CareTrust Completes Second HCR ManorCare Acquisition
CareTrust REIT headed to Fargo, North Dakota for its latest acquisition, adding a 110-bed skilled nursing facility to its portfolio for a purchase price of approximately $4.75 million, or $43,200 per bed, inclusive of transaction costs. There is also an estimated cap rate of about 13.25%. The facility was previously operated by HCR ManorCare and represents the second HCR facility CareTrust has picked up this year, having previously purchased a 99-bed facility in Aberdeen, South Dakota. Like the Aberdeen property, the North Dakota facility was added to an existing master lease with Eduro Healthcare at an annual rate of $425,000, with a remaining term of 12 years, two five-year renewal... Read More »
Adding Value In Arkansas
A couple of value-add skilled nursing facilities sold in Arkansas with the help of Ben Firestone, Michael Segal and Brooks Blackmon of Blueprint Healthcare Real Estate Advisors. Previously owned by a publicly-traded REIT, the facilities are located on opposite sides of the state and had almost no geographic synergies. Totaling 234 beds, they reported in-place cash flow but were not stabilized during the sales process. So, positioning them as a value-add opportunity (if some capital improvements are made), Blueprint found a Louisiana-based healthcare real estate investor to purchase the facilities, which are their first-ever SNFs. To help ease their entry into the market, the buyer kept the... Read More »
All In, In Alabaster, Alabama
A tenant bankruptcy brought in a new operator and ultimately a new owner at a 198-bed skilled nursing facility in Alabaster, Alabama. Originally built in 1972, this SNF was historically above 90% occupancy with cash flow exceeding $1.5 million. However, licensure issues led to a drop in both census and operating margin (and combined with other reasons, bankruptcy) for the previous tenant, a regional operator. The owners of the real estate, two private families, were also in bankruptcy but had court-approval to sell the asset. When the tenant decided to vacate the property, the eventual buyer, a private investor from New York, stepped in to operate for six months before closing on the sale... Read More »
Garden State Acquisition Gets Financing From Monticello
A large skilled nursing portfolio in New Jersey sold thanks to financing provided by two of Monticello Asset Management’s investment vehicles. The $69 million bridge financing is comprised of $65 million in first lien debt and a $4 million working capital loan, which the borrower expects to refinance with HUD. A New Jersey-based operator was the borrower and brings some experience in acquiring skilled nursing facility, having added eight similar facilities to its portfolio in the past three years. This current acquisition involves four facilities and 654 total beds, including 74 memory care and 60 assisted living units, as well as a 16-bed ventilator unit. Read More »Recent Senior Care M&A Deals, Week Ending October 26, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice The Reliant GroupThe Windham Senior LivingN/A Legacy HealthcareAdvocate Sherman West Court$5 million Not-for-profit organizationRose Apartments$2 million Alternative Living SolutionsOntario CommonsN/A Large strategic investorSagebrook Senior Living at... Read More »Schedule a demo
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