Skilled Nursing Values Drop In Last Four Quarters
It still may be too early to tell, but according to our rolling-four quarter M&A statistics, it appears that skilled nursing values have started their descent in light of the COVID-19 pandemic. We say it may be too early simply because of how few transactions have been negotiated and closed since the onset of the virus, and we base our statistics on closed transactions, not just announced ones. The rolling-four quarter average also still consists of three quarters of prices that were not affected by the pandemic and that represent a larger share of the past 12 months of deals than normal because of the dearth of deals in Q2:2020. Nevertheless, the average price... Read More »
Acts Retirement-Life Communities Disposes Non-Core Property
Acts Retirement-Life Communities decided to shed a non-core property located near Baltimore, Maryland, working with Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors to get the deal done. Built in 1994, the property features 66 skilled nursing beds and 60 assisted living/memory care units in the town of Sykesville, about 20 miles west of Baltimore. Acts picked up the property in May 2019 as part of a merger with Integrace, another not-for-profit senior care provider with four communities in Maryland. However, the community did not fit in with Acts’ CCRC business model and was slated for sale. The Blueprint team procured 12 competitive offers during a 30-day... Read More »
Concerto Adds Dialysis Service In Missouri SNF
Skilled nursing patients are obviously some of the most vulnerable to the COVID-19 virus, and providers have been working hard to minimize their exposure to it. In-house dialysis can be one service that helps that cause by bringing dialysis to the patients, rather than bringing the patients to a dialysis center and exposing them to different environments from the shuttle bus to the center itself three days a week. On top of that, in-house dialysis is just a better and less tiring experience for the patients themselves. Concerto Renal Services expanded its in-house dialysis offering to a skilled nursing facility in Kansas City, Missouri that is owned by Ignite Medical Resorts. This... Read More »
Recent Senior Care M&A Deals, Week Ending July 24, 2020
The summer M&A market continues its doldrums, but there were a few deals that closed. Check out our recent senior care M&A deal chart! Long-Term Care AcquirerTargetPrice Icade9 skilled nursing facilities in Germany and France$167.9 million New York-based owner/operatorShire Senior LivingN/A Not disclosedSkilled nursing/assisted living facility in MD$20 million The Springs LivingLancaster Village$31.5... Read More »
Ardent Senior Living Sells Rochester ALP Community
Seven years after acquiring an assisted living/independent living community in Rochester, New York, Ardent Senior Living is selling the property to a New York-based owner/operator. Originally built in 1974, the community features 115 assisted living units (with 200 licensed beds) and a 42-unit independent living building. The campus participates in New York’s Assisted Living Program (ALP), which provides a higher level of care (close to skilled nursing) in an assisted living setting for Medicaid residents. It’s a win for the state, which can reimburse nearly skilled nursing level care at a lower rate, and for the providers, which can take in Medicaid residents at a... Read More »
Four Philly-Area SNFs Refinance With CIBC
Four skilled nursing facilities owned by a Formation Capital-led investment group successfully refinanced with the help of Leslie Beck and Adam Panos of CIBC. All located in the greater Philadelphia market, these facilities have been operated by Saber Healthcare for the past three years. CIBC had also provided working capital to them since Saber took over operations. The current loan totals $30 million and comes with a term of three years. There is also an extension option for a fourth year. Read More »
HJ Sims Funds CCRC Expansion Project in North Carolina
HJ Sims has a long history with the SearStone Retirement Community, a CCRC in Cary, North Carolina, and recently closed another financing for the property. Sponsored by Samaritan Housing, Inc., the community currently consists of 131 independent living units, 38 IL estate homes, 14 assisted living units and 25 skilled nursing beds. HJ Sims originally financed the first phase of the CCRC with a $117 million non-rated fixed rate bond issue in 2012. Then, the investment bank funded an expansion in 2016 with an $8 million issue. HJ Sims also provided the original seed capital, and the funds to advance refund the 2012 issue, and provided a portion of the pre-development capital for a Phase II... Read More »
KeyBank Finances Acquisition of Senior Apartment Community
KeyBank Real Estate Capital’s Community Development Lending and Investment team announced that it has provided tax-exempt debt to support the acquisition and renovation of a 100-unit affordable senior apartment community in Wichita, Kansas. Originally built in 1979, the seven-story building consists of only one-bedroom apartments, all of which are Section 8 units. Sarah Geis and Tim Gerstmann structured the financing, which included a tax-exempt construction and permanent bond loan of $11.3 million. The city of Wichita issued the bonds, and the National Development Council provided $4.2 million of low-income housing tax credit equity. Denver-based real estate investment company... Read More »
Pandemic-Driven Change in Senior Care
This pandemic is lasting longer than some people hoped for, and the longer it does, the greater likelihood of more change. I remember in April talking to a few industry professionals (you know who you are) who thought this “coronavirus thing” would be mostly history by July. So did President Trump. The problem is, hope is never a good business plan. I took the unpopular opinion back then that it was going to be a long, tough slog for the industry. I wish I had been wrong. Because of the pandemic, there have been all sorts of news stories about what is going to happen to the nursing home business. No one can predict the future, not even me. The reality is, however, that the number of beds... Read More »
Acquisition Offerings Coming Alive
As you are aware by now, not only has the seniors housing and care M&A market seen a significant drop in volume, but most of the limited sales activity we have seen is from deals negotiated before the pandemic really started. Now, a few deal offerings have just been disclosed, almost simultaneously. First, the Tampa office of Cushman & Wakefield just went to market with a 187-unit community outside Springfield, Massachusetts that has 129 independent living cottages, 40 IL apartment units and 18 assisted living units, all on 46 acres. The cottage homes average 1,200 square feet. The C&W team was hired through a bankruptcy court mandated process. The occupancy is... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
