Sabra Acquires Two Seniors Housing Communities
In the March issue of The SeniorCare Investor, we wondered when REITs would become net-buyers in the senior care M&A market, after several years of massive divestments. There are clearly some good deals available out there for value-add properties, and if there has been any softening in prices, those bargains may extend to stabilized communities too. Sabra Health Care REIT announced in its fourth quarter earnings call that it plans on spending approximately $1.5 billion on acquisition opportunities, with the majority allocated to be seniors housing assets. A couple of transactions have now trickled out, and sure enough, both involved seniors housing properties selling... Read More »
JLL Handles Latest Healthpeak Sale
Mike Garbers and Cody Tremper of JLL represented Healthpeak Properties in the sale of an assisted living/memory care community in Kenmore, Washington. This one-off transaction included an 85-unit community that had been underperforming since the end of 2018. The property was also in need of some capex. Sunrise Senior Living previously operated the community, but day-to-day management will be taken over by the new owner, Pacifica Properties, which paid $4.5 million, or $52,900 per unit. There was no cap rate on the deal. The JLL team was also involved in the sale of two seniors housing communities in Florida. Previously owned by Prime... Read More »
Blueprint Arranges Atlanta-Area Transaction
Brooks Blackmon, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors represented a national owner/operator in its sale of a 160-unit assisted living/memory care community located near Atlanta, Georgia. The large, well-maintained community is set in an affluent suburb and recently underwent a multi-million-dollar renovation. It catered to a more middle-income resident, but occupancy had been lagging for some time before the sale. Blueprint leveraged the asset as an opportunity to buy a community in a major metro area for significantly below replacement cost and yielded seven qualified offers in the bidding process. Ultimately, a buyer with a... Read More »
Eastern Union Secures Bridge Financing For FL and MA Facilities
The Healthcare Group of Eastern Union secured a large bridge financing to support the acquisition of two skilled nursing facilities in Florida and the recapitalization of two in Massachusetts. Nachum Soroka, director of the group, led the transaction, with Jacob Schonland also playing a key role. A total of $57 million in bridge debt was arranged, coming with a three-year term, two years of interest only and a floating rate tied to LIBOR. Eastern Union secured the debt on a limited recourse basis at an 85% loan-to-value ratio. Eastern Union president Ira Zlotowitz and capital markets specialist Michael Wyne also helped on the Florida deal, which included... Read More »
Capitol Seniors Housing Completes Hotel Conversion
Two years after acquiring a former hotel in Nassau County, New York, Capitol Seniors Housing has converted and reopened the property as a new full-service independent living community. Formerly a Residence Inn by Marriott, and now named The Residences at Plainview, the building underwent a full transformation (to the tune of $19.6 million) into an upscale senior living community with a host of amenities. They include many familiar favorites, like indoor and outdoor pools, a putting green, sauna, exercise facilities, a bistro, bar, movie theater, concierge and valet parking, to name a few. There are also 114 residential units, with studio, one- and two-bedroom options. ... Read More »
Lument Refinances Upstate New York Assisted Living Community
Lument has sprung into spring, following up its arranging of bridge debt for a recently built senior living community in Florida with another refinance of an assisted living community in upstate New York. This transaction, however, involved HUD and featured an $8.3 million loan with a 35-year term. Miles Kingstone led the transaction, which reimbursed the borrower for previous capital expenditures and also took out a bridge loan that Lument originally helped secure in 2017 for the family owner/operator to purchase the property. Formerly a skilled nursing facility, the building was vacant until Joseph Murabito of Morningstar Care... Read More »
Greystone Funds Ohio SNF Acquisition
To fund the acquisition of a skilled nursing facility in Youngstown, Ohio, Fred Levine of Greystone arranged bridge financing for the new owner. Built in 1964, the facility features 99 beds and has been owned and operated by Guardian Healthcare. However, going forward, Bal Harbour Management will take over day-to-day management. The bridge loan comes out to $3.98 million, or around $40,200 per bed. Assuming a typical 70% loan-to-value, that puts the purchase price around $57,400 per bed, which is right around the average for facilities built more than 40 years ago of $56,100 per bed, according to the 26th Edition of The Senior Care Acquisition... Read More »
Recent Senior Care M&A Deal Chart, Week Ending March 19, 2021
M&A has certainly slowed in the senior care market, but here are the recent transactions in our weekly deal chart. Long-Term Care AcquirerTargetPrice Joint ventureThe WillowsN/A Aedifica SA4 care homes$31.62 million (approx) Not disclosedPark Center Health and Rehabilitation CenterN/A Cedar CommunitiesMulberry Grove Senior... Read More »
Cedar Communities Acquires Georgia Seniors Housing Community
Daniel Geraghty, Bradley Clousing and Dave Balow of Senior Living Investment Brokerage have sold a seniors housing community in the Georgia town of Statham, which is located in between Atlanta and Athens. A family owner/operator originally developed the community in 1997 and decided early in 2020 to divest their only asset and retire from the business. They are leaving behind a strong operation, as the property has consistently maintained occupancy between 90% and 100% across the 46 personal care units, all of which were studios. There is an opportunity to convert some of those units into two-bedroom options, as well as improve the operating margin. That is what... Read More »
Blueprint Arranges Complicated SNF Transaction
A struggling skilled nursing facility in Dayton, Ohio that has gone through survey issues and financial insolvency in recent years found a new owner with the help of Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors. The 108-bed facility, which was built in 1975 and has been relatively well maintained, was previously owned by a not-for-profit. Operations had been relatively consistent in the past several years, and even during COVID, but there are certainly many improvements to be made to both census and cash flow. The HUD loan on the property was eventually turned back to the agency, and the fair market value of the asset was determined to be less than the HUD... Read More »Schedule a demo
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