Still Slow Go For Brookdale
Brookdale Senior Living is like an aircraft carrier. It takes a long time to change direction, and the current may change while making the attempt. Brookdale is the largest senior living company in the world, and while that fact can have its advantages (data collection, purchasing power, ancillary services, etc.), it can also work against you. In a recent study by NIC MAP of its data, they found that nearly one in three communities operated by “very large” companies have occupancy below 80%. We assume Brookdale is included in those statistics. Brookdale’s portfolio continues to lag behind the overall market with census improvement, and it remains under 80%. Consolidated occupancy in... Read More »
Monarch Advisors Secures Construction Debt
Monarch Advisors is on a roll. After recently sourcing acquisition debt for a skilled nursing facility in Topeka, Kansas, Alec Blanc has arranged construction financing for the development of a new 105-unit/124-bed senior care property with independent living, assisted living and skilled nursing in Muskegon, Michigan. The sponsor, based in Louisville, Kentucky, engaged Monarch to source debt totaling $21.6 million, or about 67% of the cost of the project. Blanc secured a construction/mini-perm loan commitment from a national mortgage bank’s loan participation program with a four-year term and one 12-month extension option. Payments will be interest only at SOFR+3.25% for the... Read More »
CFG Finances Over $1.7 Billion in 2023
Capital Funding Group announced the company executed or arranged more than $1.7 billion in financing across 50 deals in 2023. These financings included 24 healthcare bridge-to-HUD loans, five multifamily bridge loans and 11 HUD loans. Financing of the multifamily bridge-to-HUD loans totaled approximately $49.7 million of the company’s annual financing. In that timespan, CFG closed numerous refinances, including: $7.2 million HUD loan for a 75-bed skilled nursing facility in Ohio. $15.5 million HUD loan for a 118-bed skilled nursing facility in Arizona. $43.4 million HUD loan for a 140-bed skilled nursing facility in California. $13.8 million mezzanine loan for 12 long-term care facilities... Read More »
Family Office Acquires in California
Sherman & Roylance was engaged by a new player in the seniors housing sector in its divestment of an assisted living/memory care community. The seller is refocusing its efforts on geographic areas closer to its core operations. The buyer, a San Diego-based family office, acquired the community for a purchase price of $8.25 million, or $180,000 per unit. The multi-phased community, built in 1955 and expanded through 1999, comprises 46 units with 55 beds in Monterey, California, close to Pebble Beach. At the time of closing, it was 60% occupied. Shep Roylance, John Sherman and Chris Minnery of Sherman & Roylance handled the transaction. Read More »
60 Seconds with Swett: Where Are Senior Care Property Values Now?
Where do values stand for seniors housing and care properties after more than a year of capital markets upheaval and persistent, post-pandemic operational challenges? Well, after an exhaustive study of our proprietary M&A statistics, we will be previewing the results of the 29th Edition of The Senior Care Acquisition Report in a webinar this Thursday February 22 at 1pm Eastern. In addition, our distinguished group of panelists will discuss the market dynamics informing buyers and sellers’ decisions then and now, how the lending environment shifted and shaped M&A strategies, whether a wave of distress and defaults is at last on its way in 2024, and their own predictions for... Read More »
Is LTC Properties Ready To Grow?
There is no question that the operating environment, and investing environment, has been tough on REITs. Most have spent the past two years adjusting their portfolios, either selling properties that were not performing and had little likelihood of getting back on track, or switching out operators to new ones that had a better chance of succeeding. Often, it was both, including working on their capital structures. LTC Properties, with one of the smallest market caps ($1.3 billion) among the healthcare REITs, but also one of the most stable management teams, has worked on all three issues. Last year and the fourth quarter represented moves and changes that may put the REIT into a better... Read More »
Priority Life Care Does It Again
Not once, not twice, but now several times Priority Life Care has been brought in by an institutional owner of underperforming senior living assets and turned them around in less than a year. The company’s track record is attracting even more institutional interest. In the most recent example, American Healthcare REIT (NYSE: AHR), which just closed its IPO, hired Priority Life last May to manage six senior living communities in Indiana (5) and Michigan (1) that were losing money on 78% combined occupancy. The communities have a combined 652 units, with assisted living comprising 389 units, independent living 188 units and memory care 75 units. The licensed bed count is higher, and the... Read More »
Ventas Reports
After Welltower’s solid fourth quarter performance, all eyes were on Ventas, which has not pursued the aggressive growth path that Welltower has. Operating metrics were up in its SHOP portfolio of seniors housing communities, but not up as much as investors would have hoped. But that is not the fault of Ventas; rather, it is the fault of the operators that are underperforming. Same-community occupancy increased 170 basis points in the fourth quarter, year over year, to 84.9%. Revenue was up year over year by 7.0% while expenses were up just 4.2%. This drove a 15.0% increase in cash NOI and a 180-basis point increase in the NOI margin to 25.4%, and this is after management fees. Not bad,... Read More »
Joint Venture Acquires Three Class-A AL/MC Communities
JLL Capital Markets facilitated the sale of three Class-A seniors housing communities in Wildwood, Town & Country, and Kansas City, Missouri. These assets were acquired by a joint venture of Artemis Real Estate Partners, Scarp Ridge Capital Partners and Arrow Senior Living. JLL represented the seller and procured the buyer, led by Scarp Ridge and capitalized by Artemis, while Arrow will take over operations of the communities. This acquisition marks the first for the venture. Built between 2016 and 2018, the communities comprise 252 units of private pay assisted living and memory care. The Wildwood and Town & Country communities are each three-story AL/MC communities with 81 and 86... Read More »
Two SNFs Change Hands in Texas
Blueprint was engaged in the divestment of two value-add skilled nursing facilities in east Texas. These facilities, located just 15 minutes apart, total 320 beds. Despite experiencing historical lows in census as well as staffing challenges, the facilities were showing signs of improvement and were trending back towards their historically achieved stabilized levels. Additionally, the transaction involved assumable HUD debt with an interest rate of 2.90% and a remaining term of over 25 years. Giancarlo Riso, Amy Sitzman and Ryan Chase of Blueprint handled the transaction, procuring five competitive offers. The selected buyer was a regional owner/operator with a strong certainty of... Read More »Schedule a demo
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