Recent Senior Care M&A Deals, Week Ending August 7, 2020
Check out our recent senior care M&A acquisitions! Long-Term Care AcquirerTargetPrice The Ensign GroupTempe Post Acute & Desert Marigold Senior Living of Tempe N/A Tampa Life Plan Village, Inc.University VillageApprox. $51 million California-based owner/operatorRegency Place Senior LivingN/A Not disclosedEgida Hogar San Antonio... Read More »
Capital Senior Living Returns 18 Properties to Fannie Mae
It’s been quite a week of earnings announcements from the publicly traded senior care companies, with Healthpeak Properties, Welltower, CareTrust REIT, Sabra Health Care REIT, Omega Healthcare Investors, Five Star Senior Living, Diversified Healthcare Trust and The Ensign Group all reporting. Capital Senior Living Corporation also came out with its second quarter results, and surprised some by revealing it was turning 18 properties in forbearance with Fannie Mae back to the agency lender. We have never heard of a company basically handing the keys over to Fannie Mae for that many communities. It is safe to say we are in unchartered territory that does not fail to surprise us, to say the... Read More »
Blueprint Sells in Sacramento
Humair Sabir and Jacob Gehl of Blueprint Healthcare Real Estate Advisors worked on behalf of a private ownership group in its sale of a senior living community in Sacramento, California. Originally built in 1997, the community features a mix of 72 independent living, assisted living and memory care units in three integrated buildings. It also has the advantage of being in a desirable area of Sacramento. The seller, Solstar Investments, bought the community from a local investor group in 2015 for $6.85 million, or $95,100 per unit, at a roughly 6.1% cap rate. At the time, occupancy had dropped to just 80% (not that bad these days), and the operating margin could have been improved... Read More »
Cushman & Wakefield Close Nine-Property SNF Sale
Cushman & Wakefield handled the sale of a nine-property skilled nursing portfolio in Ohio, working on behalf of the private owner who was looking to shrink their presence in the business. Featuring a total of 884 beds, the portfolio was apparently operating around stabilized levels. The buyer was undisclosed but was described as a regional operator with a significant presence in the state. Terms of the deal were also not disclosed but involved both cash and the assumption of debt. Richard Swartz, Jay Wagner and Dan Baker of Cushman & Wakefield handled the transaction. Read More »
Love Funding Closes Puerto Rico Financing
Leonard Lucas of Love Funding headed down to sunny Guayama, Puerto Rico to close a HUD financing for the acquisition of a 60-unit age-restricted, Section 8 apartment complex. Featuring two, two-story buildings, the community is entirely covered under a new project-based Section 8 HAP contract secured by the buyer that runs for a period of 20 years. To acquire the community, the borrower obtained a $3.14 million loan, which came with a lower mortgage insurance premium of 0.25%. The borrower was also able to realize additional savings through HUD’s reduced application fee incentive for projects located in a Qualified Opportunity Zone. Read More »
HealthPeak, Welltower, Ventas and Others Report This Week
In the next 48 hours, six companies will report second quarter earnings. While it won’t be pretty, you have to think long term. Earnings season is here, and I am afraid it will not be very pretty. Unfortunately, it has not been pretty for a while, but we can always hope. Six companies will be reporting second quarter earnings over the next 48 hours. Everyone is trying to put as good a face on it as they can, especially since we all know that at some point in the future, it will get better. The questions are when, which sectors will start improving first, and how much better will it get? The thing I have a hard time reconciling is that there is still plenty of equity capital out... Read More »
The Ensign Group Acquires Arizona Senior Care Campus
The Ensign Group acquired a senior care campus with a variety of post-acute services, including physical, occupational and speech therapies and other rehabilitative and healthcare services in addition to assisted living. Located in Tempe, Arizona, the campus includes a 62-bed skilled nursing facility and a senior living community with 72 assisted living and 90 independent living units. This was the first acquisition for usually active Ensign since the onset of COVID-19. Plus, the provider acquired both the real estate and operations at the property, furthering its strategy to own more of the real estate across its portfolio of 226 healthcare facilities. Right now, Ensign owns the real... Read More »
Watercrest Opens Senior Living Community In South Carolina
Watercrest Senior Living Group is opening another seniors housing community in the Southeast just a couple of months after announcing the grand opening of its 107-unit community in Winter Park, Florida, and the groundbreaking of another 98-unit community in Myrtle Beach, South Carolina. To open a new community these days must be a difficult task, let alone two, so we hope lease-up is going smooth and steady. The most recent project is located in Lancaster, South Carolina, on the outskirts of Charlotte, NC. It features 107 units, split between 75 assisted living and 32 memory care, and most of the amenities you would find at a Watercrest community: pool, spa, multiple dining... Read More »
The NHP Foundation Acquires Another Senior Apartment Community
An affordable seniors housing community in Waterbury, Connecticut will continue its mission to serve low-income seniors thanks to its purchase by The NHP Foundation. Exchange Place Tower was originally built in 1983 with the help of rental assistance support from HUD. The NHP Foundation will invest in extensive renovations to the 150-unit property, including remodeling kitchens, bathrooms, new energy efficient windows, accessibility improvements and the installation of fixtures that use less electricity and water. Eversource will also help with the property’s conversion from an oil-fired heating and hot water system to natural gas. Plus, the building will have spaces that allow for... Read More »