Saul Closes Two Midwest SNF Sales
Ryan Saul of Senior Living Investment Brokerage closed out the month with two Midwest transactions. First, he sold a struggling SNF in St. Charles, Illinois. At 40-years old, the 120-bed facility struggled with cash flow (losing over $1 million in EBITDAR), while occupancy stood at just 58%, with a 55% Medicaid, 28% private pay/insurance and 17% Medicare census. Its Wisconsin-based private owner (who is retired and elected to sell for estate planning purposes) had leased the facility for many years to a not-for-profit. But after the recent affiliation with another not-for-profit health system, they did not want to operate long-term and decided to terminate the lease and transfer operations... Read More »
Blueprint Ends Active August With Corpus Christi Closing
Trent Gherardini wrapped up a busy month for Blueprint Healthcare Real Estate Advisors with the sale of a 204-bed skilled nursing facility in Corpus Christi, Texas. It was owned by a Florida-based owner for generations, but its lease with the existing tenant was coming to an end. Because the owner did not operate in Texas, the facility was deemed to be non-core. In addition, the facility was negatively affected by recent hurricanes, although with no major damage. It sold to a private owner/operator with a growing Texas portfolio. Read More »
Clousing Sells In The Southeast
Senior Living Investment Brokerage’s Brad Clousing helped a private fund divest an assisted living/memory care community in Marietta, Georgia that did not fit into its geographic criteria. Built in 1995, the 56-unit community was just 59% occupied and operated at a 2.5% margin on under $2.2 million of revenues. Paying $7.06 million, or $126,100 per unit, a regional operator based in Atlanta is the new owner. Then with Daniel Geraghty, Mr. Clousing sold a 96-unit independent/assisted living community in Due West, South Carolina. It too struggled with occupancy, at just 72%, and it didn’t help that its not-for-profit owner was in financial distress. However, the new owner, a partnership... Read More »
CBRE’s Two Latest Transactions
The CBRE team showed their strength in their latest two transactions. First, it was announced that not only did Lisa Widmier represent a publicly-traded REIT in its sale of a 120-unit assisted living community in Sterling Heights, Michigan to Chicago Pacific Founders, but Aron Will arranged the acquisition financing too. Through CBRE’s Freddie Mac Seller Servicer direct lending program, Mr. Will secured a $15.5 million, floating rate loan, with a 10-year term and 60 months of interest only. Chicago Pacific Founders’ wholly owned subsidiary Grace Management will take over operations. Separately, Mr. Will was joined by Kevin Randles to arrange a fixed-rate Fannie Mae loan in another deal.... Read More »
Live Oak Bank Flourishes This Summer
Showing off its versatility, Live Oak Bank facilitated acquisition financing for two separate, and very different, transactions. First, the bank provided a cash flow balance sheet loan to support a partner buy-out at Frontier Management. Formation Capital had owned a 50% stake in the senior living operator, but with this transaction, Frontier’s founder and CEO, Greg Roderick, became the sole owner. Established in 2000, Frontier now operates 80 communities with over 6,000 independent living, assisted living and memory care units across 12 states. Second, Live Oak Bank provided a $5 million SBA 7a loan for local operator in Utah to acquire two small assisted living communities in the town of... Read More »
County-Owned SNF Gets New Private Owner
A county-owned skilled nursing facility in Fremont, Ohio may see a brighter future under its new private owner, which acquired the property for $2 million, or just $24,400 per bed. The three-story, 82-bed facility was built in 1965 and expanded in 1989. But age was not its only issue. Occupancy was 56% at the time the property went to market, but actually dipped below 50% during the process. It also had a high Medicaid census (at 81%) and operated at just a 3% margin on approximately $4.16 million of revenues. When the previous operator/tenant, Pristine Senior Living, decided to exit the Ohio market at the end of the lease, the county elected to sell and exit the long-term care business.... Read More »
Chicago Pacific Founders Makes It Five
Chicago Pacific Founders just made its fifth acquisition of the year (all since the start of April), after just three (disclosed) deals in both 2017 and 2016. The newest addition is an independent/assisted living community located in Sterling Heights, Michigan (Detroit MSA), and sold for an undisclosed price. Built in 1989, it was formerly operated by Atria Senior Living and most recently reported a 93% occupancy rate (up from 88% at letter of intent). CPF’s subsidiary Grace Management will take over operations and will oversee some capital improvements to be made to the property. Read More »
Checking in on Chattanooga
Last month we wrote of the sale of a Chattanooga, Tennessee independent living community to a joint venture between Atlas Senior Living and Veritas Senior Living. Now, we can report that Richard Lynn of Marcus & Millichap represented both the buyer and the seller in the transaction, with an assist from Joseph McKibben, who was the broker of record in Tennessee. The community was originally a hotel but converted in 2008 to feature 136 units. It currently is a low-cost provider in the area, with rents ranging from $1,200 to $1,500 per month, but that’s where the buyers see upside. They plan on making some cosmetic renovations as well. Occupancy was around 85% and with a $3.6 million (or... Read More »
Record-Setting M&A Month
Over the last seven years, August has averaged just 25 acquisitions. We are already 50% above that, and still counting. As the dog days of August come to an end, is there anyone still working away before Labor Day? I have to say, the healthcare M&A market has been quite active this summer. In the seniors housing and care market, we are closing in on a record month of activity. As of yesterday, we have tracked 37 acquisitions in August, equal to the 37-deal record set in 2015 for the month. With a few days left to go, I am confident that we will shatter that record. That means that the private market continues to have a lot more confidence in the industry than the public markets. With... Read More »
BMO’s Busy Summer
Shunning any summer doldrums, BMO Harris Bank’s Healthcare Real Estate Finance group announced two loan closings in the last week, on the back of a $200 million facility it closed on behalf of Kayne Anderson Real Estate Advisors and Watermark Retirement Communities earlier this month. First, in Hugo, Minnesota, the group acted as sole lender in arranging an $18 million term loan to refinance a 100-unit senior living community. Keystone Senior, LLC, an owner/operator of communities across seven states, was the borrower. The group then worked on behalf of TH Real Estate (an affiliate of Nuveen, the investment management arm of TIAA) and LCS to fund their acquisition of a large CCRC in Evans,... Read More »Schedule a demo
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