Contemporary funds pair of acquisitions
In the last couple of months, Contemporary Healthcare Capital closed a couple of loans totaling $8.5 million. First, the lender provided a $1.5 million senior mortgage loan to a Colorado-based seniors housing and long-term care operator for the acquisition of a 103-bed skilled nursing/assisted living facility in Elkhart, Kansas. Second, Contemporary provided a $7.0 million mezzanine loan to a New York-based long-term care operator to acquire a 302-bed skilled nursing facility, with a dialysis center, in Flushing Queens. Both financings helped fund the acquisitions and closing costs, as well as working capital for the facilities. Read More »Profitable pharmacy business sells big
We are switching gears slightly with the latest announcement from Mark Myers and Josh Jandris of Marcus & Millichap. The duo recently closed the sale of a privately owned, very profitable pharmacy company that services six New York skilled nursing facilities, five of which are in the Western part of the state and one in Long Island, with a total of 1,100 beds. Serving some of the best rated facilities in the Northeast, with good prospects to grow in the region, the pharmacy sold for $15 million. Gross revenue of the company is about $17 million, and EBITDA had historically been about $2 million, representing a price/EBITDA multiple of 7.5x. Read More »Private investor sees potential
A pair of skilled nursing facilities in Texas that pulled in more than $12.5 million in total revenue but only retained approximately $500,000 in EBITDA (an operating margin of just 4%) presented an appetizing turnaround opportunity to buyers when it was put on the market. Owned by a public REIT and leased to a third party operator with which the REIT had a larger relationship, the properties included a 160-bed facility in Houston and a 149-bed facility in Mesquite. In addition to their low occupancy (collectively at 75%) and quality mix (at just 15%), the facilities also had age going against them, with the Houston facility built in 1970 and the Mesquite facility in 1977. However, to a... Read More »Glenview Gardens blooms
What a difference a year makes. When Kandu Capital acquired Glenview Gardens in August 2014, the 119-unit independent living community was in bad shape, with an occupancy of 56%. The property was losing money too, on just $98,000 of monthly revenues. So after spending $5.5 million, or $49,100 per unit, to purchase the community, Kandu also spent an additional $1 million to both renovate the community and convert 36 units to assisted living. Kandu’s affiliate, Bloom Senior Living, also took over operations. After a little over a year, occupancy is up to 89%, and cash flow turned positive on $193,000 of monthly revenues. Plus, seven IL units had to be taken off line during the conversion... Read More »ARC goes strategic
Before its three most recently announced deals, American Realty Capital Healthcare Trust was one of the larger buyers in the long-term care industry, averaging about $52 million per transaction since its first transaction in the sector at the end of 2012. However, it has been a different story so far in 2015, with the REIT averaging about $13 million per transaction. The three recent deals highlight this possible shift even more so, including $10.2 million, or $255,000 per unit, for a 40-unit memory care community in Brookings, Oregon, $4.8 million, or $97,450 per unit, for a 49-unit assisted living community in Richmond, Kentucky, and $6 million, or $206,900 per unit, for a 29-unit memory... Read More »Schedule a demo
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