Monarch Advisors Sources Acquisition Financing for SLIB Deal
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage sold a 71-unit memory care community in Vista, California for $22.8 million, or about $321,000 per unit. Helping to push up that price was first, the location in the high-barrier-to-entry market of San Diego County, and second, its solid operations with a 29% margin on $5.85 million of revenues and an 88% occupancy rate. It was built in the last 10 years too, which helps. The single-asset, local owner decided to exit the industry, prompting the sale to a private equity group located in Colorado that owns several other senior living properties and some commercial assets around the country. SLIB’s affiliated... Read More »
Moving on in Milwaukee
Ray Giannini and John Klement of Marcus & Millichap helped the private owner of an assisted living community in Wisconsin exit the industry with its sale. Located minutes from downtown Milwaukee, Wisconsin in the town of Oak Creek, this 20-year old community has 36 private units, each with a bathroom and kitchenette. Occupancy was nearly full but mostly featured Wisconsin waiver residents, limiting the community’s potential cash flow. Aided by $500,000 of seller financing with a slightly-above-conventional interest rate, the buyer, a Chicago-based land entity, paid $3.8 million, or $105,600 per unit, at an approximate 9% cap rate. Read More »
Five Star Finally Restructures With Landlord
Five Star Senior Living and Seniors Housing Properties Trust announce a dramatic restructuring of their relationship, and all shareholders seem to lose, at least for now. Five months after Five Star Senior Living issued its “going concern” announcement, the financially troubled company finally came to an agreement with its landlord, Senior Housing Properties Trust, to restructure its leases. Looking at the terms, it appears that both companies had a gun to their heads, as there really do not appear to be any winners here. Five Star will have the leases convert to a management contract by the end of this year, with reduced rents in the meantime, which obviously gives them a cash flow break,... Read More »
Meridian’s Half-Billion-Dollar Quarter
The team of Ari Adlerstein, Ari Dobkin and Josh Simpson of Meridian Capital Group had quite the Q1, closing more than $500 million across 17 transactions in nine states. Helping them reach that impressive mark were a couple of large financings for skilled nursing portfolio sales, including $126 million in both debt and equity arranged for Summit Healthcare REIT to purchase 14 skilled nursing facilities in Indiana. A finance company provided the $96 million loan, while an institutional investor funded the $30 million in equity. Then, on behalf of a private skilled nursing owner, Meridian arranged a $90 million loan (also provided by a finance company) to fund the acquisition of 12 SNFs in... Read More »
SLIB’s Solid Start to April
Senior Living Investment Brokerage kicked off its Q2 with two transactions announced on the first on the month. First, Brad Clousing and Jeff Binder headed to Cape Coral, Florida to sell an 80-unit assisted living community that was a geographical outlier for the previous owner. The seller was also looking to redeploy capital to its other communities and to fund future growth. Built in 1968 with a substantial renovation in 1995, the community was well-occupied at 94% at the time of marketing. However, it was also operating at a 19% margin on just under $3.2 million of revenues, so there is a value-add opportunity for the new regional owner/operator, which paid $6.275 million, or $78,400... Read More »
Cushman & Wakefield Finances New (and Stabilized) Community in California
Aaron Rosenzweig, Jay Wagner and Sam Dylag of Cushman & Wakefield helped a joint venture between Blue Mountain Enterprises Inc. and Calson Management to obtain first mortgage financing for their 148-unit assisted living/memory care community in Fairfield, California. PNC provided the loan from their agency platform. Built just a few years ago and stabilized, this community was the second ground-up development for the JV. Read More »Recent Senior Care M&A Deals, Week Ending March 29, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Regional operatorSkilled nursing facility in Jackson, MS$10.1 million Institutional investorArbor Springs of West Des MoinesN/A Skilled nursing operatorTownview Health and Rehabilitation CenterN/A Post Acute Partners6 Brookdale seniors housing... Read More »
KeyBank Funds ReNew Acquisitions
Private REITs may have taken a significant step back from their heady M&A days around 2014 and 2015, but one private REIT has been pursuing a growth strategy lately. Founded last February by George Chapman (former CEO of Health Care REIT, now Welltower), ReNew REIT (or ReNew Investors) now has 61 seniors housing communities and 5,645 units in 11 states in its portfolio thanks to several large portfolio acquisitions, including a 16-property purchase in Michigan and a RIDEA agreement with Southeast-based operator Phoenix Senior Living. So far in 2019, the company has closed four more acquisitions, adding eight additional communities and 813 units in Michigan, Pennsylvania and Virginia to... Read More »
The ABCs of the Independent Living Market
For some years now, we have separated out the assisted living and independent living M&A markets into a couple of quality-based categories, classified as “A,” “B,” and “C” properties. The determination is made by the property’s age, location and size, and there are always going to be some properties that can fit into either category. But they should balance out in the end. Some owners of “A” properties do not believe it is an apples-to-apples comparison between the quality of their communities and “B” and “C” communities in general, and probably vice versa. That is because the rates that “A” communities can charge and the margins they can operate at often exceed those of “B” and “C”... Read More »
Helios Heads to Jackson, Mississippi
Jeff Rhodes and Bill Janis of Helios Healthcare Advisors, continuing Helios’ impressive start to 2019, handled the sale of a 120-bed skilled nursing facility in Jackson, Mississippi. Originally built in 1984 with 60 beds and expanded with another 60 beds in 1997, this facility was previously owned by a local family with a good reputation in the area. Occupancy was solid at 84%, typically with seven or eight Medicare patients at a time. The buyer, a regional operator with a large presence in the state of Mississippi, may expand the short-term rehab program going forward. They paid $10.1 million, or $84,200 per bed, for the facility. Read More »Schedule a demo
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