New SNF Sells in Texas
A brand-new skilled nursing facility changed hands in central Texas, with the help of Nick Stahler and Austin Diamond of The Knapp-Stahler Group at Marcus & Millichap. Opened in 2019, the 88-bed facility was built as a replacement property by its regional owner. The pandemic took a toll on operations. Occupancy was 50%, and there was some positive cash flow, but the facility was heading towards stabilization. Given its newer vintage and lack of new competition in the area, we imagine once stabilized, it could operate at a healthy margin. The facility is also enrolled in QIPP, which should help. Another regional owner with a presence in the state bought the facility for $7.0 million,... Read More »
Sonida Makes First Purchase Since 2016
We learned last month of Sonida Senior Living’s first acquisition since November 2016, when it purchased two independent living communities around Indianapolis, Indiana. But, a few more details have come out on the deal since then. First, it was revealed that Walker & Dunlop Investment Sales’ Alex Vice was the lead broker on the deal. He represented the seller, Core Redevelopment, a local multifamily developer/manager that acquired the communities (in distress) in 2019. Core embarked on a significant renovation to the community’s interior and exterior in addition to rebranding and repositioning the communities. Totaling 157 units, the IL communities were not well occupied at the time... Read More »
Sabra and Sienna Senior Living Join Up In Canada
Sienna Senior Living has announced a strategic joint venture with Sabra Health Care REIT to purchase a $243 million (C$307.5 million) portfolio of eleven private-pay retirement residences in Ontario and Saskatchewan. This will be Sienna’s first venture into the Saskatchewan retirement market, with four of the 11 properties located in the province. The other seven properties are in various cities in the Greater Toronto Area of Ontario, where Sienna already maintains properties. Extendicare Inc. is the seller, and the portfolio represents all of its currently owned private-pay retirement properties in Canada. Both Sienna and Sabra will have 50% ownership of the high-quality, entirely... Read More »
Sabra Health Care REIT Resets With Major Tenant
The healthcare REITs and their triple net lease tenants, as well as their RIDEA managers, have had a tough two years. Some companies have been forced out of business completely, others have lost a portion of their portfolio, but many others have been able to work things out with their landlords. Such appears to be the case with Sabra Health Care REIT and Avamere Group. Our feeling has always been if you like your provider and do not think someone else could have done a better job, especially during this pandemic, then stick with them and work out a plan. Avamere is a substantial company, with 62 properties in eight states and a combination of skilled nursing facilities and... Read More »
Lloyd Jones Expands Senior Living Portfolio
Lloyd Jones announced the acquisition of River Bend Assisted Living and Memory Care, an 89-unit Class-A senior living community in Rochester, Minnesota (Minneapolis MSA). The Miami-based real estate investment firm will enlist their senior care management division, Lloyd Jones Senior Living, to manage the property under their proprietary AVIVA brand. The sale closed on January 31 at a purchase price of $26.5 million, or just shy of $300,000 per unit. The community sits on 2.8 acres and includes landscaped walking paths with direct access to scenic Zumbro River trails. Lloyd Jones plans to enhance the property through technology and amenity improvements. In addition, it will implement an... Read More »
Blackstone Sells Class-A Property in Florida
Newmark recently announced a closing on Mangrove Bay in Jupiter, Florida, and while we’ve heard of some high per-unit prices over the last year, this purchase is rumored to set a new state record for per-unit price. Blackstone divested the Class-A community to an undisclosed buyer. The Mangrove opened in the early 2000s and has 160 assisted living, independent living, and memory care units in six stories. The community is reportedly in high demand among potential residents and was doing very well at the time of sale, with occupancy near 100%. We hope to disclose the purchase price soon, but we know that according to public records, the property originally sold for $49.5 million to Health... Read More »
Illinois-Based Owner/Operators Exchange Underperforming SNF
An undisclosed Illinois owner/operator recently purchased Cotillion Ridge in Robinson, Illinois. Located three hours east of St. Louis and two hours west of Indianapolis, this smaller, 67-bed skilled nursing facility was an outlier for its previous owner, also an Illinois-based owner/operator. The property was built on two acres in 1972 with additions in 1982 and 2001, and was 54% occupied at the time of sale. The buyer plans to bring ancillary services into the facility and focus on building census. Whereas the seller was focused on quality mix (29% private pay and 24% Medicare), the buyer specializes in operating with all types of payors and should be able to improve occupancy though... Read More »
Lloyd Jones Buys Community in Nebraska
Lloyd Jones, a real estate investment firm, recently announced the acquisition of Woodlands at Hillcrest, an 89-unit/107-bed assisted living and memory care community in Lincoln, Nebraska. The property is the latest in the company’s growing portfolio of senior housing assets, with several additional senior housing acquisitions set to close in the coming weeks. Built in 2018, the Class-A community sports a cafe and bistro, activity rooms, fitness area and putting green, and has a separate wing for its memory care residents. The property will be operated by Lloyd Jones Senior Living, the firm’s senior housing management division, and rebranded as AVIVA Woodlands. AVIVA is Lloyd Jones’... Read More »
Older, Underperforming Ohio SNF Sold By ESI
Evans Senior Investments (ESI) closed the sale of a 180-bed skilled nursing facility in Ohio for $10.75 million, or $60,000 per bed. Built in 1965 with a $220,000 renovation in 2019, the facility has nine private units with the rest being semi-private occupancy. In 2019, the facility posted $10.3 million in total revenue and 72% occupancy. Despite the large revenue generation, the facility was not very profitable due to the below average Medicaid rate and low post-acute rehabilitation census. Beginning in March 2020, the facility’s census began to decline to a low of 43% due to bans on admissions and a lack of elective surgeries from hospitals resulting from the pandemic. ESI represented... Read More »
January M&A Activity Was the Busiest On Record – 60 Seconds With Ben Swett
January 2022 is in the books, and seniors housing and care M&A activity hit an all-time record in the month, according to our LevinPro LTC database. There were 66 individual deals announced, beating the previous record set in December 2020 with 60 deals, which was a bit of an outlier back then. Our LevinPro database counts deals based on when they are publicly announced either by a press release or to us directly, so a large number of these 66 transactions actually closed at the end of 2021. But December’s M&A total reached 56 transactions, the third-highest monthly total on record, so we are indeed in the middle of the busiest M&A period ever seen in our industry. And based on... Read More »Schedule a demo
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