Most of Petersen Health Care Portfolio Sells
As part of its corporate Chapter 11 bankruptcy restructuring, Petersen Health Care has now sold 76 senior care properties in Illinois, Missouri and Iowa. Originally, Cascade Capital Partners was the stalking horse bidder for the majority of Petersen’s 90+ properties, when a federal bankruptcy court approved a $116 million sale this summer. Other bidders for the remaining properties were approved at the same time, such as Bank of Farmington and Hickory Point Bank & Trust. However, now the largest group of properties, 46 of them, have sold to CareTrust REIT for a total investment of approximately $97 million (including transaction costs), or $25,000 per bed. CareTrust also announced... Read More »
WellSpire Divests to Private Investor (and its Operating Partner)
Blueprint facilitated the sale of an Illinois skilled nursing and sheltered care facility in Quad Cities on behalf of WellSpire, a joint venture between WesleyLife and Genesis Health System (now MercyOne Genesis). Built in 1968, Illini Restorative Care comprises 120 beds in Silvis, Illinois. It sits on and adjoins the MercyOne Genesis Silvis Medical Center campus. The not-for-profit facility is licensed for 102 skilled nursing beds and 18 sheltered care beds with 30 private rooms and 45 semi-private rooms. With a consistent uptrend in census, the community generated more than $8.0 million in revenue with an approximate 50% quality payor mix. Blueprint targeted in-state and... Read More »
PE Group Acquires in Minnesota
Orchards of Minnetonka, a high-end seniors housing community located outside of Minneapolis, Minnesota, found a new owner thanks to the team at Newmark. Built in 2019, the community features 147 units of independent living, assisted living and memory care. It was very well occupied and operated strongly, with Ebenezer previously managing it. Opus Development Company originally developed the community, partnering with Ebenezer. Newmark represented the seller in the deal and helped finance the acquisition by arranging a floating-rate loan from Texas Capital Bank for the buyer. Emerging from double-digit bids, the new owner is a private equity group, which is bringing on an operating... Read More »
Minnesota SNF Changes Hands
A small skilled nursing facility in Minnesota found a new owner thanks to the team at Evans Senior Investments. Built more than 60 years ago, Rochester West Health Services has 48 beds and was previously owned by an institutional group, GPH Rochester LLC, an affiliate of Fort Smith, Arkansas-based REIT Cuarzo Healthcare Capital. That seller wished to execute on a divestment as part of its capital redeployment strategy. The sale process generated significant interest before Eden Senior Care, a regional owner/operator with an existing footprint in Minnesota, bought the facility for $1.5 million, or $31,250 per bed. Occupancy was in the 60s, so the buyer saw an opportunity to improve census... Read More »
Not-For-Profit Divests Non-Core Asset
Blueprint advised a not-for-profit seller in the divestment of a southern Pennsylvania memory care community. Despite profitable operations, the Washington, D.C. metro area-based seller sought to exit ownership of the community given its non-core location relative to the balance of its portfolio. The sub-30-unit memory care community, located along the Mason-Dixon line between Pennsylvania and Maryland, was originally built in 1990 and sits on a 20-acre parcel. A western Maryland-based group was identified as the buyer, which brought a knowledge of the resident base and proximity to the facility that made it a “natural” fit for its second location. Steve Thomes, Kory Buzin and Colin... Read More »
12 Oaks Acquires in Texas
12 Oaks Senior Living acquired a seniors housing community in Irving, Texas. This is 12 Oak’s first owned property in many years in its managed portfolio. Acquisitions are not part of the company’s current business strategy, however, this was a unique opportunity that was a “natural fit.” The company has been operating this community since 2018, and the seller was Longview Senior Housing, a Blackstone Real Estate portfolio company focused on senior housing. West Fork Village features 201 independent living units. Dick Blaylock, the CEO of 12 Oaks, noted that his father, Charles Blaylock, built the community in 1984. The intent is to own the asset long-term. Read More »
Illinois Seniors Housing Community Secures Refinancing
BMO’s Healthcare Real Estate Finance group acted as sole lender on a term loan that refinanced a trophy seniors housing asset owned by a joint venture between Dial Senior Living and Harrison Street. The Landings was built in 2021 by the joint venture in Batavia, Illinois (Chicago MSA). It features 62 independent living, 56 assisted living and 24 memory care units, and was over 98% occupied at the time of closing. In order to take out the original three-year (with a one-year extension option) construction loan, BMO provided the new loan. The non-recourse loan has a three-year term and a full term of interest only. Newmark arranged the debt. Read More »
60 Seconds with Swett: Cap Rates Coming Down?
Cap rate data has been difficult to measure in the last couple of years, due to a fast-changing capital costs environment, a relatively fast-changing operating environment and, frankly, a relative absence of true “cap rate deals” where the buyer was valuing the trailing set of financials, without any funny business. Now, we are seeing more “cap rate deals” and look forward to providing our industry averages, broken out by property type, quality, age and performance in our next Senior Care Acquisition Report. Anecdotally, what we are hearing is that cap rates are compressing slightly, but in the grand scheme of things, are staying relatively high relative to the record (and some may say... Read More »
Brookdale Senior Living Occupancy Sends Mixed Signals
Perhaps when Brookdale Senior Living can better focus on a smaller number of properties when its lease for 120 communities with Ventas ends at the end of next year, they will be able to push occupancy on the remaining portfolio. The company’s size will shrink by nearly 20% if the full lease termination goes through as disclosed last week, and we have to imagine that the Ventas properties require a lot of management time. Meanwhile, the company reported November’s occupancy, and while there was some good news, census levels still disappointed us at this point in the recovery from the pandemic. Investors, however, differed from our assessment, sending the share price up by 7.5% before ending... Read More »
CareTrust Acquires Large Midwest Portfolio
CareTrust REIT, Inc. acquired a 46-facility, 3,820-bed/unit senior care portfolio in the Midwest for a total investment amount of approximately $97 million (inclusive of transaction costs), or $25,000 per bed/unit. Seven of the 46 facilities are skilled nursing and assisted living campuses and an additional seven are assisted living communities. The transaction also commences a new relationship with a skilled nursing investor and operator. In connection with the acquisition, the company entered into a triple-net master lease with a large skilled nursing investor and operator that will sublease the portfolio to several licensed subtenant operators. The new master lease has an initial... Read More »Schedule a demo
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