60 Seconds with Swett: 2023 M&A Totals Higher Than Expected
Happy New Year everyone, and we think most are very happy to put 2023 behind them. It was a difficult year for dealmakers, having to adapt to quickly changing capital markets, sometimes fickle lenders, buyers and sellers, and lower overall inventory of facilities to sell or finance. It would be hard to imagine a more challenging year, barring some catastrophe yet unknown to us. Sorry for putting that out there. And yet, believe it or not, seniors housing and care M&A transaction totals in 2023 only failed to surpass 2022’s total of 556 deals, which blew the previous record out of the water. We recorded 489 publicly announced deals in 2023, which is still a preliminary number that... Read More »
2023 U.S. Deal Activity Nears 450 Transactions
The preliminary numbers are in, and the 2023 senior care M&A market ended up healthier than most would have predicted at the start of the year. U.S. transaction volume, based on deals that have been publicly announced but not necessarily closed (although most deals are completed by the time they are disclosed to us), reached 441 deals in 2023. That is 15% down from 2022’s domestic volume of 517 transactions, but it surpasses 2021’s deal volume of 427 transactions by 3%. Given the pullback in liquidity, the rapidly changing capital costs, economic uncertainty and collapse in cash flow at communities across the industry, a more precipitous drop in M&A volume could have been... Read More »
Meridian Capital Group Reports End-of-Year Activity
To close its 2023, Meridian Capital Group’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson, closed nearly $250 million in transaction volume for 20 senior housing and healthcare facilities in five states over the last month. Most notably, the team closed a bank syndicate loan totaling $155 million to refinance 15 facilities comprised of 1,935 skilled nursing beds and 46 assisted living units in Michigan and Ohio. Five banks participated in the syndicate. Meridian also arranged $41 million in financing from a commercial bank along with a $5 million A/R line to refinance a 120-bed skilled nursing facility in New Jersey. They closed $23.9 million in financing... Read More »
CIBC Finances a Virginia SNF Portfolio
As the sole lender, CIBC Bank USA provided a Virginia owner/operator with a $67.0 million mortgage facility on a portfolio of nursing homes. The portfolio has been operated by the buyer since 2021 and the financing was related to a purchase option. The skilled nursing facilities, which comprise 480 beds, have an effective age of 20 years. Historical occupancy for the facilities has been approximately 85%, and the EBITDAR margin was approximately 15%. A $4.0 million line of credit was also provided. The financing was handled by Matthew Tyler and Neal Netzel of CIBC. Read More »
Brookdale Improves Capital Position
As with several companies still trying to regain their financial footing after the pandemic, investors were worried about Brookdale Senior Living’s looming debt maturities. Worry no more, at least for the next few years. The company recently obtained a $180 million loan under its Master Credit Facility Agreement of 2017. The Fannie Mae financing was done with Jones Lang LaSalle Multifamily, LLC. It bears interest at a fixed rate of 5.97% and matures in 2031. Cash on hand and the proceeds of the new debt were used to repay $260 million of debt due in 2024. In addition, the company amended its revolving credit agreement with Capital One, which provides for an expanded commitment of up... Read More »
Ohio-Based Investment Group Acquires in Louisiana
A seniors housing community was sold in the Louisiana capital. Sunrise at Siegen is an assisted living and memory care community in Baton Rouge. It comprises 100 units spread across a two-story building. The buyer was an Ohio-based investment group. According to Business Report, the purchase price was $29 million, or $290,000 per unit. But no other details were disclosed. Read More »
Marcus Investments Acquires in Texas
Evans Senior Investments arranged the sale of Crystal Creek at Preston Hollow in Dallas, Texas, on behalf of a regional owner/operator. Built in 2001 with a recent 2018 renovation, Crystal Creek features 119 beds with a range of care levels including skilled nursing, assisted living and memory care. At the time of marketing, occupancy in both the seniors housing and skilled nursing was rapidly declining. Due to the skilled nursing component not being licensed to accept Medicaid, the campus consistently struggled to lease up the beds with Medicare & private pay residents, which resulted in negative operating margins. Evans ran a confidential marketing process, targeting a... Read More »
Seniors Housing Community Purchased in Michigan
Meiser Commercial Real Estate was brought on in the divestment of a seniors housing community in Dewitt, Michigan. Built in 1988, Serene Gardens of Dewitt comprises 52 assisted living and memory care beds. The community had a 98% occupancy rate at the time of closing. The purchase price was $4 million, or $72,900 per bed, but no other details were disclosed. William Meiser and Madison Meiser handled the transaction. Read More »
Brandywine Living Moves On
After 27 years in the seniors housing business, our friend Brenda Bacon finally decided it was time to move on from the company she founded in New Jersey in 1996. The 31-community Brandywine Living, with communities in New Jersey (20), Pennsylvania (5), Delaware (2), New York (2) and one each in Connecticut and Maryland, was sold earlier this month to Retirement Unlimited Inc. (RUI). Based in Roanoke, Virginia, RUI manages 28 communities across the East Coast and is controlled by the Fralin (third generation) and Waldron (second generation) families. Brenda will continue to manage the two New York communities until the state approves the license transfer. Welltower owns 29 of Brandywine’s... Read More »
PE Group Adds Upstate New York IL Community
Four years after acquiring a 50-unit independent living community in the Rochester, New York MSA, a not-for-profit organization divested the property in order to focus on its higher acuity portfolio in the area. Dave Balow of Senior Living Investment Brokerage represented the organization in the property’s sale to a rapidly growing private equity firm in the seniors housing space. The buyer, which paid an undisclosed sum, partnered with a New York-based management company on the deal. The partnership has an existing presence in the Rochester market, which should help them drive future efficiencies at the community and provide a full continuum of care in the local market. Built in... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
