Genesis HealthCare Plunges
After falling by 60% in 2015, Genesis shares plunge on revised revenue and earnings forecasts. Talk about a disaster. Just when we thought all senior care stocks had bottomed out, Genesis HealthCare wasn’t done. All the others are now well above their recent lows, but Genesis plunged 32% on Monday and late yesterday was down another 12% when the overall market was up over 200 points. Why? Management revised downward its revenue and EBITDA estimates for 2015, and also revised downward their forecast for 2016. This was the second negative earnings surprise in less than a year, for which values get crucified. But here’s the rub. The share price had already dropped by 31% in December, and had... Read More »
Blue Moon teams with LCS
After announcing two large development projects funded by Hawkeye Partners’s Scout Fund II last year, Boston-based Blue Moon Capital Partners will go to the well once more to build another large senior living community, this time in Katy, Texas. The project, which will cost $51.23 million, or $247,500 per unit, features 207 units of independent living, assisted living and memory care, and will be the first with joint venture partner LCS. Previously, Blue Moon teamed up with Gerald H. Phipps, Inc. and Ascent Living Communities to build a $56 million, 156-unit senior living community in Lakewood, Colorado, and with The Damone Group and Cedarbrook Senior Living to develop a 180-unit senior... Read More »
Knapp hits a double
Jim Knapp of Marcus & Millichap has been busy in the state of Michigan lately, closing two transactions in the last few weeks, totaling over $12 million. Starting in the town of Flushing (located just upriver from Flint), Mr. Knapp sold a 52-unit assisted living community that included two buildings with 40 assisted living/memory care beds and a separate 20-bed advanced memory care community located about a mile away. This was the last owned seniors housing property by the seller, a local partnership that still currently operates a small memory care community within a hospital. Built in 2001, the two AL/MC buildings were well occupied at 90%, but experienced higher than normal... Read More »Bridge to success
Capital Funding Group closed three bridge-to-HUD loans for three turnaround opportunities totaling over $25 million, all of which helped finance acquisitions. First, Gary Sever originated a $10.8 million loan, provided by Capital Lending and Mortgage Group, to facilitate the acquisition of two skilled nursing facilities (with 151 and 64 beds, respectively) by affiliates of the ARBA Group for $9.5 million. The funds also allow ARBA to renovate both facilities. Next, Mr. Sever originated an $8.16 million loan from Capital Funding, LLC for ARBA to acquire a 365-bed (though with 265 functional beds) skilled nursing facility in Fort Worth, Texas for $9.6 million. Built in 1974, the facility was... Read More »
Schizophrenia in the development market?
In our most recent webinar, held on January 21 and titled “Investing in the Senior Care Development Market,” we asked our listeners a couple of questions to gauge their opinion on certain potentially pivotal matters in the industry. First, we asked “Today, is it better to build or buy?” And second, we posed the question, “Do you think the development market will boom or bust?” Not surprisingly, over two-thirds (72% to be exact) of the audience preferred building to buying these days, and we suspect that acquisition prices as they are must play a big part in that divide. But, after that relatively optimistic response to the development market, 75% of the audience believed the development... Read More »Walker and Dunlop back at it
Not resting on its laurels following the recent $1.27 billion Freddie Mac financing it closed, Walker & Dunlop announced another financing, this time structuring a $68.2 million construction loan for a 318-unit senior living community to be built in Palm Beach County, Florida. The loan featured a floating rate of about 300 basis points over LIBOR and covered about 70% of the over-$100 million (about $314,500 per unit) development. Ventas will provide equity capital and will be the principal owner of the community in partnership with the developer, Big Rock Partners. Designed by Gensler and to be constructed by Moss & Associates, the 425,000-square foot community will feature 186... Read More »
Laying the ground work
After a solid end of year in deal volume for The JCH Group, as detailed in the January issue of The SeniorCare Investor, which also included the sale, arranged by Jim Hazzard and Nick Stahler, of a 35-unit memory care community in Orange County for $6.25 million, or about $179,000 per unit, the firm is looking forward. And while the fourth quarter was a healthy one for JCH, Q1:16 should see quarterly sales volume of up to $75 million. So, stay tuned to follow those closings. Read More »
CommuniCare grows in Maryland
Cincinnati-based CommuniCare Health Services became the second largest provider of skilled nursing care in Maryland when it acquired six facilities in the state, and one in West Virginia. The transaction added over 900 beds to its portfolio, which includes nearly 15 post-acute care facilities and nearly 2,000 beds in Maryland, and 35 facilities in four other states. All of the seven acquired facilities were formerly White Oak Healthcare facilities. For CommuniCare, which as of September 30, 2015 operates 36 properties for Omega Healthcare Properties, this is a big step outside of its center of operations in Ohio, where it currently operates 31 skilled nursing and rehab facilities. Read More »Investing In The Senior Care Development Market
The development activity in seniors housing is increasing, and anyone thinking about investing or lending in this market should attend tomorrow’s webinar. Will 2016 be the year that sets the stage for the future of the seniors housing development market? There have been two sides of the story, those who think that demand will increase enough to counter the current uptick in development we have been witnessing. And those who see the rate of new development accelerating this year and into 2017 and 2018 that will have significant negative ramifications in some markets. Regardless of where you stand in this argument, construction starts seem to be rising, and seniors housing is still a... Read More »The added cost of memory care
If you have been following the seniors housing construction market in the last couple of years, you probably have noticed that most of the development that has happened has been assisted living, memory care or some combination of the two. So with all of that building, is there any difference in the average cost to build for either acuity? And are developers actually putting money where their mouths are when they talk about their specially designed, technology-rich memory care projects? When comparing average development costs (which are made up of seniors housing new construction projects announced since late 2013, and include both hard and soft costs), stand-alone MC communities did... Read More »Schedule a demo
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