Invesque Expands with Virginia Acquisition
Toronto, Canada-based Invesque (TSX: IVQ) announced it has entered into an agreement to purchase 20 assisted living and memory care communities from Commonwealth Senior Living for $340.4 million, or about $236,400 per unit. All but one of the communities are in Virginia, with one in Pennsylvania. Of the total units, 863 are assisted living, 486 are memory care, and 91 are independent living, for a total of 1,440 (1,716 licensed beds). In addition, Invesque has an exclusive right of first offer for three additional communities that are currently managed by Commonwealth and will continue to be after the closing, which is expected in the third quarter. The deal increases Invesque’s AL/MC... Read More »
Wisconsin Selling Spree from Senior Care Realty
Bob Richards of Senior Care Realty drew on his years of experience to close three sales of assisted living communities located throughout Wisconsin. First up, he represented an individual owner in her sale of a 50-unit AL community in a small town about 25 minutes outside of Green Bay. Originally built as a 16-unit community in 1997 but expanded by another 34 units in 2002, it was well occupied at 91%. However, its private pay census was between 15% to 20%, limiting its cash flow, which was over $350,000 on $1.46 million of revenues. The new owner, AC Capital Partners, will look to improve that census mix, using their experience and existing presence in the state. The final purchase price... Read More »
NHI Expands Comfort Care Partnership
National Health Investors expanded its relationship with Comfort Care Senior Living, adding another Michigan assisted living community to its existing portfolio with the operator. The collaboration began in 2018 when NHI acquired two assisted living communities in Bridgeport and Saginaw, Michigan for $17.1 million, or $164,400 per unit. Those properties, both built within the last five years, were then leased to Comfort Care at an average yield of 8.1% with CPI-based escalators. Now, NHI is acquiring a brand-new, 73-unit assisted living/memory care community in the town of Brighton at a price of $13.5 million, or $184,900 per unit. Comfort Care is assuming operations under a 10-year lease... Read More »
The Arboretum Group Refinances with Lancaster Pollard
Working on behalf of The Arboretum Group (TAG), Lancaster Pollard helped arrange two bridge loans to recapitalize five of their skilled nursing facilities in Texas. The first loan, coming in at $12 million with a 12-month term, was closed for two SNFs in south Texas to refinance existing debt and help take out equity. Then, Lancaster Pollard agented with syndicate partner MB Financial Bank to facilitate a $30 million, 30-month bridge loan for three more south Texas SNFs. The loan came with two three-month extensions and earn-out provisions. TAG was also able to extract equity from the properties. Finally, the firm arranged HUD debt for a sixth facility. Scott Blount, Chris Mauger and Eric... Read More »
Immigrants and Minimum Wage
Some board and care homes are giving the senior care business a bad name in their mistreatment of immigrants. There is an ugly side to immigration and low-wage workers in the senior care market. Bad people exist everywhere, and it is as difficult to keep them out of our business as it is in any other. There was a recent story about small board and care homes, usually under 10 beds, where immigrants work, usually 12 hour shifts or more, and often 6 to 7 days a week. And they often stay overnight to be “on call.” And that, apparently, happens a lot. And a large portion of these board and care homes are in California. There are some good ones, but it is the bad ones that get all the bad PR.... Read More »
Skyline Healthcare Sells Three Arkansas SNFs
Skyline Healthcare just sold three of its Arkansas skilled nursing facilities to Strawberry Fields REIT for a combined price of $14.3 million, or $32,200 per bed, at an approximate cap rate of 10.7%, based on Q1:19 financials, annualized. Included in the deal was a 120-bed SNF in Newport, the newest of the facilities having been built in 2001. There was also a 152-bed facility in Hot Springs that was built in 1978, and the oldest property, built in 1950, which contains 140 skilled nursing beds and 32 assisted living beds in Little Rock. They operated at roughly a 9.5% margin, so there is certainly some room for improvement. Infinity Healthcare of Arkansas will manage the facilities going... Read More »
Catholic Charities Community Sale Is Finalized
After being announced earlier this year, the sale of an 83-bed skilled nursing facility in Jaffrey, New Hampshire has closed thanks to Toby Siefert and Nick Cacciabando of Senior Living Investment Brokerage. Originally built in 1976, this facility is only budgeted and staffed for a functional occupancy of 55 beds. That was the choice of the seller, not-for-profit Catholic Charities New Hampshire. Based on those 55 beds, occupancy was just 84%. On top of that, it was losing nearly $400,000 in EBITDAR on over $5.05 million of revenues. The new owner, New York-based MED Healthcare Partners, plans on increasing the census and staffing to utilize more of the licensed beds. Read More »
Greystone Finances Southeast SNF Portfolio Acquisition
Fred Levine of Greystone successfully arranged bridge financing for the acquisition of seven skilled nursing facilities in the Southeast. Totaling 874 beds, the facilities are located in North Carolina (6) and Kentucky. Their new owner obtained a $71.92 million bridge loan with a 24-month term, two six-month extensions and no prepayment penalty. Greystone expects to eventually refinance the loan through HUD. Read More »
Recent Senior Care M&A Deals, Week Ending May 17, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Griffin-American Healthcare REIT IVMichigan Assisted Living Facility Portfolio$24.5 million Invesque Inc.Grand Brook of Allen at Twin Creeks$8.1 million Invesque Inc.3 skilled nursing facilities$52 million Invesque Inc.3 memory care communities$30.7 million Focus Healthcare Partners LLCThe... Read More »
Seniors Housing Prices Jump, Skilled Nursing Continues Decline
Seniors housing prices saw significant rises in average prices in the 12 months ended March 31, 2019. Assisted living itself jumped 10% from $186,400 per unit in 2018 (according to our Seniors Housing Acquisition & Investment Report) to $204,000 per unit in the latest four-quarter period. Meanwhile, independent living rose a more moderate 6% from $238,100 per unit to $251,800 per unit, the highest level ever recorded for the sector. The small size of the IL market means that a few transactions can have an outsized impact on the average, but given the healthier occupancy and lower labor costs of the IL industry today, it makes sense that these communities have become more desirable.... Read More »Schedule a demo
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