Recent Senior Care M&A Deals, Week Ending November 8, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice The Ensign Group, Inc.6 TX skilled nursing facilitiesN/A Reign Residence Management, LLCFloridian Gardens Assisted Living$12 million Allegra CareSt. George's Nursing HomeN/A Colony Hills CapitalWindfield Senior Estates$14... Read More »
Inland Private Capital Corporation Makes First Seniors Housing Acquisition
As part of its larger disposition/restructuring strategy, Capital Senior Living Corporation announced in its third quarter earnings report that it sold two non-core independent living communities in Peoria, Illinois and Springfield, Missouri, generating some healthy proceeds in the process. The communities sold for a combined $64.75 million, or nearly $205,000 per unit, resulting in $14.8 million of net cash proceeds and $44.4 million of mortgage debt off its books. Tim Cobb and Sabel Kaminski of Berkadia represented CSL in the transaction. Both built in the late-1990s and totaling around 215 units, these communities were both over 90% occupied, but rent growth was sluggish. They were in... Read More »
ORIX Acquires Hunt Real Estate Capital
ORIX Corporation USA is continuing to make waves in the senior care lending space. Two years after the firm acquired Lancaster Pollard, they have now agreed to acquire Hunt Real Estate Capital, a subsidiary of Hunt Companies, Inc. In addition to that deal, upon closing, Hunt Real Estate Capital’s President and Chief Investment Officer, James P. Flynn, will become the CEO of the combined entity. For the Hunt loan origination team, including Kathryn Burton Gray as Senior Managing Director, James Scribner, Jason Smeck and Brady Johnson, they should be reunited with their former RED Capital Group colleagues, after leaving the group in early 2018. The Lancaster Pollard, RED Capital Group and... Read More »
The Brookdale CCRC Selling Spree Continues
Brookdale Senior Living keeps shedding its CCRC holdings. Just a month after the provider agreed to sell its 51% interest in 13 CCRCs owned jointly with HCP, Inc. (now HealthPeak Properties) for $541 million, or $84,800 per unit, Brookdale is selling three more to a joint venture between Frontline Management and Onelife Investments. Mike Garbers of JLL Capital Markets represented Brookdale in the transaction. Previously owned by Emeritus, the properties total 592 units. The Easley, South Carolina community was built in 1984 and consists of 75 independent living, 86 assisted living and 60 skilled nursing units. Built in 1966, the Phoenix, Arizona property has 119 IL, 28 AL, 16 memory care... Read More »
REIT Divests Alabama Assisted Living Community
Brooks Blackmon and Ben Firestone of Blueprint Healthcare Real Estate Advisors represented a publicly traded REIT in its disposition of a struggling seniors housing community in Alabama. Featuring both assisted living and memory care (specialty care assisted living facility) units, the property was operating just below breakeven at the time of the sale and was occupied in the mid-70s. It was built in the late-1990s. An Alabama-based owner/operator saw an opportunity to turn the property around, and they bought it for an undisclosed price. The Blueprint team closed the deal just two months from the time they were engaged. Read More »
Capital One Annual Survey Results
We have been pretty gloomy about the state of the seniors housing market recently. It has not been without reason, with the industry still mired in low occupancy, persistent discounting and labor difficulties, both finding it and paying for it. On top of that, October’s low M&A count (just 24 publicly announced deals) did not make us feel any better. That was true in both the senior care sector and in health care M&A in general. At the same time, private equity capital keeps pouring into the healthcare services space (including home health care, behavioral health, physician medical groups, etc…), showing us that investors still view the industry incredibly favorably and may keep... Read More »
The IL and CCRC Markets Rule
After suffering in the aftermath of the Great Recession, Independent Living and CCRC property values and occupancy levels have outperformed the rest of the market. Come and learn why and what may happen in the next recession. Sponsored by The Senior Care Acquisition Reports We are 10 years into the recovery from the Great Recession, which had an outsized impact on the independent living and CCRC market because they are not need driven. Today, occupancy levels are higher than for assisted living and much higher than skilled nursing. Yet many investors, lenders and developers still shy away from these property types. Are they missing something? Next Thursday, November 14, we will be... Read More »
Merrill Gardens Buys Big
Merrill Gardens, known more developing seniors housing communities than acquiring them, has acquired Blue Harbor, a Portland, Oregon-based company that currently manages 21 communities in 13 states. The seller was Fortress Investment Group. For Merrill Gardens, it is somewhat of a two-fer, as Blue Harbor’s CEO, Tana Gall, is joining Merrill Gardens as its CEO, replacing David Eskenazy who announced his retirement last month. What’s more, Gall was president of Merrill Gardens from 2013 to 2015 before leaving to start her own consulting company, but was then recruited by Blue Harbor. She also worked at Leisure Care for 19 years, rising to be president there. Not a bad resume. Merrill Gardens... Read More »
Twin Light Capital Makes Debut Investment
Newly formed Twin Light Capital completed the acquisition of 11 seniors housing communities and two development sites in Minnesota. The existing properties have 291 units with 398 licensed beds, and the two development sites have a total of 22.7 acres in Duluth and Fergus Falls. The acquired portfolio includes the Keystone Bluffs assisted living community in Duluth plus 10 Diamond Willow assisted living and memory care communities located throughout the state. The markets these communities are located in have a higher percentage of the elderly than the state as a whole. Full Circle Senior Living will continue to operate the portfolio for Twin Light. Sam Dendrinos and Kloie McCann of CIBC... Read More »
Kansas SNF On the Road to Recovery
The first skilled nursing facility in a Kansas senior care portfolio that has recently been placed in receivership found a new owner, and hopefully a brighter future. Nick Cacciabando of Senior Living Investment Brokerage was hired to sell all three properties that were owned by a Nebraska-based owner, which included both skilled nursing and seniors housing units. Originally built in 1966, the first facility to sell features 41 skilled nursing beds as well as 11 assisted living and 18 residential care units that were recently renovated and converted from skilled nursing. However, those new units were never able to open. Occupancy, based on the skilled nursing beds, was around 90%, but the... Read More »Schedule a demo
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