REIT Finds New Tenant for Two Arizona SNFs
A couple of struggling skilled nursing facilities in Arizona got a new lease on life. By that, we mean that their publicly traded REIT owner found a new operator to manage them under a long-term lease. Amy Sitzman, Christopher Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors handled the transaction. These facilities are located on opposite sides of the state and consist of 232 total licensed beds. It will be an uphill battle for the new operator. Both built in the early 1980s, one facility is located in a tertiary market, but the other is on the SFF list and is in need of capital improvements, in addition to cleaning up its regulatory act. Occupancy was low, close to... Read More »
Genesis HealthCare Continues Restructuring
Genesis HealthCare announced additional changes to its capital structure and leased interests in skilled nursing facilities, all for the better. Genesis has partnered with a private investor to purchase 18 nursing facilities previously leased from Welltower and Second Spring Healthcare Investments. Genesis will have a 30% equity stake in these 18 facilities, and lease them from the joint venture entity, but with a big difference. Previously, these 18 facilities had annual rent escalators ranging from 2.0% to 2.5%, but with the new lease, the escalators do not begin until year five of the lease. In addition, Genesis has a fixed-price purchase option to acquire the real estate of these 18... Read More »
Meridian-Operated California Community Gets a New Owner
Three years after acquiring a struggling assisted living/memory care community in Rancho Cucamonga, California, a Chicago-based private equity group is exiting the asset, and leaving the community in better shape. Originally built in 2002, the 86-unit community features 62 assisted living and 24 memory care units across four free-standing buildings. Occupancy was a solid 86%, but it was being mismanaged by an inexperienced operator prior to the PE takeover, which came at a price of $13.6 million, or $158,100 per unit. For the community’s vintage and location, that was certainly a low price. Meridian Senior Living took over the operations, and clearly did a good job turning the property... Read More »
SLIB Sells Small Rochester SNF
Dave Balow and Patrick Byrne of Senior Living Investment Brokerage closed the sale of a small (and we mean very small) skilled nursing facility in Rochester, New York. Featuring just 28 beds, the facility has maintained a strong reputation in the community and boasts strong occupancy at 93%, with a quality mix of 38%. Those are some good numbers. However, the facility, which was built in 1964 and 1984, was operating just below breakeven on $1.97 million of revenues. Its private owner had decided to exit the industry, prompting a New York-based owner to step in and acquire the facility for $950,000, or $33,900 per bed. The deal is part of a larger growth strategy for the buyer in the... Read More »
Live Oak Bank Reports Lively Quarter
Live Oak Bank was hard at work in the third quarter, closing three loans on behalf of senior care clients across the country. First, on behalf of a joint venture between Smith/Packett and RSF Partners, the lender closed a $6.2 million commitment for a conventional refinance of a 136-bed skilled nursing facility in Parksley, Virginia (Eastern Shore). Smith/Packett had originally acquired the community from a local hospital in 2017, bringing in Saber Healthcare to operate the property under a lease agreement. In the last couple of years, the firm has invested millions in renovating the property. And now, the time has come to refinance. Live Oak then closed a $3.3 million SBA 7a construction... Read More »
Lancaster Pollard Continues Its HUD Lean Activity
Fresh off a frankly unbelievable year in the HUD LEAN program, with over $903 million in closings across 78 transactions, Lancaster Pollard wasted no time in arranging a refinance for a pair of Oregon senior care facilities. Jason Dopoulos led the way on the transaction on behalf of the borrower, Sapphire Health Services. The $15.2 million loan is taking out debt that was originally used to acquire the facilities, both of which treat patients with specialized brain injuries across 67 total units. In addition to refinancing all outstanding debt, the loan will also allow Sapphire to invest in some facility repairs. Read More »
Assisted Living M&A Market
Despite many headwinds, the assisted living acquisition market remains vibrant with high prices and no shortage of buyers. Find out how they are dealing with the issues of aging properties, census and labor in this dynamic webinar. Prices paid in the assisted living M&A market remain high, despite census, labor and demand headwinds. Obviously, low interest rates and plenty of equity capital have helped maintain current pricing levels. But buyers, and sellers, are facing many issues right now, and into the future. Despite all the new development during the past five or more years, the acquisition market is filled with older assisted living communities, and the ones built in the 1990s... Read More »
Brookdale Settling in for the Slog
Now that Land & Buildings has ended its proxy fight to get former HCP, Inc. CEO Jay Flaherty on Brookdale Senior Living’s board of directors, it is apparent that Brookdale management can now face the long, tough slog to enhance operations, census and cash flow, the old-fashioned way. Unfortunately for shareholders who invested at much higher prices than the current levels, the wait may be a long one to get back up to breakeven. It is those newcomers to the stock that may get impatient, again, for management to do something as the share price heads higher. Right now, at $8.48 per share, it is 41% higher than at the beginning of June, and 15% higher than three weeks ago. Progress. We... Read More »
CBRE Returns for Two More Financings
The closings keep on coming for the team of Aron Will, Austin Sacco and Tim Root from CBRE National Senior Housing, which just announced two financings totaling nearly $50 million. The team first arranged $4 million in supplemental financing on behalf of Chicago Pacific Founders (CPF) for its 160-unit senior living community in Las Vegas, Nevada. Two years ago, CBRE had originated the original $13.5 million in acquisition financing for the property. Featuring both independent living and assisted living services, the community has been operated by CPF’s subsidiary Grace Management since the deal. Provided through Fannie Mae, the non-recourse loan came with a seven-year, fixed-rate term and... Read More »
New York Owner Nabs Nashville-Area SNFs
A New York-based national owner hired Blueprint Healthcare Real Estate Advisors to successfully close the sale of two of its skilled nursing facilities in the Nashville, Tennessee market. Executing on a confidential marketing process, Christopher Hyldahl, Gideon Orion and Kendra Gonzalez sold the facilities to a regional owner/operator looking to expand its scale in the area. Both properties offered some operational upside, averaging around 78.5% occupancy. Not bad, but certainly not good. Combined, the facilities bring in about $16.1 million in revenues, so if the operating margin is improved, they can be a real money-maker for the new owner. Easy for us to say. Read More »Schedule a demo
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