Diamond in the rough
A not-for-profit health system in Alabama, the East Alabama Medical Center, recently exited the assisted living market, selling their three assisted living/memory care communities all located in Auburn. Featuring the only memory care beds (with 84) in the county, licensed as “Specialty Care Assisted Living,” these facilities were built between 1996 and 1999. Under the hospital’s ownership, expenses and staffing ran high, and census suffered party due to insufficient marketing efforts. There was still about $700,000 of EBITDA on $5.9 million of revenues, with 85% occupancy based on units, but those could both be improved under new ownership. The buyer was a partnership between private... Read More »Platinum does it again
A few weeks ago, we wrote of a turnaround sale by Platinum Health Care, which after two years of ownership sold a 114-unit assisted living/memory care community in Peoria, Arizona for more than double its original investment. Now, the owner/operator is selling two more of its non-core assets that it purchased in February 2014, for a pretty profit. First up, in Fort Myers, Florida, Platinum sold a 74-unit assisted living/memory care community for $5.65 million, or $76,000 per unit and 71% higher than the $3.3 million the company paid in 2014. A joint venture between a publicly traded REIT and a regional operator was the buyer, and Trent Gherardini and Ben Firestone of Blueprint Healthcare... Read More »RED hot HUD deal
ORIX USA Corporation just increased its ownership interest in RED Capital Group, the multifamily/affordable/seniors housing lender, from 88% to 100%. ORIX made its original investment in 2010, but RED has continued to operate as an independent entity based in Columbus, Ohio. And with that, RED Mortgage Capital, the mortgage banking arm of RED, closed a $21.2 million HUD loan with a 30-year term to refinance a 220-bed skilled nursing facility in Butler, Pennsylvania. Previously owned by Butler County, this facility was built in 1963, with an addition in 1982 and a $7 million renovation in 2009. Under county-ownership, operations suffered with a high Medicaid census, and despite being 96%... Read More »CareTrust expands
CareTrust REIT acquired a portfolio of four assisted living communities and promptly leased them back to two separate entities, creating a new tenant relationship along the way. Three of the communities, with 366 units, are located in Baltimore, Maryland, Fort Wayne, Indiana, and West Allis, Wisconsin, were purchased from and leased back to a company headed by two of the three key principals of the seller. Brother and sister team Robert and Severine Petras formed Priority Life Care, which owns and operates four seniors housing communities, and structured a sale/leaseback agreement with CareTrust to consolidate their existing partnership and complete the capitalization of the new company.... Read More »
Carrieros of Colliers
In the depths of this winter, let’s head south to Largo, Florida, where the subsidiary of the owner of rehabilitation, skilled nursing, assisted living and independent living communities throughout the country purchased a 128-bed assisted living/memory care community for an undisclosed price. Owned by a religious non-profit, the community was built in 2006 with a mix of AL and MC units and a 30-seat theater. Occupancy was 85% at closing, and the transaction’s cap rate was 7.4%. Ken and Damien Carriero of Colliers International handled the transaction on behalf of the seller, Indian Rocks Assisted Living, Inc. Read More »Schedule a demo
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