Senior Care M&A Results For 2016
M&A activity in seniors housing and care in 2016 nearly matched that of 2015. Our preliminary results are in, and in the senior housing and care market, 2016 looked very similar to 2015. The dollar value of publicly announced senior care M&A transactions was $14.4 billion last year, just edging out 2015’s $14.2 billion. The number of deals, however, declined by 6%, falling from 359 in 2015 to 337 in 2016. This latter number may rise as a few more disclosed deals are discovered, but it still ranks as the second most active year ever. The dollar total for the fourth quarter of 2016 represented 45% of the year’s total, as a few large transactions came in, something that was in short... Read More »
The All-in-One Deal
Valstone Properties brought in Walker & Dunlop to refinance their portfolio of 12 memory care properties located throughout New Jersey and also provide funding for the acquisition/refinancing of two additional communities. Working with HUD, Kevin Giusti and Michael Vaughn of W&D arranged a 35-year $28.38 million loan with an 80% loan-to-value. The financing reimbursed Valstone for their original acquisition costs, capital expenditures and various renovations. It also involves the largest number of individual properties, which total 215 units, to be included as one loan under HUD’s scattered site policy since the HUD 232 program’s inception, which allowed for significant... Read More »
Meridian in Massachusetts
New York City-based Meridian Capital Group is helping an undisclosed buyer with the purchase of three skilled nursing facilities and one assisted living community in Massachusetts. Led by Ari Adlerstein, Ari Dobkin and Josh Simpson, the firm arranged a two-year $64 million bridge-to-HUD loan, provided by a finance company, with a full-term of interest-only payments. Plus, with an additional $5 million earn-out feature, the financing comes to 90% loan-to-cost, pushing the acquisition cost up to an estimated $76.7 million. Read More »
The Keys to Success
At a time when seniors housing values are still around a record-high (averaging nearly $200,000 per unit for assisted living and over $230,000 per unit for independent living in the four quarters ended September 30, 2016), a group of local operators in Pennsylvania is exiting the market. Of course, owning four recently built, well performing assets helps with capitalizing on value. Developed by the selling group, the Keystone Villa Portfolio is located across three campuses between Harrisburg and Philadelphia and features 509 total units. The Douglassville location was built in two phases in 2004 and 2008 as a 123-unit independent living community, but has since added in 2009 and 2013, 124... Read More »Schedule a demo
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