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 »
Recent Senior Care M&A Deals, Week Ending May 31, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Not disclosedPleasant Bay Nursing & Rehabilitation Center & The Woodlands at Pleasant BayN/A Welltower Inc.Balfour at Riverfront Park$118 million Not disclosedBright Oaks of Aurora$12.7... Read More »
Is Now the Time for Risk Sharing?
Senior care providers are faced with an opportunity for risk sharing in managing patient or population health. Having a stake in the payment for services for the elderly comes with risks, of course. Read More »
Busy May For Meridian
Meridian Capital’s Ari Adlerstein, Ari Dobkin and Josh Simpson are fast closing in on a billion-dollar year in loan closings, and we’re not even halfway through 2019. Across 29 transactions so far, the team has arranged more than $955 million in financing for skilled nursing, assisted living and independent living properties across 18 states. Most notably, Meridian arranged $200 million in bridge financing for more than 25 skilled nursing facilities and over 2,500 beds. There were a couple of construction financings, including a $24 million loan (plus $9.1 million in equity) for a to-be-built 104-bed independent living/assisted living community in Arizona and an $11.5 million loan to fund... Read More »Did Capital Senior Living Reject Acquisition Offer From TPG?
Fresh off closing its $3.7 billion opportunistic real estate fund this March, TPG may have to wait a bit to make its next big acquisition in the senior living space, as its rumored offers to acquire the struggling Capital Senior Living Corporation have all apparently been rebuffed by the company, according to Bloomberg. The approaches were supposedly made in the past few months. The news, however, caused the CSU share price to jump as much as 24% to $4.47. Considering the company’s four-year trend, falling from a peak of $27.50 in April 2015 to below $4.00 per share in May, there is still a long way to go. But at its current value, a buy-out has to be looking more and more attractive. And... Read More »Schedule a demo
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