Gloves Come Off in Brookdale’s Proxy Fight
The proxy cards are in the mail to Brookdale Senior Living’s shareholders for the vote at the annual meeting, to be held on October 29, and it looks like CEO Cindy Baier has taken the gloves off. Brookdale has been fighting shareholder Land & Buildings’ nominee for a board position, Jay Flaherty, for many weeks. But now they are bringing up some of Mr. Flaherty’s past transgressions which, according to Brookdale, make “him unfit to serve as a member of Brookdale’s Board.” These transgressions include some foul play in 2011 when he was CEO of HCP, Inc., which resulted in a $101.7 million judgment against HCP, for which the court stated that HCP engaged in “fraudulent conduct with the... Read More »
SLIB Hits Q4 Running
Senior Living Investment Brokerage burst out of the gates in the fourth quarter, announcing three skilled nursing sales in just the first couple of days. Patrick Byrne, Jeff Binder and Ryan Saul first represented the not-for-profit Christian Horizons in the sale four skilled nursing facilities in central and southern Illinois for $20 million, or $37,500 per bed. Three of the facilities (in Decatur, Herrin and Washington) were built in the early-1970s with more recent renovations, while the fourth in Neoga was originally built in 1992. They total 506 skilled nursing beds and 12 independent living duplexes, or 27 units. Occupancy ranged from 68% to 85% for the three older facilities and was... Read More »
Evans Senior Investments Sells New Nashville Property
Having just wrapped up its initial lease-up, a senior living community in Nashville, Tennessee just sold to a regional owner/operator based in North Carolina. Evans Senior Investments handled the transaction, which came with a $20.05 million, or $213,000 per unit, purchase price. Built in 2017, the community features 94 units of assisted living and memory care, with a 100% private pay census. Occupancy was a strong 94% at the time of the sale. It operated at around a 20% margin on $3.57 million of revenues. The seller was an independent owner/operator. Read More »
CareTrust REIT’s Central Valley Expansion
CareTrust REIT made a major expansion into California’s Central Valley, acquiring two senior care facilities in a pair of off-market transactions. The targets were a 70-bed skilled nursing facility in Modesto, and a senior care campus in Sacramento with 99 skilled nursing bed and 72 assisted living units. Both were leased to an existing CareTrust tenant, Kalesta Healthcare, LLC, under a master lease with about 14 years left on the initial term. There are also two five-year renewal options. Scheduled cash rent for the first two years is expected to be about $3.9 million with CPI-based escalators thereafter. CareTrust also committed to provide a revenue-producing $1.0 million fund for... Read More »
Seniors Housing And NIMBY
When NIMBYism hits home, and in my mailbox. I put some mail in my mailbox at home this morning (yes, I still use the USPS), and overnight someone slipped a “Dear Neighbors” letter in the box. It wanted to make us aware of a “massive” new development planned just two blocks from the downtown area of town. And what is the plan? A CCRC, which is something our growing elderly population has been clamoring for for a few decades. It is sponsored by the local not-for-profit that already has a skilled nursing facility and a small IL community, which is really assisted living “lite.” But there has never been anything like a CCRC, which is what many of the elderly want. Large units, services,... Read More »
The Brookdale Restructuring Continues
No one can say that Brookdale Senior Living hasn’t been hard at work restructuring its assets and balance sheet as it tries to steady the operational ship. Well, maybe we can think of a couple of people. Nevertheless, Brookdale announced that it reached a series of agreements with its landlord HCP Inc. to hopefully put the company on surer financial and operational footing. First, BKD will sell its unconsolidated JV interests amounting to 51% of a portfolio of 13 CCRCs and 5,641 total units to HCP for $510 million, or about $177,000 per unit assuming 100% interest. The deal nets Brookdale about $277 million in cash proceeds after pro rata debt on the properties. The transaction is expected... Read More »
SLIB Handles Small Pennsylvania Portfolio Sale
Ryan Saul and Toby Siefert of Senior Living Investment Brokerage handled the sale of two senior care facilities in Wilkes-Barre, Pennsylvania. Local media reported the acquisition in March, naming Allied Services Integrated Health System, a locally based not-for-profit health system, as the buyer. Located less than one mile apart, these were the only skilled nursing/seniors housing assets owned by the not-for-profit seller, the Diocese of Scranton, which cited the industry’s increased complexity as its reason to exit. One of the properties was built in 1975 and 1998 with 133 skilled nursing beds and an attached 60-unit personal care community. The other property was built in the mid-1970s... Read More »
KeyBank Arranges Financing for Foundations Health Solutions
KeyBank Real Estate Capital secured an $11 million HUD loan for Foundations Health Solutions to pay down acquisition debt it used to buy a 150-bed skilled nursing facility in Columbus, Ohio. KeyBank had provided the original $87.5 million bridge loan, which supported the acquisition of this Columbus facility plus eight other facilities previously owned by Welltower. The facility was originally built in 1968, with renovations in 1995 and 2007. To this point, KeyBank has closed $47 million of HUD loans for the portfolio, including a $36.3 million loan for four facilities totaling 442 licensed beds located throughout Ohio. As with that transaction, John Randolph of KeyBank’s Commercial... Read More »
Contemporary Secures Another Mezz Loan
Contemporary Healthcare Capital helped finance another acquisition this month for a 50-bed skilled nursing facility in Gastonia, North Carolina. Ivy Senior Living was the borrower, obtaining both a senior loan from Millennium Bank and Alliance Bank, and a $504,750 mezzanine loan from Contemporary. The combined loans will fund the acquisition, a $200,000 working capital line of credit and $200,000 for facility renovations. This is the second acquisition mezzanine financing Contemporary has closed in the last month. In September, the firm helped affiliates of Opal Senior Living acquire a 115-bed assisted living/memory care community in Nashville, Tennessee. Opal received a $500,000 mezzanine... Read More »
Recent Senior Care M&A Deals, Week Ending September 27, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice WellQuest LivingThe Landing at Elk Grove$29.6 million CareTrust REIT, Inc.Vista del Lago$12.5 million Azria Health15 skilled nursing facilities$8 million Covenant Living Communities and ServicesInverness Village$41... Read More »Schedule a demo
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