M&A Strong Throughout Healthcare Service Sectors
M&A may be booming in the senior care industry, but what about the other healthcare service sectors? In four just-published reports (which you can get here), we examined the Home Health Care & Hospice, Behavioral Health Care, Physician Medical Groups and Hospitals sectors. Two and a half years of deal comps are also in the back of each report. Private equity has driven much of the interest in these sectors, particularly the businesses with little government reimbursement, like dermatology, dental practices and ambulatory surgery centers. In fragmented sectors, like home health and behavioral health, many strategic buyers have also worked to build scale through a number of add-on... Read More »
White Oak Healthcare REIT Makes First Acquisition
Earlier this year, White Oak Healthcare Finance announced that it was forming a new REIT to invest up to $500 million in seniors housing and skilled nursing acquisitions. To do that, they hired a new team consisting of Jeff Erhardt, Paul Nevala, Mike Treiber and John Brussard, all of whom founded Capital Healthcare Investors, a wholly owned subsidiary of MTGE Investment Corp., a publicly traded hybrid REIT. Now, the REIT, appropriately named White Oak Healthcare REIT, is making its first acquisition, involving a four-property senior living portfolio. Located in Arkansas (2), Florida and Pennsylvania, the portfolio features a total of 104 independent living, 230 assisted living and 103... Read More »
SLIB Announces Two Assisted Living Sales in the Southeast
Senior Living Investment Brokerage announced two sales in the Southeast. First, Daniel Geraghty and Bradley Clousing represented a local owner in their exit from the seniors housing market by selling their personal care home in Holly Springs, Mississippi. Built in 1999, the community has 38 units (all of which feature a private bathroom), with 11 dedicated to memory care. There is limited competition, and the community has historically been well occupied, currently at 95%. It also has a good local reputation. However, the operating margin could be improved significantly from 8% on approximately $1.45 million of revenues. The buyer, a regional owner/operator based in Mississippi, plans to... Read More »
Recent Senior Care M&A Deals, Week Ending August 23, 2019
Check out our recent senior care M&A transactions. Long-Term Care AcquirerTargetPrice Brookfield Asset ManagementAveo$860 million Avanath Capital ManagementVictoria Park at Edgewater$11.3 million Owner/operatorHW Senior Living Apartments$71... Read More »
PDPM and Skilled Nursing: Profit or Peril?
We attended the 2019 Zimmet Healthcare Seminar: The Theory of Reimbursementivity in Atlantic City a couple of weeks ago, and let’s just say the mood was…cautiously optimistic. Most of you have seen the numbers. CMS proposed a 2.8% increase to the Medicare market basket rate in the final rule, resulting in $851 million more in payments for nursing facilities in the coming fiscal year, which begins in just five weeks on October 1. Well-operating SNFs should see a healthy revenue bump under PDPM, or Patient Driven Payment Model. But there’s a key word there: “should.” A big takeaway from the Zimmet conference is that, the industry won’t really know the real impact of PDPM until it is actually... Read More »
Blueprint Closes Wyoming Transaction
It’s not often we see Wyoming deals come across our desks, but Blueprint Healthcare Real Estate Advisors just announced one for a 120-bed skilled nursing facility in Casper. Previously owned by a national owner/operator of more than 150 SNFs across the country, the facility was facing a years-long occupancy decline. In-place cash flow was also negative, and during the marketing period, the facility both landed on the SFF list and graduated from it. The good news for the buyer was that the well-maintained facility had strong historical operations, with past revenue and EBITDAR exceeding $9.8 million and $2.1 million, respectively. That attracted a respected national owner/operator, who paid... Read More »
Brookfield Bets Big on Australian Seniors Housing Market
Looking outside of the U.S. seniors housing market, it’s obvious that the sector is a popular target in markets around the world. Just look at Ventas’ doubling down on the Canadian seniors housing market with its C$2.4 billion portfolio acquisition of 31 retirement communities in Quebec earlier this summer, nearly doubling its portfolio from 41 properties to 76, with the NOI of those properties expected to make up 21% of its entire SHOP NOI. For them, Canada has been a very good performer. Australia has attracted the interest of Canadian investment fund Brookfield, which is spending A$1.27 billion ($860 million), on Aveo, a Sydney-based company that owns and operates 94 retirement... Read More »
Busy Berkadia Closes Two Transactions
Berkadia has been busy this August, closing the sale of one senior living community and arranging financing for the development of another one. Joe Leon and Michael Thagard handled the sale, which featured a 310-unit independent living community in Westminster, California. The seller was the Zinn Group, controlled by the Zinngrabe family which had owned the community for over 30 years. The local market around Westminster and Huntington Beach is strong, with occupancies averaging above 98%. So the buyer, an experienced owner/operator, will be able to hit the ground running. Then, to the development, for which Monica Newman originated a $31.76 million construction loan through HUD for a... Read More »
Blue Moon/LCS Refinances Texas Development
Three and a half years after entering into a joint venture to develop a 207-unit senior living community in Katy, Texas, Blue Moon Capital Partners and LCS have turned to CBRE to refinance the property. Situated on 10.35 acres, the community was developed using the Blue Moon Senior Housing I LP Fund, a $250 million fund for which Blue Moon secured a $175 million capital commitment from Hawkeye Partners, LP in December 2014. Now, the fund is fully invested in 12 assets totaling 1,824 units in nine states. Featuring independent living, assisted living and memory care units, the project also represented the first between Blue Moon and LCS, which took over as manager of the property under its... Read More »
Lancaster Pollard Arranges Two Western Financings
Lancaster Pollard Mortgage Company arranged Fannie Mae financing for a couple of clients, totaling nearly $56 million. Ross Holland, Doug Harper and Casey Moore led the larger transaction, closed on behalf of The Ridge Senior Living to refinance two of its communities in Salt Lake City and Holladay, Utah. The $49.1 million in financing also provided cash out for The Ridge. Then, in Vacaville, California, Messrs. Harper and Moore were joined by Grant Goodman to arrange a $7.85 million loan for a brand-new, 50-unit memory care community owned by Vaca Valley Living. The transaction included an interest-only feature and recapitalized existing debt, in addition to providing equity out for the... Read More »Schedule a demo
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