August M&A Hits High Note
If you have been following us this summer, you’ll know that after a torrid second quarter when we recorded 113 publicly announced transactions, M&A slowed significantly in July with just 26 deals. Even June was relatively slow with 31 deals, compared with 39 in April and 42 in May. However, similar to last year, the market rebounded yet again in August, with 40 announced acquisitions so far. Inevitably, more acquisitions will be unearthed that should push the total up. Seniors housing deals made up 58% of the monthly total and saw 128 total properties transacted. Brookfield’s acquisition of Australian senior living operator Aveo Group for approximately $860 million was easily the... Read More »
2019 Spending Volume on Track to Beat 2018
In total, across the senior care spectrum, nearly $1.9 billion was spent on acquisitions in August, split between $986 million for seniors housing properties and $898 million for skilled nursing. Despite August’s M&A resurgence, that dollar volume falls short of the $2.1 billion spent in June and the $3.2 billion spent in July. It should be noted, however, that deal volume (rather than dollar volume) is a better indicator of the market’s health. Will it continue into September? So far in 2019, investors have already spent over $12 billion on senior care properties, and that’s just in deals with publicly disclosed prices. That puts the sector on good footing to surpass the 2018 total of... Read More »
Atlas Senior Living Acquires in Alabama and Georgia
Birmingham, Alabama-based Atlas Senior Living added two unique senior living communities to its growing portfolio, which the company expects to number 17 properties across the Southeast by the end of the year. Located in Savannah, Georgia and Madison, Alabama, the communities both feature 104 units of independent living, assisted living and memory care. They were developed in the last couple of years by the seller, Miami Beach-based Lucky Shepherd. As with other Lucky Shepherd communities, they feature amenities like a greenhouse, over 15,000 square feet of spa and wellness space, farm-to-table dining and animal therapy. Ari Adlerstein and Ari Dobkin of Meridian Capital Group handled the... Read More »
Recent Senior Care M&A Deals, Week Ending August 30, 2019
Check out our recent senior care M&A deals. Long-Term Care AcquirerTargetPrice New York-based ownerBirch Gardens of Royal Care & Royal Care Senior Living$5 million Regional owner/operatorChristopher's Personal Care Home$2.75 million Mainstay Senior LivingSenior care facility$2.4... Read More »
Colliers Closes South Carolina Sale
Marcus Van Ameringen of Colliers International handled the sale of a well-operating senior care facility on the outskirts of Columbia, South Carolina. Despite being built in 1980, the 64-bed facility is dually certified for skilled nursing and assisted living. The previous owner regularly invested capex in the property and clearly managed it well, as evidenced by a Deficiency Free Survey 2016 and four-star rating from CMS. The implementation of PDPM should boost the SNF operations too, when it goes into effect next month. Mainstay Senior Living was the buyer, paying $2.4 million, or $37,500 per bed, at an 11.5% cap rate. They plan to add a dedicated post-acute rehabilitation unit, upgrade... Read More »
Ignite Medical Resorts Acquires Kansas City SNF
Ignite Medical Resorts is doubling down on the Kansas City skilled nursing market. Last week, the operator took over management of a 90-bed SNF on the Missouri side that was acquired by LTC Properties for $19.5 million, or $216,700 per bed. The facility was just built in 2018 and leased to Ignite under a 12-year term at an initial cash yield of 8.3%, escalating 2% annually, with two five-year renewals. Occupancy was already strong at 90%, and the facility generated more than $12 million in annualized revenues. It was also announced that Ignite would take over the operations of a 90-bed post-acute/skilled nursing facility in Independence, Missouri currently being developed by LTC and Avenue... Read More »
Diversicare Healthcare Delisted
Just two days ago on these pages, we warned that the share price of Diversicare Healthcare Services was trending dangerously low. We weren’t kidding. The next day the shares were delisted from NASDAQ because they no longer met the minimum market value requirement of at least $35 million. That’s for sure, and with several days of double-digit price declines, the market cap of less than $10 million is just 30% of the required minimum. Management’s appeal to avoid the delisting decision was denied. The share price hit a 52-week low of $1.16 yesterday, down nearly 50% in just a few days. Unfortunately, it doesn’t take much when your shares are under $2.00 each. Just $70,000 of trades took the... Read More »
White Oak Healthcare REIT Acquires Again
Earlier this week, we highlighted White Oak Healthcare REIT’s acquisition of four senior living properties in Arkansas (2), Florida and Pennsylvania, but the REIT’s recent run of activity doesn’t end there. White Oak also acquired two senior living communities in Loganville and Conyers, Georgia. Both considered to be value-add investments, the properties were built in the 1990s and total 156 independent living, 140 assisted living and 32 memory care units. They were operated by Senior Lifestyle and owned by an undisclosed private equity group, which hired Mike Garbers and Cody Tremper of JLL Capital Markets to market and sell the properties. White Oak’s joint venture partner on the deal,... Read More »
Capital Funding Group Funds Portopiccolo Purchase
The Portopiccolo Group picked up another two skilled nursing facilities, following its acquisition of a North Carolina SNF earlier this summer. The most recent targets included a 130-bed pediatric and geriatric rehab facility in Dunn Loring, Virginia (Washington, D.C. MSA), and a 74-bed skilled nursing facility in Silver Spring, Maryland (also D.C. MSA). Accordius Health, an operating platform of Portopiccolo, will take over management of the facilities. To fund the acquisition, Portopiccolo obtained several tranches of financing, arranged, agented and participated by Capital Funding Group (CFG). Tim Eberhardt originated the transaction, which includes a $30.6 million senior loan, a $3.8... Read More »
Blueprint Finds Tenant for Toledo SNF
The team at Blueprint Healthcare Real Estate Advisors showed their expertise in finding a new tenant for a 150-bed skilled nursing facility near Toledo, Ohio. Working on behalf of the landlord, a New York-based investment management firm that focuses on long-term care, Gideon Orion, Connor Doherty and Ryan Kelly were able to execute a change of operator less than 60 days from LOI to transition date. The new creditworthy operator entered into a multi-year, triple-net lease with plans to execute on a purchase option by 2021. In the process, the facility was also able to raise its Medicaid per-patient-day rate by about $23. That should make the transition even smoother. Read More »Schedule a demo
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