Birchwood Moves Into Forest Park
Equipped with a new roof and a new upgraded license, a 50-unit assisted living community in Forest Park, Georgia sold to Birchwood Healthcare Properties for $4 million, or $80,000 per unit. Originally built in 2000, the community was owned by a local doctor, who has decided to exit the business after retirement from his medical practice. The community was just 75% occupied, and it brought in under $50,000 in EBITDA on approximately $1.7 million of revenues, for an operating margin of just 3%. So, operations could obviously improve. The community has received significant capital upgrades to its exterior over the past five years, including a new roof, and has also upgraded to a new assisted... Read More »
Griffin American Gains St. Louis-Area Senior Living Communities
Griffin-American Healthcare REIT IV, Inc., is moving into the St. Louis MSA on a large scale, but on the other side of the Mississippi River. Featuring 221 units and five independent/assisted living properties in Columbia, Millstadt, Red Bud and Waterloo, Illinois, the portfolio is 100% private pay and will be operated by an affiliate of Compass Senior Living under a 15-year absolute net lease with two 10-year renewal options. Annual rent escalators are 5.5% after the first year and 2.5% thereafter. Compass now owns/operates 19 seniors housing communities in Arizona, California, Illinois, New Mexico, Oregon and Wisconsin. Griffin-American, which is co-sponsored by American Healthcare... Read More »
Skilled Nursing Facility Turnaround a Priority
Revera, Inc., a Canadian senior care operator, has at last completed the sale of its portfolio of Northeast skilled nursing facilities, with the sale of a struggling 96-bed skilled nursing facility in Barre, Vermont. The deal was a long time coming and part of a four-property portfolio, which included facilities in Connecticut, New Jersey and Massachusetts that sold in 2015 and 2016. The parties agreed that each transaction would close as change of ownership was approved, and Barre was the last one. The property has seen better days. Built in 1972, the single-story facility with a majority of semiprivate units was recently designated a special focus facility by CMS. Occupancy and the... Read More »
Opportunity Knocks for Memory Care Community in Texas
A stand-alone memory care community in Dallas, Texas has some clear room for improvement, despite being built less than 10 years ago. Located just 10 miles from downtown, the community is made up of four “neighborhoods,” each with a dining area, living room, family/TV rooms and courtyards. Despite its relatively new build (in 2008), it was just 56% occupied and operated on an 8.7% margin on $1.47 million of revenues. Perhaps that is due to the increased construction in the Dallas-Fort Worth area, meaning a 2008 build is not state-of-the-art anymore. The buyer, a private equity group located in Southern California, has plans to invest in capital improvements at the community to make it more... Read More »Schedule a demo
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