SLIB Sells Atrium Health Portfolio
Ryan Saul and Jason Punzel of Senior Living Investment Brokerage sold a portfolio of four skilled nursing facilities and three assisted living communities in Wisconsin that were placed into receivership in September 2018 when their for-profit owner/operator, Atrium Health and Senior Living, was unable to fulfill its financial obligations. SLIB was hired by a Wisconsin-based receiver to solicit offers, and the court approved the sale to a regional based owner/operator headquartered in Illinois with other communities in Wisconsin and the Midwest. The new owner plans to focus on building census by incentivizing local leadership and investing capital into the communities to attract quality... Read More »
Watermark Retirement Communities and JV Partner Acquire Two Assets
The joint venture between Titan Development and EverWest Real Estate Investors decided to sell two of its “Élan” assets in the Southwest. Each property features 77 assisted living and 36 memory care units, for a total of 220 units with 226 beds. The Austin, Texas property opened in late 2016, and just after, the Albuquerque community opened in early 2017 within the 60-acre Santa Monica Place master plan, which consists of 460 new, Class-A multifamily units (developed by Titan Development and Alliance Residential), a 130-unit independent living community operated by Resort Lifestyle Communities, and 150 new single family homes ranging in price from $275,000 to $400,000. Seems like a good... Read More »
Assisted Community Sells on Maryland’s Eastern Shore
Bob Gaines of Colliers International headed to Maryland’s Eastern Shore to sell a 32-bed assisted living/memory care community. Located in the upscale 55+ beach community of Ocean Pines, which features amenities like an 18-hole golf course, two marinas, five swimming pools, a yacht club, country club, tennis club, hiking trails and, of course, beach access, this property was previously owned by a well-known local operator. Built in 2001, it consists of two 9,600-square foot buildings, each with 16 private units. Mr. Gaines sold the property to a private owner/operator intent on improving the operating margin, which was apparently already strong. The purchase price came to $5.5 million, or... Read More »
Helios Helps with Short-Term Refinance
With a maturing mortgage looming, the owners of a recently expanded assisted living/memory care community in Evansville, Indiana decided to refinance with the help of Mario Wilson and Bill Janis of Helios Healthcare Advisors. Originally purchased in 2012, the community underwent a complete renovation and re-opened in 2015 as Evansville’s first stand-alone memory care community. Shortly after lease-up, ownership decided to then add traditional assisted living units and services. However, their first mortgage was set to mature, and with an incomplete expansion project, the owners needed a short-term refinance solution. So, Helios arranged a 24-month, interest-only loan that took out the... Read More »
Negative Operating Margins for SNFs?
Always be careful about terminology in health care, and make sure you understand what things mean, like operating margin. It is always important to understand the definitions of certain terms, especially when it comes to health care. There has been a lot of news lately about how the median “operating margin” for skilled nursing facilities nationally has now sunk below zero. I have to admit, this drives me crazy. The implication is that for the median nursing facility, it is operating at a breakeven level….from operations. Operations are usually defined as labor, food, maintenance, utilities, basically everything that is needed to “operate” the facility. As I said last week, if half... Read More »
Two More Tennessee Transactions From SLIB
After acquiring two skilled nursing facilities in Tennessee as part of a larger portfolio deal, a regional real estate owner, who focuses more on the CCRC market, decided to divest the properties with the help of Ryan Saul, Daniel Geraghty and Brad Clousing of Senior Living Investment Brokerage. Located about 60 miles southwest of Nashville, the Mount Pleasant facility has 72 skilled nursing beds and 30 independent living units. Built in 1980 with additions in 1982 and 1996, it was 85% occupied and was losing about $200,000 annually. Originally built in 1967 with a renovation in 1988, the Lenoir City facility (Knoxville MSA) features 104 beds with a vacant 16-unit assisted living portion... Read More »
Ensign Expands in North Texas
The Ensign Group grew its skilled nursing portfolio by five facilities in two separate transactions, bringing its total holdings to 213 skilled nursing properties in 13 states. The larger transaction consisted of the operations of four facilities in North Texas that will be subject to long-term, triple-net leases and purchase options following year-five of the lease. Included in the purchase was a facility in Wills Point with 112 skilled nursing and 72 assisted living beds, a 190-bed SNF in Rockwall, a 150-bed facility in Rowlett and a 126-bed facility in Waxahachie. The properties will complement Ensign’s other operations in the Dallas market. Keystone Care LLC, Ensign’s Texas-based... Read More »
Reis Helps California Assisted Living Owner Exit the Business
Rob Reis of Marcus & Millichap recently sold a 45-unit assisted living community in Modesto, California, representing the single-asset owner/operator who was looking to exit the business. The seller developed the property in the 1980s, and has operated it ever since. Occupancy was 84%, and it was bringing in nearly $385,000 in NOI on approximately $1.5 million of revenues, for a 25% margin. Not bad for an older building, but it could still be improved. The buyer was Senior Living West, a growing investor/asset manager in seniors housing, which purchased the community utilizing a regional management organization, Cimino Care. They clearly didn’t want to waste any time starting, as the... Read More »
Dwight Capital Refinances Large New Jersey SNF
A skilled nursing facility in Cherry Hill, New Jersey (Philadelphia MSA) with a wide variety of service offerings, just refinanced through HUD with the help of Dwight Capital. Built in phases from 1986 to 2002, it now totals 246 beds with five distinct units, including a 40-unit behavioral management unit, a 20-bed ventilator care unit, a substance abuse facility and a dialysis unit, in addition to providing short- and long-term rehabilitation and nursing care. Its clinical specialties also comprise physical, occupational, speech and IV therapies, wound care, pain management, tracheostomy care, dementia care, cardiac care, a pulmonary specialty and hospice care. In addition, there are... Read More »
Cornerstone Healthcare Files For Bankruptcy Protection
Cornerstone Healthcare, an operator of skilled nursing facilities in the Pacific Northwest, filed for Chapter 11 bankruptcy protection. The CEO, Will Masterson, announced the reorganization in a statement filed with the U.S. Bankruptcy Court Western District of Washington that listed lender and lessor issues as the reason for it. Operations across the portfolio weren’t great leading up to the bankruptcy, but they certainly could have been worse. The portfolio includes 14 SNFs and one assisted living community in Washington, Oregon and Idaho, with total capacity of 1,508 beds. Occupancy was 78% based on that capacity. In the year to date through September 2019, the company generated more... Read More »Schedule a demo
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