• JLL Announces Seniors Housing Portfolio Deal

    The JLL team got off to a prolific start this January, already handling a couple of transactions across 17 seniors housing properties. The big one involved the sale of 16 seniors housing communities previously owned by a publicly traded REIT. Totaling more than 1,800 units, these communities were located in three states and consisted of... Read More »
  • Blueprint Sells a SNF in Louisiana

    Brooks Blackmon of Blueprint Healthcare Real Estate Advisors headed down to the bayou to sell a 120-bed skilled nursing facility in Oak Grove, Louisiana (near the border of Arkansas). Built in stages from the 1960s through 1987, the facility had been owned by multiple generations of a local family since its opening, and now they are... Read More »
  • Recent Senior Care M&A Deal Chart, Week Ending January 22, 2021

    The M&A market was on fire in the last month of 2020, and got off to a fast start in 2021. Check out our recent senior care M&A deal chart. Long-Term Care   AcquirerTargetPrice Non-traded REIT16 seniors housing communitiesN/A Local individualAssisted living community in San Antonio, TXN/A Regional owner/operatorCarroll Nursing... Read More »
  • Lakeland Bank Finances Skilled Nursing Expansion in NJ

    A skilled nursing owner/operator in Morris County, New Jersey (New York City MSA) obtained financing from Lakeland Bank to expand and improve its services in the state. The $4.1 million loan will help fund renovations to underutilized space and increase the number of available licensed beds at the unnamed facility.   The... Read More »
  • Jon Harder Gets Sentence Commuted

    When was the last time anyone thought about Jon Harder, the founder and CEO of Sunwest Management who was sentenced to 15 years in prison for the “misuse of investment funds during the real estate crisis” of 2007 to 2009? Well, that is an understatement if we ever saw one. At its height, Sunwest was one of the largest senior living... Read More »
Seniors Housing Rates: Actual vs. Asking

Seniors Housing Rates: Actual vs. Asking

For years, NIC MAP has been presenting quarterly changes in seniors housing asking rates, but it is now trying to get beyond that and get the actual rental rates. That will add a lot more needed transparency. As many of you know, NIC is working hard to develop its database of actual rents in seniors housing as opposed to the “asking” rents that have been used in their NIC Map numbers for years. This is very important because not until the market sees the actual rents communities are getting will we have a better understanding of the extent of price discounting in various markets.  We have been a little vocal about the asking rent number because when times are tough, like they... Read More »

NIC MAP Q3 Occupancy Results Fall Short Of Expectations

In more normal times, whatever that may be, the third quarter is supposed to be a good one for occupancy increases, perhaps the best quarter of the year. Not so in the past three years, however. NIC MAP has reported yet another slow month for seniors housing occupancy, which does not bode well for the rest of the year or for early 2018. The modest (10 basis points) increase in assisted living occupancy, combined with the modest decrease (-10 basis points) for independent living, does not bode well for the fourth quarter, when recent weather-related events will surely have a negative impact. Following that will be the first quarter flu season problems, which in 2017 lasted well into the... Read More »
Independent Living Market Outperforms

Independent Living Market Outperforms

First quarter data from NIC MAP shows IL occupancy again exceeding assisted living, but with less new development. What is it about the independent living community market that keeps occupancy more stable than assisted living, yet sees a much lower level of new development? In the latest NIC MAP data on the first quarter, the IL market outperformed the AL market again, even though IL occupancy did slip a bit sequentially and year over year. I have a hard time understanding why there is not more development in the IL side of the business. Yes, they are larger properties that require more capital and a longer fill time, but it just seems they can be more tailored to any market’s particular... Read More »

Seniors Housing Occupancy Continues Its Decline

As many people expected, seniors housing occupancy levels declined in the first quarter this year, with assisted living posting larger declines than independent living. According to the recently released NIC MAP data, primarily assisted living communities in the 31 primary markets posted a sequential drop in occupancy of 50 basis points to 87.2%, and a year-over-year drop of 100 basis points. Even though these numbers were sort of expected, there was some hope that the sector was starting to turn things around in the quarter. Not yet. It was a little surprising that half the year-over-year drop came in one quarter, however. On the independent living side, occupancy in the top 31 markets... Read More »

Occupancy, Rates And Discounting In Seniors Housing

The recent NIC MAP data on occupancy, development and rate growth can be interpreted in many ways. So, what are we really to make of the NIC MAP data for the first quarter? Most of the data was viewed positively, despite a smallish decline in occupancy from last year’s fourth quarter. Absorption levels have been increasing, according to the data, and construction starts as a percent of existing supply declined from both the fourth quarter and the year-ago quarter. Does this mean that the much-feared over-building threat has dissipated? Hardly, as one quarter’s worth of data does not present a strong trend, and it is possible the small decline in starts was related to the chaos in the... Read More »