AdventHealth Exits the SNF Market
AdventHealth, a faith-based, not-for-profit health system headquartered in Altamonte Springs, Florida, divested its wholly-owned skilled nursing portfolio in central and west Florida as part of a strategic exit from the sector. The portfolio included seven high barrier-to-entry locations with 833 total licensed beds. Nearly all facilities were four and five-star CMS rated, with two assets constructed in 2018 and 2019. Locations were strategically situated within the health system’s footprint including some hospital-adjacent sites that allowed for specialized care for higher acuity patients. The portfolio also boasted high referral volume, quality payor mix and high overall census, and... Read More »
Midwest Owner/Operator Adds to Ohio Portfolio
A Midwest-based regional owner/operator decided to add to its existing Cleveland-area portfolio with the acquisition of The Landing of Stow in Stow, Ohio. Built in 2008, the community features 61 assisted living and 20 memory care units on over eight acres. Its previous owner chose to divest the asset to focus attention on communities that more closely align with its current footprint. Meanwhile, the buyer will look to leverage its talent in the market to improve occupancy and reduce agency staffing. Occupancy was around 75% at the time of marketing. Bradley Clousing, Dan Geraghty and Ryan Saul of Senior Living Investment Brokerage handled the transaction. Read More »
Texas Senior Care Campus Changes Hands
Daniel Morris of Plains Commercial sold Country Village, a large senior care campus in Angleton, Texas. The seller was a long time owner/operator who was looking to retire. Built in 1985, the campus was extensively renovated in the mid-2010s and showed well. The campus is licensed for 138 skilled nursing beds, with 38 assisted living and 32 memory care units. The facility was cash flowing at the time of the sale, but offers significant upside through further lease-up and expense control. Occupancy was around 50% at the end of 2022 but was improving throughout 2023. After a competitive bidding process, the seller chose to engage with a partnership between a private investor and a... Read More »
Blueprint Closes Another South Carolina Deal
A publicly traded REIT divested a skilled nursing facility in Bennettsville, South Carolina, with an East Coast-based owner/operator adding to its existing in-state portfolio. Blueprint Healthcare Real Estate Advisors handled the transaction, following two other South Carolina sales closed by the firm in the second quarter. Those included a skilled nursing facility in Beaufort and an assisted living/memory care community in Florence. Amy Sitzman, Brooks Blackmon and Giancarlo Riso worked on the deal. Similar to the Bayview Manor deal in Beaufort, the Bennettsville facility was constructed in several phases beginning in 1958 and featured 110 predominantly semi-private rooms. It maintained... Read More »
60 Seconds with Swett: The Persistence of Higher Capital Costs
After the Fed held interest rates steady following 10 consecutive increases but left the door open for potentially two additional increases this year, you can’t help but think, what has gone as planned, or as predicted, in the last several years? Very little, unfortunately. Inflation has persisted in the economy, and rates will have to remain elevated for longer than earlier projections. Sounds a little familiar to the overly optimistic predictions of a seniors housing occupancy and margin recovery, post-pandemic, which is taking longer to materialize, and may never happen in many markets. We’re just saying that a little more conservatism may be needed in people’s projections or proformas... Read More »
Stabilized, Class-A Asset Sells in Kentucky
Nearly five years after acquiring a newly-built senior living community in Lexington, Kentucky, Atlas Senior Living is selling the asset, marking the first disposition in the company’s nearly 10-year history. Blueprint Healthcare Real Estate Advisors’ Brooks Blackmon, Ben Firestone, Kyle Hallion and Lauren Nagle handled the transaction on behalf of Atlas and oversaw a competitive bidding process for one of the few Class-A, stabilized communities on the market right now. Opened in 2017, The Legacy at Fritz Farm was developed by DMK Development at a cost of $26 million, or $155,000 per unit. It features 114 independent living, 38 assisted living and 15 memory care units. The community was... Read More »
Vacant Seniors Housing Community Sells in Nashville
Nick Cacciabando and Patrick Burke of Senior Living Investment Brokerage sold a vacant assisted living community in Nashville, Tennessee, finding a cash buyer that was able to close within 60 days of escrow. Grace Manor was originally built in 2010 by a local church and featured 42 units of assisted living. However, the property had struggled with occupancy and profitability during the pandemic, and it was voluntarily closed in November 2021. The HUD note was then sold at auction in December 2022 to a private investment firm that manages alternative assets for high-net-worth individuals and institutional investors. With the help of SLIB, they then sold the community to an undisclosed... Read More »
PGIM Finances Lincoln Avenue Capital Acquisition
PGIM Real Estate provided fixed-rate HUD financing to Lincoln Avenue Capital for the acquisition and renovation of the South Forty Apartments, a 101-unit affordable seniors housing asset in Billings, Montana. Alex Viorst, executive director at PGIM Real Estate, arranged the $16.14 million loan under the FHA section 223(f) loan program. The property is 100% subsidized by a Section 8 contract and also has a tax credit LURA on title restricting half of the units at 50% of area median income (AMI) and the other half at 60% AMI through 2069. Lincoln Avenue Capital, in a joint venture with Fairview Housing Partners, will complete an extensive rehabilitation of the property that will address... Read More »
PE Firm Acquires Two Value-Add Communities
A private equity firm acquired a couple of former Atria Senior Living-managed assisted living communities in upstate New York. Located within 15 miles of each other near Rochester in the towns of Greece and Penfield, the communities combine for 168 units and 199 beds of assisted living. They were previously owned by a private real estate development and investment company based in Rochester that had hired Atria to manage the communities for the last several years. However, the seller wished to focus on other strategic initiatives within its organization, such as residential communities, while also maintaining a presence in the seniors housing space. Despite being of an older vintage, with... Read More »
Birchwood Eyes Distressed Assets with New Fund
Birchwood Healthcare Partners is setting itself up to capitalize on the coming distress in the seniors housing and care industry with the closing of initial fundraising for its 5V+ Seniors Healthcare Fund. The fund will provide investors with exposure to four key sectors: seniors housing, healthcare services (like rehabilitation, hospice, home health, therapy and behavioral health), transitional/long-term care and active adult. Citing the appeal of demographics, Birchwood also noted the “unparalleled opportunity in the fragmented and misaligned seniors healthcare industry in today’s market.” In its announcement, the firm also pointed out that with over $272 billion in government... Read More »Schedule a demo
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