Evans Sells SNF in the Land of Enchantment
A West Coast-based group entered the state of New Mexico with the acquisition of a 101-bed skilled nursing facility in the rural northwestern part of the state. Despite its rural location, the facility had a strong operation, with occupancy improving from 83% during the marketing process to 95% upon closing. In addition, a strong Medicaid rate increase implemented in July 2022 helped boost cash flow. Evans Senior Investments represented the seller, a Southwest regional operator, in the transaction. Showing off the potential for expense savings, Evans sold the asset for $16.5 million, or $163,400 per bed. Read More »
Bourne Financial Group Acquires Two Senior Living Communities
Bourne Financial Group acquired a pair of senior living communities in Santa Monica, California, for $13 million, or $265,300 per unit. Bella Mar and Ocean Villa were originally developed as hotels in the 1950s but converted to senior living in the 1970s. In addition, the properties were both renovated in 2014. Bella Mar has 20 units of memory care, and Ocean Villa has 29 units of assisted living. Occupancy was around 60% across the communities. Revenues reached $3.2 million, but the pair operated around breakeven. H2C represented the seller, Meridian Senior Living, in the transaction. Read More »
First AlerisLife, And Now Diversified Healthcare Trust
Just weeks after AlerisLife was taken private in what we would call a bit of an inside deal, the REIT that owns most of its assets, Diversified Healthcare Trust (DHC), is being merged into Office Properties Income Trust (OPI), an office REIT with current tenant retention of about 50%. You know what they say when you have two lemons, time to make some lemonade. A little sugar may have to be added to make this one sweet enough. DHC had fallen on hard times, with a market cap of just under $300 million and a quarterly dividend of just one penny per share. Oh, and the share price had a range of $0.61 to $2.98 per share in the last 12 months, but had been over $8.00 per share in March 2020. In... Read More »
Eskaton’s Exit from Standalone SNFs
Not-for-profit senior living organization Eskaton announced that it was exiting its only standalone skilled nursing assets, totaling three properties in the Sacramento, California area. The facilities were Eskaton Care Center Manzanita, Eskaton Care Center Greenhaven and Eskaton Care Center Fair Oaks, which are selling for a combined $35.64 million, or $90,000 per bed. Built in the late-1970s and early 1980s, the portfolio totaled 396 beds and generated more than $42 million in 2022 revenues, according to a notice filed for the California Attorney General. However, occupancy was around 70% across the facilities, and each reported large operational losses in 2022. Eskaton employees were... Read More »
Walker & Dunlop Wraps Up Q1 with Six Transactions
With the first quarter wrapped up, Walker & Dunlop announced six closings totaling 13 assets located across the country. The largest deal was handled by Gideon Orion on behalf of a publicly traded REIT client. The five-facility skilled nursing portfolio is located in the Mid-Atlantic region and consisted of nearly 770 beds. A national owner/operator bought the properties for over $200,000 per bed at a cap rate of approximately 7% on in-place EBITDAR. Another portfolio sold, this time including three Class-A memory care communities in the Phoenix, Arizona MSA. Totaling 196 units and 258 beds, the properties were built from 2012 to 2016. A regional owner/operator bought them for an... Read More »Schedule a demo
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