The Price of Age in Skilled Nursing
As most of you know, skilled nursing prices plummeted 18% in 2017 to $81,350 per bed, according to the 23rd Edition of The Senior Care Acquisition Report. But with that decline, did the age of the properties sold throughout the year have a significant impact? For obvious reasons, older skilled nursing facilities sell, on average, for a lower price than newer facilities. In 2016, there was a nearly perfect correlation between age and the price paid per bed. This did not occur in 2017, as the oldest group, those facilities more than 40 years old, sold for an average price per bed ($79,750) that was 26% higher than the next age group of 20 to 40 years ($63,000). Some of the older facilities... Read More »
Fast HUD Financing From Lancaster Pollard
Aaron Becker of Lancaster Pollard led the way in arranging an $11.9 million HUD refinance of a 54-bed skilled nursing facility in Pittsfield, Massachusetts. Owned and operated by long-standing Pittsfield-area not-for-profit organization, Berkshire Retirement Home, Inc., the facility was built in 2014 to replace Berkshire’s original SNF. Conventional bank financing, with a floating interest rate, funded the construction, but ownership decided to refinance through HUD. Lancaster Pollard worked to obtain a firm commitment from HUD less than two weeks after formal submission, allowing the borrower to lock in the interest rate in December, before rates increased. We’re sure more than a few late... Read More »
Brookdale, HCR ManorCare and NIC
Two major companies make decisions, one with a path forward and the other still unclear, and they will be the talk of Dallas at the NIC conference. As the senior care investing world descends on Dallas today for the Spring NIC conference, the giddy tone of the newcomers may be sobered by the recent events at Brookdale Senior Living and HCR ManorCare. Brookdale was the worse story, with its share price now down 80% from three years ago. The announcement last week that HCR ManorCare will submit a pre-packaged bankruptcy filing and become a wholly-owned subsidiary of landlord Quality Care Properties was not a surprise, but just confirmed that the skilled nursing sector has a long struggle... Read More »
HCP Continues To Lighten Its Brookdale Load
The ramifications of Brookdale Senior Living’s latest blow-up have spread beyond just its precipitous drop in share price. Major Brookdale landlord, HCP, Inc., just announced it was reducing its cash NOI and interest income concentration in Brookdale from 27.0% to 15.7%, on a pro-forma basis. The restructuring included the sale of six Brookdale properties for $275 million and the purchase of Brookdale’s 10% interest in two joint ventures for $99 million. In addition, HCP will terminate management agreements with Brookdale on 36 seniors housing operating properties (SHOP) and leases on 32 triple-net communities, with Brookdale waiving all termination fees associated with the management... Read More »
Major Moves at HealthTrust
National appraisal and advisory firm HealthTrust has had a busy month. On March 1, they closed on the purchase of the assets of the company from Sabra Health HealthCare REIT, which took over ownership as part of Sabra’s acquisition of Care Capital Properties last year. Care Capital had purchased HealthTrust when it was spun out of Ventas. Being independent once again will allow management to solidify key relationships and focus on growth. The company also announced that it hired Michael T. Jones as its Chief Financial Officer. Jones brings 20 years of seniors housing and care experience to HealthTrust, most recently serving as VP and Portfolio Manager at Care Capital Properties and also as... Read More »
Avison Young Aces Alexandria Acquisition
Jim Kornick and Dan Baker of Avison Young led a successful bidding process for a 130-bed skilled nursing facility in Alexandria, Virginia, generating 12 offers and closing at $13 million, or $1 million over the original asking price. Only operating with 100 beds, the facility was owned and operated by a local family who had originally developed it 40 years ago. Located next to a major hospital, it had a history of good operations and had a high quality mix, with 47% Medicare, 25% private pay and 28% Medicaid on 80% occupancy. However, expenses recently ran high, and the facility was losing money as of closing. The buyer, a publicly traded REIT, will look to immediately improve the... Read More »
Recent Senior Care M&A Deals, Week Ending 3/2/2018
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Strategic Student & Senior Housing Trust3 assisted living communities$78.5 million CareTrust REIT, Inc.5 skilled nursing facilities$41.25 million Invesque Inc.Grand Brook portfolio$21.5 million Publicly traded REITMt. Vernon Nursing & Rehab Center$13 million Publicly traded REITBloomsburg Rehab & Wellness Center$7.2... Read More »
Meridian Capital Group Is On A Roll
Following up on a nearly-$200 million month in January, Meridian Capital Group backed that up with another $80 million in closings in February, showing off their national reach too. The team of Ari Adlerstein and Ari Dobkin arranged all four financings, starting in Clovis, New Mexico, where the pair arranged an $11 million 35-year HUD loan to refinance an independent living/assisted living community. Located in rural New Mexico near the Texas border, the community also offers memory care and respite stay services. Then, Messrs. Adlerstein and Dobkin arranged nearly $10 million in financing for a 224-bed senior living community in Bedford, Ohio (Cleveland MSA). The $9.75 million... Read More »
Greystone Real Estate Advisors Gets It Done
Mike Garbers and Cody Tremper of Greystone Real Estate Advisors just announced a slew of transactions that closed at the end of 2017, advising the seller in each deal. First, the pair closed the sale of a 38-unit/66-bed memory care community in Tulsa, Oklahoma. A private equity group sold the community to a joint venture between a public REIT and a national operator. Then, speaking of joint ventures, an institutional private equity group and a private developer/operator teamed up to purchase a 72-unit/78-bed assisted living community in Spring, Texas from a Lone Star State-based developer. And finally, Messrs. Garbers and Tremper went to Vernon Hills, Illinois to sell a 70-unit memory care... Read More »
KeyBank Arranges Fannie Mae Refinance in North Carolina
A high-end assisted living community located halfway between Greensboro and Durham, North Carolina just refinanced with the help of Charlie Shoop of KeyBank Real Estate Capital. Built in 2014, the one-story community features 65 units of assisted living and memory care on a roughly eight-acre plot in the town of Mebane, and was well occupied. It is operated by Ridge Care, which has a portfolio that includes 11 other communities in North Carolina and one in West Virginia. To refinance existing debt, Ridge Care received a $15.5 million fixed-rate Fannie Mae loan, with a 10-year term subsequent to a two-year interest-only period. Read More »Schedule a demo
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