Siefert’s smooth sale
Toby Siefert of Senior Living Investment Brokerage arranged the sale of an 87-bed skilled nursing facility in Philadelphia, Pennsylvania on behalf of a family owner wanting to exit the market. Despite its age (built in 1980), high Medicaid census (traditionally 80%) and lack of private units (there was just one combined with 27 semi-private units and eight four-bed units), the facility sold for $10 million, or nearly $115,000 per bed, which is well above the national average of $85,900 per bed. Helping its case was the facility’s 14.5% operating margin on about $8.9 million of revenues, as well as a 95% occupancy rate. Mr. Siefert procured 12 offers for the facility, eventually bringing in... Read More »Legacy in Montgomery
Already the second deal closed in the Montgomery, Alabama area in recent weeks (following Birchwood Health Care Properties’ purchase of a 64-unit memory care community for $4.75 million), Legacy Senior Living spent $3.3 million, or $113,793 per unit, to acquire a 29-unit memory care community in Prattville. Built in 1999 with an addition in 2005, the property was 94% occupied and operated at a 23% margin on approximately $1.3 million of revenues. Plus, with limited competition in the area and a consistently high census, there is an expansion opportunity. Mike Pardoll of Marcus & Millichap represented the seller, a group of private investors, in the transaction. Read More »Senior Star’s Five Star move
The Thomas Twins of Senior Star certainly had the right idea. Remember, they proposed buying all the owned properties of Five Star Senior Living for about $325 million, which we always assumed was an opening offer. Five Star has now agreed to sell just seven of its assisted living communities with 545 units to its REIT big brother, Senior Housing Properties Trust, in a sale/leaseback transaction. The price of $112.4 million comes to $206,200 per unit, and using that value (which we believe is high for the entire owned portfolio) on the remaining 26 owned properties with 2,666 units results in an additional $549 million in value. Five Star’s market cap, even after the nearly 40% jump in its... Read More »
A class of its own
A former school building in Liberty, Missouri, that converted to residential care-II (effectively low-acuity assisted living) sold to a growing skilled nursing operator and large mental health operator in the Midwest, with the help of Patrick Byrne of Senior Living Investment Brokerage. The building was originally built in 1962, and after it was licensed for RCF-II, it also provided mental health services for a younger population. Amenities like a basketball court and plenty of common space better equipped it to care for younger residents, and as many mental health facilities in the state closed, its census steadily increased. While the building features 206 beds, its functional capacity... Read More »BMO closes over $80 million
Two active investors in the seniors housing M&A market worked with BMO Harris Bank’s Commercial Real Estate Healthcare group to close acquisition financing for two of their latest purchases. First up, Kayne Anderson received $34.6 million in financing to acquire and expand a 135-unit senior living community in Melbourne, Florida. The property was built in 2012 to feature 47 independent living, 54 assisted living and 34 memory care units. It was 97% occupied, and sold for $45.5 million, or $337,037 per unit. And second, BMO closed over $40 million of acquisition financing for ROC Seniors Housing Fund Manager to acquire two just-built assisted living/memory care communities in New York.... Read More »Schedule a demo
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