Helios Handles Wisconsin SNF Sale
Helios Healthcare Advisors handled the sale of an 87-bed skilled nursing facility in West Salem, Wisconsin. Originally built in 1963 with additions in 1968 and 1994, the facility is 100% Medicare-certified and provides physical, speech, occupancy and recreational therapy, as well as short-term rehab and traditional long-term care. It was previously owned by a Lakewood, New Jersey investor but was divested as part of a multi-stage strategy to exit the state and focus on markets closer to their headquarters. Mario Wilson and Bill Janis positioned the facility as a value-add opportunity and a found a buyer in a Midwest operator of nearly 30 skilled nursing facilities in four Midwest states.... Read More »
Recent Senior Care M&A Deals, Week Ending December 13, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Chartwell Retirement ResidencesChartwell Emerald Hills Retirement Residence$91 million Not disclosedWyoming Springs Assisted Living and Memory Care Facility$16.6 million Bridge Investment Group4 senior living communities in MS and SC$148 million Harrison Street Real Estate Capital11 senior living... Read More »
Harrison Street Picks Up PGIM-Owned Portfolio
In last month’s SeniorCare Investor we mentioned that the team at Newmark Knight Frank would have approximately $1.2 billion in closings in December. They may have reached half of that in one deal. Although no price is being disclosed on the transaction, we did get a sneak look at parts of the offering memorandum from one of the other bidders. PGIM sold a portfolio of Brightview Senior Living-managed communities with a total of 11 communities in Maryland, New Jersey and Massachusetts. Based on our internal records, PGIM purchased 10 of these communities from Brightview in 2014 for about $360 million, or $350,000 per unit and an estimated cap rate of 7%, according to our Deal Search Online... Read More »
The Portopiccolo Group Makes Another Virginia Purchase
Many skilled nursing owners are exiting the business these days, but family-owned private equity firm The Portopiccolo Group has been actively buying in the last couple of years. Its latest acquisition was the third Virginia property to join its portfolio so far this year, after purchases in Roanoke (February) and Dunn Loring (August). Portopiccolo’s latest target was a 120-bed skilled nursing facility in the rural, southern Virigina town of Emporia. Built in 1971, this facility seems to have been a part of every major SNF deal between institutional investors over the years. Before Portopiccolo’s acquisition, it was acquired by Sabra Health Care REIT in 2017 in the REIT’s takeover of Care... Read More »
More SNFs Add In-House Dialysis
The new PDPM reimbursement system is making its impact known in the skilled nursing market beyond drastically reducing therapy minutes. It is also changing the way SNFs provide care to higher acuity and medically complex patients, now that CMS has recognized (and will pay for) the added care that goes with them. Well, six skilled nursing facilities in Indiana clearly have an eye towards maximizing that reimbursement, while providing a better care experience too, by partnering with Dialyze Direct to provide in-facility dialysis services. This is not the first such agreement made by Dialyze Direct with other SNFs, and we suspect it won’t be the last. This service seems like a no-brainer for... Read More »
Lancaster Pollard Arranges Two Financings
Lancaster Pollard keeps the closings coming, arranging two transactions for senior care facilities in Georgia and California and showing some variety in the process. First, Conner Girdley led the way on a construction financing for a to-be-built community with 131 units of assisted living and memory care in Cobb County, Georgia. The borrower, Brickmont Assisted Living, obtained $24.5 million in tax-exempt bond financing though the Section 142(d) program, which provides financing to assisted living communities that set aside at least 20% of their units for residents whose income is 50% or less of the area median gross income. The Cobb County Board of Commissioners unanimously approved the... Read More »
Seniors Housing Rates: Actual vs. Asking
For years, NIC MAP has been presenting quarterly changes in seniors housing asking rates, but it is now trying to get beyond that and get the actual rental rates. That will add a lot more needed transparency. As many of you know, NIC is working hard to develop its database of actual rents in seniors housing as opposed to the “asking” rents that have been used in their NIC Map numbers for years. This is very important because not until the market sees the actual rents communities are getting will we have a better understanding of the extent of price discounting in various markets. We have been a little vocal about the asking rent number because when times are tough, like they... Read More »
CBRE’s Recent Deal Haul
CBRE had quite the month in November, with its National Senior Housing team announcing four separate sales totaling about $400 million, and its Senior Housing Debt and Structured Finance team closing over $215 million in debt in November. Aron Will and Austin Sacco facilitated the debt transactions, while Lisa Widmier represented the three different sellers in the four transactions. The acquisitions involved eight properties in five states, with more than 960 units comprising independent living, assisted living and memory care services. They sold for an average price per unit of about $411,000. All of the properties, except for one, were in different stages of initial lease-up, making that... Read More »
Another Rural SNF Owner on the Way Out
It’s getting tougher and tougher for operators of rural skilled nursing facilities, particularly those single-asset owners. It’s a more complex and expensive business to operate these days, and with lengths of stays dwindling and acuities rising, it’s not getting any simpler. There were a lot of these deals this year, and we can’t blame any of these owners for exiting the industry altogether. One such transaction saw a not-for-profit board made up of local community members sell their only senior care campus in Marshall, Illinois (just over the border from Terre Haute, Indiana). Ryan Saul of Senior Living Investment Brokerage led the deal. Originally built in 1963 with additions and... Read More »
Cadence Living Expands in the Southeast
Cadence Living is certainly in growth mode. Earlier this year, the Scottsdale, Arizona-based operator announced a major expansion into its own state with the acquisition of land in the Phoenix suburb of Chandler to build a 191-unit, $46 million senior living development to join its three other brand-new or nearly-open communities in the area. Then, late last month, the operator announced that it teamed up with Sabra Health Care REIT to acquire an assisted living/memory care community in Poway, California (San Diego MSA). Now, Cadence Living was just selected as manager of seven assisted living/memory care communities and 402 total units across North Carolina, marking its entry in the... Read More »Schedule a demo
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