Recent Senior Care M&A Deals, Week Ending July 21, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Investment GroupGenerations Assisted Living and Wellness$8 million Real estate investorSable Care & Rehabilitation Center$5.4 million Summit Healthcare REIT, Inc.Pennington Gardens$13.4 million Chartwell Retirement ResidencesChartwell Le Teasdale$56.95... Read More »Heavenrich Closes Sale To Summit Healthcare REIT
Brian Clark of Heavenrich & Company just sold a 77-unit assisted living/memory care community in Chandler, Arizona (Phoenix MSA) for $13.4 million, or about $174,000 per unit. Mr. Clark represented the stand-alone not-for-profit seller, Pennington Gardens, in the community’s sale to Summit Healthcare REIT, a public non-traded REIT. Built in 2000, the community was 87% occupied at the time of the sale. We imagine operations could improve somewhat, as despite its good location and age, it sold for nearly $40,000 per unit less than the national average price of $217,000 per unit, for the 12 months ended June 30, 2017. Summit leased the community to Compass Senior Living, which already... Read More »
Big Sale In The Big Apple
When sales of skilled nursing facilities in New York occur, they can often come with a big price. That big price can be in total dollars invested as well as the price per bed. In a recent sale, it was both. Bon Secours New York Health System sold its Schervier Nursing Care Center in the Riverdale section of the Bronx for $87 million, or $239,000 per bed. The buyer was TL Management, LLC. The 364-bed skilled nursing facility was built in the mid-1970s on nine acres and has approximately 250,000 square feet. Occupancy has been strong, averaging between 90% and 95%, and revenues in 2015 were $54.3 million. The 2016 Medicare cost report has not been filed yet. EBITDA in 2015 may have been... Read More »
Strawberry Fields REIT Forever
Strawberry Fields REIT just added a 58th skilled nursing facility to its growing portfolio, at a price of $1.0 million, or $15,625 per bed, in cash. The company bought the 64-bed facility in Lebanon, Indiana and leased it to The Waters under a 10-year term with two five-year extensions. Strawberry Fields certainly got a good price for the property, but for good reason. Built in the 1970s, it was only 47% occupied with an 80% Medicaid, 7% Medicare and 13% private pay census. We can’t imagine cash flow was high either. And while we hear the facility is in relatively good condition, Strawberry Fields will invest in improvements. The seller is Hickory Creek Healthcare Foundation, a skilled... Read More »
Aurora Boreali-SNF
Recent operational difficulties certainly affected the value of a recently sold skilled nursing facility in Aurora, Colorado, but it is certainly on the upswing. Built in 1973, this 120-bed facility was traded back and forth in the 1990s (selling for $4.85 million in 1995 and for $6.62 million in 1998) and eventually became part of a California-based publicly traded REIT’s portfolio. It recently ran into some operational difficulties (including a stint on the special facility focus list), prompting the REIT to hire a new operator and get the facility back on track towards regulatory compliance and improved operations. The operator had succeeded in turning around the property, but the REIT... Read More »Schedule a demo
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