Recent Senior Care M&A Deals, Week Ending March 26, 2021
Dealmaking is still on the slow side for senior care, but here is our most recent M&A deal chart. Long-Term Care AcquirerTargetPrice Pacifica CompaniesKenmore Senior Living$4.5 million The Pointe GroupHarborChase of Naples & HarborChase of Venice$26.8 million CareCore Mary Scott Nursing CenterN/A Cedar CommunitiesMulberry Grove Senior... Read More »
Bifurcation Between Stabilized and Non-Stabilized SNFs Grew in 2020
In some ways, the pandemic only rubbed salt in the wound in terms of occupancy across skilled nursing facilities nationwide. Average census across the skilled nursing industry was already languishing between the mid- to low- 80% range before the pandemic temporarily shut the doors to many facilities, paused elective surgeries and sent more post-acute patients home to recover. These problems adversely affected the older, mostly-Medicaid facilities and were only made worse in 2020. That means digging out from the pandemic will be a tougher assignment, and buyers paid accordingly in 2020, averaging $55,300 per bed for non-stabilized facilities reporting occupancy lower... Read More »
Carnegie Capital Finances Oklahoma SNF Portfolio Acquisition
A skilled nursing portfolio sold in Oklahoma thanks in part to acquisition financing secured by JD Stettin of Carnegie Capital. Totaling 430 beds, these facilities are located in southern Oklahoma in Marshall, Bryan and Love counties. They were operating well, but there is some upside in operations and census. The existing operator executed a purchase option to take over the portfolio at a price of $13.5 million, or $31,400 per bed. Mr. Stettin secured both a first mortgage and mezzanine financing, with a blended rate of 7.3%, to fund the deal. The senior debt came with an interest rate of 5.75% over LIBOR with a 1.00% floor, while the mezzanine debt had a rate of 15.00% over... Read More »
Three Seniors Housing Properties in Michigan Up for Auction
You may have noticed an ad on these pages in recent weeks for the auction of three seniors housing communities in Michigan, including one turnkey operation and two recently shuttered communities. Well, Tranzon Asset Advisors is running the process on its open competitive bidding platform with the auctions set to conclude between April 20 and April 22. These three assets are part of a larger portfolio of Michigan properties that was recently acquired. However, the pandemic led the developer/owner to focus on specific markets and buildings where they had already developed significant expansion and renovation plans. One community is currently operating in the town of... Read More »
JLL Finances Santa Rosa Development
The JLL Capital Markets team led by Director Bercut Smith secured construction financing for a 92-unit seniors housing development in Santa Rosa, California. A joint venture between Blue Mountain Enterprises and Calson Management is responsible for the project, which will feature 66 assisted living units (comprising studio, one- and two-bedroom options) and 26 private memory care units. The memory care units will contain separate dining and gathering areas, with a large, landscaped courtyard being the connector in the center of the building. Other community amenities include activity areas, rooftop garden, café, movie theater, library and... Read More »
Skilled Nursing Needs A Break
With pressure from the media, the public and government agencies, the skilled nursing industry will be losing some of its best people. Not the time for that to happen. A good friend of mine sent me an article about a New York nursing home administrator who is angry at the fact that nursing homes have been villainized and scapegoated, especially in New York. Where were the car parades in front of nursing homes, like they were in front of hospitals, thanking them for caring for the frail elderly, he asks, and risking their lives as well? Nonexistent, sadly. He couldn’t take it anymore, and moved to Michigan, where he is happily working as an administrator after 20 years in New York. He has... Read More »
Sabra Acquires Two Seniors Housing Communities
In the March issue of The SeniorCare Investor, we wondered when REITs would become net-buyers in the senior care M&A market, after several years of massive divestments. There are clearly some good deals available out there for value-add properties, and if there has been any softening in prices, those bargains may extend to stabilized communities too. Sabra Health Care REIT announced in its fourth quarter earnings call that it plans on spending approximately $1.5 billion on acquisition opportunities, with the majority allocated to be seniors housing assets. A couple of transactions have now trickled out, and sure enough, both involved seniors housing properties selling... Read More »
JLL Handles Latest Healthpeak Sale
Mike Garbers and Cody Tremper of JLL represented Healthpeak Properties in the sale of an assisted living/memory care community in Kenmore, Washington. This one-off transaction included an 85-unit community that had been underperforming since the end of 2018. The property was also in need of some capex. Sunrise Senior Living previously operated the community, but day-to-day management will be taken over by the new owner, Pacifica Properties, which paid $4.5 million, or $52,900 per unit. There was no cap rate on the deal. The JLL team was also involved in the sale of two seniors housing communities in Florida. Previously owned by Prime... Read More »
Blueprint Arranges Atlanta-Area Transaction
Brooks Blackmon, Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors represented a national owner/operator in its sale of a 160-unit assisted living/memory care community located near Atlanta, Georgia. The large, well-maintained community is set in an affluent suburb and recently underwent a multi-million-dollar renovation. It catered to a more middle-income resident, but occupancy had been lagging for some time before the sale. Blueprint leveraged the asset as an opportunity to buy a community in a major metro area for significantly below replacement cost and yielded seven qualified offers in the bidding process. Ultimately, a buyer with a... Read More »
Eastern Union Secures Bridge Financing For FL and MA Facilities
The Healthcare Group of Eastern Union secured a large bridge financing to support the acquisition of two skilled nursing facilities in Florida and the recapitalization of two in Massachusetts. Nachum Soroka, director of the group, led the transaction, with Jacob Schonland also playing a key role. A total of $57 million in bridge debt was arranged, coming with a three-year term, two years of interest only and a floating rate tied to LIBOR. Eastern Union secured the debt on a limited recourse basis at an 85% loan-to-value ratio. Eastern Union president Ira Zlotowitz and capital markets specialist Michael Wyne also helped on the Florida deal, which included... Read More »Schedule a demo
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