CCRCs Are Not Dead, and Happy New Year
Two recent CCRC sales prove the point that this market can thrive. You know one of my favorite refrains by now. CCRCs are not dead. And two recent transactions prove my point. At the end of December, David Reis and his Senior Care Development, together with their equity partner Fundamental Advisors, closed on the sale of The Clare in downtown Chicago. This 338 unit/bed CCRC opened during the Great Recession and was forced to sell for 20 cents on the dollar with occupancy at 34%. Today, occupancy is at 98%, average entrance fees are back to $740,000, and they just sold it to LCS for about $320,000 per unit/bed. Talk about a great return on investment. LCS had been a minority investor and... Read More »
The Clare Turnaround Complete
No one said it was going to be easy back in 2012 when an investor group took control of a large CCRC known as The Clare in downtown Chicago. Occupancy was just 34% when the community was sold out of bankruptcy, with its reputation tarnished in the local market during the high-profile proceedings. Senior Care Development (SCD), the stalking horse bidder, with Fundamental Advisors (FA) and LCS, teamed up to buy the community at auction for $53.5 million and put it on the right path to success and profitability. No small order. The stalking horse bid was a mere $29.5 million, compared with the $229 million that was spent to develop the CCRC. There were just two other bidders, and when the... Read More »
National Health Investors Announces Acquisitions
National Health Investors wasted no time in making news this 2020. The REIT first announced that it was the buyer in Evans Senior Investments’ latest deal in Minnesota. Built in 2011 next to a lake about 20 miles from Minneapolis and St. Paul, the 48-unit assisted living/memory care community was previously owned by Coventry Senior Living and operated by Ebenezer. They left it in good shape, with occupancy around 90% and more than 80% of its census derived from private pay residents. In the trailing-12 months, it was also bringing in more than $660,000 in EBITDAR on more than $3.0 million of revenues, a healthy figure that also offers some room for improvement. NHI, with 41... Read More »
HHC Finance’s Latest Closings
Housing & Healthcare Finance finished 2019 with a bang, closing four HUD loans worth over $62 million. The package refinanced four skilled nursing facilities in Maryland (2), Pennsylvania and Arkansas, all totaling 597 beds. The Mid-Atlantic facilities were built in the mid-1970s, while the Arkansas one opened in the early 2000s. The loans, which refinanced higher rate conventional debt, came with interest rates in the low- to mid-3s and terms between 30 and 35 years. Housing & Healthcare Finance’s Capital Advisory Group, led by Isaac Haas and Neil Gamss, also impressed this December, placing 13 loans totaling over $172 million for clients in nine states. There were 10 bridge loans... Read More »
Tenant Purchases North Carolina Assisted Living Community
Evans Senior Investments had quite the end of the year, as yet another December 31st closing was revealed to us. It featured a 45-unit/70-bed assisted living community that was built in 1984 and significantly renovated in 2005 in Clemmons, North Carolina (Winston-Salem MSA). About a year ago, Evans actually worked with the seller to procure a new tenant to operate it. At the time, occupancy had averaged 85% for the previous two years. A regional owner/operator was selected, and the partnership was clearly successful, as they are now exercising on a purchase option to buy the community for $5 million, or $111,000 per unit. Read More »
Evans Senior Investments Sells Three Properties
The end-of-year rush of closings continued for Evans Senior Investments, which announced two more 2019 deals. The first involved a 94-bed skilled nursing facility in Lawrenceburg, Indiana (Cincinnati MSA) being sold by a local owner/operator. Built in 1983 and renovated in 2010, the facility was nearly 80% occupied and was operating at an 8% EBITDAR margin at the time of marketing. However, those financials exclude revenues the facility began earning in 2019 after joining Indiana’s UPL program with a local hospital. Acquired in December 2015, this was the seller’s only facility in the state, so a larger operator could capitalize on not only the new UPL revenue, but scale too. A national... Read More »
Recent Senior Care M&A Deals, Week Ending January 3, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Regional owner/operatorGoldenCrest Assisted Living Portfolio$12 million National owner/operatorShady Nook Care Center$9 million Not disclosed7 senior living communities$103.3 million Not disclosedOverlake Terrace Assisted & Senior Living$32.5 million Local buyerLas Villas Del... Read More »
Enlivant Sells Vacant Assisted Living Community
A vacant assisted living community in Caldwell, Idaho found a new owner and a new lease on life in a deal handled by Blake Bozett, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors. Built in the late-1990s, the community was rebranded in 2016 by the seller, Enlivant, but eventually shuttered. A local owner/operator in good standing with the state will renovate and relicense the building for assisted living. This was their seventh acquisition in the state, and they paid in cash. Read More »
New Year, New Name for Senior Housing Properties Trust
While we were all up celebrating the New Year this past Wednesday, Senior Housing Properties Trust was kissing goodbye to its name, officially changing it to Diversified Healthcare Trust effective January 1, 2020. The company is still listed for trading on the NASDAQ but under the new ticker symbol of “DHC.” According to Jennifer Francis, President and Chief Operating Officer, the name-change better depicted the company’s portfolio of healthcare real estate (which encompasses medical office, life science and wellness centers in addition to senior living communities) and its strategy going forward. That fresh start was reinforced with the completion of DHC’s restructuring of its Five Star... Read More »
Cushman & Wakefield Closes California Sale
The Cushman & Wakefield team of Dave Rothschild and Mary Christian closed on the sale of an 87-unit assisted living community in California at the end of the year. The community was built in 1998 and most of the units are assisted living with 10 memory care units. It has been operated by a large national provider, and while the financial performance could have been better, we expect it to improve with the buyer. It is the first acquisition of RBP Communities, recently founded by Blake Parsons, who went out on his own after working in the family business, Parson’s House. Although pricing information has not been publicly disclosed, we suspect it was below the national average for... Read More »Schedule a demo
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