Father/son tag team steps down
A father and son team is selling their only senior care asset, a 48-unit assisted living/memory care community in North Carolina, for $3.65 million, or $76,042 per unit. Built in 1984, the community features all double-occupancy rooms, with 64 adult care home beds and 32 special care beds. There is certainly room for improvement in operations. Occupancy was just 74% based on beds, with a 50% private pay census. Plus, due to several changes to Medicaid reimbursement (which actually prompted the sale), cash flow suffered, with the community pulling in just $106,000 on approximately $2 million of revenues. The buyer, a national operator with a strong presence in North Carolina, plans to... Read More »
Turn around…again
When Platinum Healthcare purchased a 197-unit CCRC in Cincinnati, Ohio in September 2014 for $3 million, the community had already posted a $1.5 million loss on $5.9 million of revenues in 2013. This was even after the previous owner, Deaconess Long-Term Care, invested $918,000 in capital improvements in the last two years of owning it. The CCRC was over 63% occupied (its skilled nursing was 87% occupied, while assisted and independent living were just under 50% occupied, both with high Medicaid censuses). Now, Platinum is selling the community, which still is just 62% occupied overall and losing over $1 million on approximately $6.1 million of 2014 revenues. The purchase price this time... Read More »Build it and sell it
Carmel, Indiana-based seniors housing developer Leo Brown Group sold two of its recently completed Indiana communities to an undisclosed private equity investment fund for $44.8 million, or $240,591 per unit. The price is a step up from a previous transaction from Leo Brown, when the developer sold a fully occupied, three-year old 140-unit senior living community in Fort Wayne, Indiana to Sabra Health Care REIT for $23.8 million, or $170,000. Included in the 2016 sale was an 81-unit community in Avon and a 105-unit community in Indianapolis. Both will continue to be operated by Traditions Management, an affiliate of Leo Brown. Cody Tremper of Greystone Real Estate Advisors handled the... Read More »
Soft landing for SNF
A not-for-profit owner/operator of skilled nursing and senior care facilities in New Jersey recently acquired a 120-bed facility in Somerset for $12 million, or $100,000 per bed. The buyer, Francis E. Parker Memorial Home Inc., already owns and operates three other skilled nursing facilities in New Brunswick, Monroe Township and Piscataway (the latter two also including memory care services), as well as an assisted living community in Highland Park. The seller was the not-for-profit Saint Peter Healthcare System, which has long had a relationship with Parker. That should make for a smooth transition. Read More »Big bucks back for SNFs
After a month during which we saw no publicly announced skilled nursing acquisition valued higher than $63,000 per bed (well below the average price of $79,900 per bed in the 12 months ending September 30, 2015), here comes two announced in quick succession early this month valued over $100,000 per bed. First, California-based REIT, LTC Properties, acquired a 126-bed facility in the Fort Worth-Dallas area for $16 million, or $126,984 per bed. What attributed to the high price? The facility was brand new, opening in mid-2015. LTC added the property to an existing master lease with an affiliate of Fundamental Administrative Services LLC at an incremental initial cash yield of 8.5% and annual... Read More »Schedule a demo
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