After Long Road to Opening, Texas Senior Living Community Sells
The JLL Seniors Housing Capital Markets team including Charles Bissell, Cody Tremper, Mike Garbers, Zach Rigby and Jason Skalko represented the seller of a 189-unit senior living community in Longview, Texas. Developed in 2018 adjacent to the Longview Regional Medical Center, the community features 126 independent living, 41 assisted living and 22 memory care units. There are also plenty of amenities, like an outdoor pool and patio area, bocce ball court, a bistro/bar and others. The project had trouble getting off the ground, until Austin-based private equity firm Thrive FP bought it for $20.7 million, or about $110,000 per unit, in a bankruptcy auction. Citizens National Bank financed... Read More »
Walker & Dunlop Refinances Two Senior Care Facilities
Walker & Dunlop refinanced two balance sheet loans it had provided over three years ago to two senior care facilities in Texas and Alabama. Kevin Giusti and Michael Vaughn had arranged the prior short-term loans, which came with terms up to three years, interest-only payments throughout the life of the loans and floating interest rates. Built in 2011, the Lubbock, Texas skilled nursing facility was expanded in 2013 and now features 96 private units. In 2016, it received a $15.5 million loan, which represented a 75% loan-to-value. The Huntsville, Alabama property is a CCRC that was built in 1980, with a skilled nursing facility added in 2015. It features 312 units with independent... Read More »
Monticello Closes Two More First Lien Debt Financings
The financings keep on flowing from Monticello Asset Management, which recently secured two more first lien debt packages for clients in the Mid-Atlantic. The Maryland transaction consisted of a $32 million loan provided to an experienced owner/operator with a portfolio of over 1,300 licensed beds to refinance its 177-bed skilled nursing facility in Cecil County (northwest Maryland). Built in 1994, the facility (through its operating company) also received a $2 million working capital loan. Then, in New Jersey, Monticello funded the acquisition of a rental CCRC in Camden County with $38 million in first lien debt. Consisting of 226 independent living units, 113 assisted living/memory care... Read More »
Recent Senior Care M&A Deals, Week Ending February 14, 2020
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice MedCore Partners/The National Realty GroupParkview on HollybrookN/A Tryko PartnersLutheran Crossings at MoorestownN/A Not disclosedHarrison House of ChristianaN/A Not disclosedWelltower seniors housing portfolio$740... Read More »
Welltower Continues Asset Reshuffle
The major M&A moves keep on coming from Welltower, as the REIT giant continues to reshuffle assets. And this is as good a time as any, since according to The Senior Care Acquisition Report (which will be published later this month), seniors housing values are currently at a record high, averaging $244,200 per unit sold in 2019. Cap rates are also near record lows, making for some very happy sellers. Welltower announced that it was selling a “prominent Seniors Housing Operating portfolio in the western United States” for a gross sale price exceeding $740 million. The properties, which were assisted living, are located in California, Nevada and Washington, and were 97% occupied. They... Read More »
X-Caliber Capital Secures Bridge Loan in Keystone State
X-Caliber Capital helped fund the purchase of a large skilled nursing facility in Pennsylvania with an acquisition bridge loan closing. Located in Harrisburg, the facility has 400 beds and about 200,000 square feet. It was occupied in the low-90s at the time of the sale. The undisclosed buyer obtained the $45 million bridge loan, with a three-year term. That debt comes out to $112,500 per bed, putting the value of the facility surely above that. We know buyers put a premium on larger SNFs, since these properties can better scale the higher labor and care costs, but this facility must have been operating well. Read More »
Plainview Group Affiliate Acquires Akron Skilled Nursing Facility
The team at Dwight Capital helped provide a $6.8 million bridge loan to fund the acquisition of a skilled nursing facility in Akron, Ohio. Originally built in 1984 with 174 beds, the facility was significantly renovated in 2008, and its bed count has decreased to 120 beds. It currently offers short-term rehabilitation, occupational therapy, respiratory care, trach care and behavioral care. An entity affiliated with the Plainview Group emerged as the buyer. According to our database, the facility previously sold in 1993 for $5.9 million, or about $34,000 per bed, a relatively high value back then. With the lower bed count and a loan-to-cost of 85%, the per-bed value rises to more than... Read More »
Capital Funding Group Funds Acquisition of Pennsylvania SNF
Craig Casagrande and Andrew Jones of Capital Funding Group secured a bridge loan for a client to acquire a 139-bed skilled nursing facility in Christiana, Pennsylvania (about halfway between Philadelphia and Lancaster). Formerly on the SFF list as recently as 2016, the facility has since achieved a five-star rating from CMS. That’s quite the turnaround. It was formerly owned and operated by Harrison Senior Living, but a new owner (Chaim Steg, according to public records) took over. They secured a $10.8 million loan from Capital Funding Group, plus a $3.5 million line of credit. CFG ultimately expects to refinance the debt through HUD. Read More »
What To Do About Medicaid Payments
The games that states and skilled nursing providers have to play to try to get appropriate Medicaid funding has got to change. There has been a lot of talk about what may happen to supplemental Medicaid payments, most of which come under the guise of “provider bed taxes” and UPL payments, short for upper payment limits. As far as I am concerned, these are all little games that skilled nursing providers, and the states they are located in, play in order to get more federal funding for Medicaid. They are all absurd and should be abolished. Now, before you tar and feather me, here me out. Skilled facilities with a high Medicare and private pay census do not like provider taxes because they... Read More »
PDPM Pushes Up Skilled Nursing Values in 2019
Skilled nursing values rebounded in 2019 to a near-record high of $93,000 per bed. That is still shy of the highest average value ever recorded ($99,200 per bed in 2016), when a number of high-quality, high-Medicare/private pay census transitional care facilities sold. But it was still a very strong year. Most in the industry never fathomed that average would ever approach $100,000 per bed, but it is true that excluding certain high-barrier-to-entry markets, traditional long-term care facilities with majority-Medicaid censuses should never really reach that value. The 2019 average was 20% higher than the $77,500 per bed average in 2018, likely driven by a lot of optimism surrounding the... Read More »Schedule a demo
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