CIBC Helps with Portopiccolo Refinance
The Portopiccolo Group secured a refinance on 15 of its skilled nursing facilities from a diverse group of lenders, including CIBC Bank USA, which, along with other co-lenders, provided a $220 million senior secured credit facility. Located in Virginia, the facilities total 1,675 skilled nursing beds and 34 assisted living units. They have been operated by a third-party tenant for several years and boasted strong historical operations. Occupancy has been approximately 85%, with an EBITDAR margin around 25%. That is strong. In addition to the senior debt, CIBC provided a $13.0 million revolving line of credit to support the ongoing operations of the third-party tenant. The financing... Read More »
Struggling Ohio CCRC Changes Hands
In a swift transaction, Blueprint’s Connor Doherty, Ryan Kelly and Dan Mahoney closed the sale of a CCRC in Richmond Heights, Ohio (Cleveland area), just 55 days from offer acceptance to closing. That fast track, helped by the buyer paying all cash, got the deal completed before year-end, enabling the new owner to benefit from Ohio’s improved reimbursement environment. The property, Richmond Heights Place, may need that, as it was losing money at the time of the sale. Nearly 25 years old, the 138-unit community was previously owned by a West Coast-based owner/operator that was making a strategic exit. A well capitalized private owner/operator looking to expand and increase its scale in the... Read More »
BWE Secures Financing For Class A Seniors Housing Community
BWE secured $46.0 million in permanent financing for a Class-A seniors housing community in Cypress, California. Built in 2022, Westmont of Cypress comprises 129 independent living, assisted living and memory care units. That results in about $356,500 per unit of debt. It experienced good lease-up, with occupancy above 95%. Ryan Stoll and Taylor Mokris originated the non-recourse loan on behalf of the borrower from a life insurance company, establishing a new lending relationship between the two in the process. The loan came with a competitive fixed rate and flexible prepayment. Read More »
Omega Healthcare Reports, American Healthcare Prices IPO
There had been some nasty rumors in the market leading up to the release of Omega Healthcare Investors’ fourth quarter and year-end earnings release. Some people fretted that the situation had deteriorated with too many of their customers, which could force them to cut their dividend rate. You can’t believe everything you read, except on these pages. While there are still some tenant issues, the overall situation is improving. Because they are leases, the information comes with a three-month lag. For the 12 months ended September 30, 2023, occupancy was 79.1%, up from the previous quarter and up 290 basis points from the year-ago quarter. EBITDARM coverage was 1.63x in the third quarter,... Read More »
PE Firm Divests in Wisconsin
A regional owner/operator that was looking to expand its footprint was selected as the buyer of a seniors housing community in Pleasant Prairie, Wisconsin. Built in 2016, the community comprises 100 assisted living and memory care units. The seller was an undisclosed, East Coast-based private equity firm. Bradley Clousing, Ryan Saul and Jeff Binder of Senior Living Investment Brokerage handled the national, yet confidential, transaction. There were multiple offers from both regional and national buyers. No other details were disclosed. Read More »
Family-Owned PruittHealth Expands in Georgia
PruittHealth expanded its footprint after making a seniors housing acquisition in Atlanta, Georgia. Built in 1998, Brighton Gardens of Buckhead is an assisted living/memory care community with 75 units and 112 beds. It will be rebranded as PruittPlace – Buckhead, and the buyer intends on conducting renovations on the asset in the future. With the addition of this community, PruittHealth now operates 108 senior living communities and health care centers in five states. This transaction comes only several months after PruittHealth was selected as the buyer for Piedmont Healthcare Inc.’s skilled nursing portfolio that included Laurel Park, Piedmont Augusta Extended Care Kentwood... Read More »
TJM Acquires Two Florida AL/MC Communities
TJM Properties acquired two assisted living/memory care communities in Bradenton and Venice, Florida, from a private REIT that purchased the assets as part of a large portfolio. These were TJM’s sixth and seventh assets acquired in the past 12 months. The buyer intends to invest in cosmetic updates for both communities. The Brandenton community was built in 1989 and comprises 74,786 square feet across 7.62 acres. The Venice community was constructed in 1998 with 74,445 square feet on 4.06 acres. Together, the assets total 211 units. Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage handled the transaction. No purchase price was disclosed. Read More »
Sonida Senior Living Readies for Next Phase
Don’t you love it when a plan finally comes together? Sonida Senior Living has been working diligently to streamline its capital structure, not to mention improving its census and margins. Yesterday they announced two major developments which should set the stage for future growth. First, they purchased $77.4 million of outstanding debt held by Protective Life for $40.2 million, or a 52% discount, across seven communities. We are not sure we have seen that large of a discount in the market, and perhaps news of this will light a fire under some other creditors. Part of the purchase price was funded by a $24.8 million expansion of Sonida’s existing term loan with Ally Bank. An additional $44... Read More »
60 Seconds with Swett: January M&A Activity Hits a Recent High
If many are hoping for a fundamental shift in the M&A market in 2024, either for more activity, larger deals or Class-A, stabilized properties hitting the market, then January may have offered a glimmer of hope. We recorded 61 publicly announced transactions across the seniors housing and care sectors, according to LevinPro LTC. That is the highest monthly tally since January 2022 when 64 deals were made public. Back then, for some perspective, the 10-year Treasury rate averaged 1.76% that month, as opposed to around 4.0% last month. And liquidity was vastly different, too. There are also always December closings in the January total, which goes by announcement date, but that is true... Read More »
The Ensign Group Rocks It Again
It is all about culture, and handing down responsibility, accountability, and providing financial incentives that makes The Ensign Group tick, and rock every quarter. It is also something some seniors housing providers can learn from. Some companies are doing it, but many founders and CEOs are still not ready to hand over the tools to succeed. The nursing home industry is difficult, but Ensign continues to outperform. Same-facility occupancy was up 240 basis points year over year, and it was up 40 basis points sequentially. The skilled mix increased by 110 basis points sequentially. Other nursing home operators only dream of this. In addition, Ensign’s 2024 earnings guidance is now 13%... Read More »Schedule a demo
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