Not for this not-for-profit
A not-for-profit assisted living/memory care community in Bartlett, Tennessee (Memphis MSA) has gone private, after being acquired by a joint venture between a regional operator and a private real estate investment company. Built in 1989, the community is comprised of five 24-unit residential buildings along with an administrative building. An obstacle for the new operator is that the kitchen is located in the admin building, with warming stations in each resident building. Operations could also be improved, as the margin is currently 9.5% on approximately $4.29 million of revenues, and occupancy is just 83%. But since this was its only community in Tennessee, the Connecticut-based... Read More »
Skilled Nursing Cap Rates Stable after Record Rise in Price
We are less than a week away from our webinar “Seniors Housing M&A: the Numbers, the Deals and the 2017 Forecast,” where we discuss the results of our soon-to-be-released Senior Care Acquisition Report. Prices have risen to new heights in skilled nursing, nearly surpassing $100,000 per bed at $99,200 per bed. But what happened to skilled nursing cap rates, which most buyers prize far more as a valuation tool than price per bed? In the last couple of years, it has remained remarkably stable at 12.2% (identical to its 2015 level), with just a 20 basis point variance over the past three years. Although not reaching the record-low from the last bull market (12.1% in 2007), skilled nursing... Read More »
Capital One Closes HUD Refinance of Large Illinois SNF
One of the largest skilled nursing facilities in Illinois just received a $16.8 million 35-year HUD refinance, courtesy of Joshua Rosen of Capital One. Located in the town of Joliet (about 40 miles outside of Chicago), the facility serves both Medicaid and Medicare patients in either private or semi-private rooms. In addition to long-term care, it also offers respite care and sub-acute/short-term rehab care (to Medicare patients), encompassing physical/occupational/speech therapy, wound care management, cardiac rehab, trach care and post-stroke management. The facility was built in 1975, but improvements have been made since then. The owning principals, which have operated it since 1998,... Read More »
Brookdale Senior Living Finally Reports
Brookdale Senior Living finally reported fourth quarter earnings, and they were no better and no worse than could have been expected. While I can’t say it was worth the wait, Brookdale Senior Living finally reported fourth quarter earnings, and it was no better and no worse than what could have been expected given industry trends. That was probably good news. Executive Chairman Dan Decker started the earnings call by stating that they would not be discussing strategic options on the call, which was smart, other than to say that of course they want to maximize shareholder value, but it remains to be seen how that is done, and when. Occupancy at Brookdale declined sequentially and year over... Read More »Schedule a demo
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