60 Seconds With Swett: PE Firms Scrutinize Labor-Intensive Healthcare Deals
I attended the McDermott Will & Emery HPE New York event last week and learned a lot about private equity firms’ healthcare M&A strategies, and how valuations, deal processes, terms and their targeted sectors are changing in a rising interest rate world and in a recession. Healthcare companies are going through many of the same woes as senior care: fraught sponsor/lender relationships, wide bid-ask spreads, increased deal scrutiny from buyers and capital providers. That last one doesn’t sound bad. And there were always the optimistic comments around demographics and healthcare’s recession-resistance. But the general observation was that the party has ended, and the M&A boom of... Read More »
Kauhale Health Set to Grow in the Midwest
Brand-new operator Kauhale Health announced it has formed a strategic alliance with seniors housing industry veteran Torey Riso. The former CEO of Blueprint Healthcare Real Estate Advisors and publicly traded Care Investment Trust will assist Kauhale in expanding its Midwest portfolio, which currently sits at one owned and one managed property, both in Michigan. According to Levin Pro LTC, Kauhale Health made their first seniors housing acquisition in August with the purchase of Vicinia Gardens of Otsego, a 52-unit assisted living community in Michigan. Previously, Kauhale was appointed manager of the CCRC Vista Grande Villa in Jackson, Michigan in March 2022. By partnership with Mr. Riso,... Read More »
Locus Point Provides Financing
Live Oak Bank and Locust Point Capital closed a $15.2 million loan through an A/B unitranche product for Georgia-based Phoenix Senior Living. The financing will retire the existing construction debt of Retreat at Lady’s Island, a 75-unit assisted living/memory care community in Beaufort, South Carolina. Built in 2018 by Connexion Senior Living, the $10.2 million, or $136,000 per unit, construction project encompasses 55,000 square feet and sits just northeast of Savannah, Georgia. With the transaction, Live Oak Bank was able to expand its relationship with both Phoenix Senior Living and Locust Point Capital. Read More »
Oxford Finance Provides $124 Million Acquisition Loan
Oxford Finance announced the closing of a $124.7 million senior credit facility for the acquisition of four Autumn Lake Healthcare skilled nursing facilities. Located in Burtonsville, Sykesville, Rising Sun and Manchester, the four facilities comprise a total of 520 licensed beds and sold for a combined $142.5 million, or $276,200 per bed. Gideon Orion of Walker & Dunlop handled the sale. Autumn Lake Healthcare maintains a network of independently owned and operated nursing homes and rehabilitative care centers across Connecticut, New Jersey, Maryland, West Virginia, and Wisconsin. The seller, Axis Health, sold two other facilities on the Eastern Shore of Maryland to Key Health... Read More »
Bourne Financial Group’s Arizona Acquisition
Florida-based private equity investor Bourne Financial Group acquired a large senior living community in Mesa, Arizona. Built in 1978 and significantly renovated from 2013 to 2017, Bella Vista features 188 units of independent living and assisted living. It was previously owned by a joint venture between two real estate investment firms: Wexford Real Estate Investors and Beztak Companies. They were represented by Cushman & Wakefield in the transaction. Rick Swartz, Jay Wagner, Aaron Rosenzweig, Sam Dylag and Jack Griffin worked on the deal. Going forward, Bourne Financial Group will manage the community with its in-house operator, Park Avenue Lifestyle. The property was considered to... Read More »
Oxford Capital Group and Fortress Investment Group Acquire Washington State Portfolio
Chicago-based real estate investor Oxford Capital Group, in a joint venture with funds managed by affiliates of Fortress Investment Group, announced the acquisition of three seniors housing properties in Sequim, Washington. Previously owned by an independent family operator, The Sherwood Portfolio comprises 256 units. New ownership will invest over $8 million in building renovations and an expansion of the portfolio’s assisted living and memory care offerings. Oxford’s senior housing management affiliate, Oxford Living US LLC, will manage the properties. Read More »
Tryko Partners Acquires Pennsylvania SNF
Blueprint Healthcare Real Estate Advisors sold a skilled nursing facility in West Chester, Pennsylvania, on behalf of a joint venture partnership seller. West Chester Rehabilitation and Healthcare Center comprises 180 beds and 102,000 square feet on 14 acres just north of Wilmington, Delaware, and west of Philadelphia. New ownership will take advantage of the state’s July 2022 announcement to significantly increase Medicaid reimbursement. The increase is effective starting in 2023 and will include $500 million to long-term care facilities, the largest such increase during a single Pennsylvania budget cycle. According to Levin Pro LTC, this is Tryko Partners’ third skilled nursing... Read More »
Asland and Others Acquire Affordable Seniors Housing
Asland Capital Partners, Fairstead, iimpact Capital, and Nuveen Real Estate partnered together on the acquisition of Woodbridge Manor, an affordable 165-unit senior apartment community in Irvine, California. Built from 1981 to 2003 with a substantial renovation in 2006, the community had been owned by Innovative Housing Opportunities since its opening. The acquisition marks Asland’s first California acquisition and its second in the seniors housing market. For Fairstead, this acquisition grows its portfolio in California to nearly 1,000 units. Financing was provided by Lument through the Freddie Mac CME program. Marcus & Millichap’s Affordable Housing Advisors served as the seller’s... Read More »
Elevation Financial Group Makes Sixth Acquisition of 2022
Blueprint Healthcare Real Estate Advisors announced the sale of an independent living community in Indianapolis, Indiana. A publicly traded REIT engaged Blueprint to sell the 148-unit community, which was built in 1985 and renovated in the 1990s. Operations were decent, but the buyer, Elevation Financial Group, plans to convert the community into middle market senior apartments. Ryan Kelly, Brooks Blackmon, Connor Doherty of Blueprint worked on the deal. This is not the first time Elevation has invested in a similar conversion project. According to Levin Pro LTC, earlier this year the company acquired Easley Place, a 222-unit CCRC in South Carolina, and converted it into middle market... Read More »
Sherman & Roylance Arranges South Carolina Sale
Jack Osteen of Sherman & Roylance closed his first senior care transaction in the state of South Carolina, selling a rural assisted living community on behalf of a single-asset owner exiting the business. Originally built in 1955 and receiving some substantial upgrades after ownership bought the property nearly 10 years ago, the community features 44 beds in 15 units, with eight semi-private units and seven four-bed wards, with each room containing a bathroom. It served a mostly Medicaid population, and occupancy was typically at 100%, with a waiting list. The community also produced around $90,000 of revenue per month, at a 20% EBITDA margin. New ownership, a private operator, will... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
