Clousing Sizzles in the Southeast
The summer heat isn’t getting to Brad Clousing of Senior Living Investment Brokerage, who recently closed two transactions in the Southeast. First, Mr. Clousing was joined by Daniel Geraghty and Dave Balow to sell a personal care community about 65 miles northeast of Atlanta. Originally built in 1994, the community operates with 24 private personal care units and 10 semi-private memory care units. It was extensively renovated in 2015 and offers additional room for an expansion. With the renovation complete and the community stabilized at 97% occupancy, its local owner/operator decided to exit the asset. A Northeast owner/operator entered the Georgia market with its purchase of the... Read More »
O&M Investments Adds Another SNF
Private equity firm O&M Investments acquired a value-add skilled nursing facility in the Dallas, Texas market. At face value, this appears to be a good opportunity for O&M to generate a healthy return. First, the facility is relatively new at just 13 years old, with improvements made in 2010. Second, it recently converted a wing of the facility to skilled memory care, which should improve quality mix (currently at 16%) and revenues. Because of the conversion, the facility currently operates with 104 out of 124 licensed beds, with 83% occupancy based on the functional beds. Finally, the facility is located in an affluent, inner suburb of Dallas (Richardson), which certainly doesn’t... Read More »
29th Street Capital Enters Senior Living Market
There’s a new private equity investor in the senior living market. 29th Street Capital, a firm focused on value-add purchases in the multifamily space, partnered with Knoxville, Tennessee-based developer/operator Solinity to make its first acquisition in the metro Atlanta area. The target was a 25-unit assisted living community in Norcross. Built 32 years ago, it is currently receiving renovations to its exterior, units and common areas to improve operations (and add value). 29th Street and Solinity renamed the community under their new brand, Enrich Senior Living. Look for the partners to grow their holdings across the Southeast. Read More »
Recent Senior Care M&A Deals, Week Ending June 28, 2019
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Partnership buyerSavannah Commons$13.22 million Elmington Senior Living2 assisted living communitiesN/A Vincentian Collaborative SystemSchenley Gardens$7.5 million Senior Living CommunitiesWildewood Downs$35... Read More »
Capitol Seniors Housing Opens High-End Maryland Community
Capitol Seniors Housing just opened an assisted living/memory care community in the Baltimore area at a cost of $27.2 million, or nearly $325,000 per unit. Unique to the community (and probably pushed up its development cost) is its location adjacent to the 79-acre Waugh Chapel Towne Centre, which features a Wegmans, Target, Dicks, an IMAX theater and others. The community itself, in addition to its 84 units, featured a second-story terrace, a courtyard and a number of amenities. Moseley Architects designed the building, with Faulkner Design Group designing the interior. CSH hired The Arbor Company to manage the community and to oversee its fill-up. Read More »
First Half of 2019 Hits Record M&A Pace
Signs of a potential economic slowdown, a tight labor market and operational difficulties in the senior living industry did not stop buyers from announcing a whopping 228 transactions in the first half of 2019, according to our M&A database DealSearchOnline. That doesn’t even include deals that will eventually rise to the surface or remain undisclosed altogether. The total beats the second half of 2018, which recorded 223 deals, and the first six months of 2018, when 204 deals were made. What’s significant is that 2018 was already a record year in terms of M&A, soaring above 2017’s total of 307 publicly announced deals with an incredible 427 transactions. Now, at 228 deals so far... Read More »
New Senior Divests Struggling Pittsburgh Property
With its Pittsburgh, Pennsylvania senior living community in danger of losing its license, New Senior Investment Group decided to divest the troubled asset, selling to an area not-for-profit for nearly half of what it originally paid for the property in 2013. The community’s operator, Oregon-based Blue Harbor Senior Living, had received a number of violations and operated it on a provisional license that meant that only 80 of its 164 units could be occupied. That could make anyone a motivated seller. So, six years after SNR acquired the community from the original developer for approximately $15.6 million, they decided to sell to Vincentian Collaborative System, a faith-based... Read More »
NHI Expands Relationship with Senior Living Communities
Senior Living Communities (SLC) secured financing from National Health Investors to purchase and renovate a 248-unit CCRC in Columbia, South Carolina, bringing the REIT’s relationship with SLC to 11 properties with either a long-term lease or a mortgage loan. The $35 million, or $141,100 per unit, purchase price was funded by a draw on NHI’s revolving credit facility with a $32.7 million loan. It came with a five-year term and two one-year extension options at an interest rate of 7.25%. Originally built in 2000 and continuously expanded through 2014, the entrance fee community has 76 independent living homes, 60 IL units, 40 assisted living units, eight memory care units and a 64-bed... Read More »
Blueprint Arranges Two Assisted Living Transactions
Caring for higher acuity residents in assisted living comes with added risks, staffing needs and costs. That goes without saying. But, by accepting those residents, owners and operators also charge higher rents and expect a higher level of cash flow to compensate them. That is at least what the new owner of two assisted living communities in the Dallas-Fort Worth area is banking on. Amy Sitzman and Joshua Salzman of Blueprint Healthcare Real Estate Advisors represented the seller, a national seniors housing owner/operator, in the transaction. Totaling 114 units, their communities were purpose-built in the late-1990s in established and affluent suburban neighborhoods. Now, Elmington Senior... Read More »
High Quality SNF Refinances with Cambridge Realty Capital Companies
A skilled nursing facility with an array of post-acute services just refinanced through HUD with the help of Cambridge Realty Capital Companies. Located in Madison, New Jersey, the 102-bed facility is situated across the street from Drew University and about three miles from Morristown Memorial Hospital. It provides IV therapy, tracheostomy care, wound care, stroke care, orthopedic and trauma rehab, pain management and physical therapy in a combination of private and semi-private rooms. There is also concierge service, restaurant-style dining and an on-site beauty/barber shop, plus other amenities. Those bells and whistles don’t directly improve care quality, but they certainly help in... Read More »Schedule a demo
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