Assisted Living Values Continue Rebound
Every quarter, we take a look at the latest 12-month pricing multiples for the assisted living, independent living and skilled nursing markets as an added bonus to the Senior Care Acquisition Reports. Starting with assisted living, the market appears to have rebounded after the drop in value recorded in 2018. From 2018 to the four quarters ending on June 30, 2019, the average price paid per unit rose from $186,400 to $205,900, a 10.5% increase. The jump was smaller when comparing the four quarters ended March 2019, when we recorded an average price of $204,000 per unit. That market, which includes memory care communities, suffered from the woes of overdevelopment, not only affecting... Read More »
Quick Acquisition Potential
Details are not in abundance, but if you have the cash and the ability, there are up to four memory care facilities in the Houston, Texas market that are available for a quick sale. Here’s the issue. Bids are due by August 16, and the closing must be by August 30. That means no financing contingencies, probably no third-party reports in time. The sellers are the banks, and Cushman & Wakefield was just hired to complete this task, as impossible as it may sound. The good news is that the lenders have to sell, and while we have not heard an asking price, we assume you will get them at well below original construction cost. We believe they were all built between 2011 and 2015, but... Read More »
Senior Living Investment Brokerage’s Active August
It has already been an active August for Senior Living Investment Brokerage, which closed four deals on the first of the month, one of which we already covered last week. First up, Jason Punzel sold a seniors housing property in Brookings, Oregon. Built in 1999 and 2004 on a 17-acre site, the all-memory care community has 55 beds in 40 units. It was deemed to be non-core by its REIT owner, with occupancy sitting at just 75% and operating margin falling below 10% on nearly $2.8 million of revenues. The new owner will look to utilize its strong presence in Oregon to improve operations. They left some room to add value, paying $3.45 million, or $86,250 per unit. Then, the team of Ryan Saul,... Read More »
REIT Divests Ohio SNF Portfolio
Sometimes, less is more. That was the case for a portfolio of three Ohio skilled nursing facilities, which shed five beds from their license and thus boosted their average Medicaid rate by over $16 per patient day. Ben Firestone, Michael Segal and Connor Doherty of Blueprint Healthcare Real Estate Advisors represented the publicly traded REIT seller and its national operator tenant on the sale, advising them on the decertification of the five beds that resulted in 297 combined licensed beds selling across the three facilities. Located in the Columbus metro area, the portfolio was built or expanded in the 1980s and renovated in the early 2000s. Each facility is also located within three... Read More »
Recent Senior Care M&A Deals, Week Ending August 2, 2019
Check out our recent senior care M&A transactions. Long-Term Care AcquirerTargetPrice Hackensack Meridian Health3 skilled nursing facilities$65 million Owner/operatorButterfly Gardens$1.5 million Welltower32 senior living communities$343 million Institutional capital partnerBenchmark Senior Living portfolio$1.8... Read More »
Local Doctor Invests in Iowa Assisted Living
Not unlike the 2020 Democratic field, Nick Cacciabando and Jeff Binder of Senior Living Investment Brokerage descended on Cedar Rapids, Iowa, to close the sale of an assisted living community. Originally built in 1910 as a private residence, the community was renovated, expanded and converted to assisted living in 1995, and now features 42 units. Currently, it operates at a 9% margin on over $1.6 million of revenues, with an occupancy around 82%. Rents could be increased, but only by so much given the community’s relative age and middle-income market. The selling entity was a group of aging, local investors looking to realize their investment objectives. They sold the asset to a local... Read More »
Cambridge Refinances Service-Rich SNF
Hymie Barber of Cambridge Realty Capital Companies arranged a HUD LEAN loan to refinance a 131-bed skilled nursing facility in West Orange, New Jersey. The fully amortized, 33-year loan was arranged for a New Jersey LLC and replaced existing debt. The facility offers a full suite of skilled care services, including orthopedic rehabilitation, a congestive heart failure program, wound care, TPN, IV Therapy, trauma rehabilitation, cardiac drip, stroke care and rehabilitation, tracheostomy care, post-surgical care, physical therapy, patient-controlled analgesic pump pain management, cardiac care congestive heart failure program and respite care, to name a few. There are also several unique... Read More »
Welltower Makes Major M&A Moves
Welltower made M&A waves in its latest earnings report, announcing a major disposition of its Benchmark Senior Living assets but countering that with several large acquisitions and development agreements. The company signaled that despite the Benchmark sale, it is not lowering its position in the senior living market, offsetting the 48 properties sold with a total of 46 acquired, not including the developments promised in a couple of massive pipeline agreements. The big news was the Benchmark sale, which consisted of all 48 assisted living properties and 4,137 total units located throughout New England, or 100% of the Welltower-owned portfolio. The transaction was structured as a... Read More »
Walker & Dunlop’s New Seniors Housing Team
Walker & Dunlop expanded its senior care investment sales business in a big way, bringing in Managing Directors Mark Myers and Josh Jandris and Vice Presidents Jordyn Berger, Alex Vice and Mike Surak of IPA Seniors Housing, a division of Marcus & Millichap. The Chicago-based team will build on W&D’s existing multifamily property sales platform by bringing a new focus on seniors housing and skilled nursing property sales, building on W&D’s existing multifamily platform. They will also work closely with Walker & Dunlop’s senior housing financing group, which originated over $900 million in debt financing in 2018. Prior to making this move, the IPA team had closed over... Read More »
CBRE Closes Two Bank Financings for Senior Living Clients
Aron Will of CBRE ended July with two bank financings for senior living clients in three states. First, in Texas, he was joined by Austin Sacco and Adam Mincberg to refinance two 76-unit assisted living/memory care communities in Boerne (San Antonio MSA) and Round Rock (Austin MSA). Both properties were developed by a joint venture between Harrison Street Real Estate Capital and Franklin Development Properties in 2017, and have been managed by Franklin Development’s operating affiliate. To refinance the original construction debt, CBRE secured a three-year, floating-rate loan with 24 months of interest only from a national bank. Then, that CBRE trio was joined by Tim Root to refinance... Read More »Schedule a demo
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