Flashback Friday: Brookdale Becomes King
Oh, how times have changed. And the mighty have fallen. Taking a look at the June issue of The SeniorCare Investor from 2006, what headline appears? “Brookdale Becomes King: Changing the Face of Seniors Housing.” Hindsight is 20/20, but there were already warning signs of Brookdale Senior Living’s bust as it was in the middle of a meteoric rise. Debuting on the New York Stock Exchange in November 2005 at $19.00 per share, Brookdale went on an acquisition spree in the months afterwards, culminating in its May 2006 acquisition of American Retirement Corporation for $33.00 per share, or $1.2 billion plus assumed debt and leases. Also coming along with the deal was ARC’s CEO Bill Sheriff, who... Read More »
Blueprint in the Buckeye State, Again
Blueprint Healthcare Real Estate Advisors announced a couple of Ohio closings at the start of June. The firm first sold an 88-bed skilled nursing facility in Orrville, a small town about 40 miles south of Cleveland. Originally built in 1974, the facility was recently renovated and also features two independent living cottages totaling eight units. However, it was operating around breakeven, so the existing owner/operator decided to divest. A partnership between a high-acuity skilled nursing operator and O&M Investments, a private equity firm focused on the SNF market, emerged as the buyer. Connor Doherty and Brian Payant led the transaction, which did not disclose a purchase price. Mr.... Read More »
The Ensign Group Expands in South Texas with Senior Care Campus
The Ensign Group may have just spun off its senior living assets into a new entity named The Pennant Group, but the firm can’t fully shake the seniors housing business, acquiring a senior care campus with 38 assisted living and 92 independent living units, along with 60 skilled nursing beds. Located in the town of Harlingen, the campus complements five other Ensign operations in south Texas, including another 82-bed skilled nursing facility in Harlingen that the company acquired from The Evangelical Lutheran Good Samaritan Society in 2009. Ensign acquired both the operations and real estate in this transaction, bringing its portfolio to 198 skilled nursing operations, 27 of which also... Read More »Dwight Capital Arranges Loan for Long Island Facility
Dwight Capital followed up on a productive Spring to close a bridge loan for a Long Island assisted living community. Sitting on over eight acres in Port Jefferson Station, this community features 181 beds of Medicaid-funded assisted living on the same campus as a 143-bed skilled nursing facility. Kevin Lifshitz from Dwight Capital closed a $12.8 million bridge loan for the community. Read More »
Solvere Living Adds Three More Communities
After 10 years in business, Solvere Living continues to expand its portfolio of managed senior living communities, recently adding three more in Texas and Florida to bring its total to 15 properties across eight states. The Texas community is located in Plano near three major medical centers. It features 44 assisted living and 21 memory care units on a four-acre campus. Then, Solvere added two Florida facilities. One, with 83 assisted living and 38 memory care units, is located in Jensen Beach (Port St. Lucie area) and features amenities including a pool, salon, spa, putting green and an outdoor entertainment center, among others. There is also an in-house rehabilitation clinic for... Read More »
The Skilled Nursing M&A Market
Have we hit bottom, or will values continue to decline? Join us next Thursday as we try to decipher what the market holds for investors over the next several years. Depending on who you talk to, skilled nursing facility values, and the SNF M&A market in general, are going to be troubled for a while. Or, we have hit bottom, and with the new PDPM reimbursement system starting in a few months, SNFs will claim their rightful spot in the healthcare delivery food chain, with values increasing. That is quite a difference in opinion, and one where billions of dollars are at stake. Next Thursday, we are hosting a webinar on the skilled nursing acquisition market to try to decipher where it is... Read More »
Ventas Doubles Down on Canadian Seniors Housing Market
The Big-3 REITs are back as buyers, with Ventas making the biggest splash of them all by acquiring 31 senior living communities in Quebec for approximately C$2.4 billion, or US$1.8 billion. Made in an 85/15% partnership with the in-place operator, Le Groupe Maurice, the acquisition is expected to generate compound annual NOI growth of 4% over the next five years. The stabilized portfolio, consisting of 28 communities located in core urban markets, has 7,885 units, an occupancy of 97%, an average age of seven years and more than C$2,600 in monthly revenue per-occupied unit. It certainly helps that the penetration rate for seniors housing in Quebec is twice that of the rest of Canada at 18%.... Read More »
NHI Acquires Discovery Senior Living Portfolio from Kayne Anderson
National Health Investors, Inc. entered into a joint venture with Discovery Senior Living to acquire six senior living communities in Pennsylvania, Maryland and Indiana from affiliates of Kayne Anderson Real Estate Advisors. The venture, of which NHI is a 97.5% owner, spent close to $126.850 million, or about $212,800 per unit, on the portfolio that totaled 145 independent living, 356 assisted living and 95 memory care units. Discovery, the existing operator, leased the portfolio under a 10-year agreement, with a 6.5% initial annual cash yield, a CPI-based escalator with a 2% floor and 3% cap beginning in year-two, and two five-year extension options. In addition to the base purchase... Read More »
Matt Alley Closes Another Texas Transaction
Matt Alley of Senior Living Investment Brokerage is on a tear in Texas, selling his third skilled nursing facility there in a month. The latest sale involved a value-add SNF in Gainesville selling to a Texas-based owner/operator for $1.5 million, or $17,900 per operational bed. Licensed for 116 beds, this older facility (built in 1971) struggled with local competition and was a geographical outlier for the regional owner/operator seller. Occupancy averaged just 49% in 2018, and the facility operated with just 84 beds, with an 8% margin on about $3.475 million of revenues. However, it has a few things going for it, like being located one mile from North Texas Medical Center of Gainesville,... Read More »
Greystone Acquires St. Augustine SNF
Greystone Healthcare Management Corp. acquired a 120-bed skilled nursing facility in St. Augustine, Florida. Located on eight acres about a mile from Flagler Hospital, the facility received $3 million of renovations to its 24 private and 48 semi-private rooms. That brings Greystone’s north Florida portfolio to four facilities. Read More »Schedule a demo
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