Recent Senior Care M&A Deals, Week Ending May 15, 2020
Amid the COVID-19 crisis, deals are still getting announced in the seniors housing and care market. Here are some recent transactions. Long-Term Care AcquirerTargetPrice Regional owner/operatorThe Stilley House$12.125 million Pacifica Senior LivingAtria Meridian$12.35 million Royal Senior CareHarbor at Harmony CrossingN/A Twin Light CapitalHudson... Read More »
Twin Light Capital Acquires in Florida
After completing its first acquisition in Minnesota, a 13-property assisted living portfolio, Twin Light Capital headed south and recently closed on a smaller community in Florida. But as they say, it is all about location. Twin Light, a private equity investment management firm that focuses on seniors housing and care, purchased Hudson Manor Assisted Living in the Davis Islands neighborhood of Tampa, Florida. The island (it used to be two islands that some landfill turned into one) has a population of just 6,000, but Hudson Manor gets about 50% of its residents from the island and 50% from south Tampa. It is a relatively posh area (Tom Brady just bought a house there as he joins the... Read More »
Blueprint Finds Buyers For LTC Properties’ Preferred Care Sale
Blueprint Healthcare Real Estate Advisors has announced its involvement in the first two phases of LTC Properties’ sale of its Preferred Care portfolio, with three more to go. In the end, the whole portfolio, including approximately 2,500 beds across five states, provided a combined $78 million in net proceeds for LTC. And there were multiple buyers involved in the deal. The first closing was for a 160-bed skilled nursing facility in Mesa, Arizona. Located near regional medical centers such as Banner Baywood and Banner Gateway, the facility was also recently expanded and renovated. Its new owner has an existing footprint in the market, which should help improve census, especially now. The... Read More »
CIBC Closes Cash-Out Refinance of California SNF
CIBC is not slowing down, having just announced its second and third senior care transactions in the last two weeks. At the end of April, we first heard of the bank’s refinance of a Phoenix, Arizona area memory care community. This week, CIBC closed another refinance, this time for a 70-bed skilled nursing facility in the San Francisco Bay area. The $5.6 million cash-out loan was provided to a local owner/operator who has managed the property for a number of years. The property itself has an effective age of 20 years. Census was in the high-80s, and the EBITDAR margin was about 10%. The loan came with a five-year term. Matthew Tyler and Neal Netzel handled... Read More »
Oxford Finance Expands Credit Facility
It’s a tough time out there for senior care owners and operators, dealing with the pressure of keeping their residents safe and healthy only to emerge from the crisis and likely deal with a census and cash crunch. Lenders will play a big role in helping the industry through the crisis, and Oxford Finance was there for one of its senior care clients, upsizing a credit facility for one of its skilled nursing owner/operator clients. Oxford Finance closed a $19.8 million add-on term loan and revolving credit facility, bringing the whole facility to more than $75 million. The borrower has now used the entire credit facility commitment, and used the additional proceeds to finance the... Read More »
CBRE Closes Financing For Carlton Senior Living Portfolio
The CBRE team has certainly kept busy lately, closing a number of transactions since the outbreak of COVID-19 including a $200+ million cash-out refinance of three luxury senior living communities in lease-up, a non-recourse construction loan for a to-be-built community in California, and four agency loan closings. More recently, the team that included Andrew Behrens, Aron Will, Austin Sacco and Adam Mincberg refinanced a portfolio of three senior living communities in the San Francisco Bay area on behalf of Carlton Senior Living. The three communities consist of 315 total units, split between 251 assisted living and 64 memory care units. Two of the communities are located in Pleasant... Read More »
Bashing Our Senior Care
Getting tired of the media and politicians bashing the senior care sector. Is anyone else tired like I am. I don’t know whether it is the worry about the economy, being infected with COVID-19, having no social life, wondering when the next wave will hit. I could go on. But what I am really tired of is CNN’s relentless bashing, and the politicians who are piling on, looking for someone to blame, like they always do. But what really ticked me off was the April 29 letter that Senators Elizabeth Warren and Ed Markey, along with Congresswoman Carolyn Maloney, sent to the leaders of a half dozen of the largest senior living providers. They had a laundry list of more than 50 questions they... Read More »
A Conversation With HealthTrust
Last week, we sat down with Alan Plush and Colleen Blumenthal, partners at national valuation and consulting firm HealthTrust, based in Sarasota, Florida, to talk about how the coronavirus pandemic will impact valuations and how they will go about their work. We all know that COVID-19 is taking a toll on the senior care sector, particularly skilled nursing. Why are appraisals and valuation consulting in general more important today than ever before, when done by professionals who have been through a few crises before? Alan Plush – It allows moderation on both sides. First, values don’t decrease too much (as if assuming this lasts forever), and... Read More »
Evans Senior Investments Represents Receiver in First Phase of Ohio Sale
The closings keep on coming from Evans Senior Investments, with the firm announcing two seniors housing deals in the last week. Those make the sixth and seventh properties sold by Evans since the pandemic started. The first deal was a small one, but certainly wasn’t straightforward. Evans represented the court-appointed receiver of a six-unit independent living community that sits on a larger 171-bed senior care campus with mostly skilled nursing beds, and assisted living units too. Built in phases from 1963 to 2006, the campus had been owned and operated by a second-generation family member for over 30 years, until they decided to sell in 2016 in order to focus on their existing assisted... Read More »
Brooklyn Skilled Nursing Facility Acquired by Joint Venture
Affiliates of TL Management and Fortis Business Holdings have acquired a 240-bed skilled nursing facility in Brooklyn, New York. Public records first revealed the deal in April 2019, revealing Fortis acquiring a 50% interest, Zevi Kohn (of TL Management) a 40% interest, and Eliezer Jay Zelman the remaining 10% interest. The facility was previously owned by the not-for-profit RiseBoro Community Partnership. Occupancy was consistently in the mid-90 percent area, with a majority Medicaid census. The most recent financials from 2017 show a loss of nearly $3.9 million, even with that strong occupancy. But as soon as TL took over management, the facility had positive cash flow within months. ... Read More »Schedule a demo
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