Summit Healthcare buys at peak pricing
We write in the September issue of The SeniorCare Investor that after a four-year surge, skilled nursing valuations may be at a peak. We give many reasons why the sector is currently valued so high (rightfully so) but also why it probably won’t rise any higher. But in the meantime, high-valued deals are still closing, including Summit Healthcare REIT’s acquisition of an interest in two Delaware skilled nursing facilities for a total purchase price of $54.1 million, or $162,952 per bed. The REIT made the acquisition through a joint venture between its wholly owned subsidiary, Summit Healthcare Operating Partnership, LP and Best Years, LLC, a wholly owned subsidiary of the Chinese... Read More »Out with a bang
In an otherwise quiet month, August was bookended by two large seniors housing deals. Starting the month, of course, was Welltower’s $1.15 billion acquisition of 19 Vintage Senior Living properties. And ending it was Investors Real Estate Trust’s (IRET) exit from the industry with the sale of 26 seniors housing properties located throughout the Upper Midwest. Totaling 1,751 rentable units, these properties were located in Wyoming, Minnesota, Montana, Nebraska, North Dakota and South Dakota. Affiliates of the current tenant of 25 of the 26 properties, Edgewood Senior Living, are the buyers. Also included in the $236 million, or $134,780 per unit, price was one multifamily property in... Read More »
Closing in Cordele
The sole assisted living community in Cordele, Georgia, sold to Omega Healthcare Investors when its Florida-based partnership owner decided to exit the Georgia market. Built in 1987 and 1996, the community features 38 personal care and eight independent living units, and has historically been well occupied, currently standing at 93%. Its 20% operating margin on approximately $1.4 million of revenues could be improved, and the buyer, with Fellowship Senior Living (its existing South Georgia operating partner), is planning on $500,000 in capital improvements. The purchase price comes in at $2.5 million, or $54,348 per unit, with a 12% cap rate. Brad Clousing and Patrick Burke of Senior... Read More »Meridian primes Continuum for HUD
Continuum Healthcare has been busy growing its portfolio and is now looking for permanent financing for the six of its skilled nursing facilities in New Jersey and Pennsylvania they acquired over the last three years. In the meantime, Meridian Capital Group has arranged $135.5 million in bridge financing for the facilities. The loan came with a four-year term, six months interest-only, under 15% recourse, and was provided by a balance sheet and mezzanine lender. Ari Adlerstein, Ari Dobkin and Josh Simpson of Meridian handled the transaction, and expect to take out the bridge financing with a HUD refinance in two years. Built between 1979 and 1999, the skilled nursing portfolio features 920... Read More »
A team effort
We wrote in the August issue of The SeniorCare Investor of Birchwood Health Care Properties’ acquisition of four skilled nursing facilities and a hospice care and home health company in Oklahoma, and that HJ Sims had financed a $5.25 million subordinate loan to fund the deal. Now, RED Capital Partners has just announced that it closed a $12.7 million balance sheet acquisition loan for Birchwood’s take-over of the 361-bed portfolio. The transaction was unique, in that the ancillary home health and hospice business provided credit support for the bridge-to-HUD loan. Read More »Schedule a demo
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