Recent Senior Care M&A Deals, Week Ending September 25, 2020
September has not seen many deals announced in the senior care sector, but here are the most recent ones in our M&A deal chart. Long-Term Care AcquirerTargetPrice Atlas Senior Living3 assisted living communitiesN/A Avanath Capital ManagementCascades Village Senior Apartments$27.15 million SE-based owner/operatorSterling Meadows$2.85... Read More »
Southern California CCRC Refinances and Expands with Truist Financing
To support the refinance and expansion of a not-for-profit CCRC in southern California, Truist Financial Corporation announced that it served as the sole lender of a $42.4 million loan. Originally developed in 1947, the community has grown on its 50-acre campus in La Verne, California to include 226 independent living units, 48 assisted living units, 24 memory care units and 59 licensed skilled nursing beds. However, Brethren Hillcrest Homes, Inc., the owner associated with the Church of the Brethren, will expand the community by adding 14 independent, one-floor cottage and duplex units, consisting of 24,000 square feet on a 1.4-acre parcel. Each home will feature an attached two-car... Read More »
Blueprint Sells Oregon Community
A memory care community in Coos Bay, Oregon may have closed a couple of years ago, but a new owner recently took over the building thanks to Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. Built in 1998, this 55-unit memory care community is located in Coos Bay on the central Oregon coast. Its previous owner originally acquired the community as part of a four-property portfolio in 2008, and Tyler Merrill of Merrill Commercial Real Estate was brought in to sell all four in 2018. Together, the four properties make up a continuum of care in the local area, but the Coos Bay community has been vacant since 2018. In late 2019, the entire portfolio went into... Read More »
New Jersey SNF Gets HUD Refinance
Cambridge Realty Capital Companies secured a HUD refinance for a 102-bed skilled nursing facility in Madison, New Jersey. Previously owned by Extended Care Clinical, the facility last sold in 2016 for $8.3 million, or $81,400 per bed, to a family owner/operator. Built in 1947 with 102 beds in two stories, the facility provides both short- and long-term care, with a subacute rehab center in a separate wing. Services range from orthopedic and trauma care to stroke, cardiac, tracheostomy and wound care. There are also on-site EKG’s, lab services and bladder scans. It is located across the street from Drew University and about three miles from Morristown Memorial Hospital. Cambridge... Read More »
Home Health Care & Hospice Sees Busy M&A Week
It was a busy week for home health & hospice (HH&H) transactions. Results from our Deal Search Online database show there were four announced last week alone, half of September’s total so far. Half of the deals were completed by private equity-backed companies, which highlights the continued interest in HH&H from PE firms. Jet Health, Inc., a portfolio company of Health Enterprise Partners, kicked off the week by announcing the acquisition of Texas-based Carrington Hospice Care, Inc. Jet Health acquires and operates home health care companies, which offer skilled nursing care, physical, speech and occupational therapy, rehabilitative care, medical social services, personal... Read More »
Many Impacts of COVID, But “Stupidity” Factor May Grow
The views on where we are in this pandemic are bifurcating, just like in the acquisition market, but we are also dealing with the “stupidity” factor. Just like in the acquisition market, where values and cap rates have been bifurcating between the top “A” properties and the rest of the market, so are opinions as to the current state of the market and what we can expect next year and beyond. There are those who believe operating costs are getting back to normal, the lending market has strengthened with pent up demand to provide financing, and that values are firming, helped by historically low interest rates. Then there are those who see a long slog through this pandemic mess,... Read More »
SLIB Facilitates Owner/Operator’s Senior Living Exit
A Lexington, Kentucky-based developer, owner and operator exited the senior living business with the sale of its only asset thanks to the work of Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage. This community was previously an elementary school in Mt. Sterling, Kentucky, but was converted to senior living by the current seller in 2014. The gut renovation resulted in 30 spacious assisted living units. Occupancy quickly rose to 90% after opening and hovered between 85% and 90% until COVID brought census down to about 80% and the operating margin down to about 7% on over $1 million of revenues. The owner was looking to exit the sector and... Read More »
Ziegler Secures Large Bond Financing for Texas Project
Ziegler announced a large bond financing to fund the development of a not-for-profit senior living community in Fort Worth, Texas. The sponsor, Methodist Retirement Communities (MRC), will add 172 independent living, 40 assisted living and 24 memory care units to its portfolio with the project, which is set on about 19 acres in Tavolo Park, a new master-planned commercial and residential community in southwest Fort Worth. MRC also brought in Greystone to act as development consultant and operator for the community until the end of the second fiscal year after it achieves stabilized occupancy. Thereafter, MRC will assume management of the... Read More »
M&T Realty Finances Virginia Acquisition
M&T Realty Capital Corp. secured financing to support Irvine, California-based Avanath Capital Management’s acquisition of an affordable senior apartment community in Sterling, Viriginia (Washington, D.C. MSA). Developed in 2001 with low-income housing tax credits, the 150-unit community was previously owned by a private local investor. Set in a desirable location and featuring a quality physical plant, the community was apparently financially stable. Emerging from several potential buyers, Avanath purchased the community for $27.2 million, or $181,300 per unit. Henry Mathies and Fletcher Hultman of Greysteel’s East Coast Affordable Housing... Read More »
Ohio Renovation Receives Variety of Funding
A senior apartment community in Dayton, Ohio is getting a substantial renovation with the help of financing from a variety of sources. The building is a federal historic site, originally built in 1929 as the Dayton Biltmore Hotel. It converted to affordable senior living in 1981 and currently features 230 units in 18 stories, with over 23,000 square feet of communal space and 14,000 square feet of commercial space. According to county records, Related Companies, a New York City-based developer, purchased the building in August 2020 for $4.2 million as part of a larger $590 million transaction for 51 affordable housing properties formerly owned by Aimco. Now, Related Companies and... Read More »Schedule a demo
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