The New York Times Is At It Again
The New York Times decided to use Labor Day weekend as its bully pulpit to bash the nursing home industry yet again in one of the longest editorials we can remember. They called it “The Shameful Toll of Nursing Homes.” Surprisingly, there were actually some decent recommendations and even a few actual facts that we can’t dispute. But, like always, they just don’t get it when it comes to health care, money and policy. First of all, they started with the proposition that the nation’s nursing homes “had months of warning about the coming threat.” Come again? Warning from whom? The first confirmed death “by” COVID-19 did not occur until the end of February, and most... Read More »
A Focused Turnaround Sale in Oregon
In a turnaround project gone right, Focus Healthcare Partners sold its independent living community in King City, Oregon (Portland MSA) after three years of ownership. Built in 1988 and previously renovated in 2008, the community featured 114 units, with 13 studios, 67 one-bedroom units, 24 two-bedroom units and 10 two-bedroom cottages. A partnership sold it to Focus in May 2017 for $14.8 million, or nearly $130,000 per unit. At the time, besides being 10 years on from its last renovation, the “C” quality community was under 80% occupied. In came Focus Healthcare, which invested $2.3 million in renovations, upgrading all the common areas and units and bringing the community to “B”... Read More »
Cushman & Wakefield’s Latest Closing in South Carolina
A new senior living community obtained bank financing from Truist Financial, with the help of Cushman & Wakefield. Richard Swartz, Tim Hosmer and Chris Remeika led the transaction, which featured a $37.1 million loan, coming out to about $200,000 per unit. Opened in 2018, the 186-unit community is located in the Daniel Island area of Charleston, South Carolina, overlooking the 5th fairway of the Daniel Island Club Beresford Creek course. It features 90 assisted living, 48 memory care and 48 skilled nursing units. Charlotte, North Carolina-based Maxwell Group developed the property, while Wellmore Living operates it. This is the third South Carolina community managed by Wellmore, with... Read More »
Greystone Finances Community Redevelopment in Miami Beach
A 12-story senior apartment community in Miami Beach, Florida is undergoing a major redevelopment thanks in part to HUD construction financing arranged by Greystone. Originally built 40 years ago and operating with a Section 8 contract, the affordable community has 250 one-bedroom units. Its owner, Elderly Housing Development and Operations Corporation (EHDOC), and equity partner Stratford Capital, will begin a $78 million project to substantially rehabilitate the building. The 20-month project will include exterior façade and common area renovations, new kitchens and bathrooms in the units, a new roof, elevator modernizations and a paint refresh. All will be completed without displacing... Read More »
August Acquisition Volume Light, But Consistent
Can we call it a comeback when the seniors housing and care M&A market surpassed 20 deals in August? We recorded 21 publicly announced transactions in the month, which is the highest total since April when 22 deals were disclosed. Since April, there have been 20 deals announced in May, 18 in June and 20 again in July. Consistent, yes, but we just still aren’t used to seeing numbers like these after the heady times of 2018 and 2019 when buyers regularly made 40 transactions or more in a month. Through the end of August, the seniors housing and care M&A market reached 200 deals announced in 2020, so far. Roughly half of that total came in the first quarter, which was... Read More »
CareTrust REIT Adds Two Montana SNFs
One of the more consistently active acquirers in the skilled nursing market is back. CareTrust REIT just made its first post-COVID acquisitions for two skilled nursing facilities in Montana. The off-market transaction consisted of Apple Rehab Cooney, an 80-bed facility located on the campus of the St. Peter’s Health Regional Medical Center in Helena, and Elkhorn Healthcare & Rehabilitation, a 70-bed facility in nearby Clancy. Eduro Healthcare took over operations. CareTrust paid around $16 million, or $106,700 per bed, for the facilities, inclusive of transaction costs. In addition, the REIT will provide around $500,000 for Eduro to improve the properties, which are... Read More »
Joint Venture Develops D.C.-Area Senior Living Community
In a joint venture with Flournoy Development Group, Cadence Living has broken ground on a new senior living development in Olney, Maryland (Washington, D.C. MSA). Set on 37 acres that includes 31 acres of forest preserve, which residents will be able to take full advantage of, the community will feature a three-story, 75-unit independent living and assisted living building and a two-story, 32-unit memory care building, for a total of 107 units. There will also be plenty of indoor and outdoor amenities. When it opens in 2022, this will be Cadence’s first community in Maryland, and first in the Mid-Atlantic region. Same thing for Flournoy Development, which was previously focused on the... Read More »
Recent Senior Care M&A Deals, Week Ending September 4, 2020
August had just 20 publicly announced senior care transactions, and the start of September was also slow. Here are the recent deals. Long-Term Care AcquirerTargetPrice AZ-based owner/operator2 assisted living/memory care communities in CON/A O&M InvestmentsVilla Toscana at Cypress Woods$5.3 million FL-based owner/operatorInsignia of Towne Lake$2.9... Read More »
O&M Investments Makes Two SNF Acquisitions in Texas
A skilled nursing facility in an affluent Houston, Texas suburb found a new owner thanks to expertise of Adam Heavenrich of Heavenrich & Company. Built in 2009 on an 80-acre medical campus that is anchored by the Kelsey Seybold Clinic, the facility features 120 beds. Owned by a publicly traded REIT and operated by StoneGate Senior Living, it was around 76% occupied at the time of the sale. The property was well maintained, which a new owner could use to boost census and value. Heavenrich & Company received multiple bids on the facility and ultimately selected O&M Investments, a private equity firm led by Nick Martinez and Todd Okum. The purchase price came to $5.3 million, or... Read More »
SLIB Closes Georgia Assisted Living Sale
At the start of September, Senior Living Investment Brokerage’s Brad Clousing and Patrick Byrne closed the sale of an assisted living community in Woodstock, Georgia. The pair also assisted the buyer in assuming attractive HUD debt on the property with a 2.62% interest rate. We’re sure that motivated the buyer to get the deal done. Originally built in 1996, this community features 33 assisted living units and has historically been well occupied since then. Census dipped in recent months but shot back up to 95% right before close. In the last 12 months, the community brought in nearly $90,000 in EBITDAR on nearly $1.1 million of revenues, so that 8% margin could be improved. It is well... Read More »Schedule a demo
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