The cost of opportunity
A regional owner/operator in California saw a value-add opportunity when it acquired a 119-unit assisted living/memory care community owned by a large real estate investment company in San Bernadino County. Built over 25 years ago, the community was just 67% occupied at the time of closing. It sold for $15.5 million, or $130,252 per unit, which is about $68,000 less than the average price for assisted living communities in the four quarters ended September 30, 2016, and probably even lower than the average price for California properties. So there is certainly an opportunity to add value, but the work has to be done. Jim Hazzard and Nick Stahler of The JCH Group handled the... Read More »
Detroit Dealmaking
Green Courte Partners, a Chicago-based private equity firm, has been one active acquirer in the independent living market, when few other buyers have been investing in the sector. Even though the IL market has been a huge factor in pushing average seniors housing prices to record-highs average (peaking at an average of $248,300 per unit in the four quarters ended March 31, 2016), its share of M&A has been shrinking in the last couple of years. Nevertheless, Green Courte has acquired five IL properties in the last year. Its most recent transaction involved a portfolio of three IL communities located in the Detroit MSA, which it purchased for an undisclosed price. All totaling 371 units,... Read More »
Insured success
Fortegra Financial Corporation, an affiliate of Tiptree Financial Inc., is a specialized insurance and insurance services company that is dipping its toes in the seniors housing market. That is not to say Tiptree is a debutante to the industry, with its wholly owned subsidiary Care Investment Trust making five acquisitions for 17 properties since 2013. For Fortegra, the company is acquiring a 77-unit senior living community with independent/assisted living and memory care services in Baton Rouge, Louisiana. The stabilized property was owned by a regional operator which is exiting the industry with this sale. Fortegra is paying $11.5 million, or $149,351 per unit, for the community and is... Read More »
Blueprint’s Mass of deals
Continuing Blueprint Healthcare Real Estate Advisors’ active 2016, Steve Thomes and Chris Hyldahl were the lead advisors in the sale of a 123-bed skilled nursing facility in New Bedford, Massachusetts, owned by a New York-based national owner, for $4 million, or $32,520 per bed. Occupancy could be improved from 79%, but that will be the job of a regional owner/operator with a significant presence in eastern Massachusetts. But wait, there’s more…in Massachusetts. Mr. Thomes, with the assistance of Michael Segal and Ben Firestone, sold an 87-bed skilled nursing facility to a regional owner/operator that is growing its Massachusetts portfolio. Really operating at 78 beds, the facility was 83%... Read More »Blackstone and Brookdale
The beginning of November brought with it a lot of big news. Sorting through the mess that was the Brookdale Senior Living earnings announcement, which caused quite the buzz in the industry, we also noted the year’s second-largest transaction was announced. Private equity firm Blackstone Real Estate Partners is acquiring 64 Brookdale-operated seniors housing properties from HCP, Inc. for $1.125 billion, or about $188,500 per unit. That was for 100% of the ownership, but Brookdale will pay Blackstone $170 million for a 15% ownership interest in the joint venture, in addition to operating the portfolio on behalf of the joint venture. Occupancy across the portfolio averaged 85%, and the... Read More »Schedule a demo
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