Dollar General Corporation (NYSE: DG) is a Fortune 500 credit tenant with 8,700+ stores and 2009 sales of $10.5 billion.
Wednesday, June 9, 2010
Indiana Dollar General Portfolio Exclusively Offered By The Martin Team
Chris Stuard & Steve Martin at Sperry Van Ness/Martin Commercial Group have been exclusively retained in the disposition of a Indiana Dollar General portfolio. This portfolio consists of 7 locations throughout Indiana, which are on 15 year initial terms. For more details please visit http://sale.svn.com/indg.
Dollar General Corporation (NYSE: DG) is a Fortune 500 credit tenant with 8,700+ stores and 2009 sales of $10.5 billion.
Dollar General Corporation (NYSE: DG) is a Fortune 500 credit tenant with 8,700+ stores and 2009 sales of $10.5 billion.
Sperry Van Ness/Martin Commercial Group Moves Difficult Industrial Asset
Chris Stuard at Sperry Van Ness/Martin Commercial Group has sold the former ISM building located at I-164 and I-64 just north of Evansville, Indiana.
The 80,000 SF facility was acquired by the New York based compnay Pramco back in 2005 and has been on the market for over 5 years. Sperry Van Ness was retained approximately 1 year ago and sold the property within $10,000 of the projected price. The buyer is a manufacturer from Dubois County, which is approximately 50 miles east of Evansville. They will be relocating their operation allowing them to expand.
The 80,000 SF facility was acquired by the New York based compnay Pramco back in 2005 and has been on the market for over 5 years. Sperry Van Ness was retained approximately 1 year ago and sold the property within $10,000 of the projected price. The buyer is a manufacturer from Dubois County, which is approximately 50 miles east of Evansville. They will be relocating their operation allowing them to expand.
New Supply Mutes Recovery In Short Term, NIC Cautions
May 24, 2010 8:30 AM, By Jane Adler, NREI Contributor
The downturn in seniors housing isn’t over just yet, according to a new report by the National Investment Center for the Seniors Housing & Care Industry (NIC). Several more quarters of flat or falling occupancies are expected as new buildings continue to open, though industry fundamentals could improve significantly in the next 12 months if the economic recovery continues.
“We’re bumping along the bottom,” says Michael Hargrave, vice president at NIC based in Annapolis, Md. “There are a lot of economic pressures out there.”
In the first quarter of 2010, occupancies at independent living buildings fell 1.4% year-over-year to 87.9%, NIC reports. Occupancies also declined by 0.3% from the previous quarter. At assisted living facilities occupancies fell 0.1% year-over-year to 88.1% and were down 0.3% from the previous quarter.
The big, publicly traded seniors housing companies reported similar occupancy levels in the first quarter. Brookdale Senior Living (NYSE:BKD) had an average occupancy of 86.6%, a drop of 10 basis points from the fourth quarter of 2009, and flat compared with the year prior.
At assisted living company Emeritus Corp. (NYSE:ESC), occupancy across the portfolio in the first quarter averaged 87.2%, an increase of 110 basis points year over year, and up 0.1% from the previous quarter.
Supply/Demand Imbalance
Building owners report a recent uptick in leasing activity, though occupancies are being held in check by new building openings. Construction on facilities that began in 2007 and 2008 when financing was readily available are just opening.
“The industry is dealing with building deliveries now,” notes Hargrave. Last year, the seniors housing inventory for independent and assisted living properties grew by about 9,500 units. During the same period about 2,600 units were absorbed.
Property owners can expect more of the same in the months ahead. About 8,800 seniors housing units are under way and most will open this year. Construction has slowed because of the downturn, but new inventory will grow by 1,000 to 2,000 units quarterly until the end of 2010. Absorption has been somewhat erratic, but has recently averaged about 750 units a quarter.
If demand picks up with about 1,000 units absorbed a quarter, Hargrave predicts that occupancies will stabilize. If absorption hits 2,000 units a quarter, he believes that “things will start to get healthy pretty quickly.”
That will hinge on whether there is a drop in the unemployment rate and a big improvement in the residential housing market. Also, pent-up demand could boost absorption since many seniors have delayed a move because of the soft residential housing market, sources say.
Read Full Article
The downturn in seniors housing isn’t over just yet, according to a new report by the National Investment Center for the Seniors Housing & Care Industry (NIC). Several more quarters of flat or falling occupancies are expected as new buildings continue to open, though industry fundamentals could improve significantly in the next 12 months if the economic recovery continues.
“We’re bumping along the bottom,” says Michael Hargrave, vice president at NIC based in Annapolis, Md. “There are a lot of economic pressures out there.”
In the first quarter of 2010, occupancies at independent living buildings fell 1.4% year-over-year to 87.9%, NIC reports. Occupancies also declined by 0.3% from the previous quarter. At assisted living facilities occupancies fell 0.1% year-over-year to 88.1% and were down 0.3% from the previous quarter.
The big, publicly traded seniors housing companies reported similar occupancy levels in the first quarter. Brookdale Senior Living (NYSE:BKD) had an average occupancy of 86.6%, a drop of 10 basis points from the fourth quarter of 2009, and flat compared with the year prior.
At assisted living company Emeritus Corp. (NYSE:ESC), occupancy across the portfolio in the first quarter averaged 87.2%, an increase of 110 basis points year over year, and up 0.1% from the previous quarter.
Supply/Demand Imbalance
Building owners report a recent uptick in leasing activity, though occupancies are being held in check by new building openings. Construction on facilities that began in 2007 and 2008 when financing was readily available are just opening.
“The industry is dealing with building deliveries now,” notes Hargrave. Last year, the seniors housing inventory for independent and assisted living properties grew by about 9,500 units. During the same period about 2,600 units were absorbed.
Property owners can expect more of the same in the months ahead. About 8,800 seniors housing units are under way and most will open this year. Construction has slowed because of the downturn, but new inventory will grow by 1,000 to 2,000 units quarterly until the end of 2010. Absorption has been somewhat erratic, but has recently averaged about 750 units a quarter.
If demand picks up with about 1,000 units absorbed a quarter, Hargrave predicts that occupancies will stabilize. If absorption hits 2,000 units a quarter, he believes that “things will start to get healthy pretty quickly.”
That will hinge on whether there is a drop in the unemployment rate and a big improvement in the residential housing market. Also, pent-up demand could boost absorption since many seniors have delayed a move because of the soft residential housing market, sources say.
Read Full Article
Tuesday, June 8, 2010
Time Is Ripe for Life Care Services to Bulk Up On Acquisitions
May 24, 2010 8:30 AM, By Jane Adler, NREI contributor
As some companies shed operations to survive a punishing economic downturn, Life Care Services (LCS) is expanding with two new acquisitions. The Des Moines-based company recently purchased property manager CRSA Holdings, establishing LCS as one of the nation’s top property managers of continuing care retirement communities. LCS declined to reveal the price.
In another recent transaction, LCS paid $41 million for the Wyndemere Senior Living Community, a retirement campus in Wheaton, Ill.
LCS manages about 100 continuing care communities and owns 12 of the properties. Memphis-based CRSA manages 29 properties, mostly continuing care retirement communities owned by non-profit groups.
“We see great compatibility between the companies,” says Rich Seibert, vice president and director of corporate marketing at LCS. “This enhances our ability to build a national integrated network.”
Both CRSA and LCS are privately held. The terms of the sale were not disclosed, though Seibert says CRSA was not in financial trouble and is not a turnaround situation.
CRSA has about 400 employees and its Memphis office will remain open. The company will retain its own name and identity, too. “We did not buy CRSA just to get the management contracts,” says Seibert of LCS.
The companies will be able to enjoy savings by combining some operations, such as purchasing, he says. The home health care and insurance programs offered by LCS will be available at CRSA properties.
The development arm of CRSA, which provides services for non-profit community operators, will remain open. LCS has its own development group for company-owned projects that will continue to operate.
LCS opened its newest owned property, Sagewood, in Phoenix, last December. The 85-acre community features 294 independent living units. The assisted living and nursing care building is currently under construction and should be complete by the end of the year.
CRSA has a new project, Longhorn Village, in Austin, Texas. The 56-acre property, which opened last August, features 173 apartments and 41 villas. The healthcare building with assisted living, nursing and memory care units is in the process of opening. The project is affiliated with the Ex-Students’ Association of the University of Texas.
M&A Activity Heating up
More industry consolidation could be on the horizon, sources say. The seniors housing business is still quite fragmented and some operators now find themselves in challenging positions because of the weak economy. Big operators with cash have the chance to capture market share while property prices are low.
Brookdale Senior Living purchased 21 properties for $204 million last winter from Sunrise Senior Living. The $1.3 billion purchase of 134 Sunwest buildings by a group of investors led by the Blackstone Real Estate Advisors was just approved by the bankruptcy court. The deal is expected to close in the third quarter.
Meanwhile, Formation Capital and Smith/Packett Med-Com purchased 18 assisted living buildings in North Carolina last December for about $100 million. The seller was Wakefield Capital, a healthcare real estate investment firm in Chevy Chase, Md.
“We are always looking at acquisitions,” says Arnold Whitman, chairman and CEO at Formation Capital based in Alpharetta, Ga. Like a lot of investors, Whitman says that economies of scale are key to generate healthy investment returns in seniors housing.
“Companies have to deliver services at the lowest price point and large companies can be more efficient than small ones at delivering services,” says Whitman. He estimates that a large company can save 1% on overhead costs after integrating the operations of a smaller acquisition.
Capital Concerns Persist
Big acquisitions, those over $50 million, are still hampered today by the lack of debt financing. “That’s a real obstacle,” says Kevin McMeen, president of real estate lending at MidCap Financial based in Chicago.
Debt financing may be more readily available in the latter part of 2011, adds McMeen, assuming the economy continues to recover. “Companies will have the capital to back their appetite for growth.”
LCS financed the Wyndemere community purchase with a bank loan, though Seibert would not provide details. Wyndemere was sold by DuPage Central Hospital, which developed the 14-acre campus and opened it in 1993.
The hospital operated Wyndemere as a non-profit entity, but now, under LCS, the property will be a for-profit venture.
LCS plans to spend at least $2 million to upgrade the property. Currently, the average entrance fee is about $280,000. The average monthly fee is about $3,000. A pricing change is not anticipated at this point.
The campus has about 400 residents and features 212 apartments and 26 cottages for independent seniors. There are 65 assisted living and 131 nursing care units. The property’s occupancy rate is about 85%.
“Wyndemere has a good reputation,” says Seibert. “We plan to continue the same philosophy of operations.”
Read Full Article
As some companies shed operations to survive a punishing economic downturn, Life Care Services (LCS) is expanding with two new acquisitions. The Des Moines-based company recently purchased property manager CRSA Holdings, establishing LCS as one of the nation’s top property managers of continuing care retirement communities. LCS declined to reveal the price.
In another recent transaction, LCS paid $41 million for the Wyndemere Senior Living Community, a retirement campus in Wheaton, Ill.
LCS manages about 100 continuing care communities and owns 12 of the properties. Memphis-based CRSA manages 29 properties, mostly continuing care retirement communities owned by non-profit groups.
“We see great compatibility between the companies,” says Rich Seibert, vice president and director of corporate marketing at LCS. “This enhances our ability to build a national integrated network.”
Both CRSA and LCS are privately held. The terms of the sale were not disclosed, though Seibert says CRSA was not in financial trouble and is not a turnaround situation.
CRSA has about 400 employees and its Memphis office will remain open. The company will retain its own name and identity, too. “We did not buy CRSA just to get the management contracts,” says Seibert of LCS.
The companies will be able to enjoy savings by combining some operations, such as purchasing, he says. The home health care and insurance programs offered by LCS will be available at CRSA properties.
The development arm of CRSA, which provides services for non-profit community operators, will remain open. LCS has its own development group for company-owned projects that will continue to operate.
LCS opened its newest owned property, Sagewood, in Phoenix, last December. The 85-acre community features 294 independent living units. The assisted living and nursing care building is currently under construction and should be complete by the end of the year.
CRSA has a new project, Longhorn Village, in Austin, Texas. The 56-acre property, which opened last August, features 173 apartments and 41 villas. The healthcare building with assisted living, nursing and memory care units is in the process of opening. The project is affiliated with the Ex-Students’ Association of the University of Texas.
M&A Activity Heating up
More industry consolidation could be on the horizon, sources say. The seniors housing business is still quite fragmented and some operators now find themselves in challenging positions because of the weak economy. Big operators with cash have the chance to capture market share while property prices are low.
Brookdale Senior Living purchased 21 properties for $204 million last winter from Sunrise Senior Living. The $1.3 billion purchase of 134 Sunwest buildings by a group of investors led by the Blackstone Real Estate Advisors was just approved by the bankruptcy court. The deal is expected to close in the third quarter.
Meanwhile, Formation Capital and Smith/Packett Med-Com purchased 18 assisted living buildings in North Carolina last December for about $100 million. The seller was Wakefield Capital, a healthcare real estate investment firm in Chevy Chase, Md.
“We are always looking at acquisitions,” says Arnold Whitman, chairman and CEO at Formation Capital based in Alpharetta, Ga. Like a lot of investors, Whitman says that economies of scale are key to generate healthy investment returns in seniors housing.
“Companies have to deliver services at the lowest price point and large companies can be more efficient than small ones at delivering services,” says Whitman. He estimates that a large company can save 1% on overhead costs after integrating the operations of a smaller acquisition.
Capital Concerns Persist
Big acquisitions, those over $50 million, are still hampered today by the lack of debt financing. “That’s a real obstacle,” says Kevin McMeen, president of real estate lending at MidCap Financial based in Chicago.
Debt financing may be more readily available in the latter part of 2011, adds McMeen, assuming the economy continues to recover. “Companies will have the capital to back their appetite for growth.”
LCS financed the Wyndemere community purchase with a bank loan, though Seibert would not provide details. Wyndemere was sold by DuPage Central Hospital, which developed the 14-acre campus and opened it in 1993.
The hospital operated Wyndemere as a non-profit entity, but now, under LCS, the property will be a for-profit venture.
LCS plans to spend at least $2 million to upgrade the property. Currently, the average entrance fee is about $280,000. The average monthly fee is about $3,000. A pricing change is not anticipated at this point.
The campus has about 400 residents and features 212 apartments and 26 cottages for independent seniors. There are 65 assisted living and 131 nursing care units. The property’s occupancy rate is about 85%.
“Wyndemere has a good reputation,” says Seibert. “We plan to continue the same philosophy of operations.”
Read Full Article
Subscribe to:
Posts (Atom)
