024, and a subsidiary of CFG Bank, Capital Finance, LLC... Read More »
Walker & Dunlop Handles HUD Deals
The team at Walker & Dunlop (W&D) recently closed four HUD transactions for senior care facilities located across the country. Largest (and perhaps most notable) among them was a $35.9 million refinance of a 166-unit behavioral assisted living community in Arizona. The community houses assisted living residents with a secondarily behavioral diagnosis, and this was a unique project for HUD’s LEAN program given the behavioral component and unique payor type, but the program executed on the transaction. To account for the added risk, W&D underwrote the transaction at a lower LTV than traditional senior housing projects. The refinance paid off bank debt and partnership debt. Next,... Read More »
Ventas Continues To Roll & Announces Major Acquisition
Ventas (VTR) posted one of its best quarters in a while for the third quarter, especially on the occupancy front. Year-over-year third quarter same-community occupancy increased by 350 basis points to 87.0% for its 488 communities that were owned in both quarters. Year to date for the first three quarters same-community occupancy increased by 310 basis points. Both numbers far exceed the general market, as disclosed by NIC MAP. This will be important as the operators in the Ventas portfolio begin to enter the winter months. The good news is that they are not seeing any decrease in census so far in the fourth quarter, a typically slow quarter for census increases. Cash net operating income... Read More »
A First for Freddie Mac
We saw a first for Freddie Mac, which closed its inaugural senior preferred equity loan for a seniors housing asset in Georgia. Newmark’s Healthcare & Alternative Real Estate Assets group secured the $109 million, 10-year senior loan from Freddie Mac, which featured five years of interest only, and arranged a $31 million preferred equity investment from Kayne Anderson Real Estate Debt. Freddie Mac would likely only do this for a top-of-the-line community, which is what Corso Atlanta is. Built in 2021, the community features 82 independent living, 75 assisted living and 26 memory care units across a nine-acre campus. Galerie Living developed the community to mimic Parisian... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
