• 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 »
Average Occupancy Falls To (Yet Another) New Low

Average Occupancy Falls To (Yet Another) New Low

Most of us saw it coming, but the seniors housing industry hit new occupancy lows in the fourth quarter of 2020, according to new data from NIC MAP. The sector experienced a drop of 130 basis points from the third quarter average of 82.0% to 80.7%, based on the reporting communities in 31 primary markets. Across the entire industry, including those properties that do not report their occupancy figures, the average census could be lower.  The assisted living market continues to feel the pain of higher move-out rates and fewer move-ins because of the lockdowns, impacts to demand and, of course, the holiday season. That dropped the sector’s average occupancy by 1.3 percentage points to 77.7%,... Read More »

Seniors Housing Occupancy Hits A New Low

NIC wrapped up its virtual conference this week, and it’s safe to say that those in attendance got a good education on what it’s like to close a deal during the pandemic, to operate communities safely and successfully, and (hopefully) when business will be back to normal. At the end of the conference, NIC also released its third-quarter occupancy numbers, and they showed the industry has a long road to recovery. Across the 31 primary markets, seniors housing average occupancy fell from 84.7% in the second quarter to 82.1% in the third quarter, a drop of 260 basis points. That followed a 280-basis point decline in the second quarter.   Clearly, COVID-19 and the resulting lockdowns... Read More »
The Virtual NIC

The Virtual NIC

This year’s NIC Conference will certainly be different, but let’s make the most of the digital social experience. As you can see, I am not Steve. Ben Swett here, filling in while Steve is out of the office. Next week is the start of the first virtual NIC Conference, and even though we would obviously rather see all of you in person, we hope to still see you virtually. Over the next two weeks, there will be plenty of educational sessions on finance and the impact of the current pandemic on operations, census and, of course, cash flow. And if you are into nursing homes, where else can you find a former CMS administrator and the current CEO of AHCA at the same place? I know we’re... Read More »
Average Occupancy Falls To (Yet Another) New Low

Average Assisted Living Occupancy Falls To New Low

The latest occupancy numbers from NIC are in and hit another low that the industry will be spending months and probably years to rebound from. Perhaps most notably, in the three months ending in August, the assisted living market fell below an average of 80% occupancy for the first time ever, to 79.5%. That is a 60-basis point drop from July’s trailing-three month level, which may have shocked us in the past, but after the nearly 170-basis point fall from June, it could be worse.   To be fair, that is just across the 31 Primary Markets that NIC tracks for its quarterly results, but with COVID-19 affecting most localities nationwide and its economic ramifications even more widespread, we... Read More »
When in Need of Renovations

When in Need of Renovations

How often have you heard that the vast majority of skilled nursing facilities need substantial renovations in order to compete? Now, we are hearing it about all those assisted living communities built in the 1990s, and even the early 2000s. All of the new development in the past six or seven years has really caused owners and operators to take a hard look at their real estate and decide what to do. What needs to be done to compete and how much will it cost? One of the nice things about going to a NIC conference is meeting new companies and people. One of the companies we met with, South Coast Improvement Company, specializes in renovating senior living buildings while the residents are... Read More »