Minnesota Building Boom
Construction of seniors housing communities seems to be speeding up in Minnesota, with a slew of groundbreakings announced in the last month. Two developments in the Minneapolis/St. Paul MSA will be managed by Ebenezer Management Services upon completion. The first, a 105-unit community with 80 independent/assisted living and 25 memory care units, is being developed by Oppidan Investment Company. The second is an 84-unit community (with 60 IL/AL and 24 MC units) which is being built at a cost of $16 million, or $190,500 per unit. That is about $27,000 less than the state average for seniors housing ($217,200 per unit), according to our database, which includes developments since late 2013.... Read More »
The Battle for Five Star Continues
Here we go again. Just after Barry Portnoy received Five Star Quality Care Board approval to make a tender offer for up to 10 million shares of Five Star’s common stock at $3.00 per share, Senior Star Management has announced its intention to purchase up to 10 million shares in a tender offer, but for $3.45 per share. They already control 3.36 million shares, or 6.8% of the shares outstanding, so they would like the Board to waive the same ownership restrictions for Five Star that Mr. Portnoy received. Seems fair in love and war. The stock jumped by more than 10%, but it is still shy of the $3.00 mark. This may get very interesting. Read More »Here’s hoping for smooth sailing
A 50-unit memory care community in Costa Mesa, California is hoping for a more stable, and successful, future following its recent sale to Pacifica Senior Living. Built in 1992, the community underwent a substantial $1.72 million renovation to its common areas and units in 2011. However, in the past five years, a number of operational changes damaged the facility’s brand name as each operator had different visions of how to run the property. Occupancy ultimately suffered, falling to 70% early this summer, and the community was losing money. But for Pacifica, there is plenty of upside. Rents are currently below market rates at nearby competitors, and with nearly all semi-private units... Read More »Kaukauna closing
Ray Giannini of Marcus & Millichap went to Kaukauna, Wisconsin to close his latest transaction, when a private individual sold their 46-unit assisted living community to a confidential buyer for $8.5 million, or 184,783 per unit. The community features two buildings that were built in 2009 and 2012, respectively, on nearly four acres near a retail shopping area. With 95% occupancy, about 70% of the census was private pay, and the remaining 30% was Family Care, which is a Medicaid managed long-term care program in Wisconsin. Rates were solid too, with an average of $4,420 per month for private pay and $3,451 per month for Family Care. As a result, the community operated at about a 40%... Read More »
What happens when 100 is the new 65?
With technological advances, people will be setting records in aging, passing the current record of 122 years old. A recently published article in the journal Nature has created some interesting discussion. The conclusion of the authors is that the human race has hit its maximum life span, with future people never surpassing the eldest living person who died at the age of 122 in 1997. They concluded that the maximum average life span going forward would be 115 years. Not so fast. What these researchers are ignoring is changes in gene therapy, better organ transplant capabilities, and how about a future of artificial organs, all organs? What happens when, and not if, but when you can remove... Read More »
HHC Finance works in Yonkers
The team at Housing & Healthcare Finance (HHC) went through HUD to successfully refinance an independent living/assisted living community in Yonkers, New York. Located on 10 acres in a park-like setting, the community was recently renovated/upgraded in 2010. It also is the only provider in the area with the Medicaid Assisted Living Program. Occupancy at the 195-bed property has always been close to full. Working through a PILOT issue with HUD and the local municipality, HHC was able to close a $27 million refinance with an interest rate below 3%. Read More »
Tallahassee transaction
An assisted living/memory care community with plenty of southern charm in Tallahassee, Florida recently changed hands, with the help of Ryan Maconachy, Chad Lavender and Dave Fasano of HFF. The community was built in 1998, with additions in 2009 and 2012, and currently features 105 beds in 100 units. Occupancy was around 95%. Rents could be increased under a new owner, as the facility was currently bringing in nearly $6 million of revenues. Read More »Adding upside in DC
We wrote in the October issue of The SeniorCare Investor, of CBRE’s Lisa Widmier and Matt Whitlock’s sale of two assisted living/memory care communities in Georgia. Located in the greater Atlanta area, the communities were owned by Capitol Seniors Housing and purchased by Arcapita Investment Management US. There is a third property involved in the sale, a 74-unit assisted living/memory care community in the Washington D.C. MSA. Just like the other two properties, CSH had purchased this property 2014 for $14.1 million, or just under $200,000 unit. For all three combined in the current 2016 transaction, the total price is expected to be close to $325,000 per unit. Well done. Read More »NIC’s Third Quarter Numbers
NIC has come out with its third quarter occupancy, construction, asking rates and absorption stats, and we have to admit, we were disappointed with the numbers, especially on occupancy. Assisted living occupancy was basically flat with the second quarter amid hopes that there might be some acceleration. Independent living rose by just 10 basis points from the second quarter and was flat with a year ago. Asking rents were at their highest in years, but the numbers do not factor in the discounting which remains prevalent in many markets. Now, with Hurricane Matthew about to hit the southeast coast, and communities in Florida, Georgia and the Carolinas already beginning to evacuate residents... Read More »
ROC making a comeback
One of the larger acquirers of the past few years, but that has been taking somewhat of a breather in 2016, may be back on the deal hunt soon. ROC Seniors Housing Fund Manager, LLC, whose parent company is Bridge Investment Group Partners, was quite active in the couple of years following its end-of-2013 creation, acquiring 43 senior living properties in 2014 and 2015 alone. Based on disclosed prices in our database, ROC also spent nearly a half billion in those two years. However, in 2016, the investor has so far only announced two transactions, each including a single CCRC, but both without a disclosed price. We should hopefully see some new announcements coming, with ROC’s parent... Read More »Schedule a demo
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