HCP boosts seniors housing holdings
Just as HCP, Inc. is about to spin off its large skilled nursing portfolio into a new REIT, it has closed a smaller, but large in today’s M&A market, acquisition of a portfolio of seven assisted living and memory care communities with 526 units in Maryland and Virginia. The price was $186.25 million, which comes in at $354,400 per unit, much higher than the average price per unit of $198,000 for the past four quarters, but near the levels we have been seeing for some good portfolios of late. The properties were built between 1993 and 2013, and talking to other buyers it appears that occupancy was not quite stabilized, so there should be room for improvement for the new operator, Senior... Read More »Clearer skies ahead
The long road to recovery continues for an independent/assisted living community in Tuscaloosa, Alabama. Built in 1998/2000 and non-performing since the Great Recession, the community saw trailing-12 months occupancy around 73%, but that had improved to 90% by the time of the sale, and was climbing. However, the operating margin could definitely be improved from 11% on approximately $1.37 million of revenues. There are 40 units of assisted living in one building, and 12 IL units in a second building on the 11-acre site. A not-for-profit group is the seller, which may explain the higher expenses. A joint venture between a private REIT and a regional operator based in Mississippi was the... Read More »Two dually-certified SNFs sell
A pair of skilled nursing facilities with 235 dually-certified beds in Texas changed hands this month, with the help of Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors. The facilities combined for a total purchase price of $10 million, or $42,553 per bed, and they differed slightly in quality. The facility in North Central Texas was built in 1969 and was just 74% occupied, while the other facility, located in East Texas, was built in 1982 and had stronger occupancy, at 91%. Both had a quality mix of around 14%. So there will be some work to improve census and quality mix for the regional owner/operator buyer, which purchased the facilities from a national... Read More »
Double whammy from Cassie and Mahoney
The team of Tony Cassie and Dan Mahoney from Marcus & Millichap recently closed two skilled nursing transactions out West. First up, and the smaller of the two, a regional operator purchased an 88-bed facility in Ogden, Utah, for $7.5 million, or $85,227 per bed, with a 10.7% cap rate. Messrs. Cassie and Mahoney, along with McSean Thompson, represented both the buyer and seller, a Salt Lake City-based operator. That same group handled the sale of a 165-bed skilled nursing facility in Seattle, Washington. An East Coast-based operator bought it from a national not-for-profit organization for $10.15 million, or $61,515 per bed, with a 12.2% cap rate. Both built in the early 1960s, the... Read More »
Going, going, Greystone
A senior living community in Jacksonville, Florida with an unusual set-up traded hands with the help of Greystone. Owned by a publicly traded REIT, the 245-unit community was built 30 years ago on 14 acres, and provides independent living, assisted living and memory care. The Brookdale-operated campus is spread out among 12 residential buildings and one common area building. Despite upgrades made to the resident units, common areas and building exteriors in recent years, the community sold for $21.5 million, or $87,755 per unit, to a private equity firm. Cary Tremper of Greystone arranged the nonrecourse acquisition financing through a regional bank, while Cody Tremper and Mike Garbers... Read More »Schedule a demo
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