Mozart Healthcare’s Texas Portfolio Swells to Four
Genesis Healthcare may be exiting Texas right now, but Chicago-based Mozart Healthcare doubled down in the Lone Star State, acquiring a 124-bed skilled nursing facility in El Paso to complement its three existing SNFs (located in Winnsboro, Kennedale and San Augustine) in the state. The new addition is the company’s first in West Texas, and it is in need of an operational turnaround. The facility consists of two buildings: one with 74 beds built in 2013, and a vacant building built in 1960 with 50 inactive licensed beds. The not-for-profit seller maintained census around 90% based on operational beds, but cash flow was negative. Mozart and incoming operator, Dallas-based Paramount... Read More »
Meridian Capital Group Closes $77 Million In Financings
Meridian Capital Group showed off its range in closing financings for three clients, including two acquisition loans and a HUD refinance. Ari Adlerstein and Ari Dobkin first worked on behalf of a regional operator to arrange a $16.3 million HUD loan that refinanced a 120-bed skilled nursing facility in Ocean View, New Jersey. Then, for another regional operator, the pair secured a $12.8 million acquisition loan for the borrower to purchase a portfolio of three skilled nursing facilities in Massachusetts that total 286 beds. A balance sheet lender provided the five-year loan, which featured a floating interest rate over the 30-day LIBOR. And finally, a balance sheet lender again provided a... Read More »
Cushman & Wakefield’s Carolina Sale
For the second time, Prudential Real Estate Investors is selling its large senior living community in Cary, North Carolina, 14 years after the first sale. Originally built in 1999 with 80 independent living units, 36 assisted living units and 36 memory care units, the community has been operated by Kisco Senior Living since its development. During that time, Kisco has overseen several ownership changes, starting in 2004, when Prudential Real Estate Investors sold the community to Walton Street Capital for about $27.4 million, or $180,000 per unit. Walton Street added 14 IL cottages with 24 units in 2008-2009, perhaps not the best time for an IL addition. Nevertheless, Walton Street resold... Read More »
Another Genesis HealthCare Disposition
In a move to reduce its debt, raise some cash and focus on its core markets, the beleaguered Genesis HealthCare announced a definitive agreement to sell 23 Texas skilled nursing facilities that comprise 22 owned buildings and one leased. The deal will bring Genesis’ Lone Star State portfolio to one lone leased skilled nursing facility, which the company also plans to exit soon. Assuming both transactions close, Genesis will lose approximately $173.7 million and $7.4 million of aggregate revenue and EBTIDA, respectively. It will also be relieved of about $97 million of indebtedness and $1.8 million of annual cash lease expense, both good signs for the company. New York City-based Regency... Read More »
Pricing “A” vs. “B” Seniors Housing Properties
On Thursday April 12, 2018, we hosted a webinar titled “Pricing “A” vs. “B” Seniors Housing Properties,” where moderator Steve Monroe and panelists Richard Swartz of Cushman & Wakefield, Wayne Kaplan of Premier Senior Living Group and Paul Froning of Focus Healthcare Partners spent 90 minutes detailing the ins and outs of investing in these two very different markets. The panel discussed current pricing of seniors housing properties (broken out between “A” and “B” properties), operating statistics (like occupancy, operating margin and NOI per unit) and cap rates. But they also covered who is buying “A” and “B” properties, and who is selling them, in addition to the risks and rewards of... Read More »
What to Pay for a Stabilized Assisted Living Community
Buyers are increasingly prizing stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%) over non-stabilized communities when making acquisitions. The gap between the two property types continued to widen in 2017, growing from $87,200 per unit in 2016 ($147,700 per unit for non-stabilized properties and $234,900 per unit for stabilized properties) to $128,500 per unit in 2017 ($126,200 per unit for non-stabilized and $254,700 per unit for stabilized), according to the 23rd Edition of The Senior Care Acquisition Report. The widening gulf continues a consistent theme in 2017 of investors continuing to pay up for quality and existing... Read More »
Buying and Selling “A” and “B” Seniors Housing Communities
There are many differences beyond values between “A and “B” communities, including NOI per unit, operating margin and cap rate. In 2017, the range in prices paid for seniors housing communities was from $20,000 to over $700,000 per unit. There are many reasons for this rather wide range, and many people divide the market between “A” and “B” properties. Have you ever wondered what differentiates an “A” community from a “B”? You don’t hear much about those “B” communities, because no one ever markets a “B” property. It just doesn’t sound very, well, marketable. Tomorrow, we are hosting a webinar where we will present our 2017 “A” vs “B” pricing statistics, and the panelists... Read More »
CBRE Does Deal Double
The CBRE National Senior Housing group flexed its muscles this week, closing two acquisition financings and an asset sale. First, Lisa Widmier represented HCP in its divestment of a 159-unit independent living/assisted living community in Beaumont, Texas, for an undisclosed price. Featuring a majority of independent living units, the community was built in 1996. Under management by Atria Senior Living, it was 93% occupied as of February. Chicago Pacific Founders stepped in as the buyer, through its affiliate CPF Living Communities, and hired Grace Management to operate. Then, in comes CBRE’s Aron Will, who secured a seven-year floating rate loan, with 24 months of interest only, through... Read More »
Wisconsin Owner Doubles Portfolio In One Deal
A local assisted living ownership group in southeastern Wisconsin is looking to expand in a big way with its acquisition of a senior living community in the town of Mukwonago (Milwaukee MSA). To this point, the group had owned just eight eight-bed assisted living communities in the area. But, in one transaction, they have now more than doubled their portfolio, by units, in purchasing the 73-unit Mukwonago community. Originally built in 1996 with a 20-unit assisted living community, the property added a 48-unit independent living building in 1999 and five 55+ senior rental homes in the 2000s. Two local partners had owned and operated the community since its inception, but were looking to... Read More »
Blueprint Healthcare Real Estate Advisors Unlocks the Keystone State
Representing a REIT owner in a strategic non-core divestment, Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors sold a Philly-area skilled nursing facility for an undisclosed price. The transaction was remarkably similar to another deal that Messrs. Segal and Firestone closed earlier this month. That deal featured a 180-bed SNF in the Lehigh Valley region of eastern Pennsylvania that sold for $18.75 million, or about $104,000 per bed. Just a week later, the Blueprint team sold a 181-bed skilled nursing facility also in eastern Pennsylvania (the Philadelphia suburb of Wyndmoor). The in-place management team had assumed operations in 2015, but inconsistent... Read More »Schedule a demo
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