BMO Has Georgia On the Mind
Solomon Development is building a new senior living community near the heart of Atlanta, Georgia (in Decatur, to be exact) with the help of the BMO Harris Healthcare Real Estate Finance group. Featuring 96 assisted living, 71 independent living and 33 memory care units, the project is located on a 3.5-acre lot with easy access to local shops and amenities. It is estimated to cost approximately $67 million, or around $335,000 per unit, to build, which is far above the $220,000-per unit average for seniors housing properties in the state, according to our in-house senior living development database dating back to 2013. BMO is financing approximately two-thirds of that cost with $44.2 million... Read More »AdCare Adds Alabama Assisted Living Community
In the midst of a turbulent Spring when AdCare Health Systems’ board fired its CEO, Bill McBride for embellishing his resume (he said he received an MBA from UCLA, but apparently, he didn’t), the company still managed to add one more assisted living community to its now-30-property portfolio. Closing its first acquisition since it become solely a landlord, AdCare originally announced a letter of intent to purchase the community back in February, but closed on the deal just this month. Located in Glencoe, Alabama, it was built in 1985 with 52 assisted living units and recently (in 2012) added a 33-unit memory care portion. This was the only seniors housing asset of the seller and... Read More »MidCap Financial’s Latest HUD Financing
Brett Patrick, Managing Director at MidCap Financial Housing Capital, recently arranged $7.95 million in 35-year HUD financing on behalf of a skilled nursing facility in Sun City West, Arizona (Phoenix MSA). The loan took out existing bank debt on the facility, which was built in 1985. There are 137 beds in the one-story building, which breaks down to 68 semi-private units and one private unit. Occupancy stood at 84% (over the current national average of 81%, according to NICMAP), with a 60% Medicaid census. Read More »
To Settle Or Not to Settle
Sometimes, when people search for problems at a senior living provider, it just gets absurd. I read this week a story in McKnight’s about a senior living provider who was sued and settled on a payment of a few hundred thousand dollars for the “crime” of not having sign language interpreters available. My reaction was, you’ve got to be kidding! No one had asked for sign language interpreters, but apparently someone went in “undercover” and found out they were not available. Imagine that. Obviously, I have nothing against the deaf, and my hearing is beginning to go, but to be coerced into forking over a few hundred thousand dollars for not having a service that was not asked for, well, this... Read More »
Expense Ratios: Independent Living Vs. Assisted Living
When comparing the independent living and assisted living markets, one would expect IL communities to operate at a higher margin than AL, given its lower services and thus, costs. And while that remained true in 2016, independent living and assisted living expense ratios came as close to equal as any time in the past, at 69.5% and 72.5%, respectively, according to the 22nd Edition of The Senior Care Acquisition Report. Only in 2011, when independent living had a higher expense ratio than assisted living, by just 10 basis points, did the two sectors operate more similarly. The shift has been steady, with the spread between IL and AL expense ratios of properties sold sharply decreasing from... Read More »All OK in Otay Ranch
The team at Cushman & Wakefield is helping a senior living development get off the ground in the newly developed master-planned community of Otay Ranch in Chula Vista, California (San Diego MSA). Expected to break ground at the end of the month, the project will feature 85 assisted living and 26 memory care units in two stories. A joint venture between Douglas Wilson Companies and Milestone Retirement is developing the community on a 4.5-acre site, which it hopes to open by the fall of 2018. Rick Swartz, Aaron Rosenszweig and Jim Dooley of Cushman & Wakefield represented Douglas Wilson Companies in arranging $22 million in construction debt from Wells Fargo as well as over $8.3... Read More »
New Owner For New Pond Village
Benchmark Senior Living, the largest seniors housing provider in the Northeast, just added its fourth CCRC, and 54th overall location, to its impressive portfolio. In a partnership with investment firm Farallon Capital Management, Benchmark acquired New Pond Village, a 199-unit entrance-fee CCRC in Walpole, Massachusetts (Boston MSA), for an undisclosed price. Built in 1992, it currently features 167 independent living and 32 assisted living units. The 90-bed skilled nursing facility was split off from the community in the mid-1990s, but residents at the CCRC have a priority admissions agreement with the SNF. This transaction comes 13 years after the seller, The Shelter Group, originally... Read More »
Is Brookdale Prepping For The Sale?
As you may know, we were never a fan of Brookdale Senior Living’s acquisition of Emeritus, and we are still not a fan of any company in the space operating 500 or more communities, let alone 1,000. It is just not that easy, and while we do not fault management for having a hard time of it, we do fault management for getting to the size it is. At least, the management responsible for the growth, and not the people trying to work things out. Brookdale announced its first quarter earnings, and investors seemed to like what they saw and heard. They ignoredthe same-community decline on occupancy of 100 basis points to 85.7% year over year, as well as the 80 basis point sequential decline. The... Read More »Ventana by Bucker Gets Off The Ground
Several years after plans were first announced for two 12-story senior living towers in the North Park neighborhood of Dallas, Buckner Retirement Services has finally broken ground on The Ventana by Bucker, a 325-unit entrance fee CCRC which is estimated to cost $136 million, or about $418,000 per unit. That tops both the national average cost to construct CCRCs ($386,500 per unit) and the Texas average ($394,700 per unit), according to our in-house database of developments going back to 2013. As such, the development, which features floor-to-ceiling windows throughout the building, boasts a number of luxurious amenities including a roof-top garden, top-floor “Sky Lounge,” heated indoor... Read More »
The Members Breakfast with Alan Butler
On May 4th, 2017, we hosted the seventh installment of The SeniorCare Investor Members Breakfast at The Princeton Club in New York City. Our special guest at the subscriber-only event was Erickson Living CEO, Alan Butler. For 45 minutes, Mr. Butler sat down with our Editor, Steve Monroe, to discuss his joining Erickson in 2010, the company’s emergence from bankruptcy, and the future of the CCRC model. Subscribers can watch the discussion below.... Read More »Schedule a demo
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