Reading the Holiday tea leaves
As most of you have read recently, Walker & Dunlop closed its largest loan ever (almost double the size of its $670 million financing that the company closed earlier in 2015) in the form of a $1.27 billion seven-year adjustable-rate Freddie Mac loan secured by 78 Holiday Retirement independent living properties. The financing, led by Russell Dey and Laura Beaton of W&D, comes out to approximately $144,400 per unit, which if you assume a 75% loan-to-value, is almost identical ($192,500 per unit) to the average price per unit Holiday properties have sold for in the last few years ($193,800 per unit, according to our records). Since 2013 Holiday has sold, in nine transactions, 231... Read More »A CCRC’s successful SNF
A not-for-profit CCRC in Milwaukee, Wisconsin boasting a well performing skilled nursing facility was sold by Ray Giannini of Marcus & Millichap for $19 million, or approximately $53,670 per bed/unit, with approximately a 9% cap rate. Built in stages in the early 1970s and in the mid-1980s, this CCRC features 187 units of independent living, 80 assisted living units and an 87-bed (62-unit) skilled nursing facility, half of which was recently substantially renovated in 2011, resulting in a good quality mix of about 40%. Altogether, the campus is 90% occupied and operates at a 13% margin (driven largely by the SNF) on about $13 million of revenues. Plus, the previous owner purchased a... Read More »Supportive Living sells
Looking to expand their portfolio of supportive living facilities (SLFs) in Illinois, a private owner bought four SLFs (three in the Chicago area and one in Rockford) with 539 total beds for $49 million, or $90,900 per bed, with a 9.4% cap rate. Occupancy ranged 54% at one facility to 93% at another, with the average settling at 75%. And all of the facilities were built in the mid-2000s with an average of 67,000 square feet. Operationally, they were running well (at a 31% margin on $14.7 million of revenues), but the private owner seller wanted to exit the business. Ryan Saul and Patrick Burke of Senior Living Investment Brokerage handled the transaction. Read More »SLIB’s strong 2015
Senior Living Investment Brokerage ended an already strong 2015 with eight more announced transactions, totaling over $47 million. All told, there were four skilled nursing sales, with a total of 420 beds in those transactions, located across the country in Chicago, Illinois, rural Vermont, north-central Texas and Sioux City, Iowa. Matthew Alley and Toby Siefert handled two of those sales, while Ryan Saul handled the other two, with an assist from Jeff Binder in Iowa. On the seniors housing side, the firm closed four other transactions, with a total of approximately 500 units. Matthew Alley, Toby Siefert, Brad Clousing, Patrick Burke and Ryan Saul were each involved in at least one of the... Read More »
American Realty Capital still in the big leagues
We wrote a few months ago that American Realty Capital Healthcare Trust appeared to be going strategic in their deal making, meaning they were purchasing smaller one-off communities rather than the larger portfolio sales they were known for. In fact, in all of their deals before 2015 (going back to their first transaction in 2012), ARC averaged $52 million per transaction, but in the first 10 months of 2015, they averaged $13 million each. That is not to say the quality of the deals changed (they didn’t), just the size. However, ARC finished 2015 by announcing three transactions averaging $67.7 million per deal. First, ARC-II purchased a portfolio of three assisted living/memory care... Read More »Schedule a demo
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