Recent Senior Care M&A Deals, Week Ending July 19, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Baptist Homes of IndianaThe Barrington of Carmel$61 million National Health Investors, Inc.Legacy Commons of Pueblo West$7.5 million New Jersey-based owner/operator3 skilled nursing facilitiesN/A Local doctorThe Mount Vernon House$2.8... Read More »
When an EB-5 Investment Goes Wrong
Sometimes a brand-new physical plant and high-quality operator isn’t enough to keep a senior care facility from hitting financial difficulties. That was the case of a two-year old transitional care facility in Tucson, Arizona that just sold to a Chicago-based owner/operator in a transaction led by Amy Sitzman, Jacob Gehl and Humair Sabir of Blueprint Healthcare Real Estate Advisors. Developed at an approximate cost of $24 million, or $270,000 per bed, the 103-bed facility was not open for very long before it was placed into SEC receivership under the supervision of Thomas Seaman and Associates. Why? The group (unrelated to the operator) who raised the EB-5 equity for the project had... Read More »
Cushman & Wakefield Arrange Financing for Stabilizing Property
A 195-unit senior living community still in lease-up just refinanced its construction debt with the help of its advisors: Richard Swartz, Jay Wagner and Jim Dooley of the Cushman & Wakefield Senior Housing Capital Markets team. A partnership between Pike Senior Housing Partners and operator Solvere Senior Living developed the community in Hamilton, New Jersey, about 11 miles from Princeton, at a cost of $59.1 million, or just over $300,000 per unit. They opened the independent living units first, in November 2017, and followed that up with the licensed assisted living and memory care units in April 2018. Rents begin at $2,800 for IL, $3,950 for AL and $5,600 for MC. Occupancy is... Read More »
Flashback Friday: When Liquidity Dried Up in Senior Care
We are living through a time of unprecedented capital flowing into the seniors housing and care market. Lenders are crowding into the space (if you need proof of this, just look at all the green lanyards signifying capital providers at NIC). Private equity firms report billions of dollars of funds currently sitting on the sidelines because there is simply too much to spend. Debt is extraordinarily cheap, and has been for years. Some say this is a problem, and we agree to a certain extent, especially concerning “dumb money” from inexperienced investors. But, what is a worse problem? How about no liquidity. Let’s take a step back to the November 2007 issue of The SeniorCare Investor, when... Read More »
Chicago Pacific Founders Acquires Pittsburgh Portfolio
Chicago Pacific Founders announced its second acquisition for July, following up on its purchase of a senior living community in Scottsdale, Arizona by picking up three senior living communities in the Pittsburgh, Pennsylvania market. One of the communities, in North Versailles, was opened in 2009 and is fully stabilized. The other two were opened more recently, in April 2017 for the Bethel Park community and just earlier this year for the community in Pittsburgh. So, cash flow was uneven across the portfolio. The two older properties are independent living communities, while the newest property also features personal care units. As usual, Chicago Pacific Founders’ operating subsidiary,... Read More »
Canyon Partners Provides Preferred Equity for California Development
Canyon Partners Real Estate LLC, the real estate direct investing arm of global alternative asset manager Canyon Partners, just made its third equity investment in a seniors housing development, partnering with operator Griffin Living in each project. The latest development is located near Westlake Village, California, and will feature 86 units, 58 for assisted living and 28 for memory care. There are two medical centers nearby, along with retail centers, entertainment and other amenities. To finance its construction, Canyon Partners provided $10.9 million of preferred equity. The two other senior living projects developed in collaboration between Canyon Partners and Griffin Living are... Read More »
Ziegler Finances SNF Expansion for Large Florida CCRC
A massive senior living community in Fort Myers, Florida, has plans to replace its skilled nursing facility, and just received bond financing to do it. Ziegler arranged the placement of the $81.16 million in bonds for the Obligated Group, which consists of two Florida not-for-profit organizations: The Christian and Missionary Alliance Foundation, Inc. (d/b/a Shell Point) and The Alliance Community for Retirement Living, Inc. Shell Point operates the Fort Myers campus, which includes 1,292 independent living units, 410 assisted living units and 219 skilled nursing beds spread across two locations that total 225 acres. The campus has come a long way from the original 48 IL units built in... Read More »
Where Is the Seniors Housing Rebound?
Seniors housing occupancy rates still remain low despite an apparent slowdown in new development. Whether you look at the total market, or simply the stabilized properties, second quarter occupancy took a small dip, according to recent numbers from NIC. Truth be told, I was hoping for a slight increase after a relatively modest flu season, even though it did seem to linger. But NIC’s numbers are at the midpoint of the quarter, so things could be more positive by now. It is still assisted living that is experiencing the continuing problems, dropping 20 basis points sequentially to 87.7% for stabilized communities, but 85.1% when the rest are included. One could look on the bright side and... Read More »
Brookdale Activists Strike Again
We disclosed last week that activist investor Land & Buildings (L&B) had nominated Jay Flaherty, former CEO of HCP, Inc., and Jonathan Litt (founder of L&B) for board election at the 2019 annual meeting of Brookdale Senior Living. L&B has just sent an open letter to Brookdale shareholders providing more rationale for the election of these two candidates. Apparently, L&B hired Green Street Advisors to value Brookdale and its real estate assets, and to provide an opinion as to the feasibility of a PropCo/OpCo split of the company, something Litt has been pushing for quite a while now to enhance shareholder value. Not surprisingly, preliminarily they determined that... Read More »
Another Lender Enters Senior Living Development Space
Senior living development is certainly not starved for capital, as another lender has entered the senior living development space. Commercial Real Estate Finance is currently involved in the retail, multifamily, single-family and hospitality markets, but it recently added a senior living division. Its services were retained by WRC Development Partners LLC to procure a $26 million construction loan for the development of an assisted living/memory care community in Columbus, Ohio. The property will feature 115 units and 130 beds. Commercial Real Estate Finance also arranged $34 million in development financing for a 132-unit senior living community being built by WRC in New Windsor, New... Read More »Schedule a demo
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