DALLAS — Sonida Senior Living Inc. (NYSE: SNDA), a Dallas-based owner-operator of communities and services for seniors, has executed a $47.8 million equity private placement, including an investment from Conversant Capital, the company’s largest shareholder. Sonida plans to use this new capital for the completion of its balance sheet repositioning, continued investments in community improvements, broader community programming and acquisition opportunities. The shares were issued at $9.50 per share, a 5 percent premium to the 30-day volume weighted average price prior to closing. The equity private placement will close in …
LOS ANGELES — There have been plenty of challenges facing seniors housing in recent years, whether dealing with the effects of the COVID-19 pandemic, rising interest rates, rapid inflation or natural disasters. But while those all reflect outside influences and specific timeframes, one challenge is a constant: recruiting and retaining quality staff. “We all know all roads lead back to operations and operators at the end of the day — that’s what it’s all about,” said Dan Baker, director at JLL Capital Markets. “Labor and staffing are the biggest challenges …
ANNAPOLIS, Md. — The occupancy rate for private-pay seniors housing rose 80 basis points to 85.1 percent in the fourth quarter of 2023, according to data from NIC MAP Vision. It’s the 10th consecutive quarterly increase in occupancy as the industry continues to recover from impacts of the COVID-19 pandemic. The occupancy figure marks an increase of 730 basis points from the pandemic low of 77.8 percent in second-quarter 2021, but still just shy of the pre-pandemic mark of 87.1 percent in first-quarter 2020. NIC MAP Vision is a product …
Seniors housing acquisition and development is a costly business these days. Inflation has increased the price of construction materials, and wage pressures are driving up personnel costs. And after nearly two years of interest rate hikes to slow inflation, debt service on short-term construction and bridge loans is straining borrowers’ budgets and potentially threatening their ability to qualify for take-out financing when their properties reach stabilization. That is, if they can even source a long-term mortgage from increasingly risk-averse regional banks distracted by today’s market volatility, says Jason …
After years of moderate fluctuation, seniors housing capitalization rates have curved sharply upward in the last year, investors within the industry say. That’s according to CBRE’s most recent edition of its U.S. Senior Housing & Care Investor Survey. This 13th edition of CBRE’s survey, conducted in October 2023, polled the same group of seniors housing real estate professionals and investors as its last survey in April and had a 98 percent response rate. While the April survey focused largely on changing market conditions caused by inflation and staffing shortages, the October …
PHILADELPHIA — The wants and needs of the labor force in seniors housing are different today than they were pre-pandemic, forcing operators to adapt on many levels, said Lynne Katzmann, founder and CEO of Juniper Communities. “The gig economy has created a new set of demands on us that we haven’t had to face before.” Katzmann has her finger on the pulse. Bloomfield, New Jersey-based Juniper is an owner and operator of 29 senior living communities in four states with a resident capacity of 2,300 and 1,750 employees. Ultimately, workers …
The last few years have been a time of unpredictability in seniors housing, as the combined factors of pandemic recovery, rapidly rising interest rates, high inflation and labor shortages weighed heavily on investors and operators. “There have been a lot of predictions and forecasts since 2020,” said JP LoMonaco, executive vice president at CBRE. “A lot have been spot on; a lot have been way off base. As we approach the end of 2023, it seems like forecasts about what the American economy will do in 2024 are more varied …
The dearth of new supply in the seniors housing space is a double-edged sword, says Tom Grape, founder, chairman and CEO of regional operator Benchmark Senior Living. While the lack of new product has provided a much-needed lift to operators of existing communities seeking to boost occupancy, it’s also a missed opportunity for developers chomping at the bit to start new projects. The year-over-year (YOY) inventory growth in seniors housing was 1.3 percent in the third quarter, nearly the smallest YOY growth since 2012, according to NIC MAP. Grape foresees …
CHICAGO — Cushman & Wakefield has released its U.S. Senior Living & Care Investor Survey and Trends Report, indicating continued strong performance of the seniors housing asset class with stabilized occupancy trending upward for the 10th consecutive quarter, reaching 85 percent for primary markets and 87 percent for secondary markets. Moving forward, the Northeast markets are projected to show the strongest near-term performance while the Southwest and Southeast markets are anticipated to experience downward pressure on occupancy and rent growth as new supply is introduced. Construction starts have receded to …
CHICAGO — For veteran lender Aaron Becker, it feels as if the seniors housing industry is working through the five stages of grief in response to the “incredible change” in interest rates since March 2022. “We haven’t seen this in 40 years,” says Becker, senior managing director and head of seniors housing and healthcare production at Lument. He’s referring, of course, to a string of 11 increases in the federal funds rate beginning in March 2022. To combat inflation, the Federal Reserve has aggressively raised the fed funds rate from …