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 »
Dwight & Co Adds to Services and Team
Dwight & Co has expanded its seniors housing and healthcare financing solutions by launching working capital revolving lines of credit (revolvers). The company also announced a couple of new hires. The revolvers will integrate into Dwight’s existing bridge, mezzanine, and HUD healthcare lending platform, providing a comprehensive suite of financial solutions for healthcare operators. In January 2024, Dwight closed its first two revolvers and also has a strong pipeline of new business. The revolvers were structured to complement Dwight’s bridge mortgage loans. In addition, to support its originations, underwriting, capital markets, asset management and servicing areas of... Read More »
Steady As She Goes For Chartwell
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, posted a slight 20-basis point decline in census in February, to 85.5%. They are forecasting no drop for March and a 20-basis point rise for April. If that holds, they will escape the winter census blues, and the December to April period would end up showing an 80 basis-point increase. Chartwell had a remarkable run in 2023, with occupancy increasing by 520 basis points, certainly an above-average jump for 12 months, especially a few years after the bottom. They are expecting rate increases in 2024 to average 5%, and same-community margins to increase by about 400 basis points in 2024 to 38%, from 34% in... Read More »
Carnegie Capital Finances Two SNF Acquisitions
JD Stettin of Carnegie Capital could not get enough of Texas this month, closing two loans for skilled nursing facilities in the state before attending the NIC Conference in Dallas. Both loans facilitated acquisitions of the facilities. In one, Stettin arranged the assumption of a HUD loan on a 120-bed SNF in west Texas, which carries a sub-3% rate and represented 75% of the purchase price. The same seller also divested a 150-bed SNF in west Texas, after its relationships with local admissions sources faded over the last year. That led to a substantial decrease in the Medicaid census and cash flow, and upon closing the acquisition, the facility’s EBITDAR was negative, excluding QIPP... Read More »Schedule a demo
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