From the Front Lines at NIC
As the hordes descended on San Diego for the Spring NIC conference, we soon learned that hotel rooms suddenly became available at the last minute. Why? Cancelations and no shows, perhaps 10% to 15%, as fears of the coronavirus spread. Larger conferences in the next several weeks have been canceled. For those of us braving the unknown, it was business as usual, elbow bumps instead of handshakes, and no problem finding meeting space in the networking lounge. Obviously, the biggest topic of conversation was the coronavirus, the potential impact on the economy in general, and specifically whether it would be a huge problem for the senior living sector. The worry was that if there were more... Read More »
Senior Living Investment Brokerage Sells Illinois Portfolio
It’s not always easy to get a senior care deal done in Illinois. But Patrick Byrne and Jeff Binder of Senior Living Investment Brokerage took the challenge and sold a portfolio of three skilled nursing facilities and two assisted living communities in the central and southern part of the state. Built between 1976 and 2004, with various capital improvements made in 2011, 2014 and 2016-2018, these properties are located within 100 miles of each other. The SNFs total 286 beds, while the AL buildings combined for 97 units, with an overall average occupancy of 79%. Operations at the skilled nursing facilities had been very stable in the last three years, averaging $2.8 million in annual... Read More »
Another Financing From Monticello Asset Management
What a six months it has been for Monticello Asset Management. In that time span, the firm and its affiliates have closed around $450 million in five-, seven- and 10-year fixed-rate loans, all of which were non-recourse. And in February alone, Monticello announced $278.7 million in first lien debt financings across seven transactions, plus a number of supplemental working capital loans. Now, Monticello has kicked off March with a loan totaling $35.9 million to fund the acquisition and renovation of four assisted living/memory care communities in Florida and South Carolina. Totaling 345 units, the communities averaged more than 20 years in age. About $2.7 million will be spent to renovate... Read More »
Seniors Housing Stocks Crash
You can blame the overall plunge in the stock market, but seniors housing stocks crashed disproportionately more than the market as a whole. Capital Senior Living ended Thursday down 22% for the day at just $1.87 per share. This represents a market value of $57.6 million. Brookdale Senior Living plunged 12% to $5.01 on volume seven times its average. Brookdale’s market value is now $923 million. When will it all end? The problem is that it may not end until there is some clarity on when the coronavirus will run its course and what the ultimate economic impact will be. With both Washington state and California declaring a state of emergency, fears among senior living providers grow. If the... Read More »
Recent Senior Care M&A Deals, Week Ending March 6, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Small regional owner/operatorGreenfield Residences of Arlington$12.45 million Hospitality real estate ownerCitadel Estates of Hazel Crest$1.7 million Regional owner/operatorPowell Valley Assisted Living and Memory Care Community$25.5 million The Ensign GroupRidgeview Post Acute & Irondale Post AcuteN/A MO-based owner/operatorSt. Paul’s Senior Community$15.25... Read More »
JCH Announces Two Southern California Closings
Right before heading to NIC, Jim and Cindy Hazzard at JCH Senior Housing Investment Brokerage closed a couple of sales in Southern California. The pair first sold a 36-unit assisted living community in Riverside County. A family owned and operated the community for the last 20 years and decided to retire. JCH ran a confidential marketing campaign and received several competitive offers, with the seller ultimately selecting a local owner based in the market looking to grow their portfolio. In the end, the community sold for $5 million, or $140,000 per unit. Then, the Hazzard’s arranged the sale of a small 15-unit assisted living community in Orange County on behalf of another family... Read More »
Blueprint Sells Two Value-Add Properties
In the middle of all of their meetings in San Diego, two Blueprint Healthcare Real Estate Advisors teams announced a couple of recent sales. Connor Doherty, Brian Payant and Ryan Kelly first represented a regional owner/operator in its disposition of a 120-bed skilled nursing facility in Akron, Ohio. Maintaining historically stable cash flow, but an opportunity to capitalize on PDPM with a higher acuity census, the facility was purchased by a New York-based private equity group with a strong local presence. They paid $8 million, or $66,700 per bed. Then, in the first sale of a multi-state portfolio deal, Dan Mahoney, Amy Sitzman and Blake Bozett sold a 39-unit assisted... Read More »
New York-Based Owner Operator Acquires Maryland SNF
An 88-bed skilled nursing facility that was owned and operated by University of Pittsburgh Medical Center Western Maryland just sold with the help of Mark Davis of Healthcare Transactions Group. The integrated health system, one of the largest in the country with some 40 hospitals after a February 2020 merger between the UPMC hospital network and Western Maryland Health System, sold the facility to a New York-based skilled nursing owner/operator with existing SNFs in Maryland and elsewhere on the East Coast. Thoroughly renovated and upgraded, the facility is located in Frostburg, Maryland. It was originally built as a hospital and now includes a secure 22-bed Alzheimer’s/dementia unit... Read More »
NIC San Diego and The Coronavirus
Despite several cancellations we have heard of, we will be at NIC in San Diego to see you and talk deals. Good morning NIC attendees, at least those of you who decided to brave the coronavirus, which is here, in San Diego. I shouldn’t make light of it, as this virus is a killer, and if it is not contained, could do significant harm to the entire senior living industry. Perhaps in a way worse than even the worst flu season, but on steroids. Unfortunately, we have heard over the past several days of people canceling their trip to NIC, and entire companies telling their employees not to travel by air for business, even if they already had meetings set up at a conference such as NIC. Well, I... Read More »
Senior Living Investment Brokerage Announces Active Start to March
A slew of sales were announced by Senior Living Investment Brokerage, closing just before we headed out to NIC. And they spanned the entire senior care spectrum. First, Matt Alley and Patrick Burke represented Invesque in the REIT’s sale of an independent living community in Arlington, Texas. Built in 2002 with 178 units, comprised of 24 studio, 130 one-bedroom and 24 two-bedroom units, the community was just 67% occupied at the start of marketing. The operating margin could also be significantly improved from 4.6% on approximately $3.4 million of revenues. A small regional owner/operator saw the opportunity to add value and acquired the community for $12.45 million, or $69,900 per unit.... Read More »Schedule a demo
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