Investment

DALLAS — The Seniors Housing & Care Investor Survey, conducted each year by Dallas-based CBRE Research, shows that capitalization rates are on the rise, and many expect that trend to continue. The survey focuses on rapidly changing market conditions due to inflation, staffing shortages and rising interest rates. CBRE’s methodology and pool of respondents was not disclosed with the survey results. The average seniors housing capitalization rate increased by 26 basis points year over year, and survey respondents view assets with the lowest cap rates as those most negatively impacted …

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  The June 29 webinar “Seniors Housing Success Stories — Companies that are Rising Above the Headwinds“ focused on what leading seniors housing firms are doing to alter their businesses, streamline operations, increase occupancy and strategize in terms of deal volume and investment. Industry difficulties, including labor shortages, inflation and interest rates, have highlighted the need for expertise and well-informed approaches to the seniors housing sector recovery. Click to watch this hour-long discussion that considers both operations and trends in transaction activity. See how strategies and outlooks have shifted since last …

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SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NYSE: CTRE), a San Clemente-based REIT, has closed two separate transactions on the West Coast with an aggregate initial investment amount of approximately $45.2 million. The investments include the acquisition of a skilled nursing facility as well as the funding of a mortgage loan secured by a California skilled nursing, assisted living and independent living campus. CareTrust acquired the 99-bed skilled nursing facility on the West Coast with an initial investment amount, inclusive of transaction costs, of approximately $19.2 million. The acquisition completes …

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Lument Laca Wong-Hammond ESOP quote

  Owners and operators considering an exit strategy today face a challenging economic environment. Higher interest rates have slammed capital markets. Valuations are in flux. Transactions have slowed. And the pool of potential buyers has dwindled. As an alternative to an outright sale to a third-party, an often-overlooked option is an exit to an employee stock ownership plan (ESOP). These plans allow business owners to sell all or part of the company’s stock to employees, allowing owners to diversify wealth away from the business while limiting their future liability. Ultimately, …

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CYPRESS, Texas — Granite Harbor Advisors, an investment advisory firm based in Houston, has hit its funding goal for its private equity offering to finance an expansion project at Spring Cypress Senior Living located in Cypress, a suburb of Houston. Spring Cypress Senior Living is an independent living, assisted living and memory care living facility. The center’s expansion project will bring 43 new independent living units split between townhomes and cottages, 95 new assisted living apartments, and 14 new memory care units. The project’s first phase is completed and has …

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CHICAGO — Birchwood Healthcare Partners has concluded initial fundraising for the 5V+ Seniors Healthcare Fund. Established in 2014 in Chicago, Birchwood is a fully-integrated and diversified investment firm targeting the intersection of operations and real estate for the rapidly growing seniors healthcare demographic. The 5V+ Seniors Healthcare Fund provides exposure to four key verticals of seniors healthcare: seniors housing, healthcare services, transitional & long-term care and active adult.

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Seniors housing owners that stabilized their properties after the pandemic are now faced with a new challenge: a spike in interest rates and a disrupted lending environment. The challenge arrives at a time when many borrowers need capital for maturing loans to escape variable-rate debt or to finance growth. The good news is that loans insured by the Federal Housing Administration (FHA) remain available and are giving eligible borrowers an attractive solution, say Lee Delaveris and John Randolph, seniors housing and healthcare specialists at KeyBank Real Estate Capital. Available in …

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FREDERICKSBURG, Va. — JLL Capital Markets has arranged joint venture equity for development of a seniors housing community in Fredericksburg, approximately midway between Richmond and Washington, D.C. Centric Development LLC is developing the property, which will feature 106 assisted living and 36 memory care units. The three-story, 153,000-square-foot property is situated on a 16.2-acre parcel. The site is within an established, regional medical hub in a growing area. Completion is scheduled for 2025. Joel Mendes, Anthony T. Fertitta Jr. and Billy Lichtenstein led the JLL Capital Markets Advisory team.

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Financing vehicle enables private equity firms to open another revenue line while offering borrowers an option when lenders are scarce. By Jeff Shaw The growing popularity of private equity-backed debt funds is a win-win for many of the players involved. Rather than use their capital to buy more properties, private equity investors can lend money as a lower-risk, fixed-income alternative to owning assets. Borrowers have another source of debt, especially at a time when lenders may be scarce. Just as banks, for example, were re-entering the seniors housing fray following …

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By Taylor Mokris and Kim Huffstutler In this market, with the twin difficulties of persistent inflation and interest rate hikes, it can be a challenge to find the right real estate investment. However, as lenders work with developers, owners and operators to make deals and find quality investments, there’s one real estate sector no savvy investor should overlook: seniors housing. Now is an opportune time for new and repeat lenders alike to have conviction around their commitment to this asset class. Not only does seniors housing have strong underlying fundamentals …

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