CareTrust’s Flurry of Acquisitions
CareTrust REIT, Inc. closed a series of transactions totaling approximately $437 million in late October. In two separate deals, the REIT acquired 12 skilled nursing facilities and one skilled nursing campus located across the Southeast and Mid-Atlantic. The combined portfolio includes approximately 1,760 licensed skilled nursing beds and assisted living units and are leased to a mix of existing and new operators under long-term, triple-net leases with annual rent escalators and multiple renewal options. Each operator brings deep regional expertise and a strong track record of clinical and financial performance. At closing, CareTrust funded the transactions using cash on hand. CareTrust... Read More »
Ensign Adds to Its Utah and Alabama Footprint
The Ensign Group, Inc. kicked off November with a couple of new deals. The publicly traded company acquired the real estate and operations of the following seven Stonehedge skilled nursing facilities in Utah: Stonehenge of American Fork (90 beds in American Fork) Stonehenge of Cedar City (50 beds in Cedar City) Stonehenge of Ogden (52 beds in Washington Terrace) Stonehenge of Orem (34 beds in Orem) Stonehenge of Richfield (30 beds in Richfield) Stonehenge of South Jordan (32 beds in South Jordan) Stonehenge of Springville (50 beds in Springville) The real estate was acquired by subsidiaries of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company. Each of the... Read More »
Joint Venture Makes Its First Acquisition
A joint venture between Capitol Seniors Housing and a global alternative asset manager with over $55 billion in assets under management worldwide acquired The Woods at Merrimack, a 140-unit seniors housing community in Methuen, Massachusetts. This is the first deal between CSH and the asset manager but marks the beginning of a long-term collaboration between the firms as they expand their seniors housing investments in the U.S. Sunshine Retirement Living developed the community to include 102 market-rate units and a separate three-story building with 38 affordable units. Residents of both buildings can access the community’s indoor and outdoor dining and recreational areas, which include... Read More »
Michigan-Based Owner/Operator Buys Lansing Campus
A public REIT engaged Blueprint in the confidential divestiture of a 53-unit assisted living and memory care campus in Lansing, Michigan. The campus features two standalone buildings separately catering to assisted living residents and those requiring memory care. The well-maintained campus was originally built in 1997 and consisted of 19 assisted living units licensed as an Adult Large Group Home and 34 memory care units licensed as Home for the Aged. Blueprint targeted local and regional investors and providers, resulting in multiple competitive offers. Ultimately, a longstanding, Michigan-based owner and operator was chosen, furthering its desire to expand throughout central and... Read More »
Bidding War Boosts AL/MC Sale
Kyle Hallion, Kory Buzin and Steve Thomes of Blueprint drove competitive pricing after being engaged by a national lender and special servicer to handle the sale of a lender-owned property following foreclosure. The highly-occupied, 75-unit assisted living and memory care community in Raleigh, North Carolina, delivered strong in-place occupancy and solid cash flow. Blueprint’s marketing effort generated engagement from regional operators, private equity groups and national owners. There was competitive tension throughout the process, culminating in a final round that boosted the value for the seller. Read More »
Verdot Capital Divests Minnesota Full-Continuum Community
JLL Capital Markets completed the sale of Hayden Grove Bloomington, a 166-unit seniors housing community in Bloomington, Minnesota. The seller was Verdot Capital, and the buyer was undisclosed. The operator, Great Lakes Management, will stay in place to manage the community. Opened in 2021, Hayden Grove Bloomington is a four-story building offering independent living, assisted living and memory care. It is close to nearby healthcare services such as M Health Fairview and Hennepin Healthcare facilities. Residents have access to a variety of activities and events on-site in addition to amenities, including underground parking, a private dining room, bistro, coffee lounge, game room, party... Read More »
Berkadia Closes in Ohio and Texas
Berkadia handled the sale of a 65-unit seniors housing community in Akron, Ohio. Featuring both assisted living and memory care services, the community appears to be Brookdale Bath, which was built in 1998. Mike Garbers, Cody Tremper, Dave Fasano and Ross Sanders handled the transaction. Garbers, Tremper, Fasano and Sanders also facilitated the sale of Clayton Oaks Living, a 98-unit assisted living and memory community in Richmond, Texas, located in the southwest suburbs of Houston. The seller was Bridgewood Property Company, a Houston-based developer, owner and operator. Built in 2015, the community was over 90% occupied at closing. The community was purchased by a joint venture between... Read More »
Sabra Trims Forecast, Tempering a Solid Quarter
Sabra Health Care REIT, Inc. announced several acquisitions in its third quarter results. The REIT acquired six managed seniors housing properties for $217.5 million with an estimated initial cash yield of 7.8%, three of which were acquired through a consolidated joint venture in which Sabra has a 95% equity interest. The company also purchased the operations of four managed seniors housing properties during the quarter. The assets were previously leased to a tenant under triple-net operating leases for $19.7 million. Subsequent to quarter end, Sabra closed on three additional managed seniors housing properties for $124.0 million with an estimated initial cash yield of 7.0%, bringing... Read More »
WOW! Sonida Senior Living Goes BIG
Sonida Senior Living just announced what can only be described as a transformational acquisition. Since new management came in, CEO Brandon Ribar and CFO Kevin Detz, Sonida has been on an upward path of improved operations and a balance sheet that has grown stronger. Occupancy has been increasing (87.7% in Q3) and NOI and EBITDA are rising. Spot occupancy on October 31 was 89.0%. The company was still relatively small despite a series of acquisitions in the past 12 months, but none of them were transformational. Now, the company has agreed to purchase CNL Healthcare Properties (CNL), a public non-traded REIT, in a cash and stock transaction valued at $1.8 billion. CNL owns 69 seniors... Read More »
60 Seconds with Swett: October Smashes M&A Record
We were predicting a record-breaking end to the year in terms of M&A activity, but we are not sure we expected a 100+ deal month, with 110 transactions and counting. Just to put that in perspective, the previous record for any month was 77 deals in October of last year, and only four months had previously broken the 70-deal barrier. So this October beat the previous record by 43%, and it’s still just a preliminary total. That is out of this world. There were nearly 100 separate buyers, according to the individual deal data available in LevinPro LTC, the most prolific being, unsurprisingly, Welltower. But Welltower’s activity is actually understated in the figures, as a significant... Read More »Schedule a demo
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