Walker & Dunlop Finances Arcapita-Owned Assisted Living Communities
Just over three years since buying three assisted living communities in Colorado, Middle East-based alternative investment fund manager Arcapita is refinancing them with the help of the team of Stuart Wernick, Jeff Ringwald and Bill Jackson of Walker & Dunlop. Operated by MorningStar Senior Living since opening in 2013 and 2014, the communities were nearly stabilized when they were acquired in December 2015 for a combined $79.5 million, or just over $400,000 per unit. Two of the communities feature a combination of assisted living and memory care units in Colorado Springs and Centennial, and the third property (also in Colorado Springs) serves exclusively memory care residents. In all,... Read More »
Recent Senior Care M&A Deals, Week Ending April 19, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Target Healthcare REIT LimitedCare home$9 million Afton PropertiesAurora Village Apartments$8.65 million Preservation of Affordable Housing6 senior apartment communitiesN/A Triloma Seniors HousingThe Fountains of Granite City & The Fountains of... Read More »
Senior Housing Properties Trust Dividend Takes a Dive
If you read our lead story in the April issue of The SeniorCare Investor, you may have thought it couldn’t get much worse for Senior Housing Properties Trust (SNH) and its tenant Five Star Senior Living (FVE). And then on Thursday, SNH officially dropped its quarterly dividend by 61.5% from $0.39 to just $0.15 per share, with a forward yield of 7.43%. The company had previously mentioned that they would lower its annual dividend to between $0.55 and $0.65 (and deciding on $0.60), but if a dividend decline is bad on its own, it’s even worse for SNH whose high, double-digit yield was probably its best asset in the eyes of its shareholders. Now, SNH’s yield still ranks higher than a number of... Read More »
American House Sells IL Community in Michigan
Mike Garbers and Cody Tremper of Greystone Real Estate Advisors worked on behalf of American House Senior Living Communities to sell their independent living community in Southfield, Michigan to a local owner. Featuring 202 units, the community was built in 1987 on a 10.4-acre campus. It was well-occupied at 95%, so the new owner should be hitting the ground running. It also helps that the new owner has several other IL communities in the area. Read More »
Original Owner Exits Two AL Communities in Illinois
The original developer of two assisted living communities totaling 135 units in Illinois (St. Louis MSA) is finally exiting the assets, after more than 10 years of ownership, with the help of Mike Surak and Matthew Andriano of Marcus & Millichap and Mark Myers and Joshua Jandris of IPA Seniors Housing. Operated under the Fountains Assisted Living brand, the properties are located in Granite City (built in 2000) and Godfrey (built in 2006), or about 23 miles apart from each other. They were previously owned by a local investment group that featured a large number of individual investors. The out-of-state buyer, an affiliate of Triloma Seniors Housing, will look to use their operating... Read More »
Cambridge Refinances Texas Senior Living Community
Cambridge Realty Capital Companies arranged a HUD refinance of an assisted living/memory care community in Sherman, Texas. Built in 1982 and featuring 49 units, the community is owned by a Texas limited liability company, but according to our M&A database, it was last acquired in 2015 by a non-traded REIT. At the time it was 98% occupied and was purchased for $5.2 million, or about $106,100 per unit. The community is now being refinanced by a $4.645 million HUD loan with a 30-year term. Read More »
What About the CCRC M&A Market?
The CCRC (or LPC) acquisition market, which we highlighted in the First Edition of The Seniors Housing Acquisition & Investment Report, is the thinnest of all the major sectors of seniors housing and care. The number of potential buyers is smaller, the lender and investor pool is smaller, and the number communities for sale each year is smaller. Because the market is not very active, we have grouped our statistics in two-year intervals (with the exception of the three-year period before the Great Recession) to minimize the impact of outlier sales at both extremes. Anecdotally, we have heard that the CCRC market is possibly faring the strongest of the seniors housing sectors. There has... Read More »
Misleading Information for Consumers
A professor with a new book on dementia care claims a semi-private room in a “decent” nursing facility in a big city costs $240,000 per year. Hogwash. I hate it when bad information gets out there, and a professor of psychiatry and bioethics at the Albert Einstein College of Medicine should know better. Especially someone coming out with a book called: Dementia Revisited: Building a Life of Joy and Dignity from Beginning to End.” Dr. Tia Powell published a story last weekend in The Wall Street Journal called “New Hopes for Dementia Care.” In it, she claims that the cost for a semi-private room in a “decent” nursing home in a big city is $240,000 a year if you don’t qualify for... Read More »
Blueprint and BlueMountain
Blueprint Healthcare Real Estate Advisors announced that it was involved in the Sabra Health Care REIT sale of 28 skilled nursing facilities in Texas and Louisiana to a joint venture of BlueMountain Capital Management, BM Eagle Holdings and Capital Funding Group for $282.5 million. Engaged by the joint venture buyer for their expertise on the Texas and Louisiana markets, Ben Firestone, Chris Hyldahl and Gideon Orion of Blueprint helped find local operating partners and tenants for the portfolio, which was previously operated by the now-bankrupt Senior Care Centers. Despite the bad news surrounding SCC’s financial troubles, these facilities were still operating decently well, particularly... Read More »
Greystone Refinances on the Jersey Shore
It was a team effort from Greystone to successfully close a Fannie Mae refinance of an assisted living community on the New Jersey Shore. Working on behalf of the borrower, Sage Healthcare Partners, Greystone’s DJ Elefant originated the $24 million loan, with Neal Raburn providing support in structuring, underwriting and closing the transaction. The 10-year loan (with a 20-year amortization and two years of interest only) replaces the original bridge loan provided by Greystone to enable Sage Healthcare Partners to acquire the property in 2017. Originally built in 1949 and renovated in 1997, the six-story community also had one floor converted to memory care in 2010. Back then, it was owned... Read More »Schedule a demo
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