Flatirons Divests in Colorado
Benchmark Commercial Real Estate was brought on by Flatirons Health Development, LLC. in its divestment of a skilled nursing facility in Colorado. The facility was previously operated by Axiom Healthcare Services. This was its only managed facility in Colorado, with all others in Kansas. The buyer is a local owner/operator that intends to occupy the building with a use compatible with the existing configuration. Built in 2016 by Neenan Archistruction, Flatirons Health and Rehabilitation features 48 beds. It comprises 43,391 square feet and sits on 2.6 acres in Louisville. The property sold for $9.85 million, or $205,000 per bed. Marketing began in 2023 during the difficult capital markets... Read More »
Two SNFs Secure Bridge-To-HUD Debt
Capital Funding Group announced the execution of $16.25 million in bridge-to-HUD financing for the acquisition of two Utah skilled nursing facilities totaling 220 beds. The buyer is nationally recognized, and this marks its entrance into the state. Tommy Dillon originated the transaction. The financing follows CFG’s announcement of the closing of a $12 million bridge loan for a Florida skilled nursing facility comprising 109 beds. The buyer is converting it to a drug and alcohol rehabilitation facility. Read More »
The Pennant Group Purchases in Utah
A national developer/investor engaged Blueprint to create an exit strategy to maximize value for more than a dozen geographically disparate, older-vintage communities. These communities were purchased in a sizable portfolio transaction pre-pandemic under a value-add thesis with the intent to invest in renovations and repositioning. However, cumulative headwinds from the pandemic and rising interest rates drove a portfolio re-prioritization, rationalization and ultimate de-levering effort. Built in 1999 and 2000, the portfolio consisted of two Utah seniors housing communities: a 113-unit AL/MC community in Salt Lake City and a 75-unit AL/MC community in Saint George. Performance varied... Read More »
SNF Sold through Lease-To-Purchase Agreement
Montgomery Intermediary Group closed on a lease-to-purchase agreement of a skilled nursing facility with 60 beds in Missouri. Built in 1961 and expanded in the 1980s, the facility was owned by Blue Sky Basin, which is still actively looking to grow in the sector but deemed this facility a geographical outlier and chose to sell. Anew Healthcare, an expanding owner/operator based in the Kansas City area that is looking to grow its footprint in western Missouri, was selected as the buyer in the lease-to-purchase structure. Andrew Montgomery handled the transaction. Read More »
Bravo Capital Closes Quick Financing
Taking flexibility to another level, Bravo Capital, a privately held lender with a national presence, closed a $13 million loan for Green Hill Senior Living and Rehabilitation just seven days from signing the term sheet to funding. The first mortgage was arranged through Bravo’s “most agile” vehicle, Bravo Mezz Fund, but terms were not disclosed. Located in West Orange, New Jersey, Green Hill consists of a 77-bed skilled nursing facility and a 40-bed assisted living/memory care community. Green Hill started as the Society for Relief of the Respectable Aged Women in Newark in 1866 before the organization moved to West Orange into the Green’s Hotel building in 1965. The campus was losing... Read More »
60 Seconds with Swett: Private Equity Ownership in Health Care
We have long been tired of the often-inaccurate claims of “private equity’s takeover of the nursing home industry” and the too-simplistic or misleading correlations between PE ownership and quality of care. Of course there are never any mentions of the need for SNF owners to make a profit or the benefits of fresh capital injections into the industry and into aging physical plants. We have also written several times that, according to our data, PE firms have only been the buyers in about 5% of SNF deals, a share that has actually shrunk in the last couple of years. Seniors housing was higher, above 10% of acquisitions, but a study done by our sister site LevinPro HC shows that several... Read More »
Not-For-Profit Expands Texas Footprint
Buckner Retirement Services, Inc., a not-for-profit senior living provider, acquired a CCRC in Texas. This will be the seventh senior living community owned/operated by Buckner in the state. The seller, Lifespace Communities Inc., acquired the community in 2019 and has operated it since. Lifespace was focused on finding a buyer with similar values. The Stayton at Museum Way is an 11-story CCRC in Fort Worth. It comprises 188 independent living, 46 skilled nursing, 42 assisted living and 20 memory care units. The anticipated closing is June 2024, however, it may occur as soon as late April. The transaction is subject to regulatory approvals and customary closing conditions. The transaction... Read More »
Fast-Growing SNF Operator Files for IPO
There may be a new publicly traded senior care company on the horizon, as PACS Group, a Utah-based skilled nursing operator with more than 200 facilities in its current portfolio, filed for an initial public offering with the SEC on March 13. It plans to list on the NYSE under the symbol PACS. The company is barely 10 years old but has grown its reach to nine states, serves more than 20,000 patients daily and reported $3.1 billion of total revenue in 2023. NOI in 2023 reached $112.9 million, while adjusted EBITDA was $276.5 million. It also has about $732 million of debt on its books. As recently as 2020, the company only had 65 facilities in its portfolio, so the bulk of its acquisitions... Read More »
Ziegler Handles Chicago SNF Deal
A for-profit buyer is taking over ownership of a not-for-profit skilled nursing facility in an affluent north Chicago suburb. Ziegler acted as advisor to the Illinois-based not-for-profit seller, with Managing Director Nick Glaisner leading the transaction and Melanie Shaffer in support. This was an older, multi-story facility, having been built more than 100 years ago with additions made over time. The facility features more than 100 licensed beds, but ownership operated at under 100 beds at the time of the transaction. It was losing money on relatively stable occupancy, suggesting that expenses were a little inflated (typical of most not-for-profit owners). But that also means the... Read More »
Blueprint Sells Plano Property
Blueprint facilitated the sale of a seniors housing community in Plano, Texas. Built in the late 1990s, the community offers 65 units of assisted living and memory care. The buyer was a regional owner/operator looking to expand in the state. The seller, a developer/investor, is divesting the community after selling over 12 geographically disparate, older-vintage communities as part of a larger exit strategy. These communities were purchased in a sizable portfolio transaction pre-pandemic, under a value-add thesis that would switch operators to create regional groupings coupled with the intent to meaningfully invest in renovations and repositioning. However, the pandemic and rising interest... Read More »Schedule a demo
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