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 »
Affordable Housing Secures HUD Financing from HJ Sims
Much of the investor attention in seniors housing is paid towards the higher-end, luxury communities. Those properties are able to charge much higher rents and usually operate at higher margins. But a huge swath of the senior population cannot come close to afford living in those communities, making the demand for middle- and low-income units very strong in some markets. With that, HJ Sims arranged a cash-out refinance for a 125-unit affordable seniors housing community in Middletown, Pennsylvania (Harrisburg MSA) to help its owner both distribute equity to its partners and invest in major upgrades to the community. Originally built in the 1980s, it operates under a Section 8 HAP Contract... Read More »
Skilled Nursing Is Here To Stay
Three experts chimed in about what the future holds for skilled nursing, and while headwinds persist, they were all positive on the sector. I have been remiss in not talking about the excellent webinar you may have missed (link here) on June 13 about investing in the skilled nursing market. While the panelists all agreed that the operating environment will continue to be challenged for a while, they were all positive on what the new PDPM reimbursement system will do for most providers, and the sector as a whole. While there has been some compression in skilled nursing cap rates, the historical average of 12% to 13% seems to be one that will be around for a while, despite the 10-year... Read More »
Clousing Arranges Second Savannah Sale This Year
Closing his second senior living transaction in Savannah this year, Brad Clousing of Senior Living Investment Brokerage sold a large senior living community located just 10 minutes away from the historic center downtown. Built in 1986 and 1998, the 209-unit community features a majority of independent living units (146), but assisted living and memory care rooms too. Plus, the previous owner, HJ Sims, recently converted its personal care license to an assisted living license, giving the buyer added flexibility when it comes to acuity types. That should help as they embark on a plan to increase occupancy (from its current 74%) and boost the operating margin (from about 16% on $4.9 million... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
