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 »
Pleasant Spring Communities and HumanGood Affiliate
Ziegler was enlisted by Pleasant Spring Communities in its affiliation with HumanGood, California’s largest not-for-profit, faith-based provider of seniors housing services. The decision to select HumanGood was based on its reputation, financial strength and shared values, after considering numerous qualified local, regional and national not-for-profit senior living organizations. Selecting the right partner was driven by several factors, including aligning with an organization well-positioned to bring innovative programming, provide expanded opportunities in career development and advancement, streamline and standardize processes and protocols, and enhance operational efficiencies.... Read More »
Welltower Announces Major Active Adult Acquisition
As many of you know, with the onset of the pandemic, large acquisitions were in short supply. This was because there were few sellers of large portfolios who would take a haircut on pricing, and there were few lenders who would want to fund a billion-dollar plus deal. Well, it took the largest healthcare REIT to break this deal logjam. Welltower just announced its planned acquisition of 25 purpose-built active adult communities with nearly 3,000 units mostly in the Pacific Northwest. These are all managed by Affinity Living Communities, which will continue to manage them for Welltower. The purchase price is $969 million, or nearly $248,000 per unit. The transaction will be funded by cash... Read More »
60 Seconds with Swett: SNF Values Drop
We are in the middle of compiling our 2023 M&A statistics for the soon-to-be-released 29th Edition of The Senior Care Acquisition Report, and the difficult year that was 2023 is coming clearer into focus, at least from a valuation perspective. We’ll preview the skilled nursing market first, which remained relatively strong despite the numerous headwinds facing the sector. On the other hand, some of the tailwinds like rising reimbursement rates, falling supply of licensed beds and revenues from related ancillary businesses have helped prop up valuations. We heard consistently throughout 2023 that values for SNFs had dropped between 10-15% from their peak around 2021 and early 2022, BUT... Read More »
Not-For-Profit Divests in Minnesota
Senior Living Investment Brokerage was brought on by a large, national not-for-profit in its divestment of a seniors housing community in Coon Rapids, Minnesota. The seller was looking to consolidate its portfolio to focus on core communities. The buyer was a joint venture between an in-state owner and an in-state operator trying to grow its footprint in Minnesota. Built in 1999, The Homestead at Coon Rapids has 53 assisted living and memory care units, with occupancy at 69%. The community sits on three acres and comprises 31,195 square feet. The purchase price and financials were not disclosed. Jason Punzel, Brad Clousing and Jake Anderson of SLIB handled the transaction. Read More »
CBRE Refinances Two Coastal Communities
CBRE National Senior Housing arranged a couple of refinances for Class-A assets in major metro areas. The first was closed for Chelsea Senior Living of New City, an 80-unit assisted living/memory care community located 30 miles north of New York City in a high-barrier-to-entry, affluent market. Built in 2021, the community features 56 AL and 24 MC units. It is owned by Capitol Seniors Housing, which brought in Chelsea Senior Living to operate the community. Aron Will and Adam Mincberg of CBRE originated a $21 million bridge loan through Ohana Real Estate Investors, a national debt fund. The loan featured an interest-only term and a floating rate. Will and Mincberg also teamed... Read More »
Seniors Housing Asset Divested for Behavioral Health Conversion
Blueprint’s Behavioral Healthcare team advised an owner in the sale of an existing seniors housing/memory care community in Indianapolis, Indiana, to be converted to an inpatient residential substance use disorder clinic. The asset was underwritten as both seniors housing and a behavioral healthcare conversion candidate. Blueprint deployed a behavioral healthcare marketing campaign given the undersupply and strong demand from behavioral providers to operate within the state. There was strong initial interest within the first few weeks of marketing and the buyer ultimately selected has an existing footprint within the state. The buyer also intends to deploy significant capital improvement... Read More »
Non-Performing Loan up for Grabs
A non-performing mezzanine loan on a newly built seniors housing community in Upper Marlboro, Maryland, is up for auction, with Newmark leading the process. The associated property was built in 2021 with 282 units of independent living, assisted living, memory care and active adult. The three separate buildings are interconnected via a skybridge with large glass windows. Common area space totals 134,642 square feet across the community. The fixed-rate construction loan was originated in December 2019 in the amount of $22.5 million to fund the project. It carried an interest rate of 12% (6% current and 6% Paid-in-Kind). The loan was later modified in October 2020 to increase its... Read More »
SNF Portfolio Trades in California
A portfolio of six skilled nursing facilities in California was finally sold in multiple phases, with the two last facilities closing after the completion of HUD debt assumption and state regulatory approvals. The facilities sold for $154 million in total, and while the combined beds were not disclosed, pricing was reportedly strong on a per-bed basis and possibly a record for any portfolio SNF deal in the state, again on a per-bed basis. Gideon Orion of Walker & Dunlop facilitated the sale, his third over $150 million closed in the last 12 months. Located in Southern California, the facilities were on the older side (typical of the state), having been built from the 1960s to the... Read More »Schedule a demo
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