Top Senior Care Facility Is Sold
Mark Davis of Healthcare Transactions Group sold a 128-bed/unit senior care facility in Maryland that is widely recognized as a preeminent facility of choice in the Washington, D.C. metro area. It has maintained a five-star rating ever since the rating system was started. The skilled nursing portion was originally built in 1958 with additions or renovations in 1965, 1986 and 2000, and currently has 66 beds. The overall occupancy averages 96% with a 48% private pay census, with 24% Medicare and 28% Medicaid. The 62-unit assisted living portion was built in 2000, and average occupancy is 90% and it is all private pay. There are two interconnected and distinct buildings, one for skilled... Read More »
HFF Closes $115 Million Financing For Seattle Senior Living High-Rise
Columbia Pacific Advisors just received about $115 million in financing for its to-be-built senior living high-rise in Seattle’s First Hill neighborhood. David Fasano, Sarah Anderson, Casey Davison, Ryan Maconachy and Chad Lavender of Holliday Fenoglio Fowler (HFF) represented CPA in the transaction, with HCP, Inc. providing the loan. Location is key for this development, as the community is located within five blocks of three major hospitals and less than a mile away from downtown Seattle. The 24-story building will consist of 194 independent living, 21 assisted living and 28 memory care units, along with an auditorium, full-service restaurant, bistro/café, two bars, a top-level clubroom,... Read More »
Griffin American Goes To Wisconsin
Griffin-American Healthcare REIT IV gained a foothold in the state of Wisconsin by acquiring two senior care facilities that include independent living, assisted living and also skilled nursing beds. Located in the Madison suburbs of Waunakee and Sun Prairie, the facilities total 254 beds, with the seniors housing portion featuring 100% private pay, and the skilled nursing portion having a 67% quality mix. In addition, nearly $10 million in renovations have been completed at the properties since 2006. Griffin-American purchased the facilities for $22.6 million, or about $89,000 per bed, and leased them to Integro Healthcare Consulting under an absolute net master lease structure through... Read More »
The Price of Age in Skilled Nursing
As most of you know, skilled nursing prices plummeted 18% in 2017 to $81,350 per bed, according to the 23rd Edition of The Senior Care Acquisition Report. But with that decline, did the age of the properties sold throughout the year have a significant impact? For obvious reasons, older skilled nursing facilities sell, on average, for a lower price than newer facilities. In 2016, there was a nearly perfect correlation between age and the price paid per bed. This did not occur in 2017, as the oldest group, those facilities more than 40 years old, sold for an average price per bed ($79,750) that was 26% higher than the next age group of 20 to 40 years ($63,000). Some of the older facilities... Read More »
Fast HUD Financing From Lancaster Pollard
Aaron Becker of Lancaster Pollard led the way in arranging an $11.9 million HUD refinance of a 54-bed skilled nursing facility in Pittsfield, Massachusetts. Owned and operated by long-standing Pittsfield-area not-for-profit organization, Berkshire Retirement Home, Inc., the facility was built in 2014 to replace Berkshire’s original SNF. Conventional bank financing, with a floating interest rate, funded the construction, but ownership decided to refinance through HUD. Lancaster Pollard worked to obtain a firm commitment from HUD less than two weeks after formal submission, allowing the borrower to lock in the interest rate in December, before rates increased. We’re sure more than a few late... Read More »
Brookdale, HCR ManorCare and NIC
Two major companies make decisions, one with a path forward and the other still unclear, and they will be the talk of Dallas at the NIC conference. As the senior care investing world descends on Dallas today for the Spring NIC conference, the giddy tone of the newcomers may be sobered by the recent events at Brookdale Senior Living and HCR ManorCare. Brookdale was the worse story, with its share price now down 80% from three years ago. The announcement last week that HCR ManorCare will submit a pre-packaged bankruptcy filing and become a wholly-owned subsidiary of landlord Quality Care Properties was not a surprise, but just confirmed that the skilled nursing sector has a long struggle... Read More »
HCP Continues To Lighten Its Brookdale Load
The ramifications of Brookdale Senior Living’s latest blow-up have spread beyond just its precipitous drop in share price. Major Brookdale landlord, HCP, Inc., just announced it was reducing its cash NOI and interest income concentration in Brookdale from 27.0% to 15.7%, on a pro-forma basis. The restructuring included the sale of six Brookdale properties for $275 million and the purchase of Brookdale’s 10% interest in two joint ventures for $99 million. In addition, HCP will terminate management agreements with Brookdale on 36 seniors housing operating properties (SHOP) and leases on 32 triple-net communities, with Brookdale waiving all termination fees associated with the management... Read More »
Major Moves at HealthTrust
National appraisal and advisory firm HealthTrust has had a busy month. On March 1, they closed on the purchase of the assets of the company from Sabra Health HealthCare REIT, which took over ownership as part of Sabra’s acquisition of Care Capital Properties last year. Care Capital had purchased HealthTrust when it was spun out of Ventas. Being independent once again will allow management to solidify key relationships and focus on growth. The company also announced that it hired Michael T. Jones as its Chief Financial Officer. Jones brings 20 years of seniors housing and care experience to HealthTrust, most recently serving as VP and Portfolio Manager at Care Capital Properties and also as... Read More »
Avison Young Aces Alexandria Acquisition
Jim Kornick and Dan Baker of Avison Young led a successful bidding process for a 130-bed skilled nursing facility in Alexandria, Virginia, generating 12 offers and closing at $13 million, or $1 million over the original asking price. Only operating with 100 beds, the facility was owned and operated by a local family who had originally developed it 40 years ago. Located next to a major hospital, it had a history of good operations and had a high quality mix, with 47% Medicare, 25% private pay and 28% Medicaid on 80% occupancy. However, expenses recently ran high, and the facility was losing money as of closing. The buyer, a publicly traded REIT, will look to immediately improve the... Read More »
Recent Senior Care M&A Deals, Week Ending 3/2/2018
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Strategic Student & Senior Housing Trust3 assisted living communities$78.5 million CareTrust REIT, Inc.5 skilled nursing facilities$41.25 million Invesque Inc.Grand Brook portfolio$21.5 million Publicly traded REITMt. Vernon Nursing & Rehab Center$13 million Publicly traded REITBloomsburg Rehab & Wellness Center$7.2... Read More »Schedule a demo
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