Lancaster Pollard Refinances Texas SNFs
Four years on from their acquisition, four skilled nursing facilities owned by Summit Healthcare REIT refinanced through HUD, thanks to Jason Dopoulos of Lancaster Pollard. Located in Granbury, Woodville, Jacksonville, and Longview, Texas, Summit and its joint venture partner, Best Years, LLC, acquired the facilities in 2015 for $27 million, or $55,900 per bed. They were then leased back to the seller, a third-party operator. Fast forward to today, and Lancaster Pollard Mortgage Company provided $20.7 million in total HUD financing, the 17th completed deal closed for Summit by Lancaster Pollard. Totaling $120 million in par value, that’s a productive relationship. Read More »
Helios Gets New Tenants for Two Former Senior Care Centers Facilities
Two skilled nursing facilities in Texas previously operated by the now-bankrupt Senior Care Centers found new tenants, courtesy of Helios Healthcare Advisors. Each featuring 120 beds, the Lubbock and Houston facilities are owned by a Texas-based developer that wanted to find new, more financially stable operators. Good call. Helios sourced two Texas-based regional operators to fill those roles, coming in with market lease rates and pre-negotiated purchase options. In addition, they received a short-term line of credit for CHOW coverage. With Helios’ help, they were able to smoothly take over operations. Read More »
IDB Bank Arranges Loan for Florida Facility
Watercrest Senior Living Group’s first-ever “Market Street” senior living community located in Viera, Florida, recently refinanced with the help of Israel Discount Bank of New York (IDB Bank). Opened in 2016 under Watercrest’s new stand-alone memory care brand, the 60-unit community experienced a quick lease-up, reaching 50% occupancy in the first five months after opening. Things clearly have gone smoothly since, as it is now refinancing with a $10.7 million loan structured by IDB Bank. Lisa Silvers, senior vice president of healthcare lending, handled the transaction. Read More »
Capital Senior Living and Brookdale Still In Price Tank
Stock values still hitting lows, but not cheap enough for big buyers to come in. I am not sure if you have been following it, but Capital Senior Living’s share price just hit a new low yesterday. In fact, the market value of the company is just $110 million. Think about it, some individual assets have traded at prices above this, and while the $110 million does not include the debt on its books, there have got to be buyers putting pencil to paper. Brookdale Senior Living is not faring too well either. But they aren’t buying into the low valuations, at least for now. The question remains, if things are not going to be much better six months from now, why buy shares now? You may as well... Read More »
Embattled Senior Living Community Sells in California
There was a lot more than meets the eye for Evans Senior Investments’ latest closing in California, and it’s something the industry should take notice of. The sale involved an 87-unit senior living community in San Luis Obispo, which was built in 2000 and expanded in 2006 to now include 74 assisted living units, four independent living units and nine separate cottages. Operations were solid, until its owner was charged with manslaughter for the death of a resident. The story boils down to a resident with pretty advanced dementia living in a community not licensed for memory care. In the end, the resident was hit by a car and died. These stories unfortunately appear from time to time, but... Read More »
Regions Bank Closes Ohio Bridge Loan
Chris Honn of Regions Bank’s Healthcare Real Estate Group worked on behalf of an Ohio-based private owner to close a $16.8 million bridge loan with a floating interest rate and two-year term. The loan is also interest-only for the entire term, until maturity, when Regions plans to provide an agency refinance. The owner repaid construction debt with the transaction, in addition to getting cash out. They opened the 103-unit assisted living/memory care community in suburban Cleveland in the fall of 2018. It is already 65% occupied, but the interest-only payments should help the owner during the remaining lease-up period. Read More »
Recent Senior Care M&A Deals, Week Ending May 24, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Owner/operatorThe Manse on Marsh$12.775 million Not disclosedBright Oaks of Aurora$12.7 million Invesque Inc.Commonwealth Senior Living portfolio$340.4 million National Health Investors, Inc.Brighton Manor$13.5... Read More »
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 »Schedule a demo
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