Ensign’s Idaho Acquisition
The Ensign Group picked up a struggling skilled nursing facility in Idaho, taking over both the operations and real estate. The 40-bed skilled nursing facility is located in the resort town of McCall (situated on Payette Lake) in western Idaho. Previously operated by Tanabell Health Services, it was just 70% occupied at the time of acquisition. The Ensign Group brought in its Pacific Northwest-based subsidiary, Pennant Healthcare, to take over operations. No purchase price was disclosed. Read More »
Will Brookdale Be Back In Play?
With agreements nailed down with its major REITs, buyers may start sniffing around again at a leaner and more profitable Brookdale. The announcement last week during the ASHA mid-year meeting, that Brookdale Senior Living had come to several agreements with Welltower on their various leases, was met with relief and renewed optimism for the seniors housing sector. Last Friday we reported on the details of the agreements, but most people we spoke with were hoping that as Brookdale’s financial pressures ease, the negative sentiment it had created for the industry will also start to dissipate. In addition, with the change-of-control roadblocks by the Big Three REITs now gone, always used as an... Read More »
Despite Hurricane Hit, Central Florida Assisted Living Communities Sell
After taking a hit, operationally, from Hurricane Irma, five Florida assisted living communities sold to a Texas-based not-for-profit making its first acquisition in the Sunshine State. Built from 1999 to 2013, the portfolio is mostly located in central Florida, with one property on the Panhandle in the town of Niceville, and features 340 total units, ranging in size from 46 to 114 units. Expenses rose across the portfolio due to evacuations and staffing increases from Hurricane Irma, causing the operating margin to fall to 26% on just under $17.9 million of revenues. Occupancy was also just around 79%. However, ownership had reversed the trend, and the community was budgeted to operate at... Read More »
Skilled Nursing Portfolios Sell in the Northeast
Halfway through 2018, Blueprint Healthcare Real Estate Advisors has so far announced 34 closings, making the prospect of breaking their 2017 record of 53 deals even closer. The firm closed June out with two more transactions featuring skilled nursing divestments in the Northeast. First, in New Jersey, Ben Firestone, Chris Hyldahl, Michael Segal and Gideon Orion sold four skilled nursing facilities totaling 654 beds for an undisclosed price. Located in high-barrier-to-entry markets near New York City and along the Jersey Shore, the facilities have undergone several extensive renovations, including adding new memory care units, ventilator units and outpatient therapy space. The buyer is an... Read More »
Walker & Dunlop Closes Five HUD Financings
Working on behalf of Saber Healthcare Group and Regency Senior Living, Kevin Giusti of Walker & Dunlop went through HUD to arrange five financings for five separate senior care properties located in three states. The transactions include a $14.5 million financing for a senior living community in Fort Oglethorpe, Georgia, $12 million for an assisted living/memory care community in Morristown, Tennessee, and three loans totaling $13.65 million for three properties in Ohio. One of the properties with existing short-term bank and agency debt was able to refinance into a single loan that also funds a planned 16-unit addition. Read More »
Brookdale And Welltower Reach Agreements
Brookdale Senior Living continues to shrink, which is actually good news, and Welltower investors will be glad to see new operators to spread the risk. That is the result of a series of transactions agreed to by the two companies in a major end-of-quarter announcement. Too bad they couldn’t have done this a year or two ago, but maybe it is the new management at Brookdale. In the first of the transactions, Brookdale will pay Welltower $58 million ($14,164 per unit) to cancel leases on 37 communities with 4,095 units in two different lease pools. The leases had current negative cash flow after lease payments, and the projections were for there to be continued losses on them. They were to... Read More »
Ryders Health Management Secures Financing For Connecticut Acquisition
Ryders Health Management acquired a 90-bed skilled nursing facility in eastern Connecticut, thanks to financing provided by both Contemporary Healthcare Capital and CoastalStates Bank of Hilton Head, South Carolina. Located in the town of Windham, the facility was previously owned by Affinity Healthcare but went into receivership following Affinity’s bankruptcy filing in 2016, its second in just six years. Now, the facility will complement Ryders’ six other SNFs located throughout Connecticut. To acquire the property and invest $1.55 million in capital improvements, Ryders obtained a $1.454 million mezzanine loan from Contemporary and a $4.725 million senior loan from CoastalStates... Read More »
Berkadia Gets Boost From Two New Hires
Hoping to build on a successful 2017 that saw more than $1.7 billion in loans closed, Berkadia strengthened both its mortgage banking and investment sales teams with two new hires. First, joining the mortgage banking group was Brittany Robinson. With a Bachelors of Business Administration from Miami University, Ms. Robinson comes from Welltower, where she was responsible for business development initiatives, managing relationships with the REIT’s top operating partners and evaluating more than $5 billion in seniors housing, post-acute care and medical office investment opportunities. She will be based in Cincinnati, Ohio, and will report to Heidi Brunet. Then, Marcus & Millichap’s... Read More »
Buyers Paid Up For Larger Seniors Housing Communities
According to the 23rd Edition of The Senior Care Acquisition Report, the average price paid per unit rose for all size groupings of seniors housing communities sold in 2017, which includes independent living and assisted living properties. Once again, the larger seniors housing communities commanded the higher prices (averaging $260,100 per unit), as these institutional properties can take advantage of scale to increase cash flow, and thus value. The smallest properties accounted for the smallest average price per unit, at $167,300, and are typically made up of smaller, “B” properties. However, this grouping also includes boutique memory care communities that, while small, charge more for... Read More »
Is Apollo Global Management Entering Our Space, Again?
After a disastrous outing 20 years ago, Apollo may see better opportunities this time around. The rumors are swirling that private equity giant Apollo Global Management is putting its toe back in our market after a long absence. The rumor is that Apollo is buying 22 senior living communities from HCP, Inc. that are operated by Brookdale Senior Living. HCP previously disclosed that it is under contract to sell the portfolio for $428 million, or about $154,000 per unit, but never disclosed the buyer. Either Apollo is getting a deal, or these are older properties not performing too well, based on the relatively low price point. The last time we recall Apollo making a major investment in the... Read More »Schedule a demo
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