Collaboration Funds Canonsburg Acquisition
A collaboration between Contemporary Healthcare Capital (CHC) and BHI helped facilitate the acquisition of a 118-bed skilled nursing facility in Canonsburg, Pennsylvania. It was thanks to a $7.95 million senior loan provided by BHI and a $1.575 million mezzanine loan provided by CHC that enabled David Simha, a skilled nursing owner/operator, to both purchase the stabilized facility and help fund its operations, in addition to providing for customary closing costs. In addition, BHI’s financing included a $600,000 line of credit and an earn-out feature of $2.1 million based on certain predetermined performance metrics. This is the first time CHC and BHI have come together to close a... Read More »
Strong M&A Activity Continues
As we head to the end of the first quarter, seniors housing and care M&A activity may reach 100 transactions for the fourth consecutive quarter. I should no longer be amazed by how strong the seniors housing and care M&A market remains, given all the headwinds we hear about all the time. From the public companies, Capital Senior Living’s stock took another tumble last week and Five Star Senior Living continues to struggle, but may soon get some rent relief. Nevertheless, buyers keep on snapping up senior living and skilled nursing properties. We are approaching the end of the first quarter, and that often means a fair amount of deal announcements the last week. Before we get those,... Read More »
Memory Care SNF Sold to Institutional Investor
Senior Living Investment Brokerage flocked to Iowa (no, not to launch a bid for the Presidency) to sell a 56-bed skilled nursing facility in West Des Moines. This facility stands out in that it exclusively serves Alzheimer’s and dementia patients. Occupancy at the time of the sale was 86% with a 94% private pay and 6% Medicare census. We don’t hear of figures like that often for a skilled nursing facility. The selling group of investors had realized their investment objectives and decided to sell the facility to an institutional investment group based in California. A national company with a strong presence in the Midwest will operate going forward. Nick Cacciabando and Jeff Binder handled... Read More »
CBRE Sells Value-Add SNF in Oklahoma
Daniel Morris of CBRE has sold a skilled nursing facility in Miami, Oklahoma, working on behalf of the West Coast-based investor seller in the transaction. This 100-bed facility was just 51% occupied despite having a high-quality physical plant. It was also built 20 years ago, which although isn’t new also isn’t too old in the SNF market. So, with an eye to improve the facility’s census and operations, a regional operator with existing facilities in the area brought this location into its portfolio, for an undisclosed price. Read More »Recent Senior Care M&A Deals, Week Ending March 22, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Private ownership groupParkside Ellijay$7.3 million Altitude Health ServicesProvidence Healthcare and Rehab Center of Palos HeightsN/A Regional operatorWindridge Nursing... Read More »
Avalon Senior Living Grows
Avalon Senior Living has partnered again with Eastridge Pacific Holdings, LLC (EPH), this time buying three senior living communities in California from HCP, Inc. that had been leased to Brookdale Senior Living. The 205 units (210 beds) offer independent living, assisted living and memory care services. The purchase price was $15.7 million, or $76,585 per unit, and came with an approximate cap rate of 8.0%. Mike Garbers, formerly of Greystone and now with JLL, represented the seller, and MidCap Financial provided the mortgage financing. Eastridge Pacific entered the senior living industry in 2016 as an equity partner in Kalakaua Gardens, a 17-story community in Honolulu with 216 beds. It... Read More »
SLIB Heads Southeast to Sell Sunlink SNF
A 100-bed skilled nursing facility in the affluent northern Georgia town of Ellijay was purchased by a private Northeast-based group looking to expand their current Peach State presence. Being the only facility in an area with a growing number of retirees, this SNF was consistently well occupied above 90%. Plus, once the adjacent hospital relocated in 2016, this 50-year old facility was able to expand into much of the old building, adding more resident rooms, a senior day care center, new administrative offices and outpatient rehab. It also operated at a solid 14% margin; pretty good these days. Its previous owner, Sunlink Health Systems Inc., was looking to redeploy capital and focus on... Read More »
Blueprint Closes Two Large Skilled Nursing Deals
Blueprint Healthcare Real Estate Advisors closed a couple of sales in the Old Northwest. First, Amy Sitzman and Michael Segal represented Sioux Falls, South Dakota-based The Evangelical Lutheran Good Samaritan Society in the not-for-profit’s sale of three Wisconsin skilled nursing facilities. Considered to be non-core, these facilities feature 162 skilled nursing beds, 19 independent living units and 12 age-restricted apartments. They were originally built in 1960s but had maintained a good reputation. In addition, occupancy and quality mix were strong, but despite high per-resident-day revenues, expenses ran too high. Expense management will be the job of the new owner/operator, which is... Read More »
Dwight Capital Stays Active in 2019
Dwight Capital has closed a slew of bridge financings in the last couple of months totaling more than $17 million. These transactions included a $3.96 million bridge loan for a 120-bed skilled nursing facility in Overland Park, Kansas, a $2.34 million loan for a 32-bed assisted living community in Hinsdale, New York and a $3.77 million acquisition loan for a 116-bed SNF in Cape May Court House, New Jersey that was bought by an owner/operator of several other facilities in the state. Dwight Capital also funded the acquisition of a skilled nursing portfolio in Wisconsin (in a sale led by Amy Sitzman and Michael Segal of Blueprint Healthcare Real Estate Advisors) with a $3.7 million loan... Read More »
Monticello Funds Tennessee SNF Purchase
Following up on several other acquisition financings closed on behalf of a previous borrower in the past three years, Monticello Asset Management funded the purchase of two more skilled nursing facilities in Tennessee. Totaling $16 million in first lien debt that Monticello expects to refinance through HUD in the coming years, the transaction was arranged for an experienced owner/operator with a current portfolio of more than 3,700 licensed beds. This latest acquisition totaled 303 beds across the two Tennessee locations. Monticello’s asset-based lending group, Monticello Commercial Capital, also provided a $3 million working capital loan to the operating companies. Read More »Schedule a demo
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