Platinum turnaround
Just two years after acquiring a 114-unit assisted living/memory care community in Peoria, Arizona (Phoenix MSA), Platinum Health Care decided to sell, more than doubling its value in the process. Back in February 2014, the Skokie, Illinois-based owner/operator bought the 30-year old community when it was just 64% occupied, and losing money to boot. But pro forma revenues and EBITDA, assuming 83% occupancy, were projected to grow to $2.6 million (from $1.8 million) and $625,000, respectively. Currently, the occupancy is at 77% and EBITDA is postive (though not $625,000), but both are trending upwards. Now, looking to strategically divest some non-core assets, Platinum decided to sell the... Read More »
HFF at it again
After topping our 2015 broker list in terms of dollar volume, with $1.45 billion in transactions closed that year, HFF is off to a strong start in 2016. On the financing side, the company, led by James Fowler, Ryan Maconachy and Chad Lavender, recently arranged $95.5 million in joint venture equity and construction financing for the development of a 201-bed luxury seniors housing community in Orange County, California. The transaction was made on behalf of the developer, Steadfast Companies, to arrange $27.9 million in JV equity capital with Fremont Realty Capital. Plus, HFF secured a $67.6 million construction loan for the JV through a local bank. The community is set to feature 61... Read More »Public-Private Market Disconnect Continues
Record prices again for skilled nursing facilities in 2015, while some of the larger players still struggle. You know I have been talking about the disconnect in the public equity markets for a few months. Some of the largest skilled nursing companies have seen a rough patch recently, and rougher for some than others. One would think that this would also translate into the acquisition market, where buyers might become more conservative as Medicare lengths of stay shorten amid reimbursement pressure, especially with Medicare Advantage plans. But no, the skilled nursing acquisition market is as strong as ever. After setting a record in 2014, the average price per bed soared again in 2015 to... Read More »
Freddie and the Queen
HFF recently announced the closing of a sale that we reported on in the January issue of The SeniorCare Investor (but didn’t have full details). The acquired 93-unit assisted living/memory care community is located in the Upper Queen Anne neighborhood in Seattle, Washington, and sold for $36.25 million, or $390,200 per unit, to Washington D.C.-based Capitol Seniors Housing. The community was originally built in 1908 and 1927, but was purchased by the seller in 2007 for $17.2 million, and underwent an extensive $6 million renovation that also included converting two floors from assisted living to memory care. Milestone Retirement Communities managed the property, which was 96% occupied. In... Read More »Schedule a demo
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