Private Equity Firm Expands Portland Portfolio
A Southern California-based private equity firm added to their Portland, Oregon portfolio with the addition of a 38-unit assisted living community. Built in 2011, the small community was previously owned by a local operator who will be using the proceeds to invest in other real estate assets. It was 89% occupied (a solid figure these days) and operated at a 34% margin on under $2.5 million of revenues. So, there is some room for improvement. Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage handled the transaction, which resulted in an $8.5 million, or $223,700 per unit, purchase price and a 10.0% cap rate. Read More »
SunTrust Bank Lends in Florida
SunTrust Bank just announced it provided $28.6 million in financing for the Imperial Club Tower in Aventura. Florida. Imperial Club has both assisted living and independent living services totaling 214 units. Part of the funding will be used for renovations and a 10,000 addition to the main level, in addition to enhancing the major common areas throughout 2019. No residents will be displaced. The seller was Affordable Community Housing Trust Alpha and Silver Tree Residential, LLC will be the manager. Read More »
Capital Health Group Divests Four Pennsylvania Properties
Just two years after acquiring four seniors housing properties totaling 534 beds in southeastern Pennsylvania, Capital Health Group is turning around and selling them. After CHG’s operating affiliate Milestone Retirement Communities took over management of the portfolio, occupancy has averaged 93% and the operating margin consistently surpassed 38%. In today’s operating environment, that’s quite a feat. A national REIT was the buyer. CHG sold the communities on behalf of its sponsored operating community, CHH Senior Housing, LP, which is capitalized by Akard Street Partners, an investment venture with the Teacher Retirement System of Texas. Read More »Recent Senior Care Deals, Week Ending March 1, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Bristol care homeLXi REIT$18.2 million MedCore Partners4 assisted living communities$98 million Compass Senior LivingGreentree at Mount Vernon$6 million RDCP CareDignus Healthcare... Read More »
Capital Senior Living Misses the Mark, Again
As we were watching the share price of Capital Senior Living drop for several days in a row before announcing their fourth quarter earnings results, we were wondering whether something had leaked out, or whether it was the usual sell off because the company had underperformed relative to expectations for too many quarters in a row. We may never know which it was, and maybe a bit of both, but underperformance was there again. Now, we can’t shoot the messenger because Kim Lody took over as CEO at the beginning of this year and was just a Board member before that, but the results were probably worse than anyone expected. Sequential occupancy declined by a whopping 110 basis points from the... Read More »
Cushman & Wakefield Assists in Assisted Living Disposition
As part of a larger effort to exit several non-core assets, an institutional owner decided to sell its 112-unit assisted living/memory care in Mount Vernon, Illinois (about 80 miles southeast of St. Louis), with the help of the Richard Swartz, Jay Wagner, Jim Dooley and Sam Dylag of Cushman & Wakefield. Built in phases from 2001 to 2009 and substantially renovated in 2017, the community struggled against newer competitors in the area and their rent discounting tactics. As a result, occupancy fell to just 60% in 2018. Compass Senior Living stepped in to acquire the asset for $6 million, or $53,600 per unit, leaving plenty of wiggle room for an operational turnaround. From the sound of... Read More »
Hats Off to Capital Funding
About three years after it acquired a 140-bed skilled nursing facility in Hatboro, Pennsylvania, Vita Healthcare Group decided to refinance the property with a HUD loan provided by Capital Funding. Craig Casagrande originated the $16.1 million mortgage, which takes out the original $13.36 million bridge loan and $1.5 million working capital loan provided by the firm to support the 2016 acquisition. That original financing included a turnaround component that increased the loan amount based on projected improvements to the facility’s performance. So, assuming a roughly 90% loan-to-cost, the 2016 purchase price can be estimated just below $15 million, or $106,100 per bed. In early 2016, the... Read More »
CBRE Refinances Nebraska Senior Living Community
Aron Will and Austin Sacco of CBRE National Senior Housing arranged a Fannie Mae refinance of an Omaha, Nebraska senior living community. Owned by a joint venture between Hegg Companies, a Sioux Falls, South Dakota-based real estate investment firm, and Paradigm Senior Living, an operator with an extensive portfolio west of the Mississippi, the community features 91 units of assisted living and memory care. In addition to boasting large unit sizes and abundant amenities, it is also located less than five miles from the only full-service hospital in West Omaha, CHI Health Lakeside. To refinance the property, Messrs. Will and Sacco originated an $11.9 million loan, with a fixed interest... Read More »
Non-Stabilized SNFs Drop in Value
We are fast approaching the publishing of our Senior Care Acquisition Reports, which we’ve split for the first time into the Skilled Nursing Acquisition and Investment Report and the Seniors Housing Acquisition and Investment Report. You can expect these Reports to hit your desk sometime in the next few weeks, if you order them, of course. In them, we’ve included more graphs, stats and analysis than ever before, along with comprehensive lists of the industry’s operators, private equity firms, REITs, lenders and brokers. Here is a taste of what you’d find: Source: The 2019 Skilled Nursing Acquisition and Investment Report Traditionally, we have defined stabilized occupancy for skilled... Read More »
Thoughts On NIC Conference
New programming was just what the industry needed. Fresh from three days in San Diego attending the NIC “Spring” Conference, there were some noticeable changes, other than many new faces again. At past conferences, most of the sessions had to do with real estate, valuations, operations, competition and financing alternatives. While all important, this was the first NIC where there was an unusual amount of attention to things that most people either don’t want to hear about, or just plain don’t understand. I am speaking of Medicaid managed care, in both skilled nursing and assisted living, Medicare Advantage plans in assisted living, I-SNPs and value-based care, and, of course, the new PDPM... Read More »Schedule a demo
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