HHC Finance Closes Several SNF Loans
Housing & Healthcare Finance (HHC Finance) closed $24 million in HUD financing for a portfolio of three skilled nursing facilities with a total of 264 beds in Tennessee. The experienced borrower refinanced conventional debt with the transaction. Built in 1964, 1997 and 2007, the three properties ranged in occupancy from the low- to mid-80s. HHC Finance’s Capital Advisory Group also had an active August, placing close to $100 million in bridge loans for two portfolios of skilled nursing facilities in the Southeast. One of the portfolios consisted of 10 properties in Kentucky, while the other saw three facilities spread across Georgia, Alabama and Oklahoma. Read More »
Recent Senior Care M&A Deals, Week Ending September 6, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice Westmont LivingAltavita Village$58 million The Ensign Group, Inc.Temple View Transitional Care CenterN/A New York owner/operatorSundance Inn Health Center & Park Valley Inn Health Center$20.5 million Cascade Capital Group, LLCLexington of Streamwood & Lexington of... Read More »
Cushman & Wakefield Closes CCRC Sale
Allen McMurtry and David Kliewer of Cushman & Wakefield’s Tampa office sold The Barrington of Carmel, a 267-unit CCRC just outside of Indianapolis, Indiana, for $61 million, or $228,500 per unit/bed. The Type A entrance-fee community has 137 independent living units, 56 assisted living units, 26 memory care units and a 48-bed nursing facility. There is also the potential to expand by another 20 to 25 IL units, but that will be on the buyer, Baptist Homes of Indiana. The buildings comprise 372,000 square feet on 19.5 acres. Built in 2013 with approximately $112 million in tax-exempt bonds and $7 million in taxable bonds, less than six years later its not-for-profit sponsor, Mayflower... Read More »
Avenida Partners with Passco on Two New Projects
Active adult developer Avenida Partners teamed up with Passco Companies, a California-based commercial real estate company, on its two latest projects in Palm Desert, California and Germantown, Tennessee. Collectively, the developments will cost around $97 million, and each community will feature 161 units and a host of resort-inspired amenities, including a pool, indoor and outdoor yoga spaces, a fitness center and plenty more. In addition, the Palm Desert community was designed in the mid-century modern style, and the Germantown community will take advantage of its location on the banks of Lake Nashuba (part of the Wolf River greenway trail system connecting to the Mississippi River)... Read More »
Cascade Capital Group Adds to Illinois Portfolio
Three acquisitions in the last month counts as a spree, right? Well, Cascade Capital Group is in the middle of one, having announced its acquisition of two Chicagoland skilled nursing facilities through its affiliate Legacy Healthcare. The deal included a 214-bed SNF in Streamwood and a 215-bed facility in Wheeling. Both fall under the Bella Terra brand, which has one other location in the Chicago area (Morton Grove) along with Montana and Utah. Last month, Cascade also added a 156-bed SNF in Aurora, Illinois, and a portfolio of four skilled nursing facilities in Florida, which sold for $49 million, or $106,500 per bed, at a 13.3% cap rate. Legacy took over management of the Aurora... Read More »Two Senior Care Centers Facilities Sell in Texas
Two Texas skilled nursing facilities formerly operated by the now-bankrupt Senior Care Centers (SCC) found a new owner with the help of Matthew Alley of Senior Living Investment Brokerage. Both built in 2008, these two SNFs each have 128 licensed beds, 51,000 square feet, and are located in growing central Texas submarkets. They were the only two SCC-operated facilities owned by a local real estate owner. One facility, in New Braunfels, was 75% occupied, while the Round Rock SNF was just 64% occupied. Not surprisingly, the operating margin was far below SNF standards, at 3.5%. Overleverage and expensive leases contributed to Senior Care Centers’ bankruptcy filing in December 2018... Read More »
Ensign Expands in Idaho
The Ensign Group grew its Pacific Northwest portfolio with the purchase of a 119-bed skilled nursing facility in Rexburg, Idaho (near the Wyoming border). The facility provides speech, physical and occupational therapy, wound care and dialysis care in addition to traditional long-term care. Pennant Healthcare, Inc., Ensign’s portfolio company based in the Pacific Northwest, will take over operations. No purchase price was disclosed, but the deal included both the real estate and operations, continuing a strategy of Ensign to own more of the real estate in its portfolio. This is the company’s first Idaho deal this year, after it acquired three facilities and 244 total beds in the Gem... Read More »
Grandbridge Finances Philly-Area Development
A brand-new senior living community is being built in the Philadelphia, Pennsylvania market with funding facilitated by Grandbridge Seniors Housing and Healthcare Finance Group. Set to open in 2020, the project will feature 160 units of independent living, assisted living and memory care in the town of Limerick. It is being developed by Vantage Point Retirement Living, a growing operator in the Mid-Atlantic with 11 senior living and active adult communities already open in Maryland, Delaware and Pennsylvania. Two more are set to open next year in Delaware and Pennsylvania (including this one being financed), with three more in the works. The construction/mini-perm loan totaled $34 million... Read More »
Growing Old in America
Instead of nursing facilities, a New York Times article goes after assisted living. As many of you are aware by now, there was a not too complimentary op-ed article last Sunday in the New York Times called “How Not to Grow Old in America.” The bottom line, according to the author, is that assisted living is not the answer for our elderly. One can argue about some statements and characterizations in the article, as ASHA did in a response to the paper, but at least one central theme is something I have been saying for a while. And that is, we are putting too much money into the physical plant and not enough into staffing and training. It’s kind of like golf, where you drive for show and putt... Read More »
August M&A Hits High Note
If you have been following us this summer, you’ll know that after a torrid second quarter when we recorded 113 publicly announced transactions, M&A slowed significantly in July with just 26 deals. Even June was relatively slow with 31 deals, compared with 39 in April and 42 in May. However, similar to last year, the market rebounded yet again in August, with 40 announced acquisitions so far. Inevitably, more acquisitions will be unearthed that should push the total up. Seniors housing deals made up 58% of the monthly total and saw 128 total properties transacted. Brookfield’s acquisition of Australian senior living operator Aveo Group for approximately $860 million was easily the... Read More »Schedule a demo
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