Recent Senior Care M&A Deals, Week Ending September 22, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Bridge Investment GroupSymphony at Oak Lawn$29.25 million Welltower Inc.The Orchard KatyN/A East Coast owner/operator23 skilled nursing facilities$94... Read More »KeyBank, Kindred and BlueMountain
BlueMountain Capital Management has been steadily working to close its large acquisition of 96 skilled nursing facilities from Kindred Healthcare (a deal valued at approximately $700 million). For its latest tranche of closings, the firm received $128 million in acquisition financing originated by Grant Saunders and Peter Trazzera of KeyBank Real Estate Capital’s Healthcare Mortgage Group. The term loan funded the purchase of 13 facilities including nine in California, three in Massachusetts (that are nearing approval) and one in Nashua, New Hampshire. Of the California facilities, five are located in San Francisco, plus one each in Salinas, Stockton, Walnut Creek and Livermore. This marks... Read More »
CBRE Finances Midwest Portfolio Purchase
A brand-new portfolio of four assisted living/memory care communities gained a new owner, thanks to acquisition financing arranged by Aron Will of CBRE. These communities, featuring 285 assisted living and 155 memory care units, opened in 2016 and 2017 in the Chicago and Kansas City MSAs. And being the highest quality communities in their respective submarkets, they were filling fast, with a favorable lease-up trajectory. Chicago-based CA Ventures developed them and will also maintain an ownership interest in the portfolio, acquiring the communities in a joint venture with a global investment manager. Mr. Will secured a non-recourse, floating-rate loan, with a three-year term and three... Read More »Sabra Health Care REIT Invests In Enlivant
Sabra Health Care REIT has entered into an agreement to invest in a 49% interest in a joint venture that will own 183 senior living properties operated by Enlivant with the remaining 51% held by TPG Real Estate, which currently owns 100%. They have valued the transaction at $1.62 billion, or $195,600 per unit, with Sabra’s equity investment coming to $371 million. In 2013, TPG bought the former Assisted Living Concepts (ALC) for $458.5 million, or about $58,000 per owned unit, when occupancy had dropped to 60% after the company decided to get out of the Medicaid business. TPG changed the name to Enlivant, partly because there had been a few too many scandals associated with the previous... Read More »
Buyers See Potential In Wildwood Independent Living Community
Joint venture partners Harrison Street Real Estate Capital, REDICO and American House Senior Living Communities clearly eyed potential at a newly built independent living community in Wildwood, Florida (near The Villages). Built in 2013, the community features 173 units ranging in size from 500 to 1,090 square feet. Based on a 30% operating margin on approximately $5.3 million of in-place revenues, and occupancy of 90% at the time of sale, we have estimated the cap rate to be about 5.2%. Both occupancy and margins could be improved, with a good amount of hard work, of course. Since assuming management, American House has added private duty personal care services through Allegiance... Read More »Schedule a demo
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