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 »
Ensign Adds Two Colorado Skilled Nursing Operators
The Ensign Group added a couple of Colorado skilled nursing facilities to its portfolio. Both located in Commerce City (Denver area), the facilities include a 105-bed SNF (Ridgeview Post Acute) and an 83-bed SNF (Irondale Post Acute). The deal included just the operations of the facilities, bringing Ensign’s portfolio to 216 skilled nursing operations. The company has stated it wishes to own more of the real estate in its portfolio, and currently does at 91 facilities, but if a deal makes sense, why not? Ensign’s Colorado-based subsidiary Endura Healthcare took over management subject to long-term, triple-net leases effective March 1. Read More »
Love Funding Secures HUD Construction Financing For New Jersey Projects
Love Funding arranged financing for the construction of two new senior apartment buildings in Paterson, New Jersey. Love’s Leonard Lucas (say that five times fast) secured the HUD loans which totaled $55.6 million and came with low rates for the duration of construction and for a subsequent 40-year term. One location will feature 81 units in four stories, with two elevators, that will also offer a community room with a kitchen, on-site management and maintenance offices, lounge areas, an outdoor patio and garden space. A central laundry facility will be located on each floor. Social services will also be provided on-site via the Housing Authority of the City of Paterson, as well as... Read More »
Assisted Living Values Break Record
With cheap and abundant capital in hand, and plenty of brand-new properties built during the recent construction boom hitting the M&A market in 2019, buyers pushed assisted living values to the highest per-unit average ever recorded. The average price for assisted living communities rose to $248,400 per unit, or 33% higher than 2018’s average of $186,400 per unit and 12% higher than the previous high of $221,250 per unit in 2017, according the the Senior Care Acquisition Report. The median price per unit also reached a new high of $233,183 per unit, or 54% higher than 2018’s median and 8% higher than 2017’s. So, what explains this significant jump? First, investor interest in seniors... Read More »
Reis Sells Stockton, California SNF
Rob Reis of Marcus & Millichap handled the sale of a 75-bed skilled nursing facility in Stockton, California, yielding multiple offers and ultimately closing over the asking price at $8.3 million, or $110,700 per bed. Mr. Reis represented the seller, a local single-asset owner that decided to sell the property to a new partnership looking to do business in California. Built in 1989 and renovated in 2009, the facility was occupied in the high-80s, with a quality mix around 20%. There are three private rooms and 36 semiprivate rooms on a 1.77-acre lot. It operated at a 15% margin on nearly $8 million of revenues and, under the previous tenant, generated more than $710,000 in triple-net... Read More »
Recent Senior Care M&A Deals, Week Ending February 28, 2020
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Partnership buyerSkilled nursing facility in Stockton, CA$8.3 million Wingate Healthcare2 senior living communities~$43.6 million WI-based buyerSt. Clare Terrace$2.25 million Tryko Partners3 skilled nursing... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
