MONTICELLOAM Arranges Acquisition Loan for Maryland SNF Portfolio
MONTICELLOAM, LLC (Monticello) is continuing its April activity with an acquisition financing closed for a skilled nursing portfolio with 460 total beds in Maryland. The buyer was an experienced owner/operator with a current portfolio of 2,459 licensed beds. They have also worked with Monticello before, receiving acquisition financings for a number of other facilities in 2019 and 2020. The most recent transaction consisted of $66.6 million in first lien debt, with comes out to nearly $145,000 per bed, a high figure for skilled nursing facilities, even in the state of Maryland. It all depends on payor mix, occupancy and most importantly, cash flow, and these facilities must be... Read More »
Capital Senior Living Files Registration Statement
At the end of last week, Capital Senior Living filed an S-3 registration statement for the issuance of up to $150 million in various securities. And when we say “various,” we mean it. It could be common stock, preferred stock, senior debt, subordinated debt, depositary shares, warrants, rights, units, purchase contracts…you name it. What we don’t know is if this was just a formality, with this shelf registration statement replacing an old one that was expiring. If so, no big deal. If not, and if they might issue new debt, stock or other securities, that could be a troublesome sign. After their fourth quarter earnings call, we felt a little better about their prospects, with... Read More »
Helios Healthcare Advisors Sources Tenant in Texas SNF Sale
At the start of April, the team at Helios Healthcare Advisors including Jeff Rhodes, Bill Janis and Mario Wilson, successfully sourced a tenant and structured the lease of a 150-bed skilled nursing facility in Kerrville, Texas. We’re not sure how operational transitions go these days, but we can’t imagine they’re easy. Blueprint Healthcare Real Estate Advisors (Mr. Wilson’s former stomping grounds) announced the deal last week, representing the REIT seller. Built in 2006, the facility was enrolled in the Texas Quality Incentive Payment Program (QIPP). Formerly operated by Southwest LTC, its occupancy was in the low-50% range, but cash flow (before the QIPP revenue) was... Read More »
Recent Senior Care M&A Deals, Week Ending April 10, 2020
Yes, deals are still getting done these days. Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Greystar & foreign investorOverture San Marcos & Overture RiverwalkN/A Local buyerAssisted living/memory care community near Pittsburgh, PAN/A East Coast owner/operatorSkilled nursing facility near St. Louis, MON/A Mt. Si Senior CenterCascade Park Seniors... Read More »
Q1 M&A Activity Falls Below 100 Deals
For the first time since the first quarter of 2018, quarterly seniors housing and care deals dropped below 100 in Q1:2020, to 93 deals. Averaging 31 deals per month is not too shabby, but compared with the red-hot M&A market of 2019, when 450 deals were publicly announced and likely over 600 were actually completed, it is a significant decline. Not surprisingly, the COVID-19 pandemic had a large part to play in the slowdown, but not as much as you may think in the first quarter. After all, large swaths of the U.S. economy were not shut down until mid-March, and deals that closed after that were all-but-completed by the time businesses shut their doors. They just needed a little nudge... Read More »
Cushman & Wakefield Closes Southern California Sale
Dave Rothschild and Mary Christian of Cushman & Wakefield recently closed on the sale of three senior living communities in southern California. The communities were owned by Diversified Healthcare Trust (NYSE: DHC) and were operated by Five Star Senior Living. They total 322 independent living units, 198 assisted living units, 45 memory care beds and 54 skilled beds. When the portfolio went to market last year, overall occupancy was 78%, but we don’t know how it has performed since then. They are all located within 80 miles of each other, so it makes for a nice cluster. The largest community, with 386 units/beds, was built in 1975, and the two others in 1986 and 1988. Diversified... Read More »
MonticelloAM Funds SNF Portfolio Acquisition
The team at MonticelloAM arranged acquisition financing for an experienced owner/operator’s purchase of six skilled nursing facilities across the state of Arkansas. Built in the 1980s and 1990s, the portfolio consists of 868 total beds. Occupancy averaged between 83% and 84% under the management of an affiliate of Capital Health Group. Private REIT CNL Healthcare Properties was the seller, hiring Newmark Knight Frank to run the sales process. The deal closed in early March. The purchase price came to $55 million, or $63,400 per bed, and was financed by $50 million in first lien debt, with a 36-month term, provided by MonticelloAM. Included in the transaction was a $2 million working... Read More »
Getting Personal With COVID-19
When COVID-19 hits close to home. So, here we are in week three of shelter in place. Actually, week four for me. Two weeks ago, I was about the only one wearing a mask in one of my two trips to the grocery store. Now most everyone is, which makes sense. On one of the trips, I was actually told by someone that I was not supposed to be wearing one because I was asymptomatic. My how things have changed. I live in a small town of 20,000, and we have had 82 confirmed cases of COVID-19 and 10 deaths. That’s a 12% death rate, and it has been at that rate for the past week and a half, with about one death a day. I assume that 12% rate will come down as more tests are given, but it does seem out of... Read More »
Navigating Today’s Lending and M&A Markets: A Q&A with Meridian Capital Group
Seniors housing and care M&A has slowed down considerably, which will not surprise anyone, and an abundance of caution on the buyers’ part has had a lot to do with that. But perhaps more so has been the reaction of the lenders, many of whom have taken a wait-and-see approach before lending millions to support acquisitions, new developments and even refinances. However, deals are still getting done, with even a mini M&A boom at the end of March into early April, so a number of lenders had to have signed off on those deals fully aware of the economic and practical realities of the current crisis. So how have these lenders adapted to the current environment?... Read More »
Sabra Health Care REIT Exits Montana SNF Market
Sabra Health Care REIT announced the divestment of two skilled nursing facilities in Montana, finalizing its complete exit from the state. The two facilities, located in Great Falls (278 beds) and Deer Lodge (60 beds), were operated and leased by Genesis HealthCare, the only two for the large provider in the state. As a result of the sale, the total annual rental obligation from Genesis decreased by about $1.1 million. According the Sabra’s press release, the purchase price came to $14.4 million, or $42,600 per bed, which included the assumption of $14.2 million in HUD debt encumbering the facilities. The team of Christopher Hyldahl, Gideon Orion, Michael Segal and Ben Firestone from... Read More »Schedule a demo
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