Mainstreet Does Canada….Again
Perhaps one of the most dynamic firms in the senior care market, Mainstreet is at it again with a new publicly traded platform in Canada. Its last Canadian entity was sold to Health Care REIT (now Welltower) last year for a tidy profit. Using its recently announced acquisition of a portfolio of skilled nursing facilities in the Chicago market, Mainstreet has agreed to do a reverse merger with a shell company that is publicly listed in Canada that, when completed, will take the new name of Mainstreet Health Investments (MHI). And guess who will be the CEO of the new entity? None other than Zeke Turner, Mainstreet’s founder and CEO. MHI plans to buy skilled nursing, assisted living and... Read More »Birchwood Health Care Properties expands in Kansas
Nick Cacciabando of Senior Living Investment Brokerage had a busy end to October, representing the seller in three Kansas SNF sales to Birchwood Health Care Properties, which included a couple of turnaround opportunities. First, together with Ryan Saul, Mr. Cacciabando represented a private owner/operator in the sale of their 96-bed skilled nursing facility in Wichita, Kansas for $1.25 million, or $13,000 per bed. Although located in a major MSA in Kansas, this will be a difficult turnaround for the buyer. Built in 1968, the facility was just 67% occupied with a 92% Medicaid census, 6% Medicare and 2% private pay. Plus, it was losing more than $600,000 a year on $3.2 million of revenues.... Read More »Mainstreet Buys Big
Mainstreet just closed a large acquisition of 11 skilled nursing facilities with 2,477 beds in the Chicago, Illinois market for $302.5 million, or $122,100 per bed. It will be leasing them back to the seller, Symphony Post Acute Care, at an initial lease rate of 8.0%. While the purchase price was not disclosed, Chicagoland SNFs can be very expensive, so we assume the price came in above $100,000 per bed, making it one of the largest SNF portfolio sales of the year so far. Heavenrich & Company represented the seller in the transaction. Read More »Chartwell expands up North
The Canadian seniors housing REIT, Chartwell Retirement Residences, which owns and manages over 180 senior living properties in Canada, added five retirement communities with 616 units to its portfolio. They were opened between 2008 and 2013 and had an average occupancy of 89.1%. Four of the properties also have an assisted living component, with 93 total units. Chartwell paid USD$192.89 million, or $313,100 per unit, for the properties, which includes a total of $39.7 million in assumed mortgage debt on two of the communities. A portion of the price will be Chartwell issuing to one of the vendors $11.4 million of Exchangeable Class B Units of Chartwell Master Care LP. There were five... Read More »Welltower builds up
When Welltower announced its Q3:15 earnings, they revealed a host of seniors housing transactions closed in that period, totaling $361 million in investments. The largest purchase was for three seniors housing properties in Colorado (2) and Utah (1), with a combined 461 units. Welltower paid $155 million, or $336,200 per unit, for the properties, which are all managed by the company’s new operating partner, Leasure Care. There is a new master lease with a corporate guarantee, 6.0% initial yield and 3.0% annual escalators. The properties are expected to have a 1.1x stabilized lease coverage ratio after management fee. For the other third quarter acquisitions, prices ranged from $15 million... Read More »Schedule a demo
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