The Ensign Group Rocks It Again
It is all about culture, and handing down responsibility, accountability, and providing financial incentives that makes The Ensign Group tick, and rock every quarter. It is also something some seniors housing providers can learn from. Some companies are doing it, but many founders and CEOs are still not ready to hand over the tools to succeed. The nursing home industry is difficult, but Ensign continues to outperform. Same-facility occupancy was up 240 basis points year over year, and it was up 40 basis points sequentially. The skilled mix increased by 110 basis points sequentially. Other nursing home operators only dream of this. In addition, Ensign’s 2024 earnings guidance is now 13%... Read More »
Owner/Operator Chooses Refinance over Sale
We have written numerous times of property owners not being tempted into the M&A market lately, due to values being below their expectations for their properties. One of those owners, a local operator in Michigan, decided to refinance its 150-unit independent living community after sale offers came in lower than they desired. Built by the same operator 15 years ago about 15 miles outside of Ann Arbor, the three-story community had experienced a census drop of over 20% since the start of the pandemic. That probably did not help its sale prospects. So, JD Stettin of Carnegie Capital arranged a refinance totaling $9 million from a syndicate of local credit unions. The loan came with a... Read More »
Highmark Assumes Management of Iowa Portfolio
Highmark Senior Living, a Hubbell Realty Co. affiliate that manages six communities with over 290 residents, has taken over management of a portfolio of Edencrest senior living communities spread throughout Iowa. The communities include Edencrest at Beaverdale (built in 2017), Edencrest at Green Meadows (2016), Edencrest at The Legacy (2018), Edencrest at Riverwoods (2014), Edencrest at Siena Hills (2017), Edencrest at Timberline (2023) and Edencrest at Tuscany (2021). Read More »
United Properties Expands in Minnesota
United Properties acquired a senior living community in Champlin, Minnesota, as its third senior community in the immediate area. United now owns/operates seven Amira Choice communities in the Twin Cities and two in Florida. It also owns three Amira active adult communities in the Twin Cities and intends to expand its portfolio in the coming years. Built in 2002, Champlin Shores comprises independent living, assisted living and memory care units. United intends to update the community in the next three years and rebrand it as Amira Choice Champlin. The selected operator is Ebenezer Senior Living. Blackstone and Brookdale Senior Living purchased the asset in 2017 from Healthpeak... Read More »
Some Providers Still Stuck In Pandemic Swamp
Diversified Healthcare Trust reported on the December performance of its seniors housing operators, and let’s just say it seems that little progress has been made. In the seniors housing operating portfolio (SHOP) operated by Aleris/Five Star, with 117 communities and 16,951 units, in 2023 census increased by only 240 basis points to 80.4% in December. But that is not the major problem. The average monthly rate has held fairly stable, ending the year at $4,429 compared with $4,278 in January last year. The problem has been expenses, which increased by 11% over the year, jumping by 5% from November to December alone. That resulted in a plunge in NOI in December to $4.0 million,... Read More »
Stabilized Seniors Housing Sale in Midwest
An independent owner sold their only senior care asset in a deal arranged by Evans Senior Investments. Country Meadow Place is a 56-unit assisted living/memory care community located in Mason City, Iowa. It was originally built in 1985 as a 36-unit memory care community before it was acquired in 2013 and expanded five years later with 20 additional assisted living units. At the time of marketing, the community was 100% occupied (which has been maintained for the previous 13 months) with a 95% private pay census. NOI also exceeded $1.4 million, or $25,000 per unit. Evans targeted a select group of potential buyers before the existing operator emerged as the winning bidder for $13 million,... Read More »
JV Seller Divests to JV Buyer
A joint venture seller engaged CBRE in the divestment of its affordable seniors housing community in Santa Cruz, California. The buyer was also a joint venture, between Jonathan Rose Cos. and First Community Housing. Built in 1981, Mission Gardens Apartments comprises seven buildings with 50 units reserved for households that earn up to 50% and 60% of AMI. All units are under a project-based Section 8 contract that was extended by Jonathan Rose for another 20 years. The buyer also intends to conduct renovations. Walker & Dunlop provided financing through HUD. Other entities involved in the transaction include the City of Santa Cruz, HUD, CalHFA and the California Tax Credit... Read More »
300 Seconds with Steve Monroe: Here We Go Again
Whenever there are headlines about anything in senior care, we can always count on Senate hearings, with a lot of unfounded accusations and unrealistic recommendations. This usually leads to a new commission being formed, the results of which are delivered a year later in 300 pages that no one reads, except perhaps Richard Mollot of the Long Term Care Community Coalition. But that is his job. It is doubtful Liz Warren will read it. Let me start with Richard Mollot, who apparently claimed at the January 25th Senate hearing that there is a crisis in assisted living, and compared assisted living today with nursing homes in the 1970s and 1980s. Really? Did he ever go into a nursing home back... Read More »
Investment Group Acquires Site for CCRC Development
California Commercial Investment Group acquired a 19-acre site in Woodland Hills, California, approximately 30 miles west of Los Angeles. Motion Picture & Television Fund was the seller, and the purchase price was reportedly $30 million. The buyer intends to develop a luxury senior living CCRC comprising 300 units. Construction is set to begin in 2026 with completion expected by 2028. Such a high barrier-to-entry market should not see very elevated levels of new development by then, when capital costs are theoretically lower to support many more construction projects than in today’s market. Many other markets may not be so lucky four years from now, given what we saw with... Read More »
Owner/Operator Expands SNF Footprint in Ohio
A regional owner/operator looking to shift its focus to other alternative classes brought on Blueprint in its divestment of a 118-bed skilled nursing facility in Dayton, Ohio. Opened in 1973, the facility recently faced challenges including survey issues resulting in financial disruption. There was a competitive marketing environment with multiple offers. The emerging buyer was an owner/operator with an existing footprint in Ohio, and this was their second acquisition in the Dayton MSA. Closing was achieved shortly after obtaining HUD approval. Connor Doherty and Ryan Kelly handled the transaction. Read More »Schedule a demo
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