Recent Senior Care M&A Deals, Week Ending February 5, 2021
A couple of brokerage firms reported a fast start to February, so check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Local owner/operatorBarnett Woods$3.5 million New York-based ownerAsbury Park$10 million Local owner/operatorThe SunRidge PortfolioN/A Regional owner/operatorPlantation Oaks of High Springs$9.15... Read More »
Omega Healthcare Investors Buys 24 Properties
The fourth quarter earnings season is upon us, and Omega Healthcare Investors announced that it just closed a very significant acquisition. The REIT purchased 24 senior living communities for $510 million, or $199,840 per unit, from Healthpeak Properties. The acquisition included the assumption of an in-place master lease with Brookdale Senior Living for the properties, which are located in 11 states. The concentration is in Oregon (6 states), Texas (6) and Washington (4), with one each in the other eight states. The annual lease payment is $43.5 million with a 2.4% annual escalator. That results in an 8.5% current lease yield, which is quite attractive,... Read More »
Senior Living Investment Brokerage’s Fast February Start
Whoa, was it a week for Senior Living Investment Brokerage or what? Our inbox was peppered with closings from several SLIB teams, and the deluge doesn’t appear to be over, with a few more closings expected next week. And to think they would rest on their laurels after a strong second-place finish in terms of deals closed in 2020, according to our just-released Broker Rankings in February’s issue of The SeniorCare Investor. Jason Punzel, Brad Goodsell and Vince Viverito kicked off the week with an independent living community sale in Medford, Oregon, which we profiled here. But Nick Cacciabando and Jeff Binder soon announced their own sale... Read More »
Interview With Alex Florea, Blueprint’s New Head of Capital Markets
Ben Swett, Editor of The SeniorCare Investor, sat down with Alex Florea, the new Head of Capital Markets at Blueprint Healthcare Real Estate Advisors, to discuss the current challenges facing borrowers in the seniors housing and care lending market. Read More »
Evans Senior Investments Sells Florida Community
Fresh off three top-five finishes in our Broker Rankings (see the story in Februrary’s issue of The SeniorCare Investor), Evans Senior Investments represented the independent owner/operator of a 66-unit assisted living/memory care community in High Springs, Florida in the property’s sale. Originally built in 1988 with a 36-unit expansion in 2014, it currently features 46 assisted living and 20 memory care units. The community holds a Medicaid license on the 72 licensed beds, and 71% of the census was private pay residents. Based on beds, occupancy averaged 92% during the twelve months prior to the sale, and the operating margin was a strong 28% on nearly... Read More »
Lument Arranges Fannie Mae Refinance
Lument recently arranged a $28 million refinance through Fannie Mae for a 105-unit independent living/assisted living community in Solana Beach, California (San Diego MSA). The loan features a 10-year term, five-years of interest only and a 30-year amortization. Plus, the borrowers, Senior Resource Group and its equity partner Collins Development Company, were able to obtain substantial cash-out proceeds. Doug Harper led the transaction. Read More »
Greystone Finances AL/MC Community Through Freddie Mac
Greystone’s Seniors Housing Capital Markets team recently provided a $27 million Freddie Mac loan to refinance an assisted living/memory care community in the southwestern United States. Featuring 69 units, it is owned by Harbert Seniors Housing Fund I and operated by an experienced seniors housing provider. The loan came with a 10-year term. Read More »
Long-Term Care Insurance Moratorium?
In a lack of wisdom, North Dakota legislators are considering a bill to ban long-term care insurance policy sales for three years. Just as Medicaid funding is getting stretched and the need for long-term care services will be increasing, North Dakota is apparently considering a bill that would impose a three-year ban on the sale of long-term care insurance policies. Really? The sponsors want to study the market and the history of premium increases. Great, and they have every right to do so, but to ban sales for three years while you “study the market”? Come on, how big is the market in North Dakota? Spend a week. Look, long-term care insurance is not perfect, and there are Cadillac... Read More »
Diversified Healthcare Trust Update
Diversified Healthcare Trust is feeling the pain that most of the REITs also have been feeling: census is still dropping. Its senior housing operating portfolio (SHOP) posted a 380-basis point decline in census in the fourth quarter. While not good, the progression was worse. It started with a 70-basis point drop in October, growing to 130 basis points in November and then a plunge of 180 basis points in December alone. And this when 93% of its SHOP communities, the vast majority managed by Five Star Senior Living, are open for new admissions. What this means is that just because you are open for business, it does not necessarily mean people will move, even if it is safer... Read More »
Blueprint Closes Kerrville, Texas SNF Deal
Jacob Gehl and Humair Sabir of Blueprint Healthcare Real Estate Advisors kicked off the firm’s 2021 M&A activity with a memory care sale in Kerrville, Texas. Built in 2001 with 36 units, the community was last acquired in 2014 by a private partnership for $2.4 million, or $66,700 per unit, according to our M&A deal database. It was losing money at the time because of high staff turnover, but thanks to a good reputation in the local market and vastly increasing its staff tenure, the community was operating well, with occupancy regularly above 90% and the operating margin around 30%. Still, a new owner could take advantage of scale to grow cash flow even more, and that... Read More »Schedule a demo
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