Recent Senior Care M&A Deals, Week Ending May 10, 2021
Towards the end of April and beginning of May, senior care M&A started to heat up. Check out our recent deal chart. Long-Term Care AcquirerTargetPrice Sabra Health Care REIT, Inc.Baxter Senior Living$32.5 million The Ensign Group, Inc.Windsor Rehabilitation and HealthcareN/A Regional owner/operator3 assisted living communities in WIN/A Regional owner/operatorRegency North Bend Rehab & Nursing... Read More »
Brookdale Senior Living Bottoms Out
It has been a tough go for Brookdale Senior Living for several years, really, ever since its acquisition of Emeritus in 2014. But the pandemic was almost the final nail in its coffin. Now those nails are beginning to be removed, and perhaps the resurrection is in sight. While there is work still to be done, the big O, as in occupancy, has finally ended its slide. It looks like February was the bottom, with average occupancy dropping 60 basis points to 69.4% from January, and then remained there in March but increased 50 basis points in April to 69.9%. End-of-month occupancy also bottomed out in February at 70.1%, increasing by 50 basis points by March 31 and... Read More »
Omega Health Investors Makes M&A Moves In Q1
On May 6, Omega Healthcare Investors released their first quarter earnings report, and it was a period of major acquisition activity and balance sheet improvements that position the REIT well for the recovery that is surely coming soon in senior care. In the first quarter, Omega closed nearly $600 million of acquisitions and $16.8 million in capital renovations and new construction projects. The largest deal by far was its $511.3 million acquisition of 24 senior living communities from Healthpeak Properties, which closed in January. The acquisition included the assumption of an in-place master lease with Brookdale Senior Living that provides for 2021 contractual rent of $43.5... Read More »
SLIB Sells Wisconsin Assisted Living Portfolio
As if their end-of-April activity wasn’t enough, the Senior Living Investment Brokerage team of Bradley Clousing and Ryan Saul kicked off May with a portfolio sale of three assisted living communities in Wisconsin. Located in the towns of Waukesha and Oshkosh, they total 255 units and were built between 2005 and 2009. The Waukesha community consists of 85 units, while the two Oshkosh properties (located one mile apart) feature 134 units and 36 units, respectively. Occupancy averaged around 80%, and the facilities wer estimated to have operated at a roughly 25% margin on over $12.84 million of combined revenues. Local public filings revealed LTC Properties as the previous owner, and... Read More »
Meridian Capital Group Goes All Out in April
April showers certainly brought a dizzying number of financings closed by the team at Meridian Capital Group, arranged for a combination of 26 assisted living and skilled nursing facilities in seven states. Ari Adlerstein, Ari Dobkin, Josh Simpson, Matt Lesnik, Jesse Rauch, David Gottlieb and Jacob Scott negotiated the transactions, which totaled $352 million. Maybe now they’ll have time to smell the May flowers. The highlight of the two weeks was a $136 million bridge-to-HUD refinance for five facilities totaling 830 skilled nursing and 24 assisted living beds in Maryland. There were also several acquisition financings, the largest being a $62.4 million loan from a commercial bank along... Read More »
CareTrust REIT Acquires Again in California
A little over a month after CareTrust REIT first acquired four CCRCs in California, then a 150-bed skilled nursing facility in Santa Barbara, the company has made another Golden State purchase. The latest deal features a 123-bed skilled nursing facility located adjacent to the El Centro Regional Medical Center in El Centro (Imperial County). The seller was a private individual who had owned the facility for more than 20 years. They experienced high staff turnover and occupancy decline as a result of the pandemic and decided to seek a sale. The seller had fallen out of contract with a previous buyer but was still highly motivated to exit. That led to San Diego-based Bayshire Senior... Read More »
Healthpeak Properties Nears Seniors Housing Exit
Healthpeak Properties has nearly completed its exit from the rental seniors housing business, selling another $1 billion of assets in the first quarter of 2021, according to its latest earnings release. This comes after approximately $2.5 billion of seniors housing dispositions in the fourth quarter of 2020, so they are clearly antsy to get out. The latest tranche of divestments included 12 properties in PEAK’s SHOP portfolio operated by Oakmont Senior Living and totaling 1,043 units. At $564 million, or $540,750 per unit, it represents the largest deal of the quarter. And considering Healthpeak’s haste to get out, commanding that sort of per-unit... Read More »
Good Vaccination News
Connecticut takes the lead in vaccination rates, but senior care staffers need to get on board. I just heard that my home state, Connecticut, is number one in the country with more than 50% of those eligible, 16 and over, having been vaccinated. In my town, we are now well over 70%, and I suspect will hit 80% or more by the end of May. This is what we need. I have been fully vaccinated for over a month now, and it is quite a liberating feeling. Not that I was fearful about going anywhere pre-vaccination, but it does make you feel a little more empowered. And, I will be going to my first conference in late May. Can’t wait, although I could do without the plane ride. So, obnoxious as I can... Read More »
Senior Living Investment Brokerage Ends April With Three SNF Sales
Senior care M&A activity may be tepid right now, but Senior Living Investment Brokerage ended April with a bang, announcing several skilled nursing closings and several seniors housing ones too. We’ll start with the skilled nursing sales, and you can read about the seniors housing transactions here. Brad Clousing and Matthew Alley kicked it off with the sale of a 170-bed skilled nursing facility in Mobile, Alabama. Built in 1968 and 1982, the facility was subject to a long-term ground lease with the adjacent hospital. An entire floor with over 30 beds was out of service, but the facility was just around 60% occupied at the time of the sale and historically operated between that mark... Read More »
SLIB Arranges Three Seniors Housing Transactions
Bradley Clousing and Matthew Alley of Senior Living Investment Brokerage continued the firm’s impressive run into the seniors housing M&A market (read about their skilled nursing deals here), selling a 170-unit independent living community in Dallas, Texas. The property actually traded at the end of 2020, with CareTrust REIT (NASDAQ: CTRE) selling to Valstone Partners. Built in 1987 and thoroughly renovated in 2013 with additional capital improvements made in 2016, CareTrust had previously converted the remaining assisted living units to independent living. Occupancy had declined as a result, but it was steadily improving to the low-80s with a... Read More »Schedule a demo
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