Seniors Housing

CBRE: Rising Labor, Land Costs Hit Seniors Housing, But Returns Also Rise

by Alex Tostado February 13, 2020

LOS ANGELES — Seniors housing development costs are expected to rise modestly in 2020, with labor and land the primary drivers of higher expenditure, according to research from Los Angeles-based CBRE. Total cost for a seniors housing development rose by 6.4 percent in 2019 to an average of $317 per square foot. Average returns (stabilized net operating income as a percentage of overall development costs) rose to 9.5 percent, up approximately 60 basis points in 2019. This is attributable to an uptick in perceived risk due to lower occupancy rates on a national basis. “While seniors housing development activity is expected to remain strong in 2020, returns on cost expectations have increased, which is evidence of elevated perceived risk,” says James Graber, managing director of valuation and advisory services for CBRE. “Developers are applying a more rigorous project selection process to position each planned community for success; this disciplined approach has resulted in a tempered number of construction starts projected for this year. “Overall, the ‘flight to quality’ is a primary driver in the seniors housing development process, incorporating a well-organized collaboration between developer, operator and capital markets,” concludes Graber. Hard costs (e.g. labor, site work, foundation, building shell construction, …

February 13, 2020

Development Multifamily Seniors Housing Texas

Civitas Opens 83-Unit Seniors Housing Community in Wimberley, Texas

by Taylor Williams February 12, 2020

WIMBERLEY, TEXAS — Civitas Senior Living has opened Alexis Pointe Senior Living, an 83-unit seniors housing community in Wimberley, located outside San Marcos in Central Texas. The property is located near Wimberley Town Square, the Cypress Creek Nature Preserve and Blue Hole Regional Park. Alexis Pointe Senior Living features 49 assisted living apartments, 24 memory care suites and 10 independent living cottages, as well as resort-style amenities.

February 12, 2020

Acquisitions Multifamily Seniors Housing Texas

MedCore, TNRG Buy 189-Unit Seniors Housing Community in Longview, Texas

by Taylor Williams February 11, 2020

LONGVIEW, TEXAS — MedCore Partners and The National Realty Group (TNRG) have acquired Parkview on Hollybrook, a 189-unit seniors housing community in Longview, approximately 60 miles west of Shreveport, La. The campus offers 126 independent living, 41 assisted living and 22 memory care residences. The buyers intend to develop land adjacent to the existing campus to add independent living cottages by early 2021. Integral Senior Living (ISL) will manage the community. The seller and sales price were not disclosed.

February 11, 2020

Loans Michigan Midwest Multifamily Seniors Housing

BB&T Secures $70.2M Bond Financing for Clark Retirement Campus Expansion in Michigan

by Kristin Harlow February 11, 2020

GRAND RAPIDS, MICH. — BB&T Capital Markets has closed on $70.2 million in bond financing to fund the expansion of Clark Retirement Community’s Keller Lake campus in Grand Rapids. The financing consists of $64.5 million in tax-exempt bonds and $5.7 million in taxable bonds, all at a fixed rate. The developer is currently underway on the Keller Lake expansion.The project will add 53 independent living units to the continuing care retirement community. Upon completion, Clark Retirement Community’s two campuses will total 185 independent living units, 230 assisted living units and 39 skilled nursing beds.

February 11, 2020

Acquisitions Florida Multifamily Seniors Housing Southeast

Cushman & Wakefield Negotiates $76.6M Sale of 10-Property Seniors Housing Portfolio in Metro Miami

by Alex Tostado February 10, 2020

MIAMI — Cushman & Wakefield has arranged the $76.6 million sale of a 10-property, value-add seniors housing portfolio in Miami-Dade County. The portfolio includes a mix of assisted living and skilled nursing facilities, which together comprise 1,289 beds and 370,862 square feet. Robert Kaplan and Mark Rutherford of Cushman & Wakefield represented the seller, A.D.M.E. Investment Partners, in each transaction. The individual buyers were not disclosed. Bruce Gibson of Senior Capital Advisors was the co-broker on all transactions, except those for Oceanside Extended Care Center, which were co-brokered by Cushman & Wakefield’s Calum Weaver. The properties in the portfolio include: Fair Havens Center, a 101,814-square-foot skilled nursing and assisted living facility with 557 units and 329 beds. The property sold for $26.4 million, or approximately $80,394 per bed. Harmony Health Care, an 83,526-square-foot skilled nursing facility with 96 units and 203 beds. The property sold for $19.6 million, or approximately $96,307 per bed. Oceanside Extended Care, a 52,133-square-foot skilled nursing facility with 196 one-bed units. The real estate sold for $17.6 million, or approximately $89,923 per bed, and the license sold in a separate transaction for $5.9 million. Nursing Center at Mercy, a 43,357-square-foot skilled nursing facility with 64 units …

February 10, 2020

Acquisitions California Multifamily Seniors Housing Western

ESI Brokers Sale of Cedar Creek Senior Living in Madera, California

by Amy Works February 10, 2020

MADERA, CALIF. — Evans Senior Investments (ESI) has arranged the sale of Cedar Creek Senior Living, a 112-unit independent living, assisted living and memory care community. The property is located in Madera, approximately 25 miles northwest of Fresno. Originally built in 2005, the community averaged 87.6 percent occupancy in the year leading up to the sale. ESI represented the seller, an independent owner. A California-based REIT acquired the property for an undisclosed price.

February 10, 2020

HUD Section 232 Summary Statistics - Fiscal Year 2019

Features Loans Midwest Multifamily Northeast Seniors Housing Southeast Texas Western

HUD Lean Lenders Reflect on Memorable Year for Seniors Housing

by Sarah Daniels February 10, 2020

Despite enduring a federal government shutdown for 35 days that temporarily put a crimp in loan processing, the HUD/FHA Section 232 mortgage insurance program used to finance seniors housing properties rallied to post a solid performance in fiscal year 2019. The volume of loans closed during the 12-month period that started Oct. 1, 2018 and ended Sept. 30, 2019 totaled $3.7 billion. That’s up from $3.6 billion the prior fiscal year. The HUD/FHA Section 232 program — more commonly referred to as the HUD Lean program — helps finance nursing homes and assisted living facilities, as well as board and care facilities. The Lean process developed by HUD in 2008 is a methodology based on the Toyota model to increase efficiency by reducing waste. In short, the goal is to eliminate historical inefficiencies in the processing and approval of HUD loan applications. Dissecting the data Although the government shutdown that occurred in late December 2018 and January 2019 resulted in the program’s loan count dropping from 317 to 288 on a year-over-year basis, the average loan amount increased 14 percent during the same period to reach a record high of nearly $13 million. “This was driven not only by some …

February 10, 2020

Acquisitions Multifamily Oregon Seniors Housing Western

SLIB Negotiates Sale of 47-Unit Seniors Housing Asset in Portland

by Amy Works February 6, 2020

PORTLAND, ORE. — Senior Living Investment Brokerage (SLIB) has arranged the sale of Senior Haven, an assisted living community in Portland, Oregon. The property features 47 units totaling 50 beds. The community was built in 2012 and expanded in 2018. The facility is approximately 19,337 square feet and is situated on approximately 1.29 acres of land. A local owner-operator sold the property for an undisclosed price, and will continue to serve as a consultant post-closing. Senior Haven is the seller’s only senior living community. The buyer is a regional operator with several communities in Washington. This is the company’s first foray into Oregon. Brad Goodsell, Jason Punzel and Vince Viverito of SLIB handled the transaction.

February 6, 2020

Development Multifamily Northeast Pennsylvania Seniors Housing

Erickson Breaks Ground on 84-Unit Expansion at Maris Grove Seniors Housing Community in Pennsylvania

by Alex Patton February 4, 2020

GLEN MILLS, PA. — Erickson Living has broken ground on an expansion at Maris Grove, a continuing care retirement community in Glen Mills, located approximately 20 miles west of Philadelphia. The three-story, 76,000-square-foot project will be named Evergreen Pointe and will feature 84 new assisted living units. Evergreen Pointe is part of Erickson’s multi-year plan to expand and renovate Maris Grove’s existing residences. The new building will be located adjacent to the existing continuing care building, Rose Court, which will be renovated to include a dedicated memory care neighborhood and redesigned lobby and bistro. Construction of Evergreen Pointe is estimated to take 18 months. Three independent living neighborhoods, with more than 1,200 independent living apartment homes, are also located on the 87-acre campus. Architectural firm SFCS designed the project.

February 4, 2020

California Development Multifamily Seniors Housing Western

San Francisco Campus for Jewish Living Prepares to Open $140M Seniors Housing Expansion

by Amy Works February 3, 2020

SAN FRANCISCO — San Francisco Campus for Jewish Living (SFCJL) is preparing to open the Lynne and Roy M. Frank Residences, a $140 million expansion to the property. The 270,000-square-foot project adds 113 assisted living apartments and 77 memory care suites. Byer Square, a new multi-generational community center, will feature a fitness center, pool, cinema, performance center, art studio and café. Construction began in mid 2017. Residents are expected to begin moving in during spring 2020. In conjunction with the expansion, SFCJL has created partnerships with Alzheimer’s Association, Creative Aging SF, Medical Clown Project, UCSF, Family Caregiver Alliance, California Institute of Integral Studies and MA Psychology student interns in expressive arts and drama therapy.

February 3, 2020

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