60 Seconds with Steve Monroe: REITs and PE Will Be Attacked Again
The Chapter 11 filing by Steward Health Care was not a surprise to anyone in the healthcare world. Its former PE owner, Cerberus Capital, will be attacked because they made a significant profit when they finally exited their 2010 investment 10 years later. No one wants to remember that they bought six failing hospitals in Massachusetts and rejuvenated them. Without that purchase, there was a good chance they would have been shuttered. Medical Properties Trust will be attacked because its leases ended up being too expensive, even though it helped Steward grow, took an equity interest in the company and provided new capital. Everything seemed to be going swimmingly, and then COVID hit, and... Read More »
Here We Go Again With The Post
The Washington Post is on the attack again, publishing a story last Friday on the overuse of 911 calls when a resident falls in assisted living or independent living, and how some towns are starting to charge seniors housing communities a fee for each 911 visit of this sort. Apparently, in some towns these 911 “fall” calls have been rising. If we were living in a non-litigious world, perhaps the seniors housing communities would not feel as if they had to call. In some states, it is required if the resident can’t get up on their own. I used to live next door to a small independent living community that we called an unlicensed assisted living building because it had small units, mostly... Read More »
Bourne Acquires AL/MC Asset (with HUD Debt)
Representing a regional owner/operator, Evans Senior Investments successfully sold Trinity Hills of Knoxville, an 80-unit assisted living/memory care community in Knoxville, Tennessee. Built in 2006, the community features 66 AL and 14 MC units, all serving private pay residents. Occupancy was strong at the time of marketing, at 92%, and it stayed above 90% for more than 12 consecutive months. It also generated around $400,000 of NOI on $3.7 million of revenues, for an 11% margin. That could be improved and offered the opportunity for a new owner to add significant value to the community. There was also assumable HUD debt on the property that increased its appeal to buyers. Evans targeted... Read More »
Berkadia Finances Clarendale Clayton
Berkadia refinanced Clarendale Clayton, a best-in-class seniors housing community in Clayton, Missouri (St. Louis MSA), that offers the full continuum of care in a high-end, resort-style setting. Opened in 2021, the 13-story property features 283 units of independent living, assisted living and memory care (195 IL, 66 AL and 20 MC). Managing Director Austin Sacco of Berkadia Seniors Housing & Healthcare arranged financing through a national bank on behalf of the borrower, a joint venture between Harrison Street, Ryan Companies US, Inc., and Life Care Services (LCS). The $82.45 million floating rate loan (or $291,000 per unit) featured an attractive interest rate and five years of... Read More »
Multifamily Investor Buys Ohio IL Community
An independent owner/operator chose to strategically divest its 102-unit independent living community in a prominent suburb of Cleveland, engaging Blueprint to get the deal done. Built in the late 1980s, the purpose-built community was stabilized, cash-flowing and well occupied. Plus, there was upside through a capital deployment plan. Few of these kinds of stabilized assets are hitting the market right now, and the property received seven offers from highly credible acquirers. The selected bidder, a private Northeast-based investor, is bringing its significant multifamily experience into the independent living sector. Blueprint, with execution support from a multifamily-focused... Read More »
Dwight Capital Announces Q1 Activity
Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, financed $152.5 million in transactions during the first quarter of 2024. Among the transactions were a $44 million bridge loan for a 369-bed, seven-story skilled nursing facility in the Southwest U.S. The bridge loan, which closed in conjunction with a $5 million revolving line of credit, is expected to be refinanced through HUD in approximately 24 months. Adam Offman and Josh Sturm, Managing Directors of Healthcare, originated the transaction for a recurring client. Dwight also closed $26 million in HUD financing for River Towne Center and Etowah Landing, two SNFs in Georgia. The transaction included a $17.4 million refinance... Read More »
Ensign Announces Eight Acquisitions
April showers apparently brought The Ensign Group acquisitions this May, as the publicly traded provider announced eight separate deals, including four where its captive REIT Standard Bearer Healthcare REIT acquired the real estate. Two of the deals in Kansas and Arizona were profiled here, with Senior Living Investment Brokerage handling the deals. Ensign and Standard Bearer also acquired the operations and real estate, respectively, of Spencer Post Acute Rehabilitation Center, an 82-bed skilled nursing facility in Spencer, Iowa, South Davis Specialty Care, a 95-bed SNF in Bountiful, Utah, and Western Peaks Specialty Hospital, a 43-bed LTACH also in Bountiful, Utah. On the same day,... Read More »
SLIB Handles Kansas and Arizona Deals
In The Ensign Group’s recent slew of acquisition announcements, it was revealed that the provider was the buyer in two transactions that were handled by Senior Living Investment Brokerage. First, Nick Cacciabando, Jeff Binder and Ryan Saul were engaged by a local owner in its divestment of its only senior care facility. Hillside Village of De Soto, located in De Soto, Kansas, offers assisted living and skilled nursing services, comprising 65 units (38 AL, 27 SNF) and is licensed for 95 beds (46 AL, 49 SNF). The SNF portion was built in 1970, and the AL portion in 2003. Operations were solid, with EBITDAR hovering around $648,000 on $5.6 million of revenues. And there is room... Read More »
Newmark Announces Two Transactions
The team at Newmark announced a couple of closings, including the sale of an eight-property seniors housing portfolio located across the country. Dubbed Project Kandy, the portfolio features 1,024 total units of independent living, assisted living and memory care, with an average age of 14 years. In addition, Newmark sold a seniors housing community. Built in 2015, The Crossings at Riverview is an assisted living/memory care community with 92 units in Riverview, Florida, in the Tampa MSA. The buyer and no other details were disclosed. The deals follow Newmark’s sale of a three-property seniors housing portfolio in Texas. Built in 2016, Heartis Arlington is an assisted living/memory... Read More »
Fortress Investment Group Purchases in Arizona
Marcus & Millichap was engaged by a private, family office merchant builder in its divestment of a fully stabilized seniors housing community in Arizona. Built in 2019, Inspira at Arrowhead comprises 165 independent living, assisted living and memory care units in Glendale. Nick Stahler, Hamid Panahi and Steve Gebbing of Institutional Property Advisors, a Marcus & Millichap company, handled the transaction. Alanna Ellis and Alex Sheaffer of JLL arranged acquisition financing for the deal. There were multiple offers from institutional private equity and public REITs. The winning bidder, a joint venture between Fortress Investment Group, LLC and COGIR Senior Living, was ultimately... Read More »Schedule a demo
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