Not-for-Profit Buys Richmond Communities
Blueprint’s Brooks Blackmon, Kory Buzin and Lauren Nagle handled the sale of two assisted living/memory care communities in Richmond, Virginia. A national owner/operator decided to divest the properties, which could improve their occupancies. Average revenue per occupied room did remain near $8,000. Opened in 2004 and 2015, respectively, Spring Arbor of Richmond offers 70 units of assisted living and memory care while Spring Arbor Cottage of Richmond offers 48 units of memory care. The ultimate buyer emerged from a healthy bidder pool spanning private equity, local and regional operators, and there were five offers before a regional not-for-profit owner/operator was selected in an all-cash... Read More »
60 Seconds with Swett: October Broke the Monthly M&A Record
For those of us who track the seniors housing and care M&A market, October was like drinking from a firehose from the start of the month to the finish. And an active earnings week kicked things into another gear. We have to start with the 73 deals made public throughout October, which is still a preliminary number that we expect to rise, but also a record for any month, ever. That is just the sixth month ever that has surpassed 60 transactions, and only the second to surpass 70. Annualized, it also equates to 876 deals. We don’t expect that to continue, especially with earnings skewing October’s numbers slightly, but we could be entering a new era of transaction activity. The previous... Read More »
JLL Capital Markets Handles CPF Divestment
On Thursday, Ventas had announced its acquisition of 20 seniors housing communities from Chicago Pacific Founders, one of the largest deals of the year so far, at $725 million, or $244,000 per unit in cash. Now, JLL Capital Markets has revealed that it represented CPF in the transaction. JLL’s Jay Wagner had this to say on the deal: “As one of the largest seniors housing transactions closed year to date, it is a meaningful indicator that appetite for scaled seniors housing portfolios is back.” With other nine-figure deals like CareTrust REIT’s acquisition of 31 skilled nursing facilities for $500 million, The Inland Real Estate Group of Companies’ acquisition of the Clarendale Portfolio... Read More »
980Investments Finances Partnership Buyout
Capital Funding Group announced the closing of a major bridge loan for a skilled nursing client to finance the partnership buyout of a large skilled nursing portfolio in Florida. CFG’s Andrew Jones and Ava Julio originated the loan on behalf of 980Investments, a nationally recognized real estate investment company and the landlord of the 13 skilled nursing facilities in question. CFG closed a $207.1 million bridge-to-HUD loan and also provided $15 million in accounts receivable financing to support the working capital needs of the portfolio. There are a total of 1,423 beds across the facilities. CFG closed both deals on October 21, 2024, and a subsidiary of CFG Bank, Capital Finance, LLC... Read More »
Walker & Dunlop Handles HUD Deals
The team at Walker & Dunlop (W&D) recently closed four HUD transactions for senior care facilities located across the country. Largest (and perhaps most notable) among them was a $35.9 million refinance of a 166-unit behavioral assisted living community in Arizona. The community houses assisted living residents with a secondarily behavioral diagnosis, and this was a unique project for HUD’s LEAN program given the behavioral component and unique payor type, but the program executed on the transaction. To account for the added risk, W&D underwrote the transaction at a lower LTV than traditional senior housing projects. The refinance paid off bank debt and partnership debt. Next,... Read More »
Ventas Continues To Roll & Announces Major Acquisition
Ventas (VTR) posted one of its best quarters in a while for the third quarter, especially on the occupancy front. Year-over-year third quarter same-community occupancy increased by 350 basis points to 87.0% for its 488 communities that were owned in both quarters. Year to date for the first three quarters same-community occupancy increased by 310 basis points. Both numbers far exceed the general market, as disclosed by NIC MAP. This will be important as the operators in the Ventas portfolio begin to enter the winter months. The good news is that they are not seeing any decrease in census so far in the fourth quarter, a typically slow quarter for census increases. Cash net operating income... Read More »
A First for Freddie Mac
We saw a first for Freddie Mac, which closed its inaugural senior preferred equity loan for a seniors housing asset in Georgia. Newmark’s Healthcare & Alternative Real Estate Assets group secured the $109 million, 10-year senior loan from Freddie Mac, which featured five years of interest only, and arranged a $31 million preferred equity investment from Kayne Anderson Real Estate Debt. Freddie Mac would likely only do this for a top-of-the-line community, which is what Corso Atlanta is. Built in 2021, the community features 82 independent living, 75 assisted living and 26 memory care units across a nine-acre campus. Galerie Living developed the community to mimic Parisian... Read More »
Guardian Healthcare Bankruptcy Sale Approved
The U.S. Bankruptcy Court for the Western District of Pennsylvania has approved the sale of eight Guardian Healthcare-owned skilled nursing facilities in Pennsylvania (seven facilities) and Fairmont, West Virginia to GBK Eight LLC. The eight facilities total 587 beds. Additionally, the Court had previously agreed to the operational transfer of 11 leased facilities, two of which include personal care homes, to Oxford Valley Health. That transfer was completed on October 29. Senior Living Investment Brokerage handled the sale of the eight facilities, while Saul Ewing LLP served as restructuring counsel, and EisnerAmper LLP served as restructuring adviser to the debtors. Those eight... Read More »
JLL Closes Class-A Colorado Deal
Two Class-A communities in Colorado traded for a combined $30 million, or $214,300 per unit. The deal included The Lodge at Greeley and The Lodge at Grand Junction, two 100% private pay communities with a total of 140 units. The Greeley community was built in 2020 with two stories and offers 20 independent living, 48 assisted living and 24 memory care units. It was 100% occupied. Built in 2019, the Grand Junction community has 50 beds in 48 units, offering assisted living and memory care services. It is located across from a major regional hospital and near numerous medical, commercial and retail developments. Bow River Capital engaged JLL Capital Markets to sell the properties, with... Read More »Clarendale Portfolio Trades
One of the largest seniors housing portfolio deals of the year just closed, also for one of the highest per-unit prices we have seen for the sector. And among portfolios, it was the highest publicly reported per-unit price we have seen in a couple of years. The deal comprised The Clarendale Portfolio, which features three seniors housing communities with 635 independent living, assisted living and memory care units. The average age of the portfolio was five years, and the buildings were spread out in Arizona (Clarendale of Chandler), Missouri (Clarendale of St. Peters) and Tennessee (Clarendale at Indian Lake). Harrison Street Real Estate Capital, Ryan Companies and LCS previously... Read More »Schedule a demo
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