Recent Senior Care M&A Deal Chart, Week Ending November 13, 2020
Senior care M&A seems to be picking up, with a couple of large skilled nursing portfolio deals announced. Check out our recent deal chart. Long-Term Care AcquirerTargetPrice CareTrust REITApple Rehab Cooney & Elkhorn Healthcare & Rehabilitation$16.5 million Omega Healthcare Investors7 skilled nursing facilities in VAN/A Radiant Senior Living3 seniors housing communitiesN/A 2 regional owner/operators21 skilled nursing$86... Read More »
Eagle Arc Partners Acquires 20 Skilled Nursing Facilities
Eagle Arc Partners, formerly known as BM Eagle Holdings, has made yet another large investment in the skilled nursing industry, acquiring 20 skilled nursing facilities, with 18 in Florida and one each in Mississippi and Georgia. All will be leased to local operators going forward. To fund the deal, Eagle Arc, which is run by Elliott Mandelbaum, worked with Capital Funding Group (CFG) to close a $317.5 million bridge-to-HUD financing package. CFG provided the financing through its new credit venture, CFG Credit Partners, LLC, an off-balance sheet credit venture managed by CFG Asset Management. The new venture expands the company’s bridge-to-HUD lending capacity, a welcome sign... Read More »
The Pennant Group Swinging For The Pennant
We don’t know what is in the water out west (well, yes, we do) that makes The Pennant Group and its former parent, The Ensign Group, so successful. As readers know, Ensign returned the federal CARES Act funds they had received and posted another good quarter. Taking in COVID patients at its nursing facilities, and the higher rates that come with that, certainly helped. But the spin-off Pennant Group also had a solid quarter, when its seniors housing friends did not fare as well. But Pennant’s home health and hospice business performed quite well, as did most of that sector, benefitting from the desire to be treated at home when institutional care seemed a... Read More »
Blueprint Handles Sentara Healthcare’s SNF Exit
We covered Virginia-based hospital system Sentara Healthcare’s exit from the skilled nursing business in September and recently learned of Blueprint Healthcare Real Estate Advisors’ involvement in the deal. Sentara’s exit was brought about because of its planned merger with North Carolina-based Cone Health; however, the combined business will still maintain two PACE facilities in southeastern Virginia. The skilled nursing portfolio consists of seven facilities located throughout southern Virginia, with five surrounding the Norfolk/Virginia Beach market. They were mostly built in the late-1980s and early 1990s, with one opening more recently in 2017. They range in size from 84 beds to 216... Read More »
Cushman & Wakefield Refinances Phoenix CCRC
Several years after financing the acquisition of a CCRC in Phoenix, Arizona, Cushman & Wakefield is returning to refinance the property in a $13 million deal. Featuring a total of 327 units, made up of 100 independent living units, 171 assisted living units, 29 memory care beds and 60 skilled nursing beds, the community is set on a 14-acre campus in northern Phoenix. A joint venture between an affiliate of Westport Capital Partners LLC and Integro Healthcare Consulting, LLC acquired it in 2017 for an undisclosed sum, with the help of a $15.1 million financing commitment from PNC Bank and arranged by Cushman & Wakefield. The debt also helped fund immediate renovations and a... Read More »
Ziegler Structures Debt For Radiant Senior Living Acquisition
Ziegler served as exclusive capital structuring advisor on a debt placement for the borrower, Radiant Senior Living, to acquire a portfolio of three seniors housing communities in the Pacific Northwest. Two of the properties are located near Seattle, Washington, while the third is in Bozeman, Montana. Previously owned by a publicly traded REIT, they combine for 36 independent living and 204 assisted living units and generate in-place, stabilized cash flow. However, there is an opportunity to add value through economies of scale, which suits Radiant and its 18-property portfolio in the Pacific Northwest. The $42.6 million in financing consisted of both senior and mezzanine debt,... Read More »
Valuing SNFs During The Pandemic
With occupancy at historic lows, and expenses in flux, it has been difficult to value nursing homes in today’s market. But it is happening every day despite the uncertainty. With occupancy still in turmoil and many nursing homes reliant on federal aid to pay the bills, it must be quite difficult to underwrite and value individual nursing facilities, let alone a portfolio of them. But it is happening every day. What assumptions do you make for occupancy, and census mix? What is a normalized level of PPE expenses, and will this be indefinite? And then you have labor costs and supply. With a Biden/Harris administration, is a $15 national minimum wage around the corner, and will... Read More »
SLIB Handles CBRF Sale in Wisconsin
Ryan Saul and Patrick Burke of Senior Living Investment Brokerage handled the sale of a 50-unit assisted living community in Racine, Wisconsin, five years after the community last sold. The buyer back then (and the current seller) was Meridian Senior Living and its joint venture partner Blue Vista Capital. They paid $6.5 million, or $130,000 per unit, for the community, although we do not know the 2020 sale price. Originally built in the 1960s but gutted, renovated and converted to a Community-Based Residential Facility (assisted living community) in 2008, the community was around 94% occupied at the time of the November 2015 sale. The operating margin also stood at 25% at that time,... Read More »
Senior Care Soars
What happened on November 9 was a bit of a shock, but in a good way. Senior care and REIT stocks soared after a year of forgettable foibles. The reason? Pfizer’s announcement that its COVID-19 vaccine was more than 90% effective, and that it could be available very soon, combined with the apparent end of the presidential election with Joe Biden the victor. We believe it was the end of the uncertainty on both accounts that pushed the market up. For those not paying attention, the Dow Jones Industrial Average at one point during the day hit a record high of 29,933, up 5.68% from the previous close. It ended the day up 2.95%. But it was the senior care market and its related REITs... Read More »
Walker & Dunlop Arranges Montana SNF Sale
Walker & Dunlop announced its involvement in the sale of two skilled nursing facilities in Montana to CareTrust REIT. We recently covered the transaction, which represented CareTrust’s first since the pandemic began earlier this year. The facilities include Apple Rehab Cooney, an 80-bed facility located on the campus of the St. Peter’s Health Regional Medical Center in Helena, and Elkhorn Healthcare & Rehabilitation, a 70-bed facility in nearby Clancy. Eduro Healthcare took over operations. Using cash on hand, CareTrust paid around $16 million, or $106,700 per bed, for the facilities, inclusive of transaction costs. Tony Cassie and Sam Thompson of Walker & Dunlop... Read More »Schedule a demo
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