• Blueprint Advises Another SNF Sale

    Blueprint Healthcare Real Estate Advisors’ Ben Firestone and Michael Segal recently facilitated the sale of Magnolia Manor, a skilled nursing facility in Inman, South Carolina. Built in 1967, Magnolia has 176 beds, which represents over 40% of the total licensed beds in the local market and twice the capacity of the next largest competitor. ... Read More »
  • The Ensign Group and CareTrust Acquire Two Texas SNFs

    The Ensign Group and CareTrust REIT have teamed up to acquire the real estate and operations of two skilled nursing facilities in the Austin, Texas metropolitan area. CareTrust purchased the facilities for $32.5 million, or about $135,000 per bed, while The Ensign Group recently took over operations effective August 1, 2021 as part of the... Read More »
  • Walker & Dunlop Originates Financings for Four Communities

    Walker & Dunlop Managing Director Kevin Giusti and Senior Analyst Brian Neal recently originated $37.47 million in financing for four assisted living and memory care facilities: Bloom at Bluffton in Bluffton, South Carolina; Bloom at Hilton Head in Hilton Head, South Carolina; Cascades of Tucson, in Tucson, Arizona; and Regency Jackson in... Read More »
  • Newmark Summer Sales Continue

    Late last week, we profiled several of Newmark’s latest closings, but we also said that we were not finished. One deal was referenced in Welltower’s recent earnings release, as the REIT’s purchase of seven senior living communities from White Oak Healthcare Partners finally closed. The communities, averaging more... Read More »
  • Welltower Announces Big Census Gains

    Welltower released its second quarter earnings results, and its growth strategy was on full display with $1.5 billion in pro-rata gross investments from April to June, at an initial yield of 8.8%. That does not even include the largest deal, which was its proposed $1.58 billion acquisition of 86 independent living communities owned... Read More »

KeyBank Arranges Over $700 Million for Blackstone’s Big Brookdale Acquisition

Blackstone and Brookdale Senior Living are in the news again. Working with KeyBank Real Estate Capital’s healthcare business, the joint venture received about $703 million in financing to fund Blackstone’s acquisition of 64 Brookdale-operated communities from HCP, Inc. A Fannie Mae credit facility makes up most the financing, which was arranged by Charlie Shoop of KeyBank and provides long-term, non-recourse, flexible financing. Meanwhile, KeyBank provided the balance from its balance sheet, in a transaction led by Peter Trazzera. The total financing represents about 62% of the $1.125 billion purchase price, which came out to approximately $188,500 per unit. That was for 100% of the... Read More »

Quality Care Properties Cuts Rent

Within weeks of being spun out of HCP, Inc. (NYSE: HCP), Quality Care Properties (NYSE: QCP) announced that it had agreed to a two-month temporary rent reduction for its major client, HCR ManorCare. December’s rent was reduced by $15.0 million, or nearly 40% below what it should have been, and January 2017’s rent will be reduced by $10.0 million, or 25% below what it should have been. Quality Care Properties agreed to these reductions in response to a request from HCR ManorCare because of the “continuing financial deterioration” at the company. QCP believes this partial and temporary relief with give it time to “perform due diligence and gather information about the Lessee in advance of a... Read More »
Genesis HealthCare, Kindred and Brookdale Working With REITs

Genesis HealthCare, Kindred and Brookdale Working With REITs

It was not easy, but Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living have worked with their REITs to strengthen all concerned. In reviewing the events of the year, I think perhaps the most important ones involve Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living. And, of course, the REITs with close ties to them. With regard to Genesis, I know it took some brass ones for Welltower to work through their various leases with Genesis and sell a large number of the properties. But the important aspect was the reduction of the rents and the smaller annual escalators that will keep Genesis on an upward track. Investors liked it, boosting the share price by 37%... Read More »

Blackstone and Brookdale

The beginning of November brought with it a lot of big news. Sorting through the mess that was the Brookdale Senior Living earnings announcement, which caused quite the buzz in the industry, we also noted the year’s second-largest transaction was announced. Private equity firm Blackstone Real Estate Partners is acquiring 64 Brookdale-operated seniors housing properties from HCP, Inc. for $1.125 billion, or about $188,500 per unit. That was for 100% of the ownership, but Brookdale will pay Blackstone $170 million for a 15% ownership interest in the joint venture, in addition to operating the portfolio on behalf of the joint venture. Occupancy across the portfolio averaged 85%, and the... Read More »

HCP boosts seniors housing holdings

Just as HCP, Inc. is about to spin off its large skilled nursing portfolio into a new REIT, it has closed a smaller, but large in today’s M&A market, acquisition of a portfolio of seven assisted living and memory care communities with 526 units in Maryland and Virginia. The price was $186.25 million, which comes in at $354,400 per unit, much higher than the average price per unit of $198,000 for the past four quarters, but near the levels we have been seeing for some good portfolios of late. The properties were built between 1993 and 2013, and talking to other buyers it appears that occupancy was not quite stabilized, so there should be room for improvement for the new operator, Senior... Read More »