Finish with a bang
Shep Roylance of The JCH Group is sprinting to the finish line in 2015, announcing four closings with a fifth on its way. First, earlier this month, Mr. Roylance closed the sale of a 175-bed skilled nursing facility in Sylmar, California for $14.4 million, or $82,300 per bed, with a 12.9% cap rate. The property was originally bought by the seller, LifeHOUSE Healthcare Services, when it had 141 beds in 2007 for $9.3 million, or $66,000 per bed. The current buyer, Independence Healthcare Management, also purchased an additional three acres planned for future assisted living and memory care development. Next up, Mr. Roylance arranged a sale/leaseback of a 59-bed SNF in Fresno, California for... Read More »Will power
A pair of well-located, well-occupied and relatively new assisted living/memory care communities in Suffolk County, New York recently received $62.8 million in financing arranged by Aron Will of CBRE National Senior Housing. The loan, which featured a five-year fixed rate and 60 months of interest only, was placed through a life insurance company and came out to approximately $230,800 per unit. Both communities, owned by a joint venture between Harrison Street Real Estate Capital and The Engel Burman Group, had occupancy rates in the high 90s and are located in affluent towns in the New York City metro area. The 118-unit AL community in Huntington was developed by Engel Burman in 2010,... Read More »Seniors Housing Companies on the Defensive
Oh, what an end of the year. With just three publicly traded seniors housing companies, all three are under some sort of pressure to do something to increase shareholder value. First it was Brookdale Senior Living, then Capital Senior Living and now Five Star Quality Care. The owners of Senior Star have made an unsolicited offer to buy Five Star’s 33 owned communities with more than 3,100 units, with assisted living and memory care representing just over 75% of the total units and independent living the remainder. At a price of $325 million, or just over $100,000 per unit, the value to shareholders comes to more than $5.00 per share net of some mortgage debt. Five Star currently trades... Read More »Alley at work
Matthew Alley of Senior Living Investment Brokerage recently closed two transactions, both featuring potential turnaround opportunities. First, Mr. Alley handled the sale of a 62-bed skilled nursing facility in Poteet, Texas for $850,000, or $13,700 per bed. Built in 1964, the facility was just 48% occupied, and only 49 of its total beds were dually certified. On top of that, it operated at a 0.99% margin on $1.38 million of revenues. So there is room for improvement for the buyer, a private Texas-based owner/operator looking to expand in South Texas (this asset is located over 35 miles from the San Antonio area). Next, together with Toby Siefert, Mr. Alley facilitated the sale of two... Read More »Schedule a demo
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