Cap Senior Shareholder Battle Continues
At this point, all we can say is that there have been a lot of pissed off shareholders of Capital Senior Living, and not just this year. It goes back several years when the stock price was just over $27 ($416 in today’s post-split equivalent price) and the market was riding high in general. Shareholders thought management and the board should take advantage of the environment and sell. The rest, of course, is history. Companies were being sold at premium values, such as the sale of Emeritus to Brookdale Senior Living (which never should have happened). And later on, the 49% interest in Enlivant sold to Sabra Health Care REIT nearly $200,000 per unit. Cap Senior’s assets were much better.... Read More »
Veritas Senior Living Assumes Operations of Two Communities
Veritas Senior Living recently assumed the operations of two seniors housing communities in Tennessee and Georgia, along with purchasing one of them. Vantage Point Village in Ashland City, Tennessee is an assisted living and memory care community that can provide care for up to 80 residents. Gaines Park Senior Living, which Veritas just purchased with a group of other investors, is located in Kennesaw, Georgia with 60 units. This assisted living community has been family-owned since 1997 and features all-inclusive pricing. The new communities will bring the Veritas portfolio total to six overall. Read More »
REIT Partnership Picks Up Tennessee Properties
A regional operator partnered with a REIT to purchase two assisted living/memory care communities in Tennessee. The two identical 87-unit communities were built in 2000 and have maintained a strong reputation in their respective markets of Knoxville and Chattanooga. Occupancy was in the low-80s, and the buyers saw an opportunity to enter two targeted markets and improve performance at the sites. The operating margin could also improve from the current 20% on more than $7.35 million of revenues. Plus, there is adjacent land next to each community, which enables the new owner to expand services in the future. According to the panelists on our recent webinar “Assisted Living: Where are... Read More »
Big Rock Announces CCRC Development in South Carolina
Big Rock Partners has announced the $180 million development of Seafields at Kiawah Island, a high-end CCRC on South Carolina’s Kiawah Island. The community will feature 98 one, two and three-bedroom independent living units, along with 16 assisted living and skilled nursing units. Kiawah Life Plan Village Inc. (KLPV), a newly formed not-for-profit, purchased a nine-acre site from Kiawah Partners, a subsidiary of South Street Partners. The developed property will be the first 62+ luxury life plan community on Kiawah Island. It will also feature an in-house medical clinic operated by the Medical University of South Carolina. The idea for this development was conceived after Kiawah and... Read More »
Spring Hills Acquires Five New Jersey SNFs
Two years after taking over management of eight Atrium Health skilled nursing facilities, Spring Hills has acquired five of the properties, with the remaining three slated for acquisition later this year. Since the management switch, the facilities have seen their CMS star ratings improve, as Spring Hills increased the Overall, Health Inspections, Staffing and Quality of Resident Care scores. The five properties being acquired are located in Princeton (180 beds), Matawan (130 beds, including 22 ventilator beds), Hamilton (55 beds), Woodbury (124 beds) and Livingston, New Jersey (124 beds). The other three facilities are in Wayneview (170 beds), Wayne (209 beds) and Park Ridge... Read More »
Marcus & Millichap Arranges Construction Financing in Iowa
A new seniors housing development is getting off the ground in Davenport, Iowa thanks in part to construction financing arranged by Marcus & Millichap Capital Corporation. Frank Montalto, vice president of capital markets in M&M’s Chicago office, and Dean Giannakopoulos, senior vice president of capital markets, secured the debt, which totaled $20.25 million. At 75% loan-to-value, that puts the cost of the development at $27 million, or $255,000 per unit. The loan comes with a five-year term and an attractive 3.75% interest rate. When completed, Meadowview of Davenport will include 106 units of independent living, assisted living and memory care. Read More »Webinar | Assisted Living: Was It Recession-Resistant After All? Where Are Values Now? | August 26, 2021
After census plunged 1,000 basis points across the country, has the assisted living recovery met expectations following the pandemic? Pent-up demand for this need-based product may have already exhausted itself, and rampant discounting would theoretically affect the cash flow recovery. Not only that, but the economic effects of the pandemic have hit communities differently, with “B” and “C” properties less financially flexible to meet rising wages, higher infection control costs and lower occupancy without a significant hit to their bottom lines. Investors have adapted to get deals done, propelling M&A activity to pre-pandemic heights this summer. But the properties they are targeting,... Read More »
Ziegler Closes Financing for Texas SNF
Ziegler recently closed a $13.6 million refinancing for Mountain View Health and Rehabilitation, a skilled nursing facility owned by Altitude Health Services. This 187-bed facility in El Paso, Texas was acquired by Altitude in 2016 using bank financing. Taking out that debt, Altitude locked in a low, fixed interest rate below 3% with non-recourse debt for 35 years thanks to the HUD refinance. Ziegler Managing Director Christopher Utz noted this new refinancing was difficult to close and had several moving parts. One complication was a large outbreak of Covid-19 in El Paso during summer 2020, and Mountain View Health and Rehabilitation was impacted as a result. As of June 2020, when... Read More »
‘Tis the Season for Takeovers
One group of investors essentially took control of Genesis HealthCare, another group is trying to do the same thing with Capital Senior Living, and a third group wants to buy Diversicare Healthcare Services, and just may get its way. All three are different, but only one involves giving existing investors a major premium, which is one big reason why it may go through. An entity called MCS Plan, along with its controlling owner Ephram Lahasky, has offered to buy Diversicare for $10.10 per share. The offer letter came from DAC Acquisition LLC, which is also managed by Mr. Lahasky. There are the obvious contingencies and due diligence that needs to be completed, but... Read More »
Knapp-Stahler Group Handles Two Deals
The Knapp-Stahler Seniors Housing Group of Marcus & Millichap announced a couple of seniors housing sales, led by Jim and Justin Knapp. Jim first sold a CCRC in Waterville, Maine for $10.2 million, or $69,400 per bed. Located on an entire city block, the campus includes a 111-bed skilled nursing facility plus 27 assisted living/memory care beds and nine independent living units. It was originally built in 1922 and renovated in 1970 and 1995. Five years ago, it was acquired by a regional not-for-profit. Occupancy has consistently been above 90% for all levels of care, and revenues were just below $13.8 million, so the unidentified new owner is coming into a strong operation. They used... Read More »Schedule a demo
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