Brookdale Breaks Bread With Ventas
Perhaps the two most powerful women in seniors housing, Debbie Cafaro of Ventas and Cindy Baier of Brookdale Senior Living, had to make some decisions with regard to Brookdale’s under water leases that have a maturity date in 2025. If there can be any silver lining with the current pandemic, it most likely pushed the two sides to come to an agreement to do something now before the leases drowned in more red ink. And while there are benefits to both companies, the newly revised lease agreements provide a cash-flow lifeline to Brookdale. The triple-net leased portfolio now has 120 communities, but when the lease was last negotiated back in 2018, combining several leases into one master... Read More »
Berkadia’s HUD Bonanza
Berkadia’s Seniors Housing & Healthcare Group has been hard at work with HUD deals so far this summer, with over $50 million in closings in June and July. The transactions were all closed for skilled nursing clients in three states across the country. Jay Healy and Bianca Andujo first secured a $22.24 million loan to take out existing debt at a 157-bed skilled nursing facility in Worchester County, Maryland. About 25% of the facility’s census was made up of Medicare patients at the time of the financing. The 35-year loan came out to 80% loan-to-value, which puts the facility’s value at about $177,000 per bed. That is high even by Maryland standards, which typically surpasses most... Read More »
MONTICELLOAM Secures First Lien Financing for Florida Communities
On the back of a busy spring, MONTICELLOAM, LLC and its affiliates announced yet another first lien debt financing for a senior care client. This transaction featured a $20.2 million loan that refinanced two assisted living/memory care communities in Florida. The properties total 171 beds. Their owner (and the borrower) is an experienced owner/operator with a current portfolio of more than 1,300 licensed beds. This deal follows a Memphis-area refinance of two skilled nursing facilities, both a working capital loan and first-lien debt financing for three skilled nursing facilities in North Carolina and Kentucky, and a refinance of a Kansas senior care... Read More »
Skilled Nursing Values Drop In Last Four Quarters
It still may be too early to tell, but according to our rolling-four quarter M&A statistics, it appears that skilled nursing values have started their descent in light of the COVID-19 pandemic. We say it may be too early simply because of how few transactions have been negotiated and closed since the onset of the virus, and we base our statistics on closed transactions, not just announced ones. The rolling-four quarter average also still consists of three quarters of prices that were not affected by the pandemic and that represent a larger share of the past 12 months of deals than normal because of the dearth of deals in Q2:2020. Nevertheless, the average price... Read More »
Acts Retirement-Life Communities Disposes Non-Core Property
Acts Retirement-Life Communities decided to shed a non-core property located near Baltimore, Maryland, working with Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors to get the deal done. Built in 1994, the property features 66 skilled nursing beds and 60 assisted living/memory care units in the town of Sykesville, about 20 miles west of Baltimore. Acts picked up the property in May 2019 as part of a merger with Integrace, another not-for-profit senior care provider with four communities in Maryland. However, the community did not fit in with Acts’ CCRC business model and was slated for sale. The Blueprint team procured 12 competitive offers during a 30-day... Read More »
Concerto Adds Dialysis Service In Missouri SNF
Skilled nursing patients are obviously some of the most vulnerable to the COVID-19 virus, and providers have been working hard to minimize their exposure to it. In-house dialysis can be one service that helps that cause by bringing dialysis to the patients, rather than bringing the patients to a dialysis center and exposing them to different environments from the shuttle bus to the center itself three days a week. On top of that, in-house dialysis is just a better and less tiring experience for the patients themselves. Concerto Renal Services expanded its in-house dialysis offering to a skilled nursing facility in Kansas City, Missouri that is owned by Ignite Medical Resorts. This... Read More »
Recent Senior Care M&A Deals, Week Ending July 24, 2020
The summer M&A market continues its doldrums, but there were a few deals that closed. Check out our recent senior care M&A deal chart! Long-Term Care AcquirerTargetPrice Icade9 skilled nursing facilities in Germany and France$167.9 million New York-based owner/operatorShire Senior LivingN/A Not disclosedSkilled nursing/assisted living facility in MD$20 million The Springs LivingLancaster Village$31.5... Read More »
Ardent Senior Living Sells Rochester ALP Community
Seven years after acquiring an assisted living/independent living community in Rochester, New York, Ardent Senior Living is selling the property to a New York-based owner/operator. Originally built in 1974, the community features 115 assisted living units (with 200 licensed beds) and a 42-unit independent living building. The campus participates in New York’s Assisted Living Program (ALP), which provides a higher level of care (close to skilled nursing) in an assisted living setting for Medicaid residents. It’s a win for the state, which can reimburse nearly skilled nursing level care at a lower rate, and for the providers, which can take in Medicaid residents at a... Read More »
Four Philly-Area SNFs Refinance With CIBC
Four skilled nursing facilities owned by a Formation Capital-led investment group successfully refinanced with the help of Leslie Beck and Adam Panos of CIBC. All located in the greater Philadelphia market, these facilities have been operated by Saber Healthcare for the past three years. CIBC had also provided working capital to them since Saber took over operations. The current loan totals $30 million and comes with a term of three years. There is also an extension option for a fourth year. Read More »
HJ Sims Funds CCRC Expansion Project in North Carolina
HJ Sims has a long history with the SearStone Retirement Community, a CCRC in Cary, North Carolina, and recently closed another financing for the property. Sponsored by Samaritan Housing, Inc., the community currently consists of 131 independent living units, 38 IL estate homes, 14 assisted living units and 25 skilled nursing beds. HJ Sims originally financed the first phase of the CCRC with a $117 million non-rated fixed rate bond issue in 2012. Then, the investment bank funded an expansion in 2016 with an $8 million issue. HJ Sims also provided the original seed capital, and the funds to advance refund the 2012 issue, and provided a portion of the pre-development capital for a Phase II... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
