Capital Senior Living Continues to Shrink
As many of you know, for several years we have been pressing Brookdale Senior Living to reduce its size further than what it has already accomplished. In the meantime, Capital Senior Living is getting smaller by the day, and while we understand why, we certainly hope Brookdale does not go down this somewhat extreme path in size (very doubtful). Cap Senior is now forecasting to be one-half the size it was two years ago, with 60 owned communities and eight managed. The leases will be gone. During the course of the third quarter, like other operators, Capital Senior Living has been improving its capital structure, shedding unprofitable leases, handing properties over... Read More »
Senior Living Investment Brokerage Handles Michigan Sale
Hands-off management led to a decline in occupancy at a senior care campus in Bay City, Michigan, and an ensuing sale was handled by Bradley Clousing, Ryan Saul and Joe Young of Senior Living Investment Brokerage. The campus consists of a 151-bed skilled nursing facility that was built in 1955 and completely renovated in 2007, and a 38-unit assisted living community added in 2001. The seller was retiring from the family business and exiting the industry after operating in it for more than 50 years. Regulatory changes, new competition in the market and the health of the remaining family member made operating the asset more difficult in recent years. As such, the SNF was facing occupancy... Read More »
Ventas Reports Third Quarter Results
Ventas reported its third quarter results, and despite average census dropping below 80% for the first time, it remained on firm financial footing thanks to both federal relief grants and earlier moves to bolster its liquidity. In fact, Ventas improved its cash NOI from $402 million in the second quarter of 2020 to $545 million in the third quarter. Much of the gain came from its triple-net portfolio and mostly as a result of the agreement made with Brookdale Senior Living to reduce the provider’s annual cash rent to $100 million in return for consideration of approximately $235 million (including $162 million in cash) up-front. All of the $235 million in consideration is being amortized... Read More »
Recent Senior Care M&A Deals, Week Ending November 6, 2020
Senior care M&A continues to chug along, check out our recent chart! Long-Term Care AcquirerTargetPrice NY-based groupCarriage House & Health Care Center & Colonnades Assisted Living$6 million Regional NY-based owner/operatorSpring View Manor$1.125 million Imperial Healthcare GroupMadlyn and Leonard Abramson Center for Jewish LifeN/A The Ensign GroupThe Medical Lodge of... Read More »
Brookdale Senior Living Reports
Even in the depths of a pandemic and a disrupted economy, there is always the bright side of things, right? Brookdale Senior Living, the largest seniors housing provider in the country, reported its third quarter earnings results and certainly had some positive things to say about where the company is today and how it will improve in the future. Always lead with your best. Unfortunately, shareholders focused on the problems and sent the share price down by 15% right off the bat. The good news for the future is that they completed a major lease restructuring with Ventas, reducing future cash rent by about $500 million over the remaining lease term ending in December 2025.... Read More »
Healthpeak Properties Heading Out of Seniors Housing
Healthpeak Properties jolted the senior care industry when it announced it is in the process of unloading its entire seniors housing RIDEA portfolio (135 communities with 15,992 units) as well as its triple net lease portfolio (62 communities with 5,848 units). So far, $1.5 billion of assets are under binding and non-binding letters of intent in eight transactions, while $2 billion is under letter of intent in six deals. The rest of the communities are being actively marketed. The RIDEA assets, if they close, will sell at about a 5.8% cap rate based on trailing 12-months EBITDA ended March 31, 2020 (pre-pandemic), but closer to 3% based on third quarter performance annualized.... Read More »
Senior Living Investment Brokerage Sells Value-Add SNF in Kansas
In a deal that went to market in mid-August and closed at the end of October, Nick Cacciabando of Senior Living Investment Brokerage sold a skilled nursing facility in Conway Springs, Kansas. Situated in the south-central part of the state, the facility was built in 1964, with additions made in 1988 and 1996. It is licensed for 45 beds, with about 27 of those occupied at the time of the sale. This was the only facility owned by the Winter family, who has owned the SNF since opening, but Wichita, Kansas-based Axiom Healthcare Services had been operating it over the last year. As of June 2020, the facility was losing more than $400,000 in EBITDAR on nearly $2.45... Read More »
Oxford Finance Funds Wisconsin SNF Acquisition
Oxford Finance secured a senior credit facility and revolving line of credit for a partnership to acquire two skilled nursing facilities and a combined 158 beds in Wisconsin. That partnership is between AB Asset Management LLC, a vertically integrated real estate company based in Miami Beach, and Vitalogy Property Holdings LLC, a growing owner/operator founded in 2015 by Levi Rudd and Louis Kass. Vitalogy is expanding its existing operating platform in the Midwest and also partnered with Symmetry Healthcare, a provider of back office support services in the healthcare industry, to acquire the properties. To fund the deal, Oxford closed both the... Read More »
Senior Care Campus Sells Near Philadelphia
A not-for-profit, faith-based operator of senior care services in the Philadelphia area sold its flagship senior care campus in North Wales, Pennsylvania. That seller, Abramson Senior Care, has over 150 years of experience caring for the Jewish elderly in the area and opened this community in 2001 on 78 acres. The campus includes 324 private skilled nursing beds, 46 personal care (assisted living) units and two independent living units. Well-maintained, it also received over $5 million in renovations since 2008 and carries a five-star rating from CMS. Abramson Senior Care made the decision to sell the campus but still wanted to see a continuation of its mission and religious programming,... Read More »
Ensign Acquires Former Omega Healthcare Investors SNF
The Ensign Group acquired a skilled nursing facility in Amarillo, Texas, picking up both the real estate and operations in the deal. Featuring 82 beds, the facility was formerly owned by Omega Healthcare Investors, which acquired it in a portfolio deal in June 2010. It was part of the 57-facility portfolio operated by Daybreak Venture, LLC that OHI was in the process of divesting after Daybreak paid less than $1 million in rent in the third and fourth quarters of 2019. This Amarillo location was just 45% occupied at the time of the sale. Ensign paid an undisclosed sum for the property and will rename it The Medical Lodge of Amarillo. Its subsidiary Keystone Care LLC will take over... Read More »Schedule a demo
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