Sabra Health Care REIT Invests In Enlivant
Sabra Health Care REIT has entered into an agreement to invest in a 49% interest in a joint venture that will own 183 senior living properties operated by Enlivant with the remaining 51% held by TPG Real Estate, which currently owns 100%. They have valued the transaction at $1.62 billion, or $195,600 per unit, with Sabra’s equity investment coming to $371 million. In 2013, TPG bought the former Assisted Living Concepts (ALC) for $458.5 million, or about $58,000 per owned unit, when occupancy had dropped to 60% after the company decided to get out of the Medicaid business. TPG changed the name to Enlivant, partly because there had been a few too many scandals associated with the previous... Read More »
Buyers See Potential In Wildwood Independent Living Community
Joint venture partners Harrison Street Real Estate Capital, REDICO and American House Senior Living Communities clearly eyed potential at a newly built independent living community in Wildwood, Florida (near The Villages). Built in 2013, the community features 173 units ranging in size from 500 to 1,090 square feet. Based on a 30% operating margin on approximately $5.3 million of in-place revenues, and occupancy of 90% at the time of sale, we have estimated the cap rate to be about 5.2%. Both occupancy and margins could be improved, with a good amount of hard work, of course. Since assuming management, American House has added private duty personal care services through Allegiance... Read More »
Gryphon Senior Living Group Gets HUD Refinance
Three years after acquiring a 40-unit Georgia assisted living community in receivership, Gryphon Senior Living Group is refinancing it through HUD. Built in 2000 as a licensed personal care facility in the town of Union City, an Atlanta suburb, this community features nine units of memory care and 31 assisted living units, with 50 total beds. It was operating near breakeven with 77% occupancy in 2014 and was in receivership at the time of closing. GlassRatner was the court-appointed receiver on behalf of a special lender in South Carolina, and Oak Senior Living was managing the property throughout the process. Chicago-based owner/operator Gryphon Senior Living Group then emerged as the... Read More »
Strawberry Fields REIT Closes Landmark Deal
South Bend, Indiana-based Strawberry Fields REIT continued its steady growth with the addition of a large 252-bed skilled nursing facility in Louisville, Kentucky to its portfolio, for a price of $21.8 million, or $86,500 per bed. A $15 million loan from Bank Leumi helped facilitate the transaction. The facility was built in 1973 by a local real estate developer, who owned it until his death in 2001. It had been owned by a group of local investors since then. Going forward, The Landmark Group will operate the facility under a lease with Strawberry Fields. First-year rent is expected to be around $2.4 million. Read More »Recent Senior Care M&A Deals, Week Ending September 15, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Strawberry Fields REIT LLCParkway Rehabilitation and Nursing Center$20.8 million Affinity Living GroupGolden PondN/A Real estate investorSeattle senior living community$24.5... Read More »Capital One Closes A Big One
Capital One flexed its banking muscles when it provided just over $551 million in financing to Kayne Anderson Real Estate Advisors (KAREA) for its purchase of Sentio Healthcare Properties. Announced back in May, the high-profile acquisition included all 34 of Sentio’s seniors housing and medical office properties, and was valued around $825 million. To fund the deal, Capital One provided KAREA a $251 million bridge loan and a $300 million Freddie Mac seniors housing revolving credit facility. We imagine a lot of time was spent on this large, complex transaction. Well done. Another Capital One deal came across the wires, albeit a little smaller than the KAREA deal. Joshua Rosen originated a... Read More »
Ray’s Latest Racine Closing
Ray Giannini of Marcus & Millichap facilitated the sale of a county-owned skilled nursing facility in Racine, Wisconsin (about 30 miles south of Milwaukee). Purpose-built in 1986, the 200-bed facility was 85% occupied, which is above average for the SNF industry, and features a good Medicare and private pay census. But, it was operating at a loss at the time of closing. The purchase price came to $10 million, or $50,000 per bed. For more information on this deal, check out the October issue of The SeniorCare Investor early next month. Read More »Go West, Young Broker
The team at Blueprint Healthcare Real Estate Advisors continued their successful year, completing two transactions on the West Coast. First up, Chris Hyldahl, Gideon Orion and Amy Sitzman represented a California-based regional owner/operator in its sale of two Arizona skilled nursing facilities to The Ensign Group. Included in the purchase was an 88-bed facility in Mesa built in 1978 and renovated in 2011, and a 115-bed facility in Tucson that was built in 1965 but expanded in 1974. Combined, they were approximately 68% occupied. Ensign ended up paying $15.25 million, or about $61,250 per licensed bed, for both the real estate and operations of the facilities. Its Arizona-based operating... Read More »
Monticello Asset Management’s Newest Faces
Monticello Asset Management had a productive summer, hiring three experienced professionals to its staff. First off, Steven Caligor will be joining the firm as a Senior Managing Director in charge of product development, expanding banking relationships and assisting with credit and risk management. With nearly 30 years of experience, Mr. Caligor comes to Monticello most recently from Bank Hapoalim, where he led the Commercial Real Estate, Food and Commodities, and Corporate Finance loan portfolio teams. He holds an MBA in Finance and Investments and a BA in Marketing and International Business from George Washington University. Monticello also hired Corley Audorff, an eight-year veteran of... Read More »HJ Sims and HUD Plus
Affinity Living Group recently purchased a 78-unit assisted living/memory care community in Winter Park, Florida (Orlando MSA), with the help of some extra funding arranged by HJ Sims. Sims utilized its HUD Plus program to arrange a $3 million subordinate loan, which supplements Affinity’s existing bridge loan, increases its leverage to 79% and will remain outstanding after the expected HUD take-out. The acquired community was built in 1999 originally with 60 units, but an 18-unit expansion was completed in 2008. It last sold in 2005 for $5.8 million to a financial buyer, who partnered with the existing manager. However, Affinity will take over operations, with a focus of improving... Read More »Schedule a demo
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