• Genesis HealthCare’s Legacy Liabilities Lead to Bankruptcy Filing

    Genesis HealthCare has filed for Chapter 11 bankruptcy protection, listing its 298 affiliated holding companies, ancillary businesses and insurance vehicles in its submission to the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division. It is one of the largest skilled nursing operators in the country and operates 218... Read More »
  • Cindat Capital Management Invests in Colorado Community

    Cindat Capital Management, a middle-market real estate private equity platform focused on seniors housing and opportunistic investments, announced its first investment from its Senior Housing Credit Platform. It was a unitranche debt investment in The Pearl at Boulder Creak, a 116-unit, Class-A independent living and assisted living community... Read More »
  • MedCore Divests to Publicly Traded Healthcare REIT

    Ziegler announced its role as exclusive sell-side financial advisor to MedCore on the sale of Parkview on Hollybrook, a 189-unit rental CCRC in Longview, Texas. The property has been on a long road to stabilization. It was originally bought in a bankruptcy auction in 2016 for $20.7 million by Thrive FP when it was in the middle of development. 12... Read More »
  • Forbright Bank’s H1 Activity

    Forbright Bank reported its activity for the first half of the year from its healthcare and HUD lending teams, announcing more than $500 million in loans closed for acquisitions, recapitalizations, working capital, and HUD financings for healthcare providers across the country. One of the largest transactions was a $60 million revolving loan to... Read More »
  • Large SNF Portfolio Secures Financing

    MONTICELLOAM, LLC announced the closing of $218.3 million in combined bridge, mezzanine, and working capital financing for 18 skilled nursing facilities across Kentucky. The transaction includes a $179.3 million senior bridge loan and a $29 million mezzanine loan, which the sponsor plans to use to restructure and upsize the existing debt on the... Read More »
The Risk of Older SNFs

The Risk of Older SNFs

One would think that the newer skilled nursing facilities would sell with lower cap rates, but that has not always been the case. As can be seen in the graph below (from the just-published 23rd Edition of The Senior Care Acquisition Report), in three of the past five years those nursing facilities over 40 years old sold with the highest average cap rate, and in the two years when they didn’t, all the cap rates were closely clustered. The youngest nursing facilities (less than 20 years old) did not produce the lowest cap rates in many of the years, however. The main reason for this is that when some buyers look at the new skilled nursing facilities, they may be paying a high price per... Read More »
The Price of Age in Skilled Nursing

The Price of Age in Skilled Nursing

As most of you know, skilled nursing prices plummeted 18% in 2017 to $81,350 per bed, according to the 23rd Edition of The Senior Care Acquisition Report. But with that decline, did the age of the properties sold throughout the year have a significant impact? For obvious reasons, older skilled nursing facilities sell, on average, for a lower price than newer facilities. In 2016, there was a nearly perfect correlation between age and the price paid per bed. This did not occur in 2017, as the oldest group, those facilities more than 40 years old, sold for an average price per bed ($79,750) that was 26% higher than the next age group of 20 to 40 years ($63,000). Some of the older facilities... Read More »
Skilled Nursing Price Drops

Skilled Nursing Price Drops

When the average price per bed for skilled nursing facilities drops, the consistency in that drop is unparalleled. Here is something to ponder. We know that after a nice five-year run-up, the average price paid per bed in the skilled nursing market dropped by 18% last year, according to our new statistics. That was obviously a significant plunge, especially since the average had doubled in the previous five years. So, I decided to go back and see what happened in other years since 2000 when there was a drop. It turns out there were four years when there was a price drop of any significance. These included 2003, 2008, 2011 and 2017. What is weird is that the decline in each of those four... Read More »
Will New Records Be Set in 2018?

Will New Records Be Set in 2018?

On Thursday, February 15, our Editor Steve Monroe moderated a 90-minute webinar titled “Will New Records Be Set? The Numbers, the Deals, the Stats on all Seniors Housing and Care M&A,” with a panel of experts to discuss the 2017 seniors housing and care M&A market, with pricing statistics from our upcoming Senior Care Acquisition Report, to be published next month. There were a few records set in 2017 (for details on those records, check out either the webinar or the Report), but with labor, occupancy, overdevelopment and interest rate headwinds facing the seniors housing and care industry, would that robust M&A market continue into 2018? That’s what our panel of experts,... Read More »
Skilled Nursing Price Drops

Assisted Living Prices Hit Record

Despite multiple headwinds, assisted living prices hit record levels in 2017, while skilled nursing facility prices slumped for the first time in six years. There is an interesting phenomenon going on right now in the seniors housing and care acquisition market. Both the skilled nursing sector and the private pay seniors housing side of the business are facing multiple headwinds.  Yet, one side is seeing prices decline while the other keeps on going up, setting some new records on the way. Last year, after five straight years of rising prices, the average price per bed for skilled nursing facilities plunged by 18% to $81,350. Your first question might be, what took so long? The average cap... Read More »
Slowest Q4 For Senior Care M&A Since 2014

Slowest Q4 For Senior Care M&A Since 2014

Despite a strong December, when we recorded 30 long-term care transactions, the fourth quarter of 2017 was slow by all recent standards. These are preliminary numbers and may be revised upward in the coming weeks, but with just 69 announced acquisitions, Q4:17 was the least active quarter in terms of number of transactions since Q2:14, when we recorded just 63 deal announcements. Compared to the previous years’ fourth quarters, 2017 fell short significantly, down from the 93 deals recorded in Q4:16 and from the 108 deals recorded in Q4:15 (the all-time high for a quarter). There were few high-priced deals, as well, with the largest of the quarter (Mainstreet’s $425 million acquisition of... Read More »