Active developer at it again
Smith/Packett Med-Com, a developer of seniors housing across the Southeast but concentrated in Virginia, is adding a 102-unit assisted living/memory care community to its portfolio. Located on a high-visibility spot in Yorktown, Virginia, The Crossings on the Peninsula will feature 68 assisted living units and 34 memory care units, in addition to an in-house rehabilitation and therapy space for its residents. Working with Cushman & Wakefield/Thalhimer, Smith/Packett closed on the 8.43 acre site in June for $1.16 million and has begun clearing the site for construction. When the community opens in the summer of 2016, to the tune of nearly $16 million, or $156,900 per unit,... Read More »High-quality rural senior living sells
Just how does a high-quality assisted/independent living community located in rural Northeast Ohio maintain a combined occupancy over 90%? Well, aside from having an excellent reputation for care and services, the community was owned by a local golf pro and golf course owner with ties to the seniors housing industry, who would let residents and guests of residents play at his neighboring course free of charge. That added feature certainly must have helped keep census strong over the years, and maybe prompted a few more visits from family members. The community was built in 2001 with 56 units of assisted living, and added 12 independent living cottages between 2004 and 2008. At the time of... Read More »Greystone facilitates Pacifica’s Georgia exit
Pacifica Companies is exiting the Georgia market with the sale of its two assisted living/memory care communities in the Atlanta metro area. The portfolio, which includes a 58-unit community with 36 assisted living units and 22 memory care units in Dunwoody, Georgia, and a 32-unit stand-alone memory care community in Roswell, Georgia, was approximately 75% occupied and was not a strategic fit for Pacifica. The buyer, a publicly-traded REIT, paid $10.8 million, or $120,000 per unit, and will bring on a local operator to manage. Mike Garbers of Greystone Real Estate Advisors led the sale. Read More »Average price for IL communities falls
How low can average independent living prices go? When the 2014 seniors housing M&A market hit unprecedented heights, in both value and volume, it was driven largely by an especially pricey independent living market, with the average price paid for independent living at $246,800 per unit, compared to $191,950 per unit in 2013. However, in the 12-months ending June 30, 2015 (according to a supplemental report to the 20th Edition of The Senior Care Acquisition Report), the average IL price fell to $214,500 per unit. What can explain this 13% drop? Either sales so far in 2015 have not reached the values seen in 2014, or many of the high-priced transactions of 2014 happened in the first... Read More »Seniors Housing Census Woes Continue
Brookdale Senior Living is not the only one with some recent census declines… The next few weeks will be very telling in terms of the direction of some of the major seniors housing companies. All eyes will be on Brookdale Senior Living next week as it announces second quarter results and whether it has reversed its downward occupancy trend. Brookdale’s stock price is down about 15% since June 1 and is at its lowest level in more than eight months. Those activist shareholders must be going nuts. We know NIC MAP indicated a tough second quarter in general, and we also know that the Atria Senior Living and Sunrise Senior Living properties in the Ventas stable posted a combined 40 basis... Read More »Assisted Living prices hold steady
After the average price paid for assisted living rose from $150,600 per unit in 2013 to $188,700 per unit 2014, a 25% increase according to the 20th Edition of The Senior Care Acquisition Report, who would have expected that in these heady times in seniors housing, there would be virtually no change in the average price for the last two four-quarter cycles? Indeed, for the 12-months ending March 31, 2015, the average price per unit was $188,900 (up 0.1% from the 2014 Calendar Year), and for the 12-months ending June 30, 2015, the average price per unit was $189,500 (up 0.4% from 2014). Is this evidence enough that we have reached the top of the roller coaster? Or is demand still so strong... Read More »Cambridge completes four HUD transactions
Cambridge Realty Capital Ltd. has had a busy month, underwriting four HUD loans worth over $50 million. All of the loans went towards refinancing skilled nursing facilities for three separate local limited liability companies and an Illinois not-for-profit. The first, an $8.7 million loan with a fully amortizing 30-year term, refinanced a 180-bed skilled nursing facility in Dayton, Ohio. Staying in Dayton, a 148-bed skilled nursing facility received a $14.2 million HUD refinance with a 30-year term. Next, Cambridge arranged a $16.5 million loan with a 32-year term to refinance a 235-bed facility in Elmwood, Illinois that also provides Alzheimer’s and dementia care. Finally, an Illinois... Read More »Location, location, location
In a deal that shows location is absolutely crucial to a community’s desirability, an assisted living community in Santa Monica, California with 22 all-semi-private units and just a 50% occupancy rate sold to an undisclosed buyer for $4.4 million, or $200,000 per unit (nearly $10,000 higher than the average for assisted living for sales in the 12-months ending June 30, 2015). Jim Hazzard and Nick Stahler of JCH Consulting Group handled the transaction. Messrs. Hazzard and Stahler, together with Shep Roylance, also facilitated the sale of a 31-year old assisted living/memory care community with 90 units and 120 beds in Los Angeles County, California to an undisclosed buyer for $23.4... Read More »Financing for the “new-normal”
A health complex in West Hartford that had never fully recovered from the losses in reimbursements and operating income incurred during the Great Recession, and from larger healthcare systems in the area, was faced with a dilemma: how do you deal with this “new normal” of operating and reimbursement parameters while still servicing its debt? Hebrew Home and Hospital, Inc. (HHH) is the not-for-profit owner of a 367-bed health campus in West Hartford, Connecticut, which features 277 skilled nursing beds, 45 beds providing hospital-level services, a 22-bed behavioral health unit and a 23-bed complex medical unit. Originally built in 1987, the project was financed with a HUD loan funded with... Read More »Shovels in the ground for first NFL-alumni community
Validus Group recently received plenty of press for its proposed venture (together with investment bank Piper Jaffray) to develop a $1.1 billion dollar pipeline of 33 new assisted living/memory care communities geared towards former NFL players. With over 18,000 former NFL alumni in the country and nearly one-third of them likely to develop some memory impairment, that’s a healthy chunk of the NFL population who may need Alzheimer’s or dementia care. Validus’ plan is to open a community in cities with high concentrations of NFL alumni. While some cities will certainly have higher concentrations of NFL alumni than others, if just a couple of former players move into one of these communities... Read More »Schedule a demo
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