Senior Care M&A Market Remains at the Bottom
It appears we have hit the bottom of the seniors housing and care M&A market. For the second month in a row, we have recorded 18 publicly announced transactions in July, according to our database Deal Search Online. That is less than half of the monthly average in 2019 of 37.5 deals, and when taking into account the deals that actually closed in July (as opposed to publicly disclosed), activity was likely even lower. And from what we hear on the ground, conditions for dealmaking are not improving as quickly as was maybe thought back in May. And certainly not quick enough for the parties involved in closing the deals, we’re sure. Just over half of the deals were for... Read More »
Inter-Generational Development Going Up In Milwaukee
Funding was just secured for a multi-generational living complex going up next to Mount Mary University, a women’s Catholic college in Milwaukee, Wisconsin. Senior Housing Partners, an affiliate of the not-for-profit Presbyterian Homes & Services, is developing the $45 million project in partnership with the School Sisters of Notre Dame (SSND), Milwaukee Catholic Home and the University. Work on the site is expected to begin in September, with opening tentatively planned for Fall 2021. What plans aren’t tentative these days? The campus will include 52 private assisted living units for the sisters of SSND, 24 dormitory units for single mothers... Read More »
Recent Senior Care M&A Deals, Week Ending July 31, 2020
We may be at the low point in terms of M&A activity, but there are still deals being announced. Check out our latest chart! Long-Term Care AcquirerTargetPrice Not disclosedCopper Ridge$20 million New York-based owner/operatorShire Senior LivingN/A Local real estate buyerChelsea of Jenkintown$3... Read More »
Average Independent Living Values Slide Significantly
Some have argued that the independent living market will fare better than assisted living or skilled nursing in the immediate aftermath of COVID-19. This is easy to see, given independent living’s longer average length of stay, lower expenses and younger, healthier resident population. Long-term may be a different story, as we brought up in the June edition of The SeniorCare Investor. But interestingly, in the trailing-12 months ended June 30th, the IL sector recorded the largest drop in values from 2019 compared with the other senior care sectors. The average price per unit fell 16.5% from $233,600 in 2019 to $194,900 in the last four quarters, according to The Senior Care Acquisition... Read More »
The Prestige Group Sells Shuttered Senior Living Community
A purpose-built, 62-unit senior living community located in suburban Philadelphia was shuttered over a year ago, but new ownership will soon reopen it as a market-rate apartment building. Joe Shallow and Jim Baranello of The Prestige Group represented the seller in the sale, which came to $3 million, or $48,400 per unit. Originally built in 1989 as Sunrise Assisted Living, the Jenkintown community featured both personal care (assisted living) and memory care services. Chelsea Senior Living bought it around 2010 as part of an expansion outside of its New York and New Jersey footprint. However, this was Chelsea’s first and ultimately only facility in Pennsylvania, and after a few years any... Read More »
HJ Sims Closes Bank Financing for Not-For-Profit’s Independent Living Expansion
Thanks to a two-part bank financing arranged by HJ Sims, not-for-profit Presbyterian SeniorCare Network (PSCN) will open a new independent living community in North Strabane Township, Pennsylvania, adding to its significant presence in the western part of the state. PSCN, which already provides senior care services to over 6,500 seniors through 53 senior living communities, affordable housing facilities and at-home programs/services, is partnering with Senior Housing Partners, a subsidiary of Presbyterian Homes & Services. HJ Sims had worked with PSCN and its related entities before, including the 2017 construction financing for a memory care expansion and its Washington, PA campus,... Read More »
You Can’t Make This Up
California’s nursing home inspectors aren’t being tested for COVID-19. Say what? Nursing homes have been vilified in the media for the number of deaths in their facilities due to the coronavirus. Yes, infection control protocols were not up to snuff at many of them, and certainly not for this virus. But when asymptomatic staff and visitors arrive and unknowingly infect the residents, well, there was not much you could do about it, especially in the early months of the pandemic. Testing has been crucial, as we have all learned. But then we come to find out there was one group that somehow didn’t get the memo. Apparently, the state health inspectors who are visiting all of the... Read More »
Brookdale Breaks Bread With Ventas
Perhaps the two most powerful women in seniors housing, Debbie Cafaro of Ventas and Cindy Baier of Brookdale Senior Living, had to make some decisions with regard to Brookdale’s under water leases that have a maturity date in 2025. If there can be any silver lining with the current pandemic, it most likely pushed the two sides to come to an agreement to do something now before the leases drowned in more red ink. And while there are benefits to both companies, the newly revised lease agreements provide a cash-flow lifeline to Brookdale. The triple-net leased portfolio now has 120 communities, but when the lease was last negotiated back in 2018, combining several leases into one master... Read More »
Berkadia’s HUD Bonanza
Berkadia’s Seniors Housing & Healthcare Group has been hard at work with HUD deals so far this summer, with over $50 million in closings in June and July. The transactions were all closed for skilled nursing clients in three states across the country. Jay Healy and Bianca Andujo first secured a $22.24 million loan to take out existing debt at a 157-bed skilled nursing facility in Worchester County, Maryland. About 25% of the facility’s census was made up of Medicare patients at the time of the financing. The 35-year loan came out to 80% loan-to-value, which puts the facility’s value at about $177,000 per bed. That is high even by Maryland standards, which typically surpasses most... Read More »
MONTICELLOAM Secures First Lien Financing for Florida Communities
On the back of a busy spring, MONTICELLOAM, LLC and its affiliates announced yet another first lien debt financing for a senior care client. This transaction featured a $20.2 million loan that refinanced two assisted living/memory care communities in Florida. The properties total 171 beds. Their owner (and the borrower) is an experienced owner/operator with a current portfolio of more than 1,300 licensed beds. This deal follows a Memphis-area refinance of two skilled nursing facilities, both a working capital loan and first-lien debt financing for three skilled nursing facilities in North Carolina and Kentucky, and a refinance of a Kansas senior care... Read More »Schedule a demo
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