High priced in Omaha
Chris Barnet of Colliers International’s Seniors Housing Group represented the owner in the sale of their 44-bed skilled nursing facility in Omaha, Nebraska. The buyer, Carter Validus Mission Critical REIT II, paid approximately $13 million, or about $295,500 per bed, which one of the highest prices ever seen in the SNF M&A market. How can such a price be explained? Well, the facility is brand new (purpose built in 2014) and is 100% occupied. Also, all of the beds are in private units, an attractive feature for Medicare patients. The facility offers a wide range of short-term rehab services, including physical, occupational and speech therapy, as well as transitional care services,... Read More »Top dollar for D.C. SNF
In one of the highest valued SNF deals ever seen in the Washington D.C. area, on a per-bed basis, a public, non-traded REIT purchased a 296-bed facility in the capitol for $50 million, or $168,900 per bed, with a 15% cap rate. For that high price (which is more than double the average price paid per bed for SNF sales in the 12 months ending September 30, 2015 of $76,900), the buyer will add a very well performing facility to its portfolio. Built in 1983, facility was 94% occupied over the trailing 12-month period ending March 31, 2014 with a 17% quality mix. Meanwhile, revenues and EBITDA were around $33.5 million and $7.5 million, respectively, which would represent a 22% margin. Included... Read More »Pay the rent
After recently acquiring three skilled nursing facilities in Kansas (two of which were turnarounds), Birchwood Health Care Properties acquired another skilled nursing facility in need of some care, this time in Huntington, West Virginia. The facility, which includes 41 skilled beds and 17 assisted living units, was originally built in 1928 but was renovated in 2009. And despite having a stabilized occupancy at 90%, it was losing money. This was the only senior care asset of the owner, who decided to sell the facility when their operator tenant stopped paying rent and filed for bankruptcy. Enter Birchwood, which purchased the facility for $3.2 million, or $55,200 per bed/unit and brought in... Read More »Two for one
Greystone completed its first transaction where it both assists with a sale and places the debt to fund it. Mike Garbers, a Managing Director of Greystone Real Estate Advisors, closed the sale of a 110-unit assisted living/memory care community in Virginia Beach, Virginia for $38 million, or an above-average $345,500 per unit. A private seniors housing owner is the seller, and Capital Senior Living is the buyer. Built in 2001, the assisted living portion includes 69 studios and 16 one-bedroom units, while the 25 memory care units (all studios) were added in 2012. To finance the transaction, Cary Tremper of Greystone’s Debt and Structured Finance Team secured a $28.5 million loan through a... Read More »REIT divests non-core Mass. SNF
The team of Steve Thomes, Tim Cobb and Ben Firestone of Blueprint Healthcare Real Estate Advisors closed the sale of a 107-bed skilled nursing facility in New Bedford, Massachusetts for $3.21 million, or $30,000 per bed. Prompted by the desire of its publicly-traded REIT owner to strategically divest some of its non-core assets, the facility had just marginal EBITDAR on approximately $6.8 million of trailing 12-month revenues. Hoping to capitalize on the low price-per-bed value and expand its footprint in the Northeast, a regional owner/operator was the buyer. Read More »Schedule a demo
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