• 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 »
REITs’ Low Capital Costs May Drive Cap Rates Lower

REITs’ Low Capital Costs May Drive Cap Rates Lower

For the past 18 months or so, healthcare REITs have been doing more selling than buying, at least of seniors housing and care assets. Some of the moves were strategic, such as Healthpeak Properties making the decision to exit the senior care market, at least for now. Others were more tactical, such as Welltower trying to sell high and buy low to better position its portfolio for the future.  But there is one common denominator for the REITs, especially the largest ones, and that is their cost of capital advantage and the ability to use it as we are emerging from the depths of the pandemic. Even though it is not looking to buy senior care assets right... Read More »
MidCap Financial Closes Acquisition Debt For Healthpeak

MidCap Financial Closes Acquisition Debt For Healthpeak

MidCap Financial closed acquisition debt for another Healthpeak divestiture. Announced in May, the REIT sold five of its SHOP communities that were operated by Florida-based Sonata Senior Living. All five communities are in Florida, with locations in Delray Beach (80 units), Boynton Beach (92), Boca Raton (74), Coconut Creek (94) and Vero Beach (104). There was a total of 328 assisted living, 107 memory care and nine independent living units, and the communities averaged around 20 years in age. However, the properties were well maintained, and Healthpeak Properties had invested over $13 million of capex in the past four years.  Private equity firm Fortress Investment Group paid $64... Read More »
Harrison Street Announces the Largest Seniors Housing Deal Since 2019

Harrison Street Announces the Largest Seniors Housing Deal Since 2019

In the June issue of The SeniorCare Investor, we wondered when private equity would get off the M&A sidelines in a major way, with so much dry powder available to them. On cue, Harrison Street Real Estate Capital announced the largest seniors housing and care deal in two years, spending approximately $1.2 billion on a portfolio of 24 assisted living/memory care communities in California and Nevada. The portfolio totals 2,195 units, resulting in a per-unit price of $546,700 per unit.  Oakmont Management Group operated the whole portfolio, Healthpeak Properties owned half of the properties and California-based real estate developer Gallaher... Read More »
Ziegler Sells Two Healthpeak Properties/Brookdale Senior Living CCRCs

Ziegler Sells Two Healthpeak Properties/Brookdale Senior Living CCRCs

Ziegler’s Dan Revie Tedd Van Gorden represented Healthpeak Properties in the sale of its last two entrance-fee CCRCs that were part of its joint venture with Brookdale Senior Living. The deal includes Foxwood Springs, a 434-unit campus in Raymore, Missouri, and Robin Run, a 457-unit campus in Indianapolis, Indiana. Both were originally part of the National Benevolent Association portfolio that went through bankruptcy proceedings over a decade ago. And after Healthpeak bought out Brookdale’s interest in the joint venture in Fall 2019, these were the only two campuses excluded from that transaction.  Subsidiaries of the Texas-based not-for-profit Boncrest Resource Group acquired the... Read More »
JLL Represents Healthpeak in Two More Divestments

JLL Represents Healthpeak in Two More Divestments

JLL announced its role in a couple more Healthpeak Properties seniors housing divestments. Most notably, Mike Garbers and Cody Tremper represented PEAK in the sale of five SHOP communities that were operated by Florida-based Sonata Senior Living. All five communities are in Florida, with locations in Delray Beach (80 units), Boynton Beach (92), Boca Raton (74), Coconut Creek (94) and Vero Beach (104). There were a total of 328 assisted living, 107 memory care and nine independent living units, and the communities averaged around 20 years in age. However, the properties were well maintained, and Healthpeak Properties had invested over $13 million of capex in... Read More »