Allaire Health Group Leases County-Owned SNF
Joshua Jandris, Mark Myers and Charles Hilding of IPA Seniors Housing represented Morris County (New Jersey) in leasing its 283-bed skilled nursing facility in Morristown. The four-story facility had been struggling, losing as much as $3.8 million in annual EBITDA per year. It didn’t help that the county outsourced all aspects of operations. The facility is also on the older side (built in 1973 and 1993) and features a roughly 60% Medicaid census. The financial strain put on the county prompted officials to look for a solution. After a lengthy search, IPA arranged for Allaire Healthcare Group to lease the facility from the county under a 15-year term, with 2.0% annual escalators and $2.25... Read More »Blueprint Closes Mid-Summer Flurry Of Deals
Blueprint Healthcare Real Estate Advisors certainly has kept busy this summer, announcing four transactions in the last week. Connor Doherty closed two SNF transactions for Blueprint, both located in Ohio. The larger deal consisted of two facilities and 252 total beds, selling for a combined $16.75 million, or $66,470 per bed. The regional owner/operator seller had decided to strategically divest these assets as part of their long-term strategy and handed over ownership to an Ohio-focused operator with experience in operational turnarounds. They will have to use that experience on these two facilities. Built in 1975, with regular updates, the Cincinnati facility was just 66% occupied and... Read More »Summer Sales at Senior Living Investment Brokerage
Senior Living Investment Brokerage ended July with two closings. First, a family owner that had operated a pair of Texas skilled nursing facilities for decades recently decided to sell to an independent owner/operator based in the Waco area for $9.35 million, or about $38,000 per bed. Built in 1978 and 1964, respectively, the 131-bed facility in Pasadena was 88% occupied while the 115-bed facility in Mineola was 78% occupied. Combined, the pair brought in approximately $460,000 in EBITDA on $11.95 million of revenues, so the buyer will look to improve that 4% operating margin. Matthew Alley of Senior Living Investment Brokerage handled the transaction. Mr. Punzel also closed the sale (with... Read More »
CareTrust REIT Grows In Minnesota
Prelude Homes & Services has proven to be the gateway to the Minnesota senior living market for CareTrust REIT, which just exercised its option to purchase a second stand-alone memory care community in the Minneapolis-area from Prelude. Three years ago, CareTrust entered the state when it bought Prelude’s three-year old, 28-unit MC community in Woodbury for $7.2 million, or $257,140 per unit. CareTrust leased the community back to Prelude for an initial 15-year term with CPI-based escalators, two five-year renewal options, 8.25% initial cash yield and a lease coverage ratio of 1.3x. The REIT also received a purchase option on a memory care development in White Bear Lake. The Woodbury... Read More »
New York Values Shine
While the rest of the world looks upon the skilled nursing sector as a business full of risk, we thought it may be instructive to take a look at the New York market, which we all know is a world unto itself. We recently reported on a sale in New York City of a 364-bed skilled nursing facility (details appearing in this issue) for $87 million, or $239,000 per bed. While not the highest sales price, it may be the highest price per bed, a least in recent memory. In the past three years, there have been 13 sales that closed in New York with prices over $100,000 per bed, making it perhaps the most expensive state in the country, on average. But it gets better. When looking at the 18 SNFs and... Read More »Schedule a demo
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