More Sales From Newmark
We have recently reported on some larger transactions from the Newmark team, but they have also closed some smaller ones. In late November, the team closed on the sale of a 150-unit active adult community in Texas. The community was built in 2015 and has 150 units. They went to market in later 2019 but then the pandemic interrupted the process. That did not deter buyer and seller, as they waited it out for occupancy to get to 92%, which it did, and the deal closed. The price was $57.75 million, or $385,000 per unit, and came with an in-place cap rate close to 4.5%. Greystar will remain as the operator. Newmark and The Carlyle Group, the owners of Greystar,... Read More »
MonticelloAM Closes Acquisition Financing
To support the acquisition of two skilled nursing facilities, MONTICELLOAM, LLC (Monticello) announced that it provided $20.0 million in first lien debt financing. Also included in the financing was one unencumbered skilled nursing facility. The three properties total 251 beds and are located in Kansas and Ohio. They average nearly fifty years in age. An experienced owner/operator with a current portfolio of nearly 1,200 licensed beds was the borrower, having worked with Monticello before, including securing financing for the acquisition of a number of facilities in 2020. Relationships have been key to getting acquisition debt this year, and it seems to be paying off for these two... Read More »
Recent Senior Care M&A Deal Chart, Week Ending December 18, 2020
As the year is wrapping up, there has been a burst of senior care M&A activity. Check out our recent deal chart! Long-Term Care AcquirerTargetPrice Private investorBrookdale Walnut$10.9 million Oregon-based operatorEmerson House Portland$6.25 million Prime Value Asset Management Limited4 retirement communities in Australia$67.32 million Regional owner/operatorSkilled nursing facility in... Read More »
Navigating the Senior Care Lending Market with Don Kelly of Locust Point Capital
Ben Swett, the Editor of The SeniorCare Investor, sits down with Don Kelly, Managing Director of Locust Point Capital, to discuss the current state of the seniors housing and care lending environment. Ben Swett, Editor of The SeniorCare Investor – Don Kelly is the Managing Director of Locust Point Capital where he is responsible for loan originations and structuring. Don has more than 25 years of experience in the seniors housing and skilled nursing industry and he’s also been involved in the originating, structuring and underwriting of approximately $5 billion in transactions. So, Don, you seem like the right person to turn to for all our lending... Read More »
Will Brookdale Sell Its Home Health Business?
Rumors were afloat this week that Brookdale Senior Living might be running a sales process for its home health and hospice business. Quietly, it became one of the largest home health providers in the country, with revenues of $447 million in 2019, inclusive of hospice and a very small therapy business. We happen to think home health and hospice is a natural for large senior living providers with a built-in customer base off of which to leverage growth outside their communities. It is also a nice lead-in for full time residence into some of their communities. Today, about 50% of the home health and hospice revenues are “in-house,” while 50% are outside of Brookdale’s... Read More »
SLIB Handles Oregon Memory Care Sale
An Oregon-based senior living operator is leaning into the COVID crisis by acquiring a 29-unit memory care community in Portland and temporarily converting it to a COVID recovery facility for the state. We imagine the rates for taking care of COVID patients are much higher than traditional SNF Medicare rates, so it could be a very profitable operation. Originally built in 1999 and remodeled in 2013, the community features 55 beds in the 29 units. It is located in a high traffic corridor of Portland and had historically enjoyed high occupancy. But census recently dropped to 71%. Cash flow was also dropping from around $580,000 from January to June 2020 (annualized) on over $3.22... Read More »
Diversicare Healthcare Services Exits Florida Market
Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the sale of a skilled nursing facility in Wauchula, Florida (about 40 miles southeast of Tampa). Consisting of 79 beds, the facility was originally built in 1980 and expanded in 1990. Owned by a REIT, this was the last facility operated by Diversicare Healthcare Services in the state, according to public records. Historically, it had consistent operations, which were trending positively before COVID-19 hit and did not deteriorate during the pandemic. But being a non-core asset in Diversicare’s portfolio, the facility was slated for sale to a pre-identified buyer looking to... Read More »
Lument Hires David Boitano
David Boitano, formerly of Ventas, has made the move to Lument, where he’ll be a managing director and responsible for delivering an array of debt and structured products to the firm’s seniors housing and healthcare clients. Mr. Boitano will be based in the Tacoma, Washington office and part of Lument’s western region seniors housing and healthcare production team, which is co-led by Casey Moore and Doug Harper. With 25 years of experience in seniors housing financing, Mr. Boitano was previously a senior vice president at Ventas, where he completed over $15 billion in healthcare real estate transactions. Before that, he was CFO and then senior vice president of finance and acquisitions... Read More »
The Vaccine Is Here, Now What
The coronavirus vaccine appeared sooner than most people expected, but the roll out may be bumpy. Senior care providers and residents are about to be the first people vaccinated against COVID-19. That is great news, and putting your politics aside, no one, me included, thought this would happen before year end. But it did. Now what? The media loves to film the first person getting a shot, but the full roll out will be a bit more cumbersome than the staff at a single hospital. Nursing homes and assisted living communities are on the priority list, but because their residents are healthier, IL communities are not. They will have to wait. And that is wrong. The big unknown is how many... Read More »
Newmark Sells Major SNF Portfolio
Last week we wrote that Newmark (formerly Newmark Knight Frank) was going to have a big fourth quarter. And they have, with five sales transactions worth well in excess of $400 million, plus a few financings, and we still have a few weeks to go before the end of the year. The largest sale, which we previously reported on, was the six communities in Massachusetts that sold for about $200 million in a recap of the portfolio previously owned by Welltower. Most recently (early December), however, was one of the larger skilled nursing portfolio sales of the year. With nine facilities and 1,014 beds in Virginia, this portfolio was sold for just over $150,000 per... Read More »Schedule a demo
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