Genesis to be Delisted After Welltower Split
When Genesis HealthCare announced last year that it may not make it in the following 12 months, you knew something had to be done. And then at the beginning of this year when its longstanding CEO, George Hager, departed, you knew that replacing one person with another was just not going to cut it. But perhaps it enabled the Board to move on what had to be done to salvage a desperate situation. Late on Tuesday, Welltower announced that it has substantially exited its 10-year operating relationship with Genesis HealthCare. The move cannot be seen as much of a surprise considering Genesis’ “going concern” notice last year, multiple major write downs associated with... Read More »
SLIB Starts March With Six Closings
What a month it has been for Senior Living Investment Brokerage, and it’s only been a few days. After a stellar start to February when the firm announced five transactions comprising eight seniors housing properties across the country, SLIB brokers announced six closings on the first two days of March. Four deals closed in the Southeast, starting with the sale of a 46-unit assisted living/memory care community in Gainesville, Georgia, north of Atlanta. Daniel Geraghty and Bradley Clousing handled the deal on behalf of a group of five TIC investors that originally bought the property in 2006. The TIC sponsor had since filed for bankruptcy and subsequently took control of the... Read More »
A Holiday with Atria
Last week, as part of its earnings release, New Senior Investment Group announced that Atria Senior Living would be taking over management of 21 independent living communities managed by Holiday Retirement Corporation. From a diversification perspective, this makes great sense for New Senior because Holiday had been managing 98 of New Senior’s 103 properties. In the REIT world, that kind of tenant concentration is a no-no. Like most owners across the country, including Atria, the New Senior portfolio has seen its occupancy drop by 690 basis points in the past year. This is much better than the average for assisted living and skilled nursing, but as we... Read More »
Housing & Healthcare Finance Announces HUD Activity
Housing & Healthcare Finance (HHC Finance) closed over $83 million in HUD loans during the month of February. The firm kicked off its activity with a $24 million loan for a large 280-bed skilled nursing facility in New Jersey. That was followed by two more HUD loans totaling $46 million closed for SNFs in Maryland and Illinois. Finally, HHC Finance took out previous HUD debt for a long-term customer in Connecticut with a new $13 million loan closed through the (a)7 program. Each loan came with interest rates in the low-2s and terms ranging from 30 to 35 years. HHC Finance rounded out its February activity with over $115 million of loan modifications closed for clients in Missouri,... Read More »
PGIM Refinances Virginia Seniors Housing Community
PGIM Real Estate’s Seniors Housing and Healthcare Group refinanced a 57-unit seniors housing community in Lynchburg, Virginia with a new HUD loan, providing the owner with substantial annual loan payment savings. That makes for a happy client. Family-owned and operated Runk & Pratt was the borrower, closing its second transaction with PGIM in the last 10 months. The community was built in the 1980s and boasted 95% occupancy. It previously had a HUD mortgage holding an interest rate of 4.25%. However, Christopher Fenton and Catherine Eby arranged a new $13.2 million loan that both extended the borrower’s loan maturity and lowered the interest rate to 3.03%. That results in annual debt... Read More »
Texas-Based Operator Acquires Dallas-Area SNF
Jeff Rhodes, Bill Janis and Mario Wilson of Helios Healthcare Advisors arranged acquisition financing for a 120-bed skilled nursing facility in the Dallas metro area. This was the only operation for the current Texas-based operator, which is acquiring the facility from the out-of-state landlord. Newly built in 2014, the facility maintained above average occupancy at the time of the sale. Helping its operations was its location in an affluent suburb near a handful of major hospitals. It also consistently achieves strong clinical ratings. The Helios team arranged a $12.53 million bridge loan from a regional lender to help cover the $13.06 million, or $108,800 per... Read More »
Carnegie Capital Closes Loan With Congressional Bank
JD Stettin of Carnegie Capital secured a bank refinance for a Pennsylvania seniors housing community. Congressional Bank provided the $16.5 million loan, which came with a three-year term and 30 months of interest only. This was the second financing Mr. Stettin has closed for the sponsor, a major national healthcare development fund. A top-tier national operator managed the building, which opened within the last several years with 65 assisted living and 30 memory care units. The loan refinanced the property during its continued lease-up, which was extended due to the pandemic. This capped a busy month for Carnegie Capital during which it announced its new joint venture with Evans Senior... Read More »
Recent Senior Care M&A Deals, Week Ending February 26, 2021
February wrapped up, and senior care M&A was quite light. But check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Focus Healthcare Partners LLCThe Mansions PortfolioN/A Elysian Senior HomesOlive Branch Estates$5.5 million Texas-based operatorSkilled nursing facility in TX$13.1 million Levante Living Trust3 senior living communities$28.0 million... Read More »
Brookdale Selling Home Health & Hospice Business
While not a surprise, since rumors had been floating around for a while, Brookdale Senior Living announced with its fourth quarter earnings that it has agreed to sell an 80% interest in its home health and hospice business (including its outpatient therapy business) to HCA Healthcare, the hospital giant. The sales price is $400 million, implying a $500 million valuation for 100% interest. This comes to about 1.36x revenues for the trailing four quarters ended December 30, 2020, and perhaps 18x to 20x 2021 normalized EBITDA. Last year, we wrote that it would be a home run if they could get any price north of $400 million, so maybe this is a grand slam since they got that... Read More »
Alta Senior Living Targets Middle Market
As it grows throughout the 2020s, the senior living industry will have to provide more “middle market” options to seniors. With that in mind, senior living veteran Douglas Brawn has launched a new operating company called Alta Senior Living. Mr. Brawn comes from Welbrook Senior Living where he was a Principal. Based in both Santa Monica, California and West Palm Beach, Florida, the vertically integrated real estate investment firm is primed to grow through value-add acquisitions and ground-up development. They plan to operate as well and will benefit from an assembled team with tenured experience in senior living M&A, development, asset management,... Read More »Schedule a demo
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