Newmark Knight Frank Closes Three Varied Transactions
The Newmark Knight Frank debt origination team has been hard at work this year, closing $1.6 billion in new financings so far this year. Heidi Brunet, who joined this April, and Chris Johnson handled a Freddie Mac financing for a newly built independent living community in Aurora, Colorado. The 10-year, fixed-rate, pre-stabilized loan totaled $43 million. Ms. Brunet and Laura McDonald of Protective Life also refinanced two assisted living/memory care communities in Virginia and Pennsylvania with a $43 million loan. An experienced owner/operator opened these communities in June of this year. Finally, Sarah Anderson of Newmark arranged acquisition financing for two AL/MC communities in Boca... Read More »
Recent Senior Care M&A Deals, Week Ending October 4, 2019
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Cascade Capital GroupHealthquest portfolio$10.5 million New Jersey-based family businessThe Place at Pooler$7.35 million North Carolina-based regional owner/operatorThe Waterford in Hermitage,$20.05 million Regional ownerChristian Horizons portfolio$20... Read More »
Cascade Capital Group Sizing Up South Dakota SNF Market
Cascade Capital Group clearly sees something in the South Dakota skilled nursing market, following up on its acquisition of 16 Skyline skilled nursing facilities in the state with the purchase of two SNFs and an assisted living community in Huron and Sioux Falls. Previously owned by a publicly traded REIT, this portfolio features a combined 322 skilled nursing beds and 55 assisted living beds. Two of the properties, the 163-bed SNF and the 55-bed AL community are located on the same campus in Huron, while the Sioux Falls facility is licensed for 159 SN beds. Their owner deemed the facilities to be non-core. Certainly, the properties were on the older side, having been built in the 1960s,... Read More »
Hurricane-Damaged SNF Sells in Georgia
Despite a wing still not operational since Hurricane Matthew in 2017, a skilled nursing facility in Midway, Georgia changed from one not-for-profit’s hands to another’s. Magnolia Manors, a Methodist-affiliated operator of eight other locations throughout south Georgia, acquired the 150-bed facility for a sum of $6.85 million, or $45,600 per bed. Mike Pardoll of Marcus & Millichap handled the deal. Originally built in 1972 with an addition in 1982, the facility, which is licensed for 169 beds, was 75% occupied during the marketing period, with a 15% Medicare and 9% private pay/managed care census, with the remainder made up of Medicaid patients. About $7.8 million of bond debt remains... Read More »
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 »Schedule a demo
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