Innovation and Seniors Housing
Everyone talks about the disruption factor coming to seniors housing, but nobody knows what it is. Can we innovate before it comes? So, I have been attending the Senior Living Innovation Forum this week, a “smallish,” invite only conference with about 250 attendees. The point of it is to bring in industry insiders and some outsiders to get into the down and dirty about the future of seniors housing in this country. My session, with four top CEOs on the panel, will be taking a deep dive into the future, where they think the industry will be in 2030, what a potential disruptor could be and whether it will come from outside the industry or inside. Will the disruption be service oriented or... Read More »
KeyBank Closes Two Fannie and Freddie Financings
Charlie Shoop of KeyBank Real Estate Capital has been hard at work arranging two financings from two different agencies. First, through Freddie Mac, Mr. Shoop originated a $26 million loan to facilitate the acquisition of a 175-unit independent living community in Dallas, Texas. The floating-rate loan came with a seven-year term, four-year interest only period and 30-year amortization schedule. Its recipient was Chicago Pacific Founders, which purchased the nine-year old community from Capitol Seniors Housing (CSH) for an undisclosed price. CSH had originally bought the property in 2016 when it was around 95% occupied and operating well. At the time, CSH had plans to invest in some capital... Read More »
Blueprint Sells Jewish Senior Care Community in Ohio
Jacob Gehl, Connor Doherty and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors represented a not-for-profit senior care community in the Cincinnati, Ohio suburb of Mason in its sale to another not-for-profit entity. After first opening in 1997, the 267-bed/unit property was operated by the Jewish Home of Cincinnati and offers a full continuum of care, including independent living, assisted living, memory care and skilled nursing. However, in order to invest in new programs and services to serve Cincinnati’s Jewish seniors in the future, its Board of Trustees elected to sell. Blueprint found an Indiana-based not-for-profit buyer, which will hire CarDon & Associates to manage... Read More »
CBRE Finances Change of Ownership at California Community
Just over a year after opening, a 130-unit senior living community in Folsom, California (Sacramento MSA) has already stabilized, leaving one of its partners to look for an exit. A joint venture between developer Tenfold (formerly Shamrock Holdings), operator Artēgan and a global investment manager originally opened the community in February 2017 and oversaw an impressive lease-up, topping 90% occupancy. Featuring independent living, assisted living and memory care services, the community offered a continuum of care approach unique to its local market, which surely helped fill units. But the global investment manager partner sought an exit, and AEW Capital Management took its place. Aron... Read More »
Ensign Makes Another Arizona Acquisition
Despite its stated strategy to own more of the real estate in its portfolio of over 230 healthcare properties, The Ensign Group shunned its recent practice and acquired just the operations of a 140-bed skilled nursing facility in Sun City West, Arizona. Reporting 87% occupancy at the time of the sale, the facility will be operated by Ensign’s Arizona-based subsidiary, Bandera Healthcare, while Ensign acquired the operations subject to a long-term lease. The deal brings The Ensign Group’s portfolio to 184 skilled nursing operations, 22 of which include assisted living services, and 51 AL/independent living operations. Of that total, Ensign currently owns the real estate at 67 of the 235... Read More »
The Price of Profitability in Skilled Nursing
For the fifth year in a row, there has been a perfect correlation between the average price per bed and the expense ratio of those skilled nursing facilities sold, according to the 23rd Edition of The Senior Care Acquisition Report. This makes perfect sense but does not always happen when you have skilled nursing facilities in good markets that are mismanaged, usually on the expense side, but often combined with low Medicare utilization. Even though the operating margin (the inverse of the expense ratio) is important and can impact value in the acquisition market, it is the absolute level of cash produced at the facility that is always the most important factor. If there is a low expense... Read More »
Grandbridge Goes Green, Again
Utilizing Fannie Mae’s Green Rewards financing product, Richard Thomas and Meredith Davis of Grandbridge Seniors Housing and Healthcare Finance Group arranged a $25.5 million acquisition loan to fund the purchase of a 93-unit assisted living/memory care community in Alpharetta, Georgia. Focus Healthcare Partners’ dedicated senior housing fund was the borrower and will retain The Arbor Company as the community’s operator. This type of transaction seems to have become a recent specialty of Grandbridge’s, as the firm so far in 2018 has closed nearly $300 million in financings through Fannie Mae’s Green Rewards program, across 13 properties, which is the most among Fannie Mae DUS lenders... Read More »
Capital One’s Tucson Transaction
A large healthcare campus in Tucson, Arizona recently refinanced through HUD, with the help of Joshua Rosen at Capital One. After originally opening in 1964, the campus has since expanded in 1977 and 1990 to currently feature 24 independent living, 19 assisted living and 270 skilled nursing beds (across 132 units). Its experienced owner/operator had also invested in a newly redesigned therapy center and is currently installing LED lighting to reduce energy consumption. Wanting to replace their bank debt, recoup their capital expenditures and retire partner debt, the owners received a $20.8 million HUD loan, provided by Capital One. Read More »
The CCRC Market
CCRCs are thriving in today’s market when so many other providers are struggling for census. But why? How many times have you heard that the CCRC market is a thing of the past? About as many times as you have heard that skilled nursing is dead? Well, I’ve got some news for you, neither is dead and they aren’t going anywhere. While so many providers are struggling with today’s occupancy or reimbursement issues, CCRCs are actually outperforming the entire senior housing and care sector, at least when it comes to occupancy. In addition, values in the CCRC acquisition market have been on an upward trend for the past four years. But what has changed since the Great Recession when people... Read More »
Two New Communities Trade In Arkansas
Evans Senior Investments closed out May by closing the sale of two private pay senior living communities in Arkansas for a combined $37.965 million, or $183,000 per unit. Located in the towns of Rogers and Bentonville (about 10 miles apart), the communities totaled 56 independent living cottages, 116 assisted living units and 36 memory care units, all with private bathrooms and modern finishes. Built a few years ago, the Rogers community was 77% occupied, with a 24% EBITDAR margin over the previous 12 months, while the Bentonville community had only just opened in 2017 and was still leasing up. The seller was a regional owner/operator (represented by ESI). A joint venture between... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
