Lancaster Pollard’s $88 Million Financing
Lancaster Pollard closed a large construction on behalf of Los Angeles-based Ridge Senior Living to build a new luxury senior living community in Lakewood, Colorado (Denver MSA). Once complete, the community will comprise 318 total units of independent living, assisted living and memory care. To fund its development, Jason Dopoulos, Ross Holland and Joe Munhall of Lancaster Pollard identified a national bank to act as lead agent on an $88 million construction loan, with a portion syndicated to other bank participants. The development will be Ridge’s fifth community, joining four other properties in California and Utah. Read More »
CBRE Finances Willows of Easley
Chicago Pacific Founders turned to Aron Will of CBRE to arrange financing for its latest acquisition in Easley, South Carolina. We reported last month that Evans Senior Investments had represented the independent owner/operator in its sale of a 100-unit independent/assisted living community. Originally built by the seller in 1997 and expanded in 2004, the Easley property was 96% occupied with 100% private pay and operated at a 36% EBITDAR margin. CPF bought it for $14.5 million, or $145,000 per unit, with the help of a $10.2 million Freddie Mac loan that featured a seven-year floating rate term and 42 months of interest only, arranged by Mr. Will. Grace Management will take over management... Read More »
Matthew Alley Sells 100th Texas Property
Cheers to Matthew Alley, who just sold his 100th facility in the state of Texas since joining Senior Living Investment Brokerage in 2006. In what was his 69th transaction in the state, Mr. Alley (and Patrick Byrne) represented a public healthcare REIT in its disposition of a 75-bed SNF in the Texas Panhandle, in the town of Wheeler. Built in 1982, the facility has a long way to go to stabilization, and its rural location doesn’t make it easier. It was just 55% occupied and operated just above breakeven under management of the outgoing Texas-based SNF operator. The buyer is a regional owner/operator that focuses on the state of Texas too. It purchased the facility for $1.8 million, or... Read More »
M&A Market Surges
After a very slow March, April seniors housing and care M&A transactions surged to nearly 50 acquisitions, more than double the number in March. In the first quarter this year, we averaged about 26 seniors housing and care acquisitions each month for a total of 77 in the quarter. That was close to what we have been seeing in the past few quarters, so nothing out of the ordinary. That is, until April. Last month we recorded 46 separate acquisitions, or double March’s volume. While it may not be a record, it is awfully close. The number will most likely rise above 50 as more deals come to light. It is too early to say this represents a trend in renewed M&A activity, but other than... Read More »
Public Companies Trade Assisted Living Portfolio
National Health Investors purchased from LTC Properties a portfolio of four assisted living communities and an AL/memory care community in Pennsylvania and Ohio for $67.5 million, or $210,900 per unit. Known as the Sunrise Portfolio, these communities will now be operated by Bickford Senior Living at an initial rate of 6.85% with annual fixed escalators and a 15-year maturity. Rental revenue under the lease for the four months ended April 30, 2018 was approximately $1.5 million. The properties, located in Columbus and Cleveland, Ohio and Erie, Pennsylvania, are also due to receive $1.75 million in capital improvements. KeyBanc Capital Markets Inc. and CS Capital Advisors, LLC acted as... Read More »
Lancaster Pollard’s Active April
Lancaster Pollard closed a trifecta of transactions this month. The largest was a $23.4 million HUD loan closed on behalf of Hillcrest Health Services to refinance its skilled nursing facility in Papillion, Nebraska. Located on the 44-acre senior living community of Hillcrest Country Estates, the SNF features 126 skilled nursing beds and 12 independent living units. Built in a household model, with 13 residents each in eight cottages and a 22-unit post-acute rehab cottage, the facility was developed in a way to receive financing separate from the rest of the senior living community. The 35-year loan, arranged by Quintin Harris, refinances the existing bank debt and inter-company notes used... Read More »
The Ensign Group Acquires Dallas Post-Acute Care Campus
The Ensign Group added a large post-acute care and senior living campus in Dallas, Texas to its growing portfolio of 234 total healthcare facilities. Located on 26 acres, the campus runs the gamut of senior care services and includes 125 skilled nursing beds, 81 independent living units, 36 assisted living units and 26 memory care units. It operated as a not-for-profit organization for over 50 years, but significant operational challenges forced the owner, Presbyterian Communities and Services, to sell the community. Ensign’s Texas-based subsidiary, Keystone Care LLC, will take over operations and change the community’s name to The Villages of Dallas. Occupancy was 79% at the time of the... Read More »
Recent Senior Care M&A Deals
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Welltower Inc.Quality Care Properties$4 billion National Health Investors, Inc.Sunrise portfolio$67.5 million Regional Owner/Operator2 NC skilled nursing facilities$30 million California-based owner/operatorBrentwood Healthcare$20 million Saber Healthcare Group, LLC10 skilled nursing... Read More »
A Fearsome Threesome: Welltower, Quality Care Properties and ProMedica Health Deal
We would be lying if we said we were not surprised by the announcement that Welltower will be buying Quality Care Properties for about $2 billion plus assumed debt, that ProMedica Health Systems would be buying the operating assets of HCR ManorCare, and that Welltower and ProMedica would be joint venturing. Strange bedfellows, for sure. While we are sure there was some time pressure to get the news out, we are also sure there were some unhappy analysts who were asleep at 11.58 pm on April 25 when Welltower announced to deaf ears that it moved up its second quarter earnings call to……8 hours later at the bright and early time of 8:00 am the following morning. Looks like management pulled a... Read More »
Big Rock Partners Opens Second Senior Living Community
Big Rock Partners had cause for celebration this week, as its second senior living development opened in Florida, at a total cost of $82 million, or $343,000 per unit. Situated on nine acres (purchased in 2014 with the help of a $4.5 million loan from Sabra Health Care REIT) in the Walt Disney Company-developed master planned community of Celebration (Orlando MSA), the community features 151 independent living units, 55 assisted living units and 33 memory care units. Life Care Services operates the campus, which not only is pet-friendly, but comes with a host of amenities such as gourmet dining venues, a high-end cinema, indoor aquatic center and a rooftop bar, among others. Adventist... Read More »Schedule a demo
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