Seattle calls, again
Washington D.C.-based Capitol Seniors Housing has been quite active in Washington State, announcing its fourth acquisition there in less than a year. The private equity firm acquired some 368 units of assisted and independent living across four communities located in the Seattle area. These properties were built from 1989 to 2005, with various additions in that time, and Capitol Seniors Housing plans to make significant capital investments at the communities while converting a number of units to assisted living and memory care. MBK Senior Living will manage. The purchase price came to $78 million, or $211,957 per unit, and Jason Punzel of Senior Living Investment Brokerage handled the... Read More »Summer of the Big Deal
We had been talking about how 2016 was the “year of the small deal,” with near-record transaction levels but few mega deals. That changed at the end of July and certainly at the start of August, when several large deals were announced. Welltower caused the biggest stir in acquiring 19 seniors housing properties operated by Vintage Senior Living for a total of $1.15 billion, making it the largest long-term care transaction in 2016 by more than double (Welltower’s February acquisition of the Aston Gardens portfolio for $569 million came in second). The portfolio, which includes independent living, assisted living and memory care, is concentrated in high income markets in Southern and... Read More »Blueprint heats up
There’s no such thing as a summer lull for Blueprint Healthcare Real Estate Advisors, as the firm closed five transactions (two seniors housing and three skilled nursing) in the past month. First up, Chris Hyldahl, with Gideon Orion supporting, sold a California skilled nursing facility that could certainly add in value. Built in 1963 with an addition in 1970, the building consists of 3 private rooms, 15 two-bedroom units and 22 three-bed wards, for a total of 99 beds, only 95 of which are operational. The facility currently operates at just a 4% margin on approximately $5.7 million of revenues, with an occupancy rate of 88% and a quality mix of 20%. So this transaction represents a good... Read More »
Big news from Brookdale
The “big” news in the seniors housing market was the announcement at the end of July that Brookdale Senior Living (NYSE: BKD) had entered into an agreement to sell 44 properties with 1,874 assisted living and 579 memory care units located in 12 states. The price is about $252.4 million, which comes to $102,900 per unit. Brookdale had previously announced plans to sell between 50 and 100 properties, and with this deal they are well on their way to accomplishing this goal. Since they would not be selling their best performing assets, it makes sense that the pricing would be well below the 2015 average price of $189,200 per unit, but it was also well below the lower quartile price of $141,000... Read More »Capital Funding’s closings
Capital Funding Group closed a couple of transactions recently for SNFs up and down the East Coast. Starting in New York, the lender provided a $19.1 million bridge-to-HUD loan for a borrower to acquire a 167-bed skilled nursing facility. The loan covered over 90% of the $20.87 million, or $125,000 per bed, purchase price. Craig Casagrande originated the transaction, which was funded through a combination of senior and mezzanine debt and included a turnaround component based on projected improvements to the facility’s performance. Plus, Chip Woelper originated a $3 million working capital loan for the borrower to finance operations. In a separate transaction, Capital Funding served as sole... Read More »Schedule a demo
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