CareTrust REIT Adds Escondido Community to Portfolio
San Clemente, California-based CareTrust REIT acquired a memory care community in nearby Escondido (located about 20 miles north of San Diego) and retained the in-place operator Bayshire, LLC, which has managed the property for the seller since 2016. Originally built in 1981 as a skilled nursing facility, the property was converted to memory care and extensively renovated in 2015. It now includes 96 licensed beds in 52 units. Including about $100,000 in transaction costs, the REIT paid $12.6 million, or $242,300 per unit, for the recently-renovated community. Cushman & Wakefield’s team that includes Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker, Tim Hosmer and Bailey Nygard... Read More »
SunTrust Bank Refinances Runk & Pratt Community
Runk & Pratt, a family-owned operator of senior living communities in western Virginia, refinanced its 171-unit independent/assisted living community in Lynchburg with the help of SunTrust Bank. This isn’t the first transaction between the two. SunTrust had funded Runk & Pratt’s acquisition of the property in 2016 with a short-term bridge loan. Built in 2014, the community has been historically well occupied and generates strong cash flow. Taking out the acquisition debt, it received a $30.9 million Fannie Mae loan, with no recourse, a fixed rate for 10 years and a 30-year amortization schedule. Joshua Hausfeld handled the transaction for SunTrust. Just a year earlier, SunTrust... Read More »
Acquisition Market Remains Strong
Transaction volume is still running ahead of last year’s record, fueled by liquidity and low interest rates. As of yesterday, seniors housing and care acquisition volume was still running ahead of last year’s record-setting pace. We are well over 300 transactions so far in 2019, and September is already looking to beat last year’s September, with several days to go. The question still remains, how long can this go on? The simple answer is as long as liquidity in the market remains at current levels. And that liquidity will remain as long as returns stay higher than alternative investments. They have, and low interest rates have not hurt. The other question is, when will the slow... Read More »
Senior Housing Properties Trust Divests More Five Star SNFs
Senior Housing Properties Trust (SNH) continued its Five Star Senior Living (FVE) portfolio restructuring with the sale of 15 skilled nursing facilities in the Midwest. Mike Segal, Ben Firestone and Steve Thomes of Blueprint Healthcare Real Estate Advisors handled the transaction for SNH, which made a strategic decision to sell the entire portfolio in one deal to one buyer. The sale was part of SNH’s previously announced disposition plan to sell up to $900 million of assets in connection with the FVE restructuring. The portfolio consists of 10 facilities in Nebraska, four in Iowa and one in Kansas, and sold for a combined $8 million. According to FVE’s 2018 Annual Report, the Nebraska... Read More »
Long-Time Lessee Acquires SNF Portfolio
To say that the buyer of a portfolio of nine skilled nursing facilities located across the eastern United States was familiar with the properties may be an understatement. That is because the Tennessee-based operator has leased the buildings since 2004 and finally jumped on the opportunity to purchase the real estate. Located in Florida, Maryland, Michigan, Tennessee and Virginia, the portfolio totals 1,167 operating beds with an average occupancy of 85.8%. To fund the acquisition, the buyer turned to Berkadia, which served as lead lender for a $52.2 million bridge-to-HUD loan for seven of the properties. The other two properties received a $24.6 million mini-perm loan through a bank... Read More »
Cushman & Wakefield’s Latest Recap
The Tampa-based Cushman & Wakefield Senior Housing team of David Kliewer, Paul Carr and Allen McMurtry followed up on their sale of a 78-bed memory care community in Florida for $19.5 million (as reported in The SeniorCare Investor earlier this month) with the recapitalization of a 114-unit senior living community also located in the southeast. Opened in 2017, the property features 28 independent living, 68 assisted living and 18 memory care units. Current occupancy is around 65%, but no other details were disclosed. Read More »
Recent Senior Care M&A Deals, Week Ending September 20, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Covenant Living Communities and ServicesInverness Village$41 million Schonberg CareSt. Margaret’s at Belleville Assisted LivingN/A Cedar CommunitiesBrookside of Commerce & Brookside of Stone Mountain$9.75 million Opal Senior LivingBristol Terrace Assisted Living$4.05... Read More »
MedCore Wraps Up Southwest Portfolio Acquisition
MedCore Partners finalized its five-property portfolio acquisition of assisted living/memory care assets in the Southwest, originally announced in February. Back then, MedCore together with its joint venture partner Trinity Private Equity Group (TNRG) acquired four newly built communities in Arizona (3) and Utah with 409 total units for approximately $98 million, or $239,600 per unit. Watermark Retirement Communities took over management of each of the properties, which were still in lease-up. SunTrust Bank provided the senior loan for the acquisition. Now, MedCore, Trinity and TNRG Development closed on the fifth property in the portfolio, a just-opened senior living community with 22... Read More »
Schonberg Care Invests in New Orleans
Schonberg Care, a family-owned operator of senior living communities in the Southeast, recently added an assisted living/memory care community in New Orleans to its growing portfolio. Originally built in 1898 as the Belleville Elementary School, the building was converted to senior living in 1989. It currently has 53 assisted living and memory care units ranging from 300 to 800 square feet. Units offer a kitchenette, living room, private bath and separate bedroom. There is also a courtyard patio with fountains and tropical landscaping. Schonberg acquired the community earlier this summer and has been hard at work ever since, overseeing a $1 million renovation of the property that was just... Read More »
The Brookdale/Land & Buildings Saga Continues
Many of you may have seen Brookdale Senior Living’s proxy statement filed in response to activist shareholder Land & Buildings’ efforts to put former HCP CEO Jay Flaherty on the company’s Board of Directors, presumably to further its own demands to split Brookdale into an OpCo and PropCo in order to “maximize value for all Brookdale shareholders.” All we can say is, well done to Brookdale and CEO Cindy Baier for standing up to this pressure. We can’t say that we have always supported the decisions made by Brookdale executives and the Board, starting with its acquisition of Emeritus Corp. in 2014. Many pages in The SeniorCare Investor over the years have been dedicated to this topic. We... Read More »Schedule a demo
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