Two Senior Care Centers Facilities Sell in Texas
Two Texas skilled nursing facilities formerly operated by the now-bankrupt Senior Care Centers (SCC) found a new owner with the help of Matthew Alley of Senior Living Investment Brokerage. Both built in 2008, these two SNFs each have 128 licensed beds, 51,000 square feet, and are located in growing central Texas submarkets. They were the only two SCC-operated facilities owned by a local real estate owner. One facility, in New Braunfels, was 75% occupied, while the Round Rock SNF was just 64% occupied. Not surprisingly, the operating margin was far below SNF standards, at 3.5%. Overleverage and expensive leases contributed to Senior Care Centers’ bankruptcy filing in December 2018... Read More »
Ensign Expands in Idaho
The Ensign Group grew its Pacific Northwest portfolio with the purchase of a 119-bed skilled nursing facility in Rexburg, Idaho (near the Wyoming border). The facility provides speech, physical and occupational therapy, wound care and dialysis care in addition to traditional long-term care. Pennant Healthcare, Inc., Ensign’s portfolio company based in the Pacific Northwest, will take over operations. No purchase price was disclosed, but the deal included both the real estate and operations, continuing a strategy of Ensign to own more of the real estate in its portfolio. This is the company’s first Idaho deal this year, after it acquired three facilities and 244 total beds in the Gem... Read More »
Grandbridge Finances Philly-Area Development
A brand-new senior living community is being built in the Philadelphia, Pennsylvania market with funding facilitated by Grandbridge Seniors Housing and Healthcare Finance Group. Set to open in 2020, the project will feature 160 units of independent living, assisted living and memory care in the town of Limerick. It is being developed by Vantage Point Retirement Living, a growing operator in the Mid-Atlantic with 11 senior living and active adult communities already open in Maryland, Delaware and Pennsylvania. Two more are set to open next year in Delaware and Pennsylvania (including this one being financed), with three more in the works. The construction/mini-perm loan totaled $34 million... Read More »
Growing Old in America
Instead of nursing facilities, a New York Times article goes after assisted living. As many of you are aware by now, there was a not too complimentary op-ed article last Sunday in the New York Times called “How Not to Grow Old in America.” The bottom line, according to the author, is that assisted living is not the answer for our elderly. One can argue about some statements and characterizations in the article, as ASHA did in a response to the paper, but at least one central theme is something I have been saying for a while. And that is, we are putting too much money into the physical plant and not enough into staffing and training. It’s kind of like golf, where you drive for show and putt... Read More »
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 »Schedule a demo
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