Harrison Street Refinances White Bear Lake Community
Cushman & Wakefield acted as the exclusive advisor to a joint venture between The Waters Senior Living and Harrison Street Real Estate Capital on the refinance of their 136-unit senior living community in White Bear Lake, Minnesota. Developed in 2016, this community provides independent living, assisted living and memory care services under The Waters brand. The C&W team of Jay Wagner, Sam Dylag and Jack Griffin brought the owners together with the lender, BMO Harris Bank, which provided the $24.3 million loan to take out the original construction financing. Derek Zeller, Imran Javaid and Brian Vis made up the BMO team on the transaction. Read More »
Grandbridge Arranges Active Adult Financing
With Baby Boomers still too young to move into most seniors housing communities and labor costs growing, many companies see opportunity in the active adult market, which some view as a largely untapped market. We’ll have to see how “under the radar” these assets will stay in the next couple of years. Jumping into the market, Grandbridge Seniors Housing and Healthcare Finance Group just facilitated construction financing for the development of a 318-unit age-restricted community in Plano, Texas operated by Life Style Management Inc. The transaction consisted of about $62.3 million in taxable and tax-exempt bonds under the 142(d) bond program administered by BB&T Capital Markets.... Read More »
Recent Senior Care M&A Deals, Week Ending July 5, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Northeast owner/operatorBountiful Hills$3.25 million CareTrust REITCascadia of Nampa$12.8 million Senior Living CommunitiesWildewood Downs$35 million Chicago Pacific FoundersWoodhaven... Read More »
How Have the REIT Stocks Performed in 2019?
Last week, we discussed the stock performance of the seniors housing and healthcare providers. Now, it’s the healthcare REITs’ turn. Overall, it was a good first half of the year, with all of them posting price increases, with the exception of Senior Housing Properties Trust, reflecting its Five Star problems. Its share price tumbled by 29.4%. The top performer was New Senior Investment Group, but it came off a terrible 2018 (down 45%) and still trades below what it did 18 months ago. The star of the year, so far, is CareTrust REIT which is up 28.8% after being the second-best performer last year with a price increase of 10%. And then there is HCVenTower, otherwise known as the Big Three,... Read More »
Portopiccolo Makes Another SNF Acquisition
The Portopiccolo Group just made its third skilled nursing acquisition of the year, making it one of the most prolific buyers in that space in 2019. Its most recent target was a 150-bed skilled nursing facility in Virginia Beach, Virginia. To fund the acquisition, Portopiccolo turned to Contemporary Healthcare Capital to closed $1.97 million in mezzanine financing in addition to receiving a senior loan from United Community Bank. About $2.7 million in capital upgrades will also be funded. The transaction is similar to Portopiccolo’s acquisition earlier this year of a 130-bed skilled nursing facility in Roanoke, Virginia that included a 24-bed accredited ventilator unit. That always... Read More »
Healthcare M&A Hits Frenzied Pace
Deals are still bubbling to the surface, but the second quarter is in the books, and it was another big one for healthcare M&A. Across the 13 sectors, spanning from behavioral health and rehabilitation to biotechnology and our bailiwick, long-term care, we recorded 423 separate transactions, up from 393 deals in the first quarter, according to our M&A database Deal Search Online. Leading the way in activity, not surprisingly, was Long-Term Care with 113 mergers and acquisitions, followed by Other Services (which includes urgent care centers, ambulatory care centers, CROs and other health care services not placed into the other sectors) with 49, eHealth (47), Pharmaceuticals (37)... Read More »
CareTrust Invests in Idaho
CareTrust REIT and Cascadia Healthcare expanded their relationship to 12 facilities and 1,013 total beds with the REIT’s acquisition of a brand-new transitional care facility in Nampa, Idaho. This transaction was by no means out of the blue. Cascadia’s development affiliate opened the 99-bed facility in 2017, but before that, CareTrust had made a preferred equity investment in the property in addition to obtaining a purchase option at a formula-based price upon stabilization of the operations. Fill-up must have gone smoothly, since the property sold to CareTrust for approximately $12.8 million, inclusive of transaction costs and after receiving credit for its original equity investment and... Read More »
(Most) Senior Care Provider Stocks Shine in H1:19
[featured in the July issue of The SeniorCare Investor] With the overall stock market posting its best first half of a year since 1997, one would expect that seniors housing and care stocks would also have performed well. The major benchmarks are up 14% to 17% so far this year, and only two of the providers have topped that. Of the larger cap providers, The Ensign Group was the star with a 46.7% price increase in six months, and that was after jumping by 74.7% in calendar 2018. The company just keeps on rockin’, and when it splits into two separate operating companies later this year, one for skilled nursing and one for seniors housing and home health care, the expectation is that the... Read More »
CBRE Comes Full Circle
CBRE was all over the sale of a seniors housing community in Conroe, Texas, facilitating its sale on behalf of the previous owner and arranging acquisition financing for the buyer, Chicago Pacific Founders. Originally built in 2016 by a joint venture between Paradigm Senior Living and Padua (a real estate development firm based in Houston), this community features 60 independent living, 60 assisted living and 20 memory care units, along with 17 detached IL cottages across an 11-acre campus. Its $30 million construction cost was financed by one of Lancaster Pollard’s first Propero™ loans, which totaled about $26.7 million. The JV contributed a portion of equity and also received a purchase... Read More »
The Disgraceful Democratic Debates
The presidential debates last week had a glaring hole, one that everyone should be concerned about. I don’t know about you, but I watched all four hours of the presidential debates last week. I do sort of thrive on those things. But didn’t you think there was something missing? Something major that was not asked? There was not one question from the moderators about fixing Social Security, or Medicare, or Medicaid, or our growing national debt. The Social Security “trust fund” is projected to be depleted in 16 years, just when the last boomer turns 71. Next year it will spend more than it takes in for the first time in nearly 40 years. Medicare’s hospital insurance “trust fund” is expected... Read More »Schedule a demo
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