Did Blackstone Sell Too Soon?
According to recent media reports, real estate investor The Blackstone Group has sold and is in the process of selling about $1.8 billion in seniors housing assets. It wants to completely exit the seniors housing business which they claim has been a disaster for them. One report stated that they have lost upwards of $600 million across the portfolio. Apparently, they were a bit befuddled that seniors housing is not a simple real estate business, that it has a lot of moving parts, is management intensive and that you need good managers. Oh, and then there was that problem with the pandemic. All we have heard, from one source, is how seniors housing has outperformed all other real... Read More »
Brookdale Continues Winning Streak
The big question is, why did this not happen earlier? We are talking about Brookdale Senior Living’s occupancy recovery, and why the previous leadership seemed unable to move the needle, but as soon as they were gone, everything has been on an upward trend. Hmmmmm. Things are not perfect at Brookdale, but they never were. However, same-community occupancy is up by 260 basis points year over year to 82.3%. Even though it lags the rest of the industry, we will take it. Same-community month-end occupancy in October was 84.2%, the highest in years, and a great sign, especially going into the historically tough fourth and first quarters. That represents a 400-basis point increase since... Read More »
National Health Investors Adjusts Its SHOP Portfolio
National Health Investors, Inc. announced some adjustments to its SHOP portfolio, raising its full-year guidance for the third consecutive quarter due to the contribution of recently transitioned and newly acquired SHOP properties, along with continued strength in its investment pipeline. The REIT also had an update on its lease agreement with National HealthCare Corporation. First, NHI transitioned seven properties from the real estate investments segment to its SHOP portfolio, which resulted in consolidated SHOP NOI year-over-year growth of roughly 63%. However, the REIT’s same-store SHOP portfolio, comprising 15 legacy Holiday Retirement properties, saw NOI decline 2.2% with lower... Read More »
Strawberry Fields’ Three Separate SNF Transactions
Strawberry Fields REIT, Inc. announced three separate skilled nursing transactions that closed during the third quarter. Two previously announced acquisitions were in Missouri, and the recently announced purchase was in Oklahoma. In July, the REIT completed the acquisition of nine skilled nursing facilities with 686 beds in Missouri. The acquisition was for $59.0 million and the company funded it utilizing working capital. Eight of the facilities were leased to Tide Group and were added to their existing master lease that Strawberry Fields entered into in August 2024. This acquisition increased Tide Group’s annual rents by $5.5 million with rents structured to rise 3% per year. The... Read More »
Receivership Estate Sells in Alabama
Kory Buzin and Steve Thomes of Blueprint handled another successful sale on behalf of a lender and special servicer, this time involving a receivership estate in Mobile, Alabama. Knollwood Point, a 2001-vintage, 46-unit assisted living and memory care community, struggled in recent years as a result of challenged occupancy and volatile staffing. The deal was positioned as an opportunity for an incoming regional owner/operator to acquire a well-maintained community, with the potential to stabilize the community’s operating cash flow through the implementation of expense control measures. Multiple competitive offers were procured, with the ultimate buyer being an owner/operator with an... Read More »
Joint Venture Seller Divests CCRC to Not-for-Profit
Ziegler sold Asbury Place Maryville, an entrance fee community in Maryville, Tennessee, on behalf of McFarlin Group and Artisan Capital Partners. The 177-unit community sits on 40 acres and consists of 73 independent living apartments and cottages, and two 22-unit assisted living and memory care buildings that were built in 2017. There is also a 43,000 square foot decommissioned assisted living building that the new owner intends to redevelop. After Ziegler’s focus on a select group of qualified buyers, HutsonWood, a not-for-profit, mission-driven senior-living and housing organization, purchased the property and took over operations on November 1. Based in Nashville, the organization... Read More »
Arizona AL/MC Communities Trade Hands
Shortly after acquiring a Texas community through a joint venture with JDI Realty (Berkadia handled that transaction), Stellar Senior Living acquired two more assets are in Arizona. They were purchased through a joint venture with Bakerson Companies. CBRE secured acquisition financing for the assets, The Oaks Assisted Living & Memory Care and The Groves Assisted Living & Memory Care. The communities will continue to be managed by Stellar. Aron Will and Adam Mincberg of CBRE National Senior Housing, and Scott Peterson and Brian Cruz of CBRE Capital Markets, secured the three-year, $32.8 million, floating-rate loan with full-term interest only through a national bank. Located in... Read More »
Azure Partners Enters Seniors Sphere Through IL/AL Purchase
JLL Capital Markets arranged the sale and financing for Cypress Court, a 148-unit independent and assisted living seniors housing community in the Escondido submarket of San Diego, California. The seller was an affiliate of Kisco Senior Living, and the buyer was Azure Partners. The 10-year acquisition loan was arranged through Freddie Mac. Northstar Senior Living will continue to manage the asset, which marks the first seniors housing community acquired by Azure, a real estate investment firm, which is aiming to “rapidly” expand its portfolio in the sector. Cypress Court offers 76 independent living and 72 assisted living units on 2.54 acres. It was stabilized at the time of... Read More »
Sabra Trims Forecast, Tempering a Solid Quarter
Sabra Health Care REIT, Inc. announced several acquisitions in its third quarter results. The REIT acquired six managed seniors housing properties for $217.5 million with an estimated initial cash yield of 7.8%, three of which were acquired through a consolidated joint venture in which Sabra has a 95% equity interest. The company also purchased the operations of four managed seniors housing properties during the quarter. The assets were previously leased to a tenant under triple-net operating leases for $19.7 million. Subsequent to quarter end, Sabra closed on three additional managed seniors housing properties for $124.0 million with an estimated initial cash yield of 7.0%, bringing... Read More »
CareTrust’s Flurry of Acquisitions
CareTrust REIT, Inc. closed a series of transactions totaling approximately $437 million in late October. In two separate deals, the REIT acquired 12 skilled nursing facilities and one skilled nursing campus located across the Southeast and Mid-Atlantic. The combined portfolio includes approximately 1,760 licensed skilled nursing beds and assisted living units and are leased to a mix of existing and new operators under long-term, triple-net leases with annual rent escalators and multiple renewal options. Each operator brings deep regional expertise and a strong track record of clinical and financial performance. At closing, CareTrust funded the transactions using cash on hand. CareTrust... Read More »Schedule a demo
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