Harborview At It Again
Harborview Capital Partners is back in the news, working on behalf of a Tennessee-based borrower to refinance its assisted living community in Putnam County, Tennessee. Avi Begun of Harborview originated a $6.34 million HUD loan, with a 35-year term, and took advantage of an early rate lock to generate savings for the community. Read More »
Recent Senior Care M&A Deals, Week Ending October 27, 2017
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Athena Health Care SystemsMasonicare at NewtownN/A Local familyCalifornia assisted living community$9.6 million Morningdew, LLCFlorida assisted living community$4.04 million Westminster Communities of FloridaGlenmoor$27.5... Read More »
Getting Brookdale Senior Living Wrong
As recently as two years ago, there were a lot of investors and analysts who were very positive on the prospects for Brookdale Senior Living. Rarely have so many people been so wrong. And these are smart people. Perhaps the most egregious analysis came from Glenview Capital Management just two years ago. How wrong can wrong be? In August of 2015, they listed six reasonsthat would drive Brookdale’s growth. One was that new demand is exceeding supply across the industry. Whoops. A second reason was “private negotiated rates,” not being aware that what was negotiated was discounts. Whoops again. And the one that made us scratch our heads was, “Senior living facilities are considered to be... Read More »
Cushman & Wakefield Aces St. Augustine Sale
An amenity-rich senior living community just sold in St. Augustine, Florida, with the help of Allen McMurtry, Paul Carr, David Kliewer and Megan Fetter of Cushman & Wakefield’s Tampa office. Built in 2001, the community sits on about 40 acres in the World Golf Village and features 87 cottage homes, 70 independent living units, 36 assisted living units and 30 private skilled nursing beds. In addition to access to two world-class golf courses, residents also enjoy a clubhouse, heated outdoor lap pool, putting green, bocce court, pub and fitness center. Life Care St. John’s Inc., an affiliate of Life Care Pastoral Services, sold the property to Westminster Communities of Florida for $27.5... Read More »
The JCH Group Shows Its Range
Nick Stahler and Jim Hazzard of The JCH Group had their work cut out for them but got the job done, selling a 97-unit assisted living community in Fulton, California on behalf of a family trust. There are some issues the new owner will have to address, however. Built in 1976, the community is in need of some renovations, over $3 million, in fact, estimated by the buyer. The payor mix could also significantly improve, as the community is almost entirely made up of SSI (Supplemental Security Income) residents, which doesn’t necessarily help the bottom line. Every room can be double occupied, with an 88% census based on the 194 beds at the time of the sale. Lastly, owned and operated by a... Read More »
HJ Sims & HUD Plus
With every seniors housing development project, it is always important to have a contingency plan. Having a trusted financing partner goes a long way, too. That is why when a joint venture led by Affinity Living Group ran into some unexpected problems during the lease-up stage of their portfolio of four newly developed assisted living/memory care communities in North Carolina, they turned to HJ Sims to arrange some additional capital. Built between August 2015 and January 2017, these communities combine for 120 assisted living and 152 memory care units, and were developed by the joint venture, with Affinity as the operator. The venture had contributed over $7 million of equity to the... Read More »
A Restaurant-To-Seniors Housing Conversion
A former restaurant and banquet facility in Lower Providence, Pennsylvania is being converted to seniors housing, so the kitchen and dining room are covered. The restaurant, known as the Collegeville Inn, had its heyday in the 1950s and 60s, but after a couple of unsuccessful reboots, it closed for good in the early 2000s, when M&T Bank took over ownership. Now, Providence Place Senior Living, which already operates five communities in Pennsylvania, has broken ground on a $19 million conversion/addition project to develop a 113-unit senior living community. Included in the plans is a two-story addition that will house the residential units, which would serve independent living,... Read More »
Senior Housing & Care Acquisition Pricing Softens
Across the senior housing and care spectrum, average per-unit and per-bed prices softened a little in the four quarters ended September 30, 2017. I am sure a lot of you have heard that the senior housing acquisition market is soft, reflecting concerns over census and rising costs. But how soft? Not very, according to our recent acquisition data. For the four quarters ended September 30, the average price per unit for assisted living did drop compared with the four quarters ended June 30, but by only 4% to $208,200. It is still higher than the $193,650 per unit for calendar year 2016. The average AL cap rate dropped to 7.9%. The independent living market softened a little as well, with the... Read More »Parc Communities Grows Again
Atlanta-based Parc Communities is bringing its luxury seniors housing brand out of state for the first time, with a 159-unit development near Texas A&M University in Bryan, Texas (next to College Station). Launched in 2000, Parc Communities made its name as a high-end provider of independent living, helped by the fact that its founding principles came from Ritz Carlton and formed Parc’s hospitality-driven model. However, the Great Recession hit independent living especially hard, and Parc repositioned its portfolio, adding an assisted living component to three communities, keeping two as-is, and selling off two. Now, Parc Communities is priming itself for growth again, starting with a... Read More »
Masonicare Feels The Squeeze
After 34 years of ownership, Masonicare is selling its large skilled nursing facility in Newtown, Connecticut, citing many of the issues facing small SNF operators today as the reasons for its exit. The Connecticut not-for-profit currently operates a senior living community, a CCRC, a health center and a number of home health agencies throughout the state. But the skilled nursing facility in Newtown, which included 154 SNF beds and 55 assisted living units, had been losing money in recent years caused by declining census, rising patient acuity and tightening reimbursement. Athena Health Care Systems, a Connecticut-based specialty care provider with about 45 skilled nursing facilities in... Read More »Schedule a demo
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