Scribner Capital Debuts
Fundamental Advisors LP has just announced the formation of a strategic partnership with Scribner Capital, LLC to deploy stable capital to the seniors housing and care sector, especially given the unstable times we are in right now. Fundamental is a leading alternative asset manager that has invested in a variety of assets, including seniors housing, most recently exiting its highly successful investment in the CCRC known as The Clare in downtown Chicago. Scribner Capital was recently formed by James Scribner to provide capital to owners, operators and developers of seniors housing and care assets. Scribner has focused on providing capital solutions in this... Read More »
Capital Funding Group Finances Illinois SNF Acquisition
Capital Funding Group announced its involvement in an acquisition financing supporting the purchase of a skilled nursing facility in Pekin, Illinois that closed earlier in April (that we covered in last month’s issue of The SeniorCare Investor. Built in 1964, the facility was previously owned by a California-based individual who had inherited the day-to-day operations from her late husband. Managing the facility from California proved to be too much for the seller, who decided to retire. Occupancy was 62% at the time, but with a strong 57% quality mix, 52% of the census coming from private pay. However, it was generating a loss of about $200,000 on $5.24 million of revenues. ... Read More »
HJ Sims Expands Its Investment Banking Team
HJ Sims announced a major expansion to its Investment Banking Team, adding two senior bankers and opening new offices in the Midwest and on the West Coast. Lynn Daly joined the firm as Executive Vice President in the new Chicago location, bringing over 30 years of experience working with not-for-profit organizations in financing. Previously, she was acting head of Senior Living Investment Banking at BB&T Capital Markets, and also spearheaded the Catholic Initiative within senior living investment banking at Ziegler. Brady Johnson also joined the HJ Sims team as Senior Vice President in the new West Coast office in Orange County, California. Previously at Hunt Real Estate Capital,... Read More »
April M&A Market Drops Off
The April deal total for the seniors housing and care market is in, the preliminary total at least, and if it is any precursor for M&A activity in the next few months, or longer…oh boy. A strong start to the month and anemic weeks afterwards pushed April’s transaction count to 21 publicly announced deals. We expect that figure to rise, but not by much since we imagine anyone who closed a deal in the last few weeks would want to shout that from the mountaintop. It’s true that several April closings were all-but-completed by the time COVID-19 reared its ugly head in the country. They just needed a little nudge, and some good faith from the buyer, seller and lender. But... Read More »
Capital Pointe Advisors Closes Pennsylvania Portfolio Sale
The small portfolio sales keep on coming, with buyers able to stand up to COVID-19 and not let it get in the way of growth. Nancy Herman of Capital Pointe Advisors acted as advisor to The Nugent Group in the sale of a five-facility portfolio in Pennsylvania. The portfolio consists of two skilled nursing facilities, two personal care homes and one new independent living and personal care home community. One of the skilled nursing facilities, with 105 beds, was built in 1962 and is located in Hermitage. The other nursing facility, located in Sharon, is smaller with 54 beds in 27 semi-private rooms. It is a restored 1958 mansion that was acquired by the seller... Read More »
Skilled Nursing Values Were Strong Before COVID-19
Leading up to the onset of the COVID-19 pandemic, skilled nursing facilities were going through their own challenges of falling census and shortening lengths of stay, low Medicaid reimbursement, aging physical plants, a labor squeeze and the possibility of a CMS correction after the implementation of PDPM. What some wouldn’t give to go back to those kinds of problems. However, values were near an all-time high, averaging $93,000 per bed in 2019 according to the 25th Edition of The Senior Care Acquisition Report, and falling slightly to an average of $92,800 per unit in the four quarters ended March 2020. That high average was the result of investors acquiring... Read More »
Recent Senior Care M&A Deals, Week Ending May 1, 2020
Deals are still getting done these days. Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Southeast-based owner/operatorElderwood at Riverside$4.3 million Private investorCinnamon Ridge$15.5 million Constantia Healthcare GroupQueens... Read More »
Evans Senior Investments Completes CareTrust’s Metron Michigan Exit
Evans Senior Investments has done it again, announcing the closing of a skilled nursing portfolio sale in the state of Michigan just a couple of days after another SNF sale in Rhode Island. The deal first rose to the surface in November 2019, when the seller, CareTrust REIT, announced the intended sale after the operator, Metron Integrated Health Systems, had stopped paying rent and decided to exit the buildings in the midst of Medicaid fraud allegations involving millions of dollars of improper payments. The news came as quite a shock to CareTrust at the time, and a sale was pursued. The portfolio was about 86% occupied across the 496 licensed beds at the time of marketing and was... Read More »
Harborview Capital Partners Announced Several Financings
Harborview Capital Partners announced a series of recent closings for several clients across the country. First, the firm worked with a national lending partner to arrange an $81 million loan to refinance a portfolio of four skilled nursing facilities and one assisted living community in Maryland. The loan featured aggressive LIBOR-based fixed interest rate and a four-year term with limited recourse. It resulted in a cash-out in excess of $20 million for the New Jersey-based owner. Ephraim Kutner, Jonathan Kutner and Eli Kutner originated the transaction. Then, Harborview arranged for the refinance of two senior care properties in Queens, New York. The 200-bed skilled nursing facility... Read More »
CIBC Closes Phoenix-Area Refinance
Chicago-based bank CIBC just completed a cash-out refinance of a 98-bed memory care community in the Phoenix, Arizona market. Originally built in 2000 and renovated in 2013, the community obtained a $21.5 million loan with a five-year term and a 25-year amortization schedule. There is also the possibility of an additional $2.1 million of debt which would be released based on certain performance achievements. Fritz Kieckhefer handled the transaction for CIBC. Read More »Schedule a demo
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