60 Seconds with Swett: Senior Care M&A: Ready to Explode?
The industry seems to be on the brink of a breakout M&A period, which is an astonishing thing to say when we are already in the midst of a record-breaking period of transaction activity. The promise of an interest rate cut, even a 25-basis point cut, could usher a number of buyers off the sidelines, and if a few lower cap rate deals get announced, then a few more owners of high-quality communities could be tempted off the sidelines too. On our webinar last week covering the mid-year update of our M&A and valuation statistics, our panelists seemed to believe that a number of large deals were looming, which could help break the logjam of mostly small deals closing in the... Read More »
IPA Runs Receivership Deal in Arizona
Nick Stahler and Hap Knowles of Institutional Property Advisors, a Marcus & Millichap company, announced their role in the sale of MorningStar at Arcadia, representing both the buyer and seller in the transaction. Built in 2016, the Phoenix, Arizona-area community features 108 units and 125 beds of independent living, assisted living and memory care. Operations were strong, with occupancy above 85% and a margin around 28%. The previous Colorado-based operator had run a tight ship and maintained consistent revenue levels throughout a receivership sales process. Stahler and Knowles had been first hired to run a traditional marketing capital, and they secured multiple competitive offers... Read More »
SLIB Sells SNFs to Strawberry Fields REIT
Senior Living Investment Brokerage’s Matthew Alley closed another transaction in Texas on behalf of an owner/operator based in the Lone Star State. The deal featured two skilled nursing facilities in the towns of Hondo and Kerrville. Community Care Center of Hondo was built in 1967 with 75 beds. It was 79% occupied. While Waterside Nursing & Rehabilitation in Kerrville was built in 1968 with 179 beds. It was 51% occupied. Combined, they generated $2.08 million of EBITDAR on $13.55 million of revenues, for a healthy 15% margin. The facilities are also enrolled in QIPP which provides for additional revenue not already in the financials. Strawberry Fields REIT paid $15.25 million, or... Read More »
New Private REIT Acquires Texas Asset
A stabilized seniors housing community sold in Texas, to a newly launched private REIT buyer that focuses on seniors housing investments. Amy Sitzman and Giancarlo Riso of Blueprint represented the seller, which exited the industry with the sale. The 48-unit assisted living/memory care community was well located in the Dallas suburb of McKinney. Originally built in 1993, prior ownership ensured that the community’s physical plant remained competitive with an extensive $2.2 million renovation. At the time of marketing, the community also featured strong in-place occupancy of 98% and recently pushed through a healthy rate increase. Blueprint positioned the deal as an opportunity to... Read More »
The Ensign Group Acquires Eight Operations
The Ensign Group acquired the operations of seven skilled nursing facilities in Colorado, which are all subject to long-term, triple net leases. The facilities include Desert Will Health and Rehabilitation Center (106 beds in Pueblo), Junction Creek Health and Rehabilitation Center (133 beds in Durango) and Pelican Pointe Health and Rehabilitation Center (104 beds in Windsor). Additional facilities included in the transaction include Riverbend Health and Rehabilitation Center (100 beds, Loveland), Broadview Health and Rehabilitation Center (100 beds, Greeley), Westlake Lodge Health and Rehabilitation Center (107 beds, Greeley)and Linden Place Health and Rehabilitation Center (110 beds,... Read More »
CareTrust’s Latest Acquisitions & Pipeline Replenishment
CareTrust REIT announced the acquisition of two performing skilled nursing facilities in separate transactions with a total investment amount of approximately $62.1 million. On August 29, the company acquired a 125-bed SNF in the Mid-Atlantic, and on August 7, it closed an investment in a 134-bed SNF located on the West Coast. CareTrust’s investment in the Mid-Atlantic facility, inclusive of transaction costs, was approximately $37.7 million, or $302,000 per bed, and will generate initial annual base rent of approximately $3.4 million. The company has leased the facility pursuant to a new 15-year, triple-net lease that includes two five-year extension options and annual CPI-based... Read More »
MIG Closes Another Missouri SNF Transaction
Andrew Montgomery of Montgomery Intermediary Group continues to show his strength in the Show Me State, closing another skilled nursing deal in Missouri. Featuring more than 100 beds and being an older vintage, the facility is located in a rural market. It was a geographic outlier for the seller, which wanted to focus in areas they had more of a presence. The facility came with an assumable loan but was under 50% occupied. So, it was marketed as a turnaround opportunity. The eventual buyer owns and operates facilities across the state and focuses more on a behavioral health SNF model. Read More »
VIUM’s End-of-Summer Surge
VIUM Capital is closing out its summer with a bang, announcing 15 transactions totaling more than $180 million in volume in July and August, alone. The majority of those closings were HUD 232/223f transactions that paid off bridge loans originally originated by VIUM over the last few years. In 2024 to date, VIUM has closed over $500 million of debt transactions, with more to come in the remaining months of the year. It is also worth noting that in less than five years since its launch, VIUM has now funded over 200 senior debt transactions in the seniors housing and healthcare real estate sector, totaling over 400 properties in more than 30 states. It is forecast to surpass $5 billion of... Read More »
PSJB Secures Bond Financing in Washington
Ziegler announced the closing of the Parkshore Juanita Bay (PSJB) $62.42 million Series 2024 bonds through the Washington State Housing Finance Commission. Ziegler pressed the max yield below 6% despite an aggressive five-year par call feature. PSJB constructed The Gardens at Juanita Bay, an assisted living community in the Juanita Bay neighborhood on the shores of Lake Washington, in 1977. And in December 2018, PSJB affiliated with Presbyterian Retirement Communities Northwest dba Transforming Age. In 2021, management announced plans to develop and convert the existing The Gardens at Juanita Bay into a new 50-unit independent living community to be named Parkshore Juanita Bay. The... Read More »
Chartwell Makes Three Acquisitions in British Columbia
Chartwell Retirement Residences entered into definitive agreements for acquisitions of three modern retirement residences on Vancouver Island. Together, the communities total 384 units. The aggregate purchase price is US$168.4 million. Built in 2023, Vista Retirement Residence stands 11 stories tall and comprises 104 independent supporting living and 48 memory care units in Victoria. The community is currently 28% occupied. The gross purchase price is US$77 million, or US$506,600 per unit, of which US$6.8 million will be held in escrow to support sellers’ obligation under a 24-month NOI guarantee. Built in 2018, Nanaimo Memory Care features 77 memory care units in Nanaimo with... Read More »Schedule a demo
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