• Q2 Senior Care M&A Falls To Seven-Year Low

    Well, we can’t say we aren’t surprised. COVID-19 and the economic ramifications stemming from social distancing and quarantine measures took a toll on seniors housing and care M&A, leaving the sector with just 59 publicly announced transactions in the second quarter. Back in early April, we said the second quarter’s deal total would... Read More »
  • Senior Living Investment Brokerage Announces Four Closings

    The floodgates opened at Senior Living Investment Brokerage. Just as we entered July, the firm announced four closings for three skilled nursing facilities and a memory care community. Jason Punzel, Brad Goodsell and Vince Viverito first represented a local owner/operator in their sale of a 59-unit memory care community in Springfield, Oregon... Read More »
  • Blueprint Handles Large Pacific Northwest Disposition

    Amy Sitzman, Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors handled the sale of eight small assisted living communities divided evenly between Washington and Oregon. News of the deal came out in June with two separate acquisition financing announcements from JD Stettin of Carnegie Capital, the first for the Oregon... Read More »
  • Returning Home To Assisted Living

    After being pulled out of her assisted living community because of the pandemic, a mother asks to return “home.” In the June issue of The SeniorCare Investor we wrote about how an industry professional lost the argument with his younger sister about moving their mother out of her assisted living community and into the sister’s home.... Read More »
  • Fairstead Acquires Another Section 8 Senior Apartment Community

    It’s been less than a month since Fairstead, a fully-integrated real estate firm focused on the development, acquisition and operation of affordable and mixed-income housing, purchased a 123-unit affordable senior apartment complex in Sunrise, Florida. But, the firm is doubling down on its strategy and acquired another complex in South Florida. ... Read More »
Seniors Housing Occupancy Slides Further, But Slower

Seniors Housing Occupancy Slides Further, But Slower

Well, it shouldn’t have surprised anyone, but occupancy levels for stabilized independent living and assisted living continued their drop in the month of May, according to NIC MAP. Across the country’s 31 largest metropolitan areas, assisted living properties first fell by 170 basis points from 87.8% in March (the first full month of the COVID-19 pandemic) to 86.1% in April. The sector occupancy fell by a lesser degree in May, by 90 basis points to 85.2%. So, in total, that is a 360-basis point drop for assisted living since the pandemic began.   The independent living sector has so far fared better than assisted living, but it also has the benefit of being in a stronger position going... Read More »
National Health Investors: What Pandemic?

National Health Investors: What Pandemic?

It seems that National Health Investors is doing just fine during this pandemic, as are its operators, apparently. The Tennessee-based REIT reported that it has collected 99.7% of its contractual rent in April, 100% in May, and so far, 99.4% in June. That should make shareholders feel pretty good right now.  On the occupancy front, excluding communities that have been open less than 24 months, it was not quite as rosy but nothing they can’t handle. For 41 same-community properties operated by Bickford Senior Living, occupancy has dropped 240 basis points, from 86.6% in March to 84.2% in May. The first quarter averaged 87.3%.   Senior Living... Read More »
REIT Sale/Leasebacks Are Not Dead

REIT Sale/Leasebacks Are Not Dead

It is very easy to say that sale/leaseback structures with REITs are dead, especially if your leases are dead in the water. But then you have to ask, why are they dead in the water, and why did you enter into long-term leases in the first place? You could have always financed your properties with debt at 70% to 80% loan-to-value, but the odds are you wanted to recapture some of your equity for growth (or your retirement), and there is always a price you pay for essentially leveraging your property 100%.   The real benefit of a sale/leaseback, in addition to the cash you take out, is that everything above the lease payment is yours. The REIT gets its fixed lease return,... Read More »
Brookdale Buys Eight NHI-Owned Communities

Brookdale Buys Eight NHI-Owned Communities

Brookdale Senior Living exercised its purchase option on eight assisted living communities that it operated on behalf of the owner, National Health Investors. The transaction was hinted at in NHI’s third quarter earnings report, which noted the properties as being held for sale. And Eric Mendelsohn, President and CEO, confirmed in the Q3 earnings call that the purchase price would start at a base of $37 million, with a fair market value component as high as $5 million which NHI and Brookdale would split 50-50. In the end, Brookdale paid $39.26 million, or $116,845 per unit. The eight communities, which were located in three states and totaled 336 units, contributed 2019 GAAP revenue of... Read More »
CCRCs Are Not Dead, and Happy New Year

CCRCs Are Not Dead, and Happy New Year

Two recent CCRC sales prove the point that this market can thrive. You know one of my favorite refrains by now. CCRCs are not dead. And two recent transactions prove my point. At the end of December, David Reis and his Senior Care Development, together with their equity partner Fundamental Advisors, closed on the sale of The Clare in downtown Chicago. This 338 unit/bed CCRC opened during the Great Recession and was forced to sell for 20 cents on the dollar with occupancy at 34%. Today, occupancy is at 98%, average entrance fees are back to $740,000, and they just sold it to LCS for about $320,000 per unit/bed. Talk about a great return on investment. LCS had been a minority investor and... Read More »