Brookdale May Be One Step Closer
With two new board members and some corporate governance changes, Brookdale Senior Living seems to be heading on the path of a major real estate event. What can I say, management at Brookdale Senior Living seems to be going down a path that I recommended they not take. Imagine that. Rather than have a public shareholder fight, they have added two new board members with some serious real estate experience, which is what activist investor Sandell Management wanted. The share price, however, closed early this week at its lowest level since March 6. Hmmm. We know that management and the board are supposed to make decisions to enhance shareholder value. I get it. But here is the problem. What... Read More »What’s the price for quality?
For the past few years, we have separated out the “A” properties from the “B” properties in our statistics based on a few factors (age, size and location). Not surprisingly, the average price paid for “A” assisted living properties was higher than “B” assisted living properties ($244,800 per unit versus $102,300 per unit) by a difference of $142,500. To put it in perspective, the spread in 2013 was only $87,500 ($222,400 per unit for “A” versus $134,900 per unit for “B”). But what was especially interesting was that “A” properties made up about half of the sales in 2014, compared to 2013 when “B” properties were sold three times more often than “A’s”. This means that there were... Read More »Trifecta from CBRE
Aron Will of CBRE National Senior Housing arranged a trifecta of acquisition financings totaling approximately $50 million. All three loans were floating rate bridge loans with five-year terms and between 24 and 30 months of interest only. The first was a $14.5 million loan provided by a regional bank for Capitol Seniors Housing to acquire a brand new 92-unit assisted living/memory care community in Tampa, Florida. Next, Mr. Will secured a $21 million loan with an “all-in” interest rate of approximately 2.35% for a joint venture between Sentio Healthcare Properties and Senior Living Residences to purchase a 122-unit/141-bed rental CCRC in Westfield, Massachusetts. The loan was provided by... Read More »Not-for-profit New York SNF goes private
It won’t be business as usual for a not-for-profit skilled nursing facility in Yonkers, New York that is being purchased by a private ownership group for $22.7 million, or $189,200 per bed. The facility, built in 2001 by St. John’s Riverside Hospital and operated by the not-for-profit Riverside Health Care System, sits on a hill overlooking the Hudson River. For years, it solely relied on patients discharged from St. John’s, and its occupancy fell from 96% in 2012 to 93% in October 2014. The new owners, called L&A Operations and who operate Sprain Brook Manor Rehab in nearby Scarsdale, New York, plan to form new collaborations with other health care service providers in the area in... Read More »Schedule a demo
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