Senior Care M&A Results For 2016
M&A activity in seniors housing and care in 2016 nearly matched that of 2015. Our preliminary results are in, and in the senior housing and care market, 2016 looked very similar to 2015. The dollar value of publicly announced senior care M&A transactions was $14.4 billion last year, just edging out 2015’s $14.2 billion. The number of deals, however, declined by 6%, falling from 359 in 2015 to 337 in 2016. This latter number may rise as a few more disclosed deals are discovered, but it still ranks as the second most active year ever. The dollar total for the fourth quarter of 2016 represented 45% of the year’s total, as a few large transactions came in, something that was in short... Read More »
Meridian in Massachusetts
New York City-based Meridian Capital Group is helping an undisclosed buyer with the purchase of three skilled nursing facilities and one assisted living community in Massachusetts. Led by Ari Adlerstein, Ari Dobkin and Josh Simpson, the firm arranged a two-year $64 million bridge-to-HUD loan, provided by a finance company, with a full-term of interest-only payments. Plus, with an additional $5 million earn-out feature, the financing comes to 90% loan-to-cost, pushing the acquisition cost up to an estimated $76.7 million. Read More »
The Keys to Success
At a time when seniors housing values are still around a record-high (averaging nearly $200,000 per unit for assisted living and over $230,000 per unit for independent living in the four quarters ended September 30, 2016), a group of local operators in Pennsylvania is exiting the market. Of course, owning four recently built, well performing assets helps with capitalizing on value. Developed by the selling group, the Keystone Villa Portfolio is located across three campuses between Harrisburg and Philadelphia and features 509 total units. The Douglassville location was built in two phases in 2004 and 2008 as a 123-unit independent living community, but has since added in 2009 and 2013, 124... Read More »
Carrieros’ close
Damien and Ken Carriero had their hands full, to say the least, in their latest closing. The duo from Collier’s International sold a 30-unit/50-bed assisted living community in Venice, Florida for $2.15 million, or $71,667 per unit, with an 11.79% cap rate. The deal was far from “straight-forward,” though. The current seller sold the community a few years ago as a lease with an option and then moved to California. However, the buyer/lessee apparently ran the operations into the ground, while leaving the building in a state of disrepair, and then promptly left the country. The seller, now an owner/operator in California, hired a management company to turn things around, but soon fell behind... Read More »
Lancaster Advises on Sale to Shepherd Health
A Miami Beach-based real estate developer/operator, Shepherd Health, is taking its services to Daytona Beach, Florida with the acquisition of a 146-unit senior living community that comes with a sterling reputation. Built in 1984, the fully occupied (and 100% private pay) community has 120 assisted living and 26 independent living units. In 2015, it was one of three Florida AL communities to have received a “Silver – Achievement in Quality” award from the American Health Care Association and the National Center for Assisted Living. That may have helped push the purchase price up to $30.5 million, or an above-average $208,904 per unit. Having been a long-term capital partner of the... Read More »Schedule a demo
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