Pay up in Pennsylvania
Good and hard work is usually rewarded in this industry, and the single-asset private owner of an historically five-star rated skilled nursing facility in Lansdale, Pennsylvania is certainly retiring in style with the facility’s sale. Though the purchase price was undisclosed, we hear it sold for one of the highest prices per bed for a single-facility in Pennsylvania. Built in 1980 on just under six acres, the property was very well maintained and featured seven private rooms, 51 semi-private rooms and 24 three-bed wards. And in addition to a 96% occupancy, it also had strong cash flow. That operational success, combined with amenities like a business office, conference room, country... Read More »Transaction trifecta
Mike Garbers and Cody Tremper of Greystone Real Estate Advisors finished out the year strong with three closings, including U.S. Memory Care’s sale of four MC communities in Texas to a private investor, and a publicly traded REIT’s divestment of a 298-unit independent living community operated by Brookdale Senior Living in Southfield, Michigan. Tremper and Garbers’ final transaction of 2016 also involved Brookdale, as the company sold two of its Carolina seniors housing communities for $33 million. The Hendersonville, North Carolina community was built in 1985 and 1993 with an independent living building and a separate memory care facility. There was also a 30-year old property in... Read More »
Changes already for 2017
Welltower has a management shuffle, and The Ensign Group expands its real estate ownership. Well, first of all, Happy New Year. I am not sure if it is going to be all that happy, bumpy yes, happy, it will depend on your perspective. For the first act of the new Congress to upend their own ethics rules, and then to rescind what they just passed, well, one would think they have more important things to do. Perhaps they are waiting until January 20. Meanwhile, we are heading into a year of uncertainty as well, with the full impact of rising interest rates not felt yet, even though financing activity seemed to take a breather in December. The only big news was that at year-end The Ensign Group... Read More »
Ensign Expands
The Ensign Group acquired the underlying real estate of a portfolio of 15 Wisconsin assisted living communities nearly a year and a half after taking over the operations under a lease. Formerly owned by Harmony Living Center, LLC, these communities feature a total of 687 units and a combined occupancy of 83%. Ensign financed the purchase with cash from its revolver, and Ziegler handled the transaction, which did not come with a disclosed price. This move reflects a desire of Ensign to own a larger share of its operating portfolio, especially after it spun off many of its real estate assets into CareTrust REIT in 2014. Now, Ensign owns the underlying real estate in 50 of its 209 operations.... Read More »HHC’s Fitting Finale
Housing & Healthcare Finance (HHC) finished the year with over $25 million in two more HUD transactions. First, for a portfolio of five Texas skilled nursing facilities all built between 1960 and 1985 and owned by an experienced operator, HHC closed five loans totaling $21.2 million. The financing, with interest rates in the low 3s, will help fund needed repairs across the portfolio. And then, HHC arranged $5.6 million, also with an interest rate in the low 3s, for a 94-bed skilled nursing/memory care facility in California. Built in 1964, the facility was also owned by an experienced operator. Read More »
A Flowering Relationship
Capitol Seniors Housing (CSH) is expanding its assets in Texas through a new operating relationship with Civitas Senior Living, which has lately been known for its development activity in the Dallas-Fort Worth and Austin markets. While we have not been alone in voicing concerns about overbuilding in these markets, the target property for CSH (developed by Civitas in the DFW MSA) clearly has not felt the effects. Located in Flower Mound, the community was just built in 2015 with 58 assisted living and 34 memory care units, and is already nearly fully occupied with a strong cash flow on top of that. CSH paid $26 million, or $282,600 per unit, for the property. Based on trailing-three month... Read More »
Ho, Ho, Ho…The CEO
A Christmas salute to senior care’s CEOs. ‘Twas the night before Christmas, when all through the industry No one was buying, not even Ed Kenny The listings were posted by the brokers with care In hopes that Jack Callison soon would be there The investors were nestled all snug in their beds While visions of Bill and Bob Thomas danced in their heads And Barry in his Kerchief, and Bruce in his cap Had just settled down after giving them one last slap When out on the lawn arose such a clatter Paul Ormond sprang from his bed to see what was the matter Away to the window he flew in a flash To see his portfolio turn into ash The moon on the breast of the... Read More »Sugar Hill Sale Saga
What do you do with a nine-story, 169,410-square foot distressed senior care home? You sell it for about $500 per square foot to a real estate investment firm with plans to convert the building to luxury apartments, of course. That was the case for Haysha Deitsch, who purchased a Brooklyn building in 2006 for $40 million and just closed this Fall on an $84 million sale to New York City-based Sugar Hill Capital Partners. However, things were not all smooth in Mr. Deitsch’s 10-year ownership, especially since 2014 when he and Sugar Hill initially agreed on the sale. Following that agreement and a 90-day notice to residents to vacate, tenants’ families sued Deitsch for allegedly trying to... Read More »Riverside Refinance
Three years after buying a 207-unit independent living community in Riverside, California, Capitol Seniors Housing (CSH) is refinancing it, at a much higher value. The private investment firm bought Olive Grove (now Welbrook Arlington) in August 2013 for $16.25 million, or $76,651 per unit. Back then, the property consisted of two independent living buildings that were built in 1980 and 1984. Occupancy was only in the high-60% range, with average IL monthly rates of about $1,600. CSH clearly saw potential in the property, and invested between $5.5 and $6.0 million to convert one building to assisted living and memory care and add a separate dining room to that building (to be serviced by... Read More »Greystone gets it done
We’ve written plenty on the memory care (and assisted living) development boom going on in Texas, especially in the markets of Houston, Dallas-Fort Worth and San Antonio. And we have wondered how, if everyone and their neighbor is building memory care in those areas, the communities would fill up. That will be the challenge for a private investor who just bought four recently-built stand-alone memory care communities previously owned and operated by U.S. Memory Care. Located in Cedar Park (Austin MSA), Houston, Plano (Dallas MSA) and Colleyville (also Dallas), these communities were built between 2013 and 2015 with 70 units and 75 beds. U.S. Memory Care also included a beauty/barber shop,... Read More »Schedule a demo
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