Newmark Sells Chesapeake, Virginia Community
The Newmark team has closed the sale of a seniors housing community in Chesapeake, Virginia (Virginia Beach MSA). Opened in 2000, the community features 47 assisted living and 26 memory care units. It averaged occupancy of 77% in 2020, which provided moderate cash flow for ownership. But that level could be improved, so a new regional owner/operator stepped in to acquire the property for $12 million, or $165,000 per unit. They expect to invest capex into the community and improve the physical plant. Their regional presence should also help provide scale to increase the operating margin. Read More »
Dwight Capital’s Strong Q1 Activity
Dwight Capital’s first quarter is in the books, and it was an active three months for them to say the least. The firm financed $121.6 million across 12 transactions, including four HUD loans, seven bridge financings and one additional financing. Starting with the HUD deals, Dwight Capital first closed a $21.3 million loan for a 195-bed skilled nursing facility in Long Grove, Illinois. Built in 1996, the facility received a substantial renovation in 2016 and now includes a therapy gym, family lounges, spa and salon services, and sound proofing to promote rest. It last sold in 2016 to Cascade Capital Group for around $14.4 million, or close to $75,000 per bed. After the deal, Legacy... Read More »
Blueprint Arranges Another Ohio Transaction
Blueprint Healthcare Real Estate Advisors has closed another senior care transaction in the state of Ohio. Connor Doherty, Michael Segal and Ryan Kelly arranged the deal, which consisted of a 61-bed skilled nursing facility in Hicksville, Ohio, about 40 minutes northeast of Fort Wayne, Indiana. Built in 1966, the facility is the only licensed provider in the area and features mostly semi-private units. Services include post-acute care, respite care, wound care, respiratory and oxygen therapy, adult day care, hospice care, IV therapy and tracheostomy care, among others. There are also extensive on-site services, including a portable x-ray, laboratory work, a pharmacy, a mental health... Read More »
Cambridge Realty Capital Secures Illinois HUD Refinance
Cambridge Realty Capital Companies refinanced a large skilled nursing facility in Rockford, Illinois (near the Wisconsin border) with a HUD loan. Built in 1963 and now featuring 270 beds, the facility is owned by an Illinois-based LLC. It provides short-term rehab care in both semi-private and private units. Services include orthopedic, cardiac, pulmonary and neuro-stroke rehabilitation, behavioral health and on-site dialysis. To refinance an existing HUD mortgage, Cambridge arranged a new $12.04 million loan with a fully amortizing, 35-year term. Read More »
Five Star Exits Skilled Nursing Sector in Portfolio Restructuring
Five Star Senior Living is making a complete exit from the skilled nursing sector and restructuring its portfolio to focus more on larger, lower acuity seniors housing properties. It looks like an acknowledgement of the company’s weakness, and its strengths, to focus on what it does best, at a smaller, more manageable size. Its landlord, Diversified Healthcare Trust, agreed to amend its management agreements and transition 108 smaller senior living communities totaling approximately 7,500 units to other operators by the end of the year. DHC will not have to pay a termination fee and will also no longer have the right to sell up to $682 million worth of senior living communities... Read More »
Monarch Advisors Finances Kansas SNF Acquisition
A local owner/operator purchased a small skilled nursing facility in rural Kansas with an acquisition loan in hand, secured by Alec Blanc of Monarch Advisors. An active, national SBA lender provided the financing, which totaled $721,500 and came with a 25-year, fully amortizing term. It came with an interest rate of Prime + 2.25%, and there was also a five-year declining prepayment penalty. Built in the 1950s, but well maintained, the 45-bed facility was around 86% occupied by the end of 2020. Given where national average census is for the industry, most operators would happily take that. Including working capital and closing costs, the buyer expects to spend around $800,000, or... Read More »
Blueprint Sells Birmingham-Area Community
Brooks Blackmon of Blueprint Healthcare Real Estate Advisors sold a well-run senior living community in Birmingham, Alabama. The Alabama-based developer seller originally purchased the property in 2016 when it was just a small assisted living community. It has since grown to include around 55 units, the majority of which are independent living. The IL sector has held up relatively well during the pandemic, and occupancy was over 90% at the time of the sale. Plus, there is some upside with the AL rents. The developer also fully renovated the community in addition to adding the three-story IL building. Inspired Healthcare Capital emerged as the winning bidder and... Read More »
Plains Commercial Real Estate Sells Texas SNF
Daniel Morris of Plains Commercial Real Estate successfully sold a 123-bed skilled nursing facility in Fort Worth, Texas. Built in 1973, the facility was owned by a regional operator that had decided to trim its portfolio. This facility didn’t fit into its portfolio but did for another regional owner/operator, which is seeking to grow its portfolio. Mr. Morris had the facility under contract during the pandemic and worked with both the buyer and seller to get the deal across the finish line. The seller was able to keep the facility free of any major COVID outbreaks throughout the contract period, which certainly helped get the deal across the finish... Read More »Recent Senior Care M&A Deals, Week Ending April 9, 2021
Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Standard CompaniesChesapeake Crossing$60.5 million Innovative Senior LivingWilmot Assisted Living$4.85 million Local owner/operatorMeridian Manor$7.2 million The Ensign Group3 skilled nursing... Read More »