Setting Records in the Bronx
You almost never see a single senior care property sell for over $100 million. In fact, only two had ever been recorded with a higher price: a 423-unit/bed CCRC for $165 million in 2007, and a 499-bed skilled nursing facility for $105.5 million in 2015. Now, there is a third. Joshua Jandris, Charles Hilding and Mark Myers of Marcus & Millichap closed the sale of a 744-bed skilled nursing facility in Bronx, New York, for a whopping $110 million, or $147,850 per bed, making it the second-largest single-property sale (and the largest stand-alone skilled nursing facility sale) ever. Located on a 2.46-acre parcel, the facility is spread out among three connected buildings that were built in... Read More »Sacramento sale
A joint venture between Harbert Seniors Housing Fund I, LP, Aviva Investors Americas LLC, and Senior Resource Group, LLC, recently acquired an independent/assisted living portfolio of three communities in Sacramento, California. Consisting of 257 total units, the communities were 95% occupied and located in a high barrier-to-entry market. Two of the properties are adjacent to each other, creating a continuum of care campus. The local owner/operator seller transitioned management over to Senior Resource Group, which already operates 17 communities in the state. Read More »
Investor group expands in Michigan
The owner/operator of a senior living community in Saginaw, Michigan is set to open a second location next month in nearby Hampton Township, at a cost of $13 million, or around $185,000 per unit. Founded by K. Rumi Shahzad and a team of 19 local investor/doctors, the Saginaw community has already expanded to include a 60-unit independent living community, and has a $15 million addition planned for its assisted living portion. So there is an apparent need. The investor group’s move into Hampton Township seems to be well founded, with 40% of the AL/MC units already preleased. In addition, there are plans to add independent living. Monthly rents at the new community are on the high side,... Read More »
Reflections on NIC Conference
Change is coming, and while some people will be prepared for it, others will struggle. With a record turnout at last week’s NIC Conference, we wanted to see what the mood was, and whether there was any primary theme. The mood was decent, perhaps not as upbeat as in years past, but it really depended on whom you asked. The old-timers are a bit nervous, the newcomers more bullish. On the skilled nursing side, going from fee for service payments to bundled payments and ACOs is going to be more painful than many believe it will be, and could result in many small providers hanging it up and selling. It will not cause the value disruption that came after the PPS change to Medicare in the late... Read More »
An Affinity for HUD
Affinity Living Group’s latest acquisition of two senior living communities in North Carolina was met with more complications than usual. Already with a senior lender on board, Affinity had to find supplemental debt that not only satisfied their own requirements, but also those of the senior lender and of a future HUD refinance. So, HJ Sims provided a $2.475 million mezzanine loan under its “HUD Plus” program, which allows a borrower to leverage up to 92.5% of the market value of a project with HUD-approved secondary financing. Sims funded the subordinate loan by placing $2.475 million of corporate taxable bonds. The communities included a total of 176 assisted living units and 40 memory... Read More »
Leaving with Grace
While attending the NIC conference in Washington, D.C. last week, I learned that Gene and Mari Jo Grace of Grace Management are retiring after nearly 33 years in the seniors housing and care business. I have known them for most of that 33 years, and I feel like the industry is losing not only two very top-notch professionals, but two friends. The respect they command, and the friendship they have shown to so many over the years is unparalleled, not to mention the depth of their industry knowledge and history. They have seen it all. Two years ago, they sold their company to Chicago Pacific Founders (CPF) but continued on in their roles. In those two years, with the help of John Rijos and... Read More »The Blueprint Buzz
We hope the team at Blueprint Healthcare Real Estate Advisors has found some time this NIC to celebrate their busy end to the summer, having announced four deals during the Fall conference. First up, with the help of Steve Thomes, Christopher Hyldahl, and Gideon Orion of Blueprint, as well as acquisition financing provided by Private Bank, Brick, New Jersey-based Tryko Partners LLC added to its already-strong eastern Massachusetts skilled nursing facility portfolio with the acquisition of a 107-bed facility in Methuen for $7.5 million, or $70,093 per bed. It was built in 1960 and renovated in 1995, but Tryko is planning, through its affiliate, Marquis Health Services, a $2.5 million... Read More »
Mainstreet growth
Mainstreet Health Investments (Mainstreet) is adding seven seniors housing and care properties to its portfolio from several sellers, representing a total purchase price of approximately $152 million. First, the company bought four Mainstreet Property Group (MPG)-developed transitional care/assisted living facilities, which are scheduled to open between November 2016 and March 2017 in Texas and Kansas, for $92.8 million, or almost $247,000 per bed, with a year-one cap rate of 7.7%. The Ensign Group will manage the facilities. Second, Mainstreet is acquiring one transitional care/memory care facility in Evanston, Illinois from its existing operating partner Symphony Post-Acute Network for... Read More »Brookdale divests, big
We reported back in July that Enlivant was the rumored buyer of 44 assisted living/memory care communities in 12 states that Brookdale Senior Living was looking to sell. On September 15, it was announced that Enlivant was indeed the buyer, together with its PE backer TPG, except that the number of communities had increased to 48 in 14 states. This deal represents a nearly 40% increase in Enlivant’s portfolio, assuming all communities close. Sixteen of the transactions have already closed, and the remaining 32 are expected to be effective over the new few months. Read More »
Welcome to NIC
As we all descend upon D.C., please take some time to stop and chat with us at the conference. So, the 26th annual NIC Conference is upon us. I wonder what the big topic will be this year, if any. In years past there have been exciting developments right before or during the conference, such as Sunrise Senior Living’s share price plunging, or Formation Capital’s billion dollar plus sale of SNFs to GE, or last year the spin-off of skilled nursing assets by Ventas into a new REIT. Will people be talking about Welltower’s billion-dollar acquisition of Vintage Senior Living? Or will it be the upcoming skilled nursing spin-off by HCP? Whatever it is, we will be listening and trying to discern... Read More »Schedule a demo
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