60 Seconds with Swett: Senior Care M&A: Ready to Explode?
The industry seems to be on the brink of a breakout M&A period, which is an astonishing thing to say when we are already in the midst of a record-breaking period of transaction activity. The promise of an interest rate cut, even a 25-basis point cut, could usher a number of buyers off the sidelines, and if a few lower cap rate deals get announced, then a few more owners of high-quality communities could be tempted off the sidelines too. On our webinar last week covering the mid-year update of our M&A and valuation statistics, our panelists seemed to believe that a number of large deals were looming, which could help break the logjam of mostly small deals closing in the... Read More »
IPA Runs Receivership Deal in Arizona
Nick Stahler and Hap Knowles of Institutional Property Advisors, a Marcus & Millichap company, announced their role in the sale of MorningStar at Arcadia, representing both the buyer and seller in the transaction. Built in 2016, the Phoenix, Arizona-area community features 108 units and 125 beds of independent living, assisted living and memory care. Operations were strong, with occupancy above 85% and a margin around 28%. The previous Colorado-based operator had run a tight ship and maintained consistent revenue levels throughout a receivership sales process. Stahler and Knowles had been first hired to run a traditional marketing capital, and they secured multiple competitive offers... Read More »
SLIB Sells SNFs to Strawberry Fields REIT
Senior Living Investment Brokerage’s Matthew Alley closed another transaction in Texas on behalf of an owner/operator based in the Lone Star State. The deal featured two skilled nursing facilities in the towns of Hondo and Kerrville. Community Care Center of Hondo was built in 1967 with 75 beds. It was 79% occupied. While Waterside Nursing & Rehabilitation in Kerrville was built in 1968 with 179 beds. It was 51% occupied. Combined, they generated $2.08 million of EBITDAR on $13.55 million of revenues, for a healthy 15% margin. The facilities are also enrolled in QIPP which provides for additional revenue not already in the financials. Strawberry Fields REIT paid $15.25 million, or... Read More »
New Private REIT Acquires Texas Asset
A stabilized seniors housing community sold in Texas, to a newly launched private REIT buyer that focuses on seniors housing investments. Amy Sitzman and Giancarlo Riso of Blueprint represented the seller, which exited the industry with the sale. The 48-unit assisted living/memory care community was well located in the Dallas suburb of McKinney. Originally built in 1993, prior ownership ensured that the community’s physical plant remained competitive with an extensive $2.2 million renovation. At the time of marketing, the community also featured strong in-place occupancy of 98% and recently pushed through a healthy rate increase. Blueprint positioned the deal as an opportunity to... Read More »
The Ensign Group Acquires Eight Operations
The Ensign Group acquired the operations of seven skilled nursing facilities in Colorado, which are all subject to long-term, triple net leases. The facilities include Desert Will Health and Rehabilitation Center (106 beds in Pueblo), Junction Creek Health and Rehabilitation Center (133 beds in Durango) and Pelican Pointe Health and Rehabilitation Center (104 beds in Windsor). Additional facilities included in the transaction include Riverbend Health and Rehabilitation Center (100 beds, Loveland), Broadview Health and Rehabilitation Center (100 beds, Greeley), Westlake Lodge Health and Rehabilitation Center (107 beds, Greeley)and Linden Place Health and Rehabilitation Center (110 beds,... Read More »Schedule a demo
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