OH-Based Buyer Purchases Pittsburgh-Area SNF
An Ohio-based owner/operator bought a Pittsburgh-area skilled nursing facility in a deal arranged by Evans Senior Investments. Built in 1995 and maintaining a four-star rating, this 120-bed facility was locally owned and operated. However, this was the seller’s only skilled nursing facility, and occupancy stood at just 72%. High expenses also resulted in barely $50,000 of NOI on about $8.93 million of revenues, and performance was declining. So, Evans ran a confidential marketing process to a group of regional owner/operators and obtained six competitive offers within 30 days. An Ohio-based owner/operator wishing to grow its presence in Pennsylvania ended up as the buyer,... Read More »
Two REITs Close Couple of Loans
A couple of REITs in good financial shape (and still open to making new investments) announced a couple of loans closed for senior care facilities. CareTrust REIT completed a $15 million secured mezzanine loan for Next Healthcare’s acquisition of a nine-property skilled nursing portfolio with approximately 1,000 beds in Virginia. The loan came with a five-year term and annual interest rate of 12%, with CareTrust funding it from its $600 million unsecured revolving credit facility. White Oak Healthcare Finance was the senior lender on the deal. Then, National Health Investors funded a $22.2 million construction loan for the development of a 110-unit senior living community in Sussex,... Read More »
Colliers International Handles Two Transactions
Colliers International has been busy this week, closing the sale of a Section 8 senior apartment community in New Jersey and also a trio of HUD mortgages for three market-rate senior co-ops in the Midwest. First, to the sale. Colliers represented Squiretown Properties LLC in its disposition of a 405-unit community in this Newark suburb of East Orange. Built in 1980, but with no major renovations since then, the community’s affordability status was set to expire in 10 years. However, a partnership between Community Preservation Partners and L+M Development Partners has extended that to 30-years with their acquisition of the community. The purchase price totaled $94 million, or $232,100 per... Read More »
National HealthCare Corporation Divests St. Louis-Area SNF
After an attempt to replace its 282-bed skilled nursing facility in Town and Country, Missouri (St. Louis MSA) with a senior living community, and then running into zoning and planning problems earlier this year, National HealthCare Corporation (NHC) decided to sell the facility instead to a St. Louis-based owner/operator. Census challenges and quality of care issues plagued the SNF for several years. Like so many facilities across the country, this was also an older property (built in 1962). So, NHC worked with Ryan Companies to develop a new 187-unit senior living community which would feature independent living, assisted living and memory care services. The cost was estimated to be... Read More »
Virginia SNF Sells With Monticello Financing
MONTICELLOAM, LLC (Monticello) has provided $42.08 million in first lien debt to support the acquisition of a large skilled nursing facility in Virginia. The buyer was an experienced owner/operator that has previously worked with Monticello, including the funding of several other skilled nursing acquisitions in 2020. Monticello also provided a $3.5 million working capital loan to the facility’s operating company. Read More »
An Interview with Hamilton Insurance
Nearly 20 years ago, the insurance industry faced a major crisis as many insurers removed themselves from the general liability market, leaving providers naked from a coverage perspective. As a result, entire portfolios were sold off due to overpriced liability coverage and its lack of availability. We sat down with Keith Parnell and Jason Zuccari of Hamilton Insurance Agency to discuss the state of the market as the pandemic looms over the country. Hamilton is a family-owned operation and one of the nation’s largest independent insurance brokerage firms that has specialized in the senior housing and long-term care space for more than 40... Read More »
Recent Senior Care M&A Deals, Week Ending November 26, 2020
It was a short week, but there were still a number of senior care deals announced. Here’s our latest deal chart. Long-Term Care AcquirerTargetPrice In-state provider & Large national owner-operator4 skilled nursing facilities in TXN/A Owner/operatorSkilled nursing facility in VA$42.1 million+ Local operatorSkilled nursing facility in NJN/A Commonwealth Senior LivingCedar Manor Assisted LivingN/A SRZ ManagementNHC Healthcare Town &... Read More »
South Florida CCRC Funds Multi-Phase Expansion Project
HJ Sims secured long-term, fixed-rate bond financing for a CCRC in Pompano Beach, Florida (Fort Lauderdale MSA). Set on 70 acres, not-for-profit John Knox Village has been serving the local community for more than 50 years. It features nearly 1,000 units of mostly independent living, with a 64-unit assisted living community and a 194-bed skilled nursing facility. It is continuing to grow, with a $3.9 million welcome center with sales, marketing and discovery rooms, in addition to conference rooms and a nearly 2,500-square foot open-air space for communal gatherings, going up this spring. A massive aquatic center is replacing a small pool area with a resort-style... Read More »
Regions Banks Secures Balance Sheet Loans
Regions Bank announced a couple of balance sheet refinances for senior care clients. The first was closed for an 84-unit assisted living/memory care community in the suburbs of Honolulu, Hawaii, and we hope a site visit (or two) was required. Developed in 2016 by a large, senior living owner/operator based in southern California, the community was about 92% occupied at closing. It received a $29 million non-recourse balance sheet loan, which comes out to approximately $297,000 per unit, to repay an existing HUD loan and provide low leverage loan proceeds for an adjacent land parcel. It came with a floating rate and initial term of three years, plus an interest-only period... Read More »
Commonwealth Senior Living Adds to Dominion State Portfolio
Commonwealth Senior Living expanded its Virginia portfolio with the addition of a 72-unit senior living community in Chesapeake, located near the North Carolina border. This represents the 27th community in Virginia for Commonwealth and 33rd overall in its portfolio. There are eight communities in the Norfolk MSA, so the company should be able to take advantage of some economies of scale. Chesapeake Regional Healthcare built the property in 2001, and it currently features 60 assisted living and 12 memory care units. However, Commonwealth will immediately begin renovations to the building, expand its capacity to 68 assisted living and 32 memory care beds, and rebrand the property as... Read More »Schedule a demo
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