Private Equity Purchases Alabama Independent Living Community
A private equity group based in Florida saw potential in a distressed independent living community in Montgomery, Alabama, acquiring the property for an undisclosed price. Occupancy was below 50%, but the property featured a number of amenities like large common areas, an outdoor patio and barbecue area, three courtyards, beauty/barber salon and a media room, among others. The buyer, which specializes in affordable seniors housing, will certainly have its hands full turning around the distressed asset. Brooks Blackmon and Trent Gherardini of Blueprint Healthcare Real Estate Advisors handled the transaction, and Blueprint’s General Counsel, Josh Salzman, managed the legal... Read More »
Senior Apartments Sell In Fridley, Minnesota
We continue to hear of the growing interest in 55+ senior apartment communities, which would, many believe, provide an affordable bridge to independent or assisted living for Baby Boomers. Ray Giannini and John Klement of Marcus & Millichap capitalized on that interest and sold a 110-unit senior apartment community in Fridley, Minnesota (Minneapolis MSA) for $13.5 million, or $122,700 per unit, with a 6% cap rate. Built in 1999, the property is located on 3.3 acres and features an underground parking garage. Each unit comes with a private bathroom (with walk-in showers), kitchens, dishwashers and large windows, while community amenities include a beauty shop and spa, a large great room... Read More »
CBRE Settles Oklahoma Sale
CBRE’s Daniel Morris, working out of the Oklahoma City office, sold a 120-unit assisted living community in Bethany, Oklahoma for $4.4 million, or $36,700 per unit. Settling an estate, the original developer sold the community, which was only 60% occupied and losing money at closing. The buyer, a local investor group, will oversee an extensive $1.0-$1.5 million cosmetic renovation to the property and may convert one of the two stand-alone buildings to either high-acuity assisted living or memory care. Assuming there is a market for those residents, that should help increase the community’s value. Read More »
Kindred Healthcare Sold and Dismembered
The Carlyle Group, TPG and Humana are buying Kindred Healthcare and splitting the company apart. I know I am supposed to be full of holiday cheer this time of year, but yesterday’s official announcement that Kindred Healthcare will be sold to Humana, TPG and The Carlyle Group, and dismembered for just $9 per share, well, that has just made me a little down. Why? Because I was an early believer in Kindred’s goal to be the post-acute provider of choice, with its home health and hospice, skilled nursing, LTAC and rehab businesses, all in about 17 concentrated locations. There was no other company quite like it, anywhere, and they were way ahead of the curve. Perhaps too far ahead, and that... Read More »
National Health Investors’ Latest Purchase Option
Executing on a purchase option, National Health Investors acquired a 32-unit assisted living/memory care community in Durham, North Carolina, for $7.6 million, or $237,500 per unit. The impetus for the deal goes back to February 2017, when NHI purchased two adjacent AL/MC communities in Hendersonville, NC (about 20 miles south of Asheville) and entered into a new operating relationship with Ravn Senior Solutions at the same time. Ravn, which stepped in to operate the two communities under a new 15-year lease (with an annual lease rate of 7.35% and annual fixed escalators), was founded by a group of industry veterans, including Steve Morton (co-founder of Southern Assisted Living, Inc. and... Read More »
Ambitious 2018 Ahead For Harbor Retirement Associates
Florida-based senior living developer/operator, Harbor Retirement Associates, has a plan to open a new assisted living/memory care community nearly every month in 2018, a tall order for any operator or developer. HRA will start the year by opening a community each in Jacksonville, Florida, and Long Grove, Illinois (Chicago MSA) in January. Then, throughout the year, the company has grand openings planned in Delaware, Ohio, South Carolina, Florida and Virginia, bringing the 2018 total to 10 new communities. And that’s following the three communities HRA opened recently in McKinney and Southlake, Texas and Palm Beach Gardens, Florida. Operationally, opening 10 communities in a year is hard... Read More »
Chicago Pacific Founders Acquires Jacksonville Assisted Living Community
After already buying a 124-unit assisted living community in Cincinnati, Ohio this month, Chicago Pacific Founders added another community to its portfolio in December, this time in Jacksonville, Florida. The private equity firm acquired a 189-unit senior living community, with independent living, assisted living and memory care services, in a newly developed residential section of Jacksonville, nearby dining, shopping, medical facilities and, of course, the beaches. Like in all of its transactions, Chicago Pacific Founders hired Grace Management to operate the community. Read More »
Greystone Gets It Done
Aspens Senior Living partnered with Greystone to obtain construction financing for two of its latest seniors housing projects located in North Carolina and Arizona. First, to the Tar Heel state, where Aspens and joint venture partner Pennybacker Capital are currently building a 182-unit independent living community in Raleigh. A regional bank provided a $24.2 million loan to fund the construction. Then, in Gilbert, Arizona, Aspens, Pennybacker Capital and McFarlin Group are developing a 204-unit independent living community, with the help of a $25.8 million loan provided by a publicly traded bank and also arranged by Greystone. Greystone also snuck in a $16.5 million HUD loan arranged by... Read More »
Capital Funding Group’s Transaction Trifecta
Certainly ending the year on a strong note, Craig Casagrande of Capital Funding Group originated three transactions, totaling over $47 million. The largest of the loans, at $31.243 million, refinanced a bridge loan on a New York skilled nursing facility. CFG had closed the bridge loan at the end of 2016 to help the borrower recapitalize equity on what was an underleveraged facility, and simultaneously applied with HUD for a refinance, closing the transaction this October. Staying in New York, and with HUD, Mr. Casagrande originated a $9.843 million refinance for another skilled nursing facility in the state. And finally, CFG closed a bridge-to-HUD loan for a Pennsylvania SNF, totaling $6... Read More »
Capitol Seniors Housing Constructs
Capitol Seniors Housing has made it clear that it sees a great opportunity in the 55+ active adult space, but assisted living still has a place in its investment strategy, of course. The private equity firm just broke ground on a brand-new 86-unit assisted living/memory care community in Fulton, Maryland (about halfway between Washington, D.C. and Baltimore). At a cost of $27.5 million, or about $320,000 per unit (high for the area-average of $233,000 per unit, according to our in-house database), the community will be operated by The Arbor Company upon completion, which is expected in late-2018. Read More »Schedule a demo
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