Recent Senior Care M&A Deals, Week Ending August 21, 2020
The second quarter earnings announcements did not result in many deals, but some M&A transactions were still announced. Check out our recent deal chart! Long-Term Care AcquirerTargetPrice The Ensign GroupTempe Post Acute & Desert Marigold Senior Living of TempeN/A Cadence Living/Private equity group2 senior living communities in CON/A Local owner/operatorSenior care campus in KS$531,000 Owner/operatorSkilled nursing facility in... Read More »
Infinity Health Care Management Acquiring Quad Cities-Area SNF
Ray Giannini of Marcus & Millichap is close to closing the sale of a large skilled nursing facility in the Quad Cities region of Illinois and Iowa, although the process has not been easy. Featuring 245 beds and around 140,000 square feet on a 12-acre campus, the facility is owned by Rock Island County. Built in 2007, it is actually the newest in the area, but heavy competition has kept census low (below 70%). Unfortunately, the facility has also operated at quite a significant loss for some time, too. But with such a relatively new physical plant, the opportunity is there for a new owner to turn operations around. In September 2019, the facility was originally listed for $19... Read More »
Monarch Advisors Secures Acquisition Financing for Kansas City Facility
Monarch Advisors announced a new loan closing to support the acquisition of a small senior care facility in rural Kansas. Located outside of the Kansas City metro area, the facility was built in the 1960s but renovated around 2000. It featured 45 skilled nursing beds that were 80% occupied and a six-unit assisted living community with typically full occupancy. It was part of a larger portfolio that was put into receivership by the state of Kansas. A third-party manager was brought it to operate the building profitability, which it did, but the company had no intention of owning the facility. In comes a local owner/operator, which secured $425,000 in senior debt in the... Read More »
Helios Healthcare Advisors Arranges ALF Partnership Buyout
Mario Wilson and Bill Janis of Helios Healthcare Advisors pulled off a successful partnership buyout of an assisted living campus in Illinois. Not only that, but the pair also arranged the acquisition financing for the deal. Built in the 2000s, the 54-unit assisted living community was relatively stabilized and reported positive cash flow. At some point early in its history, the property was purchased by the partnership, but one partner is now looking to retire. Helios was engaged to structure the sale which resulted in a transfer of stock of the operating company and a real estate asset sale for the community. Helios then arranged a fixed-rate loan with a 25-year, fully amortizing term... Read More »
Blueprint Sells Kansas SNF
A well-maintained skilled nursing facility located about 20 minutes north of Lawrence, Kansas sold for significantly below replacement cost in a deal arranged by Amy Sitzman, Giancarlo Riso and Michael Segal of Blueprint Healthcare Real Estate Advisors. Why such a low price? Other than the obvious risks of purchasing a skilled nursing facility these days, this was the only Kansas facility of the West Coast-based owner/operator. There was also upside in census, expense management and case mix at the 60-bed facility. So, Blueprint brought the deal to an owner/operator that it had worked with before and could guarantee a high degree of closing certainty. Completing the due diligence and... Read More »
Are SNFs About To Go Out Of Business?
A recent survey by the American Health Care Association reveals some disheartening news. If you believe the results of a survey of 463 nursing home providers by the American Health Care Association, well, we are in bigger trouble than I thought. Apparently, 40% of the respondents said they would not be able to sustain operations for another six months at the current “pace,” which we assume to mean the current census and cost levels. A whopping 72% said they would not be able to sustain operations for another year. The problem is that they, unlike the private pay seniors housing industry, have already received several billion dollars of financial aid to help during the pandemic. If they... Read More »
Arizona Skilled Nursing Facility Closes For Highest Per-Bed Price
Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold a brand-new transitional care facility in Flagstaff, Arizona for the highest per-bed price seen in the state for at least five years. While the actual price was not disclosed, according to our Senior Care Acquisition Report, 25th Edition, the highest publicly disclosed price per unit for a SNF sale in Arizona was $180,100 per bed. So, we know it was at least higher than that. Developed in 2018 by Embree Asset Group, a national single-tenant development company, the facility features 50 private beds. It is also well located less than one mile from both downtown Flagstaff and the Flagstaff Medical Center,... Read More »
CBRE Funds Joint Venture’s Colorado Acquisition
Cadence Living and a private equity joint venture partner acquired two senior living communities in the Denver, Colorado metro area, thanks in part to financing secured by the CBRE National Senior Housing team of Aron Will, Austin Sacco and Matthew Kuronen. Located in Aurora and Lakewood, these two communities combine for 152 assisted living and 35 memory care units. Both were previously operated by Brookdale Senior Living. The new joint venture owner will invest around $4 million to improve the communities’ marketability. To fund the acquisition, CBRE arranged a $14.4 million bridge loan from a regional bank. It came with a four-year term, three years of interest only and a one-year... Read More »
Regions Bank Secures Financing For Seattle Development
The Regions Bank Healthcare Real Estate team recently secured construction financing for a to-be-built senior living community in a Seattle, Washington suburb. The three-story building will include 65 independent living units, 63 assisted living units and a total of nearly 107,500 square feet. It is being built by a joint venture between a Southeast-based developer/owner and a Southwest-based owner/operator. To finance it, they obtained a $28.3 million mini-perm loan, which comes out to approximately $221,000 per unit. The loan features a floating rate and five-year initial term, with four years of interest only. There is also a staged reduction in recourse, and at or prior to maturity,... Read More »
HHC Finance Closes Four HUD Deals
Housing & Healthcare Finance (HHC Finance) just announced four transactions from its HUD pipeline, totaling more than $44 million. The first deal was closed for a 120-bed skilled nursing facility in Ohio. Built in the early 1970s, it had occupancy in the low 90s and received a $10 million loan. Another skilled nursing facility in Ohio then obtained a $10.2 million loan from HHC Finance. That 93-bed facility was a little older (built in the mid-1960s) and was also well occupied around 95%. Next, HHC Finance closed a $10.5 million HUD loan for a 100-bed skilled nursing facility in Maryland. And finally, the firm closed its largest deal of the group for a 165-bed skilled nursing... Read More »Schedule a demo
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