Walker & Dunlop Handles HUD Deals
The team at Walker & Dunlop (W&D) recently closed four HUD transactions for senior care facilities located across the country. Largest (and perhaps most notable) among them was a $35.9 million refinance of a 166-unit behavioral assisted living community in Arizona. The community houses assisted living residents with a secondarily behavioral diagnosis, and this was a unique project for HUD’s LEAN program given the behavioral component and unique payor type, but the program executed on the transaction. To account for the added risk, W&D underwrote the transaction at a lower LTV than traditional senior housing projects. The refinance paid off bank debt and partnership debt. Next,... Read More »
Ventas Continues To Roll & Announces Major Acquisition
Ventas (VTR) posted one of its best quarters in a while for the third quarter, especially on the occupancy front. Year-over-year third quarter same-community occupancy increased by 350 basis points to 87.0% for its 488 communities that were owned in both quarters. Year to date for the first three quarters same-community occupancy increased by 310 basis points. Both numbers far exceed the general market, as disclosed by NIC MAP. This will be important as the operators in the Ventas portfolio begin to enter the winter months. The good news is that they are not seeing any decrease in census so far in the fourth quarter, a typically slow quarter for census increases. Cash net operating income... Read More »
A First for Freddie Mac
We saw a first for Freddie Mac, which closed its inaugural senior preferred equity loan for a seniors housing asset in Georgia. Newmark’s Healthcare & Alternative Real Estate Assets group secured the $109 million, 10-year senior loan from Freddie Mac, which featured five years of interest only, and arranged a $31 million preferred equity investment from Kayne Anderson Real Estate Debt. Freddie Mac would likely only do this for a top-of-the-line community, which is what Corso Atlanta is. Built in 2021, the community features 82 independent living, 75 assisted living and 26 memory care units across a nine-acre campus. Galerie Living developed the community to mimic Parisian... Read More »
Guardian Healthcare Bankruptcy Sale Approved
The U.S. Bankruptcy Court for the Western District of Pennsylvania has approved the sale of eight Guardian Healthcare-owned skilled nursing facilities in Pennsylvania (seven facilities) and Fairmont, West Virginia to GBK Eight LLC. The eight facilities total 587 beds. Additionally, the Court had previously agreed to the operational transfer of 11 leased facilities, two of which include personal care homes, to Oxford Valley Health. That transfer was completed on October 29. Senior Living Investment Brokerage handled the sale of the eight facilities, while Saul Ewing LLP served as restructuring counsel, and EisnerAmper LLP served as restructuring adviser to the debtors. Those eight... Read More »
JLL Closes Class-A Colorado Deal
Two Class-A communities in Colorado traded for a combined $30 million, or $214,300 per unit. The deal included The Lodge at Greeley and The Lodge at Grand Junction, two 100% private pay communities with a total of 140 units. The Greeley community was built in 2020 with two stories and offers 20 independent living, 48 assisted living and 24 memory care units. It was 100% occupied. Built in 2019, the Grand Junction community has 50 beds in 48 units, offering assisted living and memory care services. It is located across from a major regional hospital and near numerous medical, commercial and retail developments. Bow River Capital engaged JLL Capital Markets to sell the properties, with... Read More »Clarendale Portfolio Trades
One of the largest seniors housing portfolio deals of the year just closed, also for one of the highest per-unit prices we have seen for the sector. And among portfolios, it was the highest publicly reported per-unit price we have seen in a couple of years. The deal comprised The Clarendale Portfolio, which features three seniors housing communities with 635 independent living, assisted living and memory care units. The average age of the portfolio was five years, and the buildings were spread out in Arizona (Clarendale of Chandler), Missouri (Clarendale of St. Peters) and Tennessee (Clarendale at Indian Lake). Harrison Street Real Estate Capital, Ryan Companies and LCS previously... Read More »
CareTrust REIT Announces Big SNF Purchase
Alongside its third quarter earnings report, CareTrust REIT and a joint venture partner announced a binding agreement to acquire a portfolio of 31 skilled nursing facilities in the Southeast for approximately $500 million, or $152,000 per bed. With 30 facilities in Tennessee and one in Alabama, the portfolio featured a total of 3,290 licensed beds. The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions, and would be the largest skilled nursing deal (publicly disclosed) in two years. Evans Senior Investments is handling the transaction. Existing operating partners have agreed to take on management of most of the facilities, with PACS Group... Read More »
Welltower Continues To Outperform
Welltower announced its third quarter earnings results, and they were better than even the most optimistic investors thought they would. Probably better than what CEO Shankh Mitra thought they would be six months ago. Everything is up, and while not where the numbers were a few years before Covid, the performance is better than most. Same-community occupancy in their SHOP portfolio grew by 310 basis points year over year and RevPOR grew by 4.9%. And same-community NOI increased by 300 basis points. The REIT completed $2.4 billion in gross investments, and it has an acquisition pipeline that would make the other REITs blush. But don’t forget, it has nothing to do with their cost... Read More »
Multifamily Investor Buys IL Community
Working on behalf of an institutional seller, Blueprint facilitated the sale of Elison Independent Living of Niles, a 288-unit independent living community in Niles, Illinois. Current ownership had recently completed high-end renovations to the common areas, increasing the appeal of the property to investors (and to residents, we imagine). Traditional seniors housing, active adult and multifamily acquirers were targeted before the seller chose to move forward with a historically multifamily buyer, Legacy Crossings, which wanted to enter the seniors housing market. Legacy Crossings has a presence in Florida and Illinois and plans to undertake an extensive capital improvement project to... Read More »
REIT Buys The Blake at Waco
A publicly traded REIT acquired a Class-A and well performing seniors housing community in Waco, Texas. Built in 2021, The Blake at Waco offers 71 assisted living and 41 memory care units on a site adjacent to the Baylor Scott & White Hospital. It includes a host of amenities and boasted both strong occupancy and NOI at the time of the sale. The Class-A community could also be described as the premier offering in the submarket. It was previously owned by Biloxi, Mississippi-based LifeCare Properties, which retained Blake Management as the operator. The REIT, wisely, will keep Blake on as the operator. Cody Tremper, Mike Garbers, Dave Fasano and Ross Sanders of Berkadia Seniors... Read More »Schedule a demo
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