Wisconsin Owner Doubles Portfolio In One Deal
A local assisted living ownership group in southeastern Wisconsin is looking to expand in a big way with its acquisition of a senior living community in the town of Mukwonago (Milwaukee MSA). To this point, the group had owned just eight eight-bed assisted living communities in the area. But, in one transaction, they have now more than doubled their portfolio, by units, in purchasing the 73-unit Mukwonago community. Originally built in 1996 with a 20-unit assisted living community, the property added a 48-unit independent living building in 1999 and five 55+ senior rental homes in the 2000s. Two local partners had owned and operated the community since its inception, but were looking to... Read More »
Blueprint Healthcare Real Estate Advisors Unlocks the Keystone State
Representing a REIT owner in a strategic non-core divestment, Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors sold a Philly-area skilled nursing facility for an undisclosed price. The transaction was remarkably similar to another deal that Messrs. Segal and Firestone closed earlier this month. That deal featured a 180-bed SNF in the Lehigh Valley region of eastern Pennsylvania that sold for $18.75 million, or about $104,000 per bed. Just a week later, the Blueprint team sold a 181-bed skilled nursing facility also in eastern Pennsylvania (the Philadelphia suburb of Wyndmoor). The in-place management team had assumed operations in 2015, but inconsistent... Read More »
Evans Senior Investments Executes On Everett Sale
The team at Evans Senior Investments is having quite the year, having already well surpassed its 2017 activity in both deals and dollars. Since the start of the year, ESI has closed 10 transactions for over $200 million in deal volume. Its latest transaction was also its largest for the year, when the firm represented the independent owner/operator of a 148-unit independent/assisted living in Everett, Washington (Seattle MSA), for $50.5 million, or $341,200 per unit. Located in an affluent Seattle suburb and boasting a host of amenities including a theater, billiards room, beauty salon and 24-hour bistro, the 15-year old community has a majority of IL units, although every unit was... Read More »
Paying For Stabilized Versus Non-Stabilized SNFs
Given the continual decline in census for the nation’s nursing facilities, it is no longer clear where “stabilized” is in today’s market, especially as lengths of stay have shortened. For your reference, we have traditionally defined stabilized occupancy for skilled nursing facilities as 85% and higher. With that said, nursing facilities with stabilized occupancy declined in value from an average of $114,700 per bed in 2016 to $93,700 per bed in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. This makes sense given the overall deterioration of the market in 2017. For non-stabilized nursing facilities, the reverse occurred. While it might... Read More »
Saul And Clousing Close On Cleveland Campus Sale
A healthcare campus in Cleveland, Ohio with both skilled nursing and Medicaid-waiver assisted living beds just sold to its in-place operating group. Ryan Saul and Brad Clousing of Senior Living Investment Brokerage represented the private partnership seller, which was divesting the property to focus on other investments and areas of the country. Originally built in 1978, with improvements made in 1991 and 2014, the community’s independent living units were converted to assisted in 2014. Operations could improve, as the 66-unit assisted living community was 59% occupied and the 99-bed SNF was 79% occupied. However, one AL wing with 24 units was being renovated at the time of the sale,... Read More »
Berkadia Brings In Old Borrowers And New
In addition to closing transactions for two repeat borrowers, Berkadia also worked with a new client to help them obtain financing. Rafael Nobo secured a $15 million Freddie Mac loan on behalf of this new client to refinance its seniors housing community in Mississippi. The loan was structured with a 10-year term and five years of interest only, hopefully kicking off a long-term relationship. Christopher Fenton then worked with a repeat borrower to refinance its 81-unit private pay assisted living community in Ohio. Mr. Fenton arranged a floating-rate $10.2 million Freddie Mac loan, with a seven-year term and two years of interest only. Finally, moving from Freddie Mac, Jay Healy arranged... Read More »
Opportunities and Challenges in Seniors Housing and Care
Conferences abound with opportunities in seniors housing and care, but challenges exist as well. So, I have been in New York City the past two days at a new conference being put on by iiBIG, formerly known as the International Institute of Business Information & Growth. I believe this is the first seniors housing and care-dedicated conference in New York City for several years, which is surprising given the large number of providers and properties within a 200-mile radius. I moderated one panel and spoke on another, and while the title of the conference is “Opportunities in Senior Housing & Care,” there are also a lot of challenges in today’s market. Just look at what has been... Read More »
SLIB Sells Value-Add Skilled Nursing Facility In Texas
Certainly having seen better days, a 120-bed skilled nursing facility in Bastrop, Texas with occupancy just below 50% sold for $3.5 million, or $40,700 per operating bed. Originally built in 1987, the facility is licensed for 120 beds, but operated at just 86 beds at the time of the sale, with EBITDA around breakeven. A publicly traded REIT was the previous owner, with a Texas-based group looking to lessen its exposure to the central Texas market as the outgoing operator. The new owner is a self-advised real estate company with a focus on seniors housing, and will look to add value in the asset. Matthew Alley of Senior Living Investment Brokerage handled the transaction. Read More »
ESI Closes Easley Transaction
Evans Senior Investments found a new owner for a well-operating independent/assisted living community in Easley, South Carolina. Previously independently owned and operated, the community was built in 1997 and expanded in 2004. At the time of the sale, it was 96% occupied with a 100% private pay census and operated at a 36% EBITDAR margin. Nevertheless, the buyer, a Chicago-based private equity firm, will attempt to use the scale from its portfolio to further improve profitability. They paid $14.5 million, or $145,000 per unit, for the opportunity. Read More »
Ziegler Zeroes In On Savings
The owner of two assisted living communities wasn’t in the mood to settle for second-best when it worked with Ziegler to refinance its existing permanent financing and receive a lower interest rate. The two communities are located in Redding, California, and include a stand-alone assisted living community with 60 units and an 85-unit assisted living/memory care community. Together, they had approximately $14.1 million in outstanding HUD debt originally financing by another HUD lender in 2014. However, the interest rate was in the mid-4s, which the borrower believed they could improve upon. Ziegler stepped in to arrange $14.7 million if HUD financing, locking in a lower interest rate and... Read More »Schedule a demo
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