Occupancy at Brookdale Senior Living Slides
In a sign of the times, tough times, Brookdale Senior Living just announced its November occupancy results, and the numbers are sobering. Average occupancy for the month was 72.8%, a drop of 100 basis points from October, which was double the October drop of “just” 50 basis points. That is a cumulative decline in occupancy of 990 basis points since March. If the winter months are going to be as bad as Dr. Fauci is predicting, it is quite possible that we will start to see sub-70% occupancy levels. That will be a disaster. What is interesting in the case of Brookdale is that 89% of its communities were still open for move-ins as of November 30, so that is not the... Read More »
It’s Not Just A U.S. Problem
The nursing home sector came under heavy criticism, and we might say “heavy-handed” criticism, during this pandemic, especially in the early months. Many of the naysayers, especially the media (hey New York Times, are you listening?), blamed the huge spike in deaths at nursing homes on the providers themselves and the so-called “lax” regulations, especially under the Trump administration. But in the more socialist-leaning countries of Europe, the death rate in nursing homes was not only high, but has been spiking again. This is despite the staff being better equipped than they were eight months ago during the first wave when no one really knew what was hitting them. ... Read More »
CCRCs Outperforming The Market
Just like in the skilled nursing industry, every 10 years or so there seems to be a movement that predicts the end of the CCRC market (or LPC for the not-for-profits). They claim that CCRCs are a dying breed, an old-style model, and no one wants to put down $300,000 and up to $1 million and more for an entrance fee. The reality, however, is that plenty of people want to. But, of course, no one “wants” to move into skilled nursing, while a CCRC is the ultimate mix of want, lifestyle and future need. The people who move into CCRCs are planners and looking at the long term. And long term it is, since the average length of stay surpasses anything else in seniors housing. It is not... Read More »
Evans Senior Investments Sells Evansville SNF
A skilled nursing facility with strong UPL revenues sold in Evansville, Indiana thanks to Evans Senior Investments. The owner/operator primarily operated in the Southeast, and this facility represented its only asset in the Midwest, with the nearest property nearly 300 miles away. So, an Indiana exit was arranged, and a new regional owner/operator looking to expand its presence in the state emerged as the new owner. COVID-19 unfortunately hit the 113-bed facility earlier this year, leading to 66 total cases and increased expenses. Also, occupancy dropped from 73% to 67%, but cash flow remained strong at $1.1 million in NOI, for a 13% margin on approximately $7.83 million of revenues.... Read More »
JCH Handles Difficult Southern California Sale
It took a couple of tries, but JCH Senior Housing Investment Brokerage sold a senior care facility in Riverside County, California. Featuring 64 skilled nursing and 49 assisted living beds, the facility was owned and operated by a family business. Occupancy was relatively stable at the SNF, but census at the assisted living portion was virtually non-existent. So, the appraiser allotted no value to the ALF. The facility was originally in escrow when COVID-19 hit and the first-time buyer decided not to proceed. JCH immediately began marketing the property again and in less than two weeks had five competitive offers. The seller decided to give another first-time buyer the go-ahead, with a... Read More »
Blueprint Arranges Utah Seniors Housing Exit
A Pacific Northwest-based ownership group decided to divest its only seniors housing community in the state of Utah, working with Giancarlo Riso, Amy Sitzman and Jacob Gehl of Blueprint Healthcare Real Estate Advisors to get the deal done. The well-maintained community was built in 1999 about 10 miles east of Park City. It features 32 assisted living and 10 memory care units, with historically consistent operations. However, there are some immediate value-add opportunities for the new owner, which is based in Salt Lake City, has an existing portfolio in the state and should be able take advantage of some economies of scale. Blueprint helped arrange the sale and assumption of the in-place... Read More »
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 »Schedule a demo
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