Opportunities and Challenges in Seniors Housing and Care
Conferences abound with opportunities in seniors housing and care, but challenges exist as well. So, I have been in New York City the past two days at a new conference being put on by iiBIG, formerly known as the International Institute of Business Information & Growth. I believe this is the first seniors housing and care-dedicated conference in New York City for several years, which is surprising given the large number of providers and properties within a 200-mile radius. I moderated one panel and spoke on another, and while the title of the conference is “Opportunities in Senior Housing & Care,” there are also a lot of challenges in today’s market. Just look at what has been... Read More »
SLIB Sells Value-Add Skilled Nursing Facility In Texas
Certainly having seen better days, a 120-bed skilled nursing facility in Bastrop, Texas with occupancy just below 50% sold for $3.5 million, or $40,700 per operating bed. Originally built in 1987, the facility is licensed for 120 beds, but operated at just 86 beds at the time of the sale, with EBITDA around breakeven. A publicly traded REIT was the previous owner, with a Texas-based group looking to lessen its exposure to the central Texas market as the outgoing operator. The new owner is a self-advised real estate company with a focus on seniors housing, and will look to add value in the asset. Matthew Alley of Senior Living Investment Brokerage handled the transaction. Read More »
ESI Closes Easley Transaction
Evans Senior Investments found a new owner for a well-operating independent/assisted living community in Easley, South Carolina. Previously independently owned and operated, the community was built in 1997 and expanded in 2004. At the time of the sale, it was 96% occupied with a 100% private pay census and operated at a 36% EBITDAR margin. Nevertheless, the buyer, a Chicago-based private equity firm, will attempt to use the scale from its portfolio to further improve profitability. They paid $14.5 million, or $145,000 per unit, for the opportunity. Read More »
Ziegler Zeroes In On Savings
The owner of two assisted living communities wasn’t in the mood to settle for second-best when it worked with Ziegler to refinance its existing permanent financing and receive a lower interest rate. The two communities are located in Redding, California, and include a stand-alone assisted living community with 60 units and an 85-unit assisted living/memory care community. Together, they had approximately $14.1 million in outstanding HUD debt originally financing by another HUD lender in 2014. However, the interest rate was in the mid-4s, which the borrower believed they could improve upon. Ziegler stepped in to arrange $14.7 million if HUD financing, locking in a lower interest rate and... Read More »
The Sky Is Falling, At Least At Skyline
Over the past couple of years, we have been watching as a company called Skyline Healthcare seemed to come out of nowhere to becoming a national operator of skilled nursing facilities with perhaps 120 or more facilities under management. This has occurred in a very short period of time, and many of their properties came from Golden Living, as that company, after some run-ins with various state regulatory agencies, switched from being an operator to a landlord. To do that, you need a lot of providers to step in and lease your buildings, or maybe a few to take over operations for a lot of them. It looks like Skyline became a go-to provider for them. Two states, however, have taken over... Read More »
Sitzman Sells Vacant Senior Living Assets
No residents? No problem for Amy Sitzman of Blueprint Healthcare Real Estate Advisors, who recently sold two vacant assisted living communities in Arizona for an undisclosed price. These were not recent vacancies, however, that the incoming owner can just open the doors and get along with business as usual. One asset, located in Peoria with 50 units, closed in 2008, while the second building in Mesa, also with 50 units, had been vacant since 2013. The seller looked to divest the assets, and ended up selling to two separate buyers. The purchaser of the Peoria property is a regional operator looking to expand its presence. Meanwhile, the Mesa buyer is a growing behavioral health group that... Read More »
How Old Is Too Old In Seniors Housing?
For the first time in our Senior Care Acquisition Report (with the 23rd Edition just published), we decided to take a look at how investors priced in the risk purchasing a newer seniors housing community, versus an older one. As many of you know, the assisted living product did not develop in earnest until the 1990s, when at the end of the 20th century, the industry experienced a boom in development, mostly on the assisted living side. Since then, the tastes of seniors have changed, and what may have been a luxury “A” property in 2000 may not be one now. We have also more recently undergone a development boom, once again primarily in the assisted living/memory care sector. Many of these... Read More »
MidCap Financial Arranges Acquisition Financing For Southwest Senior Living
MidCap Financial worked on behalf of Palatine Capital Partners Management to arrange financing for the purchase of a senior living community in the Southwest. Palatine, an investment firm focused on small- and mid-cap real estate assets, acquired a 145-unit senior living community that is roughly split evenly between independent living and assisted living. Well-located and purpose-built in the late 1990s, the community was in need of significant renovations. So, in addition to funding the acquisition, the $9.0 million floating rate loan will enable Palatine to implement a $2.5 million capital improvement plan at the community to renovate the exteriors, common areas and unit... Read More »
Immigration and Labor
The seniors housing and care industry needs more low-skill immigrants, but is that really the best long-term solution? The New York Times ran a full-page story Monday on why a constant flow of low-skill immigrants is important for the seniors housing and care industry. Apparently, it is getting increasingly difficult to find locals to fill the growing need for caregivers. I have two conclusions about what’s going on. First, many immigrants come from countries where there is a different attitude towards the elderly, call it more respect and more compassion. That is why they often make excellent caregivers. On the flip side, I think there is more ageism in this country than people are... Read More »
Tellatin, Inc. Joins Integra Realty Resources
Tellatin, Inc. and its six offices with 16 professionals has joined Integra Realty Resources (IRR), significantly expanding IRR’s national coverage in the seniors housing and care appraisal and feasibility business. Coming on board as new shareholders of IRR include Jim Tellatin, MAI, Victor Cremeens, MAI, Bradley Schopp, MAI and Mark Tracy. The professionals at Tellatin have completed assignments on more than 6,000 nursing facilities, 3,300 assisted and independent living communities, and 200 hospitals in every state with a total value in excess of $75 billion. Founder Jim Tellatin authored the book, The Appraisal of Nursing Facilities, which has become the bible of skilled nursing... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
