The Aging of Skilled Nursing Facilities
The skilled nursing market is clearly aging when facilities 20 years and older make up about 87% of the transactions in 2014. The proportion of facilities sold by age largely depends on the product up for sale that year, but even in 2013, 81% of the sales involved a facility that was built before 1993. That is still a significant percentage, but is not that surprising in the industry. There hasn’t been much new construction of skilled nursing facilities (leaving openings for developers like Mainstreet and Innovative Health). However, average prices reached unprecedented levels despite the older facilities, which may mean that as the market demand increases for facilities with either a... Read More »Berkadia Closes a Big One
Just how did NorthStar Realty Finance Corp. fund its $875 million acquisition of a 32-property senior living portfolio? They hired Chris Fenton and Jay Healy of Berkadia Seniors Housing and Healthcare to secure $648.2 million of Fannie Mae debt. The 10-year fixed-rate financing features a 4.17% interest rate, a 73.5% loan-to-value and a 30-year amortization. All individual loans were cross collateralized and cross defaulted. The 32 properties are in 12 states with 4,012 independent living units and average occupancy in excess of 90%. Read More »New Prudential Fund Secures $110 Million Deal
Prudential Real Estate Investors (PREI) closed on an acquisition of three large assisted living and memory care communities for $110 million, or $281,300 per unit. The new fund, Senior Housing Partners V, closed in May with $629 million of capital commitments. It is PREI’s fifth fund dedicated to seniors housing. One community in Tennessee opened in April 2012 and has 130 units, and another in Tennessee opened last October and has 126 units. The third property is in Connecticut, and it opened last September and has 135 units. PREI will retain Hearth Management, which previously owned the properties in a joint venture partnership, as the manager. Tim Cobb and Steve Thomas of Blueprint... Read More »Watercrest Senior Living Breaks Ground in Florida
Vero Beach, Florida-based Watercrest Senior Living Group, and its development partner Starling Senior Living, celebrated the official groundbreaking of a 90-unit assisted living community in Jacksonville, Florida. It will have 66 assisted living units and 24 memory care units totaling 79,000 square feet. All of Watercrest’s memory care associates are Certified Dementia Specialists. The building was designed by PQH Group. Read More »Seniors Housing Weekly Update – Legal Wrangling With CCRCs
May 26, 2015. 60 Seconds with Steve Monroe. One CCRC lost a legal battle with regard to its dining room policies. Other ramifications?… Legal Wrangling With CCRCs The American Seniors Housing Association recently issued a legal brief on a fair housing settlement involving a CCRC. The Justice Department had filed a complaint against a CCRC that had restricted use of the main residential dining room to the residents of the independent living units. This restriction also applied to spouses of an IL resident who were in the skilled nursing unit. Having personally spent a lot of time in a CCRC, I know that many residents don’t like to be reminded of what the future will be like for them,... Read More »Seniors housing prices by quartile
An owner of a new, well-occupied, profitable seniors housing property may look at the average price paid per unit of $208,200 for assisted and independent living communities in 2014 (according to the 2015 Senior Care Acquisition Report) and think it has no meaning to them and their above-average property. They may have a point, so we broke down the market by quartile and separated out the higher end of the market from the lower. Given the higher valuations and number of high-quality properties coming on the market, it should surprise no one that the upper quartile hit a new record with a price of $250,800 per unit (meaning that 25% of the properties sold in 2014 went for prices above this... Read More »Now’s the time for Baby Boomers
If you have been reading The SeniorCare Investor in the past couple of years, you know that we have not bought into all of the talk of demographics so popular in the industry today. The oldest Baby Boomer is 69 now, and we do not believe they will be moving en masse into the communities being constructed today for another 15 or 20 years. And as they live longer, though unhealthier, technology and health innovations may be able to keep them in their homes for even longer. Plus, there’s the issue that the Baby Boomers may not even want to move into the product being built today, much less the communities constructed 10, 20 or 30 years ago. However, the tragic irony is that today may be the... Read More »PinPoint spins off to focus on seniors housing
PinPoint Commercial, a national boutique development partnership that has created over $600M in industrial, medical, retail and senior housing assets, is creating a new company, PinPoint Senior Living (PSL), to focus on the development of new senior living communities. We have written before of Pinpoint Commercial’s “Legacy” brand of seniors housing (see: Assisted Living technology at its best), and the company has so far developed eight properties in Texas, New Mexico, Georgia, Louisiana and Florida. This July, Legacy at Highwoods Preserve in Tampa, Florida is set to open, with 60 assisted living units and 22 memory care units, to be operated by Thrive Senior Living. But with this new... Read More »Ziegler closes $135 million for Covenant Retirement Communities
Ziegler closed over $135 million in financing for Covenant Retirement Communities (CRC), an Illinois not-for-profit that owns and operates CCRCs in several locations throughout the U.S. The Obligated group consists of 4,769 units in 14 communities across eight states, with 3,065 independent living units, 755 assisted living units, and 949 skilled nursing beds. To refund the company’s outstanding Series 2005 bonds in the amount of $118.11 million, fund a debt reserve fund and pay certain costs of issuance, CRC issued $112.8 million in fixed-rate refunding bonds. Closing concurrently was $22.34 million of variable rate refunding bonds, which were immediately placed with Bank of America with... Read More »Another property for Shamrock
A joint venture developing a portfolio of senior living communities in Northern California is adding its sixth property to its partnership, called The Shamrock Alliance. Portland, Oregon-based Shamrock Holdings, together with CB|Two Architecture and Construction and Artēgan Senior Living, is planning to build a 130-unit rental CCRC in Folsom, California (in the Sacramento area). Just breaking ground last week and expected to open next summer, the community will feature 85 independent living, 26 assisted living and 19 memory care units, to be managed by Artēgan. Typically, the projects are in a 140,000 sq. ft., three-story building located on an infill site. To fund the development,... Read More »Schedule a demo
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