Kindred Healthcare Sells SNF Division To BlueMountain
Kindred Healthcare announced an agreement to sell 89 skilled nursing facilities with 11,308 beds and seven assisted living communities with 380 licensed beds for $700 million, or $59,890 per bed. In today’s world, that can be considered cheap, since it is nearly 40% below the average price paid per bed in 2016, but there is more to it than meets the casual eye, since there is a group of leased facilities outside of the Ventas-owned properties that will be purchased from Ventas as part of the larger transaction. However, occupancy stands at 78%, which is below the historically low current national average of about 82%. The buyer is private equity firm BlueMountain Capital Management, LLC,... Read More »
Evans Senior Investments Handles Texas Transaction
Evans Senior Investments closed yet another Texas transaction this year, a month after closing a three-property, 221-unit assisted living portfolio sale there for $45 million. The firm represented an institutional group based on the East Coast in its divestment of a 77-unit assisted living/memory care community in the town of Missouri City (Houston MSA). The purchase price came to $14.35 million, or $186,000 per unit, which is below average for the sector, especially for a new community (it was built in 2010). However, this is where the issue of overdevelopment may be having its effect. Since opening, the community has averaged just 79% occupancy, albeit with a 100% private pay census. The... Read More »
Focus Healthcare Partners Closes New Dedicated Fund
Just eight years ago, Curt Schaller and Paul Froning formed Focus Healthcare Partners LLC to parlay their investment and financing expertise into an investment platform to buy senior living properties across the country in partnership with private equity capital sources. Since then, they have purchased 16 properties for more than $400 million, and have sold eight of them at what we believe to be a tidy profit. Several months ago, they decided it was time to form their own fund and went into the market seeking about $200 million. Apparently, they underestimated themselves and their track record. Focus recently closed on a $312 million discretionary real estate fund that will focus on the... Read More »
Enlivant Expands In Midwest
Enlivant expanded its presence in the Midwest with the acquisition of four senior living communities in Indiana (3) and Iowa (1). Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors represented the publicly traded REIT in its strategic exit of the assets. A national operator (which we believe to be Senior Lifestyle Corporation) also handed over the operations to the buyer, Enlivant. Built in the late 1990s, the four assisted living/memory care communities range in size from 35 units to 62 units, totaling 175 units. And although they were nearly all private pay, each community could improve their occupancy. That will be Enlivant’s task, which already has an existing... Read More »
Alley Sells In Knox City
Senior Living Investment Brokerage’s Matthew Alley, always active in Texas, added another sale to his resume, this one in the rural central Texas town of Knox City. Built in the 1960s, the facility featured 66 beds on 2.12 acres. It was losing money on about $1.7 million of revenues at the time of the sale, which was not helped by its 68% occupancy. The buyer, an independent owner/operator based in the Dallas-Fort Worth area, will focus on improving census and operating efficiencies. A local owner/operator sold it for $1.295 million, or approximately $20,000 per bed. With hard work, a profit can surely be made. Read More »Schedule a demo
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