Recent Senior Care M&A Deals, Week Ending February 26, 2021
February wrapped up, and senior care M&A was quite light. But check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Focus Healthcare Partners LLCThe Mansions PortfolioN/A Elysian Senior HomesOlive Branch Estates$5.5 million Texas-based operatorSkilled nursing facility in TX$13.1 million Levante Living Trust3 senior living communities$28.0 million... Read More »
Brookdale Selling Home Health & Hospice Business
While not a surprise, since rumors had been floating around for a while, Brookdale Senior Living announced with its fourth quarter earnings that it has agreed to sell an 80% interest in its home health and hospice business (including its outpatient therapy business) to HCA Healthcare, the hospital giant. The sales price is $400 million, implying a $500 million valuation for 100% interest. This comes to about 1.36x revenues for the trailing four quarters ended December 30, 2020, and perhaps 18x to 20x 2021 normalized EBITDA. Last year, we wrote that it would be a home run if they could get any price north of $400 million, so maybe this is a grand slam since they got that... Read More »
Alta Senior Living Targets Middle Market
As it grows throughout the 2020s, the senior living industry will have to provide more “middle market” options to seniors. With that in mind, senior living veteran Douglas Brawn has launched a new operating company called Alta Senior Living. Mr. Brawn comes from Welbrook Senior Living where he was a Principal. Based in both Santa Monica, California and West Palm Beach, Florida, the vertically integrated real estate investment firm is primed to grow through value-add acquisitions and ground-up development. They plan to operate as well and will benefit from an assembled team with tenured experience in senior living M&A, development, asset management,... Read More »
KeyBank Closes Two Financings
KeyBank Real Estate Capital closed a couple of transactions for seniors housing and care clients this week, starting with a HUD refinance of two skilled nursing facilities in Las Vegas, Nevada. Built in 1998 and renovated in 2013, Silver Hills comprises 150 operating beds in 80 units and provides physical, speech and occupational therapy. Silver Ridge was built in 1999 with 147 operating beds in 78 units and provides both in-house and outpatient therapy services, including respiratory therapy. Both are owned by Capital Senior Ventures and operated by Covenant Care. KeyBank’s John Randolph, Grant Saunders and Peter Trazzera originated and structured a $30.8 million HUD refinance, with a... Read More »
Lument Arranges Freddie Mac Refinance
Lument’s seniors housing and healthcare team closed a Freddie Mac refinance of a seniors housing community in Papillon, Nebraska. Set on the 44-acre Hillcrest Country Estates senior care campus, which provides the full continuum of care, the community in question features 102 independent living and 60 assisted living/memory care units. It is owned by Hillcrest Health Systems, a provider of senior care, home health care and telemedicine at its seven locations across Nebraska. Lument’s Quintin Harris, Doug Harper and Casey Moore arranged a non-recourse $41.5 million loan from Freddie Mac, with a 10-year term and 30-year amortization. The transaction replaced existing... Read More »
Senior Care Leading Indicators
There has not been a lot of good news, but given some leading indicators, the next development boom may be a bit further out than we had expected four months ago. Our focus for the past 12 months has been on the coronavirus pandemic and what it has done to seniors housing and care occupancy rates. We are also on record as stating that getting back to pre-pandemic census levels may take up to four years, partly because we expect development to ramp up again when developers eye the post-2025 demographics. But something else has been happening that may keep some builders away. First, the 10-year treasury rate has more than doubled in the past seven months. Yes, 1.36% is still attractive, but... Read More »
Walker & Dunlop Announces Georgia Portfolio Sale
The Walker & Dunlop Investment Sales team including Joshua Jandris, Mark Myers, Brett Gardner and Jordyn Berger has closed the sale of an independent living portfolio in the Atlanta, Georgia metro area. Not only that, but Russ Dey of Walker & Dunlop secured acquisition financing through Freddie Mac on three of the properties. More details on the transaction will be revealed next week, but what we know is that the portfolio comprises four newly built, “A” quality communities, with a combined 559 units. Dubbed “The Mansions Portfolio,” the communities were previously owned by a consortium of local and out-of-state developers. Focus Healthcare Partners was the buyer. Stay tuned next... Read More »
CIBC Bank USA Refinances Two Tennessee SNFs
Two skilled nursing facilities in Tennessee recently refinanced their debt with the help of CIBC Bank USA. Totaling 340 licensed beds with an effective age of 20 years, the facilities have been run by a local operator for a number of years. Under that management, effective occupancy has been in the 70% range, with EBITDAR margins in the high-teens, which is quite good for SNFs these days. With that lower occupancy, we’re guessing there was a healthy Medicare and/or private pay patient census. Ownership obtained a five-year, $20 million loan on the real estate, also giving them some cash out. CIBC Bank USA also helped secured a $1.0 million capital expenditures facility for... Read More »
Tryko Partners Developing Pittsburgh Seniors Housing
Selected by The Urban Redevelopment Authority of Pittsburgh to redevelop a former school in the city to serve the needs of both low-income and middle-income seniors, Tryko Partners just obtained a gap financing commitment from the Pittsburgh Housing Authority to help fund the project. Formerly the Fairywood School in the city’s west end, the site will include a total of 46 one-bedroom units with covered porches, including 39 reserved for low-income residents. There will also be a community building where residents can take advantage of financial literacy, nutrition and exercise programs, health screenings, and other support services for seniors. The project would also anchor a... Read More »
LTC Properties Transitioning Senior Lifestyle Corp.
LTC Properties reported fourth quarter and full year earnings late last week, and while there is some uncertainty, management appears to have a good handle on how they are dealing with it. This is especially true with the 23 communities leased to Senior Lifestyle Corporation (SLC), which we will get to below. One interesting statistic that came out is that with 71% of their private pay tenants reporting, actual occupancy dropped from 79% on September 30 to 72% on December 31, one of the largest quarterly declines we have seen. The good news is that one month later occupancy stood at 71% on January 31, so the rate of decline has slowed significantly. LTC’s... Read More »Schedule a demo
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