Recent Senior Care M&A Deal Chart, Week Ending December 4, 2020
The week after Thanksgiving brought with it a flurry of senior care dealmaking. Here is our recent deal chart. Long-Term Care AcquirerTargetPrice Not disclosedCanton Regency$18 million New Jersey-based individualElizabethtown Health & Rehab$11.5 million Nexion Health9 skilled nursing facilitiesN/A New Jersey-based individualPawtucket CenterN/A In-place operatorSkilled nursing... Read More »
SLIB Sells Stabilized SNF In Pennsylvania
We don’t see many of them nowadays, but a stabilized skilled nursing facility sold this month, with Ryan Saul and Toby Siefert of Senior Living Investment Brokerage representing the New Jersey-based owner of an 84-bed SNF in Elizabethtown, Pennsylvania. The SLIB guys found another New Jersey-based individual to take over the facility, which is his first property after working as a COO for a large health care capital group. This 55-year-old facility includes 45 skilled nursing and 39 personal care beds, mostly in semiprivate rooms. It boasted strong operations, including 98% occupancy, 38% Medicare census and a strong Medicaid rate. It also benefits from a lower bed tax with its CCRC... Read More »
Capital Senior Living Sells Ohio Senior Living Property
Capital Senior Living Corporation continues to prune its portfolio and try to stabilize its capital structure by selling, but still managing, its 230-unit senior living community in Canton, Ohio. Featuring 92 independent living units, 102 assisted living units and 36 memory care units, the community sold for $18 million, or $78,300 per unit, providing $6.4 million in net cash proceeds to the company after retiring the debt. Current financial performance is not known, but CSU had owned and operated the property since 1991, so it must have been difficult to leave. So, the company was retained by the new owner to manage the community for a 5% fee, which is expected to contribute around... Read More »
CIBC Bank Funds Another SNF Acquisition
CIBC Bank USA arranged yet another acquisition loan for a Mid-Atlantic skilled nursing facility. With an effective age of 35 years, this Baltimore, Maryland facility features 130 beds. Historically, occupancy was in the 80% range, and EBITDAR margins approximated 22%. That’s more than strong for a SNF. The existing operator, who had been leasing the facility since 2015 and clearly doing a good job, is now buying the SNF. That’s where CIBC comes in, with Tim Wurpts arranging a $20 million acquisition loan on the real estate, which comes out to nearly $155,000 per bed. So, the purchase price is almost certainly higher than that, which makes sense given the level of cash flow... Read More »
HHC Finance Closes 15 HUD Loan Modifications
Housing & Healthcare Finance (HHC Finance) has been hard at work securing HUD loan modifications for its clients. After all, why not accept a lower rate? The firm closed 15 modifications totaling over $220 million for skilled nursing and assisted living facilities in New York, New Jersey, Pennsylvania, Georgia, Florida, Kentucky, Illinois, and California. HHC Finance followed that up with a $65 million HUD refinance, with a rate in the low-2s, for a 547-bed skilled nursing facility in New York. The transaction took out an existing HUD loan. Read More »
Vermont Portfolio Sale Funded By Oxford Finance
Oxford Finance announced its involvement in the sale of a five-skilled nursing facility portfolio in Vermont, which was revealed last month. To support the $46.6 million purchase price, Oxford provided a $44.6 million credit facility and revolving line of credit to the buyer, MDA Capital Group, LLC. Four years ago, Genesis HealthCare acquired the portfolio for $39 million from Revera, Inc. Located in Bennington, Burlington, Berlin, Springfield and St. Johnsbury, they have an average age of nearly 45 years and total 527 licensed beds. Meridian Capital Group handled the transaction and helped arranged the financing package with Oxford. Read More »
Let’s Talk About Higher Wages
To succeed this decade, seniors housing and care will have to deal with its wage structure in order to succeed. The title today, Let’s Talk About Higher Wages, was actually the title of last Sunday’s editorial in The New York Times. As many of you know by now, there is not much I agree with in The Times, because of its liberal bias in general, and its frequent attacks on nursing homes. While the editorial was more from a policy perspective, believing that higher wages will drive economic growth, I still believe labor and wages will be “the” key issue moving forward in our sector, post-pandemic, of course. I keep hearing of staffing shortages in our sector, and this at a time when... Read More »
SLIB Handles DHC’s Latest Divestment
Diversified Healthcare Trust’s divestment strategy certainly wound down in 2020, but nine more senior living properties have so far sold this year. The most recent closing was for a 137-unit/bed rental CCRC in North Platte, Nebraska, which according to the REIT’s third quarter supplemental report sold for $3.0 million, or $21,900 per unit/bed. Built in stages from 1988 to 1997, the community has grown to include 68 skilled nursing beds in 62 units, 57 assisted living beds in 42 units and 27 independent living one-bedroom units. Occupancy was around 80% in May but began to improve throughout the summer until a COVID outbreak at the end of September. The non-core property was marketed... Read More »
Blueprint Sells Five Skilled Nursing Facilities
The team at Blueprint Healthcare Real Estate Advisors announced a couple of closings, including a skilled nursing portfolio deal in Texas and a SNF sale in Rhode Island. The Texas transaction featured four skilled nursing facilities and a combined 340 beds that were owned by a REIT. Two of the facilities were built in the late-1960s/early-1970s and two in 2000. They are spread out in suburban and rural areas with relatively low average market census. Three of them were also enrolled in QIPP. The REIT was winding down its relationship with the in-place, in-state provider, hence the sale. Two buyers emerged, a growing Texas operator and a large, national owner/operator, which acquired the... Read More »
OH-Based Buyer Purchases Pittsburgh-Area SNF
An Ohio-based owner/operator bought a Pittsburgh-area skilled nursing facility in a deal arranged by Evans Senior Investments. Built in 1995 and maintaining a four-star rating, this 120-bed facility was locally owned and operated. However, this was the seller’s only skilled nursing facility, and occupancy stood at just 72%. High expenses also resulted in barely $50,000 of NOI on about $8.93 million of revenues, and performance was declining. So, Evans ran a confidential marketing process to a group of regional owner/operators and obtained six competitive offers within 30 days. An Ohio-based owner/operator wishing to grow its presence in Pennsylvania ended up as the buyer,... Read More »Schedule a demo
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