Five years on…
A 94-unit senior living community in Covington, Louisiana changed hands five years after its last sale, more than doubling in value in the time. Granted, the community added a 24-unit memory care wing in 2014, which helped push the value. Nevertheless, after purchasing the community for $11 million, or $142,857 per unit, Arcadia Communities brought occupancy up from 91% to 99% in five years (even with the expansion) and nearly doubled the EBITDA. Now, the regional operator is selling the community to a national private equity firm for $22.2 million, or $236,170 per unit, with a 7% cap rate. Evans Senior Investments handled the transaction. Read More »
Garbers of Greystone
With some of the largest units in the region, a 211-unit assisted living/memory care community in Bedford, Ohio sold to Pritok Capital for $6.5 million, or $30,805 per unit. The community was not purpose-built for assisted living, which caused some operational challenges and thus resulted in a lower price. But, the 198 AL units average 564 square feet and the 13 MC units average 664 square feet (on the high side for the region). The community was built in 1988 and sits on 20 acres in the Cleveland area. Mike Garbers of Greystone Real Estate Advisors represented the seller, a public healthcare REIT, in the transaction, for which Joel Gordon of MB Financial served as lender. Read More »
A Punzel pair
Jason Punzel of Senior Living Investment Brokerage must be racking up airline miles, having crisscrossed the country to close a pair of deals on the West Coast then in the Heartland. In Oroville, California, Mr. Punzel sold a 36-unit memory care community, which was built in 2002 and underwent a renovation/expansion in 2008, for $5.95 million, or $165,278 per unit, with a 9.0% cap rate. There is an additional 2.5 acres available for expansion, but the local owner/operator seller was retiring from the business. Another local owner/operator, with two other facilities in the area, stepped in as the buyer. Mr. Punzel also sold two assisted living communities in South Dakota for $1.978 million,... Read More »
Walker & Dunlop & HUD
With the recent changes to HUD’s LEAN program, we wondered how long it would take to see a real impact on transaction volume with the agency. Well, Walker & Dunlop may not have closed an actual HUD transaction, but it did position itself well to do so in the future. For approximately $45 million, the company acquired the commercial mortgage servicing rights associated with a $3.8 billion servicing portfolio from Oppenheimer Multifamily Housing & Healthcare Finance, Inc., a subsidiary of Oppenheimer Holdings Inc. The portfolio consists of over 480 multifamily and healthcare HUD loans, and makes Walker & Dunlop the largest HUD multifamily/healthcare servicer in the country. The... Read More »
A graceful exit
Grace Healthcare has made a clean break from both the Arizona and California markets, selling three skilled nursing facilities for a combined $14.7 million. There were two California facilities located about 10 miles from each other in the San Francisco area, which sold for $8.24 million, or $64,600 per bed. Sold to a California-based investor and leased to an operator with a California presence, they included a 50-year old 49-bed facility that offers dementia and rehabilitate care (with a 75% occupancy rate and 34% quality mix), and a 51-bed facility that was built in 1958 and underwent renovations in 2012 (with a 90% occupancy rate and 34% quality mix). Plus, Grace sold its 100-bed... Read More »Schedule a demo
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