Welltower Acquires Two South Bay Partners Properties
Welltower announced that it has added two more San Antonio senior living properties to its portfolio. Originally developed by the seller, South Bay Partners, these communities opened in 2016 adjacent to each other in the Dominion area of northwest San Antonio. They combine for 335 units of independent living, assisted living and memory care. Welltower is no stranger to the market, already owning two senior living communities operated by Sagora Senior Living, an LTAC operated by LifeCare Management Services and a portfolio of five medical office buildings. No purchase price was disclosed for the latest acquisition, but the properties were last assessed together for $48.6 million, according... Read More »
Genesis HealthCare Buys and Divests
As it continues to improve its capital structure and rationalize its lease exposure, Genesis HealthCare has joint ventured with Next Healthcare Capital to buy 15 skilled nursing facilities with 2,147 total beds previously leased from Welltower located in Pennsylvania (6), New Jersey (4), Connecticut (3), West Virginia and Massachusetts. Genesis will own a 46% stake in the venture, and lease the properties, at presumably a lower rate than with Welltower, and there will be no escalators for the first five years. Welltower’s lease had 2% annual escalators. Next Healthcare appears to be willing to wait for that extra return, since Genesis has a purchase option beginning in 2026 to buy out the... Read More »
What 10 Years Can Do
With everyone so fixated on the future (the upcoming flu season, the 2026 Boomer Boom, etc…), and rightfully so, we also think it’s important to peak back in the past to gain some perspective. A #flashbackfriday, if you will. November 2008 doesn’t conjure many fond memories for most industries, but particularly for the capital markets. By that month, the Dow Jones Industrial Average dropped below 8,000 (on its way to 6,443 in March 2009). Liquidity had dried up, and investors, more often than not, were looking to sell, not buy (even if some of those buys would have paid off many times over in hindsight). And when those selling shareholders had a target in mind, they went for blood, selling... Read More »
Should Cap Rates Go Lower?
Two major REIT CEOs can see seniors cap rates moving below multifamily for the first time. The Big Two REITs have reported their second earnings, and while occupancy and labor costs certainly remain an issue for their operating partners, there was one funny comment that came out of the calls. Well, funny if you get your kicks from these sorts of things the way I do. Apparently, Welltower CEO Tom DeRosa and Ventas CEO Debbie Cafaro see eye to eye on at least one thing. As one analyst joked, they both apparently agree that seniors housing cap rates should be lower than multifamily, and I think they were even talking about assisted living. The reason? Because demand will do nothing but grow,... Read More »Schedule a demo
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