• Genesis HealthCare’s Legacy Liabilities Lead to Bankruptcy Filing

    Genesis HealthCare has filed for Chapter 11 bankruptcy protection, listing its 298 affiliated holding companies, ancillary businesses and insurance vehicles in its submission to the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division. It is one of the largest skilled nursing operators in the country and operates 218... Read More »
  • Cindat Capital Management Invests in Colorado Community

    Cindat Capital Management, a middle-market real estate private equity platform focused on seniors housing and opportunistic investments, announced its first investment from its Senior Housing Credit Platform. It was a unitranche debt investment in The Pearl at Boulder Creak, a 116-unit, Class-A independent living and assisted living community... Read More »
  • MedCore Divests to Publicly Traded Healthcare REIT

    Ziegler announced its role as exclusive sell-side financial advisor to MedCore on the sale of Parkview on Hollybrook, a 189-unit rental CCRC in Longview, Texas. The property has been on a long road to stabilization. It was originally bought in a bankruptcy auction in 2016 for $20.7 million by Thrive FP when it was in the middle of development. 12... Read More »
  • Forbright Bank’s H1 Activity

    Forbright Bank reported its activity for the first half of the year from its healthcare and HUD lending teams, announcing more than $500 million in loans closed for acquisitions, recapitalizations, working capital, and HUD financings for healthcare providers across the country. One of the largest transactions was a $60 million revolving loan to... Read More »
  • Large SNF Portfolio Secures Financing

    MONTICELLOAM, LLC announced the closing of $218.3 million in combined bridge, mezzanine, and working capital financing for 18 skilled nursing facilities across Kentucky. The transaction includes a $179.3 million senior bridge loan and a $29 million mezzanine loan, which the sponsor plans to use to restructure and upsize the existing debt on the... Read More »
What Do REIT Investors Know?

What Do REIT Investors Know?

Remember back in March 2020 when the financial world was falling apart, rapidly? March 18 was the bottom for most of the healthcare REIT stocks, when investors thought the pandemic might wipe out a good portion of their investment value in senior care properties. At the time, they weren’t too far off, when top-quality REITs such as Ventas plunged to market values that had not been seen in years. But it was much more of a knee-jerk panic attack based on worst-case scenarios. Hindsight is always great, isn’t it?  Within two weeks, most REITs had recovered 30% to 80% of that initial loss, and then steadily rose for the rest of the year. The odd thing was that this nine-month... Read More »
Ventas Buys New Senior Investment Group

Ventas Buys New Senior Investment Group

Don’t you just love it when a plan comes together? Just when Welltower announced a deal to buy Holiday Retirement Corporation’s 86 owned assets, and Atria Senior Living agreed to buy Holiday itself, Ventas steps in and buys New Senior Investment Group. New Senior owns 77 Holiday-managed communities, 21 communities that have recently been switched from Holiday management to Atria, 15 other communities managed three other providers, and one large community triple-net leased to Watermark Retirement Communities. At the end of the first quarter, just four communities were managed by other companies, so things must have moved during the second quarter. Jay... Read More »
New Senior Investment Group Reports April Occupancy Bump

New Senior Investment Group Reports April Occupancy Bump

The good occupancy news keeps on coming from the first quarter earnings announcements, with New Senior Investment Group the latest to report an occupancy jump in April. After January occupancy ended down 80 basis points, February down 60 basis points and March down 20 basis points, sequential occupancy grew by 40 basis points in April to 80.6%, which was the company’s first occupancy gain since the pandemic began. There was more good news, with first quarter leads representing 103% of average 2019 volume, and April leads staying above 2019 levels as well.  COVID-19 cases were also down to nearly zero, with one active resident case as of May 3 and four new resident cases reported in the... Read More »
A Holiday with Atria

A Holiday with Atria

Last week, as part of its earnings release, New Senior Investment Group announced that Atria Senior Living would be taking over management of 21 independent living communities managed by Holiday Retirement Corporation. From a diversification perspective, this makes great sense for New Senior because Holiday had been managing 98 of New Senior’s 103 properties. In the REIT world, that kind of tenant concentration is a no-no.   Like most owners across the country, including Atria, the New Senior portfolio has seen its occupancy drop by 690 basis points in the past year. This is much better than the average for assisted living and skilled nursing, but as we... Read More »
Big Sale by New Senior Investment Group

Big Sale by New Senior Investment Group

New Senior Investment Group announced it has entered into an agreement to sell its portfolio of 28 assisted living and memory care communities in 14 states with 2,840 units for $385 million, or $135,560 per unit. These are managed by six different operators.  This group of communities has dragged down New Senior’s performance, as occupancy and cash flow has been decreasing over the past year. Overall occupancy for the assisted living and memory care portfolio is 78%, but nine of the communities (transition assets) had occupancy of just 68.7% in the third quarter with a cash NOI margin of just 0.5%. The other 19 had an average occupancy rate of 81.3% and a cash NOI margin of 21.5%.   The... Read More »