Marcus & Millichap’s Mom & Pop Sale
A local mom & pop sold its only skilled nursing facility in Lodi, California, and hired Rob Reis of Marcus & Millichap to seal the deal. Built in stages between 1956 and 1964, the facility features 86 licensed beds in 49 units, split between 14 private rooms, 27 shared rooms and six three-bed wards. There was also a secure dementia ward comprised of 18 beds. Occupancy was consistently in the mid-90s, with an approximate 70% Medi-Cal census, but there was also strong local competition, so cash flow was negative. The new owner should be able to take advantage of the steady income from the dementia unit, the quality physical plant and implementation of PDPM later this year to turn... Read More »
The Risk of Being Small in Seniors Housing
Size has consistently mattered when it comes to evaluating the risk of a seniors housing community, which includes independent living, assisted living and memory care. Bigger communities are able to use scale to trim expenses, which could be huge if you have to pay your employees a little more to both compete with other seniors housing competition or businesses in other sectors. Bigger communities, which are favored by institutional owners, can also absorb the pain of a few empty units better than smaller communities. That is not to say that smaller communities, with their “home-like” atmosphere and more personalized care, don’t have their advantages too. But the smallest communities,... Read More »
Recent Senior Care M&A Deals, Week Ending June 7, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Ventas, Inc.Canadian Seniors Housing Portfolio$1.8 billion National Health Investors, Inc.6 senior living communities$126.85 million The Ensign Group, Inc.Golden Palms Rehabilitation and RetirementN/A LECOM HealthVillage at Luther SquareN/A Greystone Healthcare Management Corp.The Ponce Therapy Care... Read More »
Flashback Friday: Brookdale Becomes King
Oh, how times have changed. And the mighty have fallen. Taking a look at the June issue of The SeniorCare Investor from 2006, what headline appears? “Brookdale Becomes King: Changing the Face of Seniors Housing.” Hindsight is 20/20, but there were already warning signs of Brookdale Senior Living’s bust as it was in the middle of a meteoric rise. Debuting on the New York Stock Exchange in November 2005 at $19.00 per share, Brookdale went on an acquisition spree in the months afterwards, culminating in its May 2006 acquisition of American Retirement Corporation for $33.00 per share, or $1.2 billion plus assumed debt and leases. Also coming along with the deal was ARC’s CEO Bill Sheriff, who... Read More »
Blueprint in the Buckeye State, Again
Blueprint Healthcare Real Estate Advisors announced a couple of Ohio closings at the start of June. The firm first sold an 88-bed skilled nursing facility in Orrville, a small town about 40 miles south of Cleveland. Originally built in 1974, the facility was recently renovated and also features two independent living cottages totaling eight units. However, it was operating around breakeven, so the existing owner/operator decided to divest. A partnership between a high-acuity skilled nursing operator and O&M Investments, a private equity firm focused on the SNF market, emerged as the buyer. Connor Doherty and Brian Payant led the transaction, which did not disclose a purchase price. Mr.... Read More »
The Ensign Group Expands in South Texas with Senior Care Campus
The Ensign Group may have just spun off its senior living assets into a new entity named The Pennant Group, but the firm can’t fully shake the seniors housing business, acquiring a senior care campus with 38 assisted living and 92 independent living units, along with 60 skilled nursing beds. Located in the town of Harlingen, the campus complements five other Ensign operations in south Texas, including another 82-bed skilled nursing facility in Harlingen that the company acquired from The Evangelical Lutheran Good Samaritan Society in 2009. Ensign acquired both the operations and real estate in this transaction, bringing its portfolio to 198 skilled nursing operations, 27 of which also... Read More »Dwight Capital Arranges Loan for Long Island Facility
Dwight Capital followed up on a productive Spring to close a bridge loan for a Long Island assisted living community. Sitting on over eight acres in Port Jefferson Station, this community features 181 beds of Medicaid-funded assisted living on the same campus as a 143-bed skilled nursing facility. Kevin Lifshitz from Dwight Capital closed a $12.8 million bridge loan for the community. Read More »
Solvere Living Adds Three More Communities
After 10 years in business, Solvere Living continues to expand its portfolio of managed senior living communities, recently adding three more in Texas and Florida to bring its total to 15 properties across eight states. The Texas community is located in Plano near three major medical centers. It features 44 assisted living and 21 memory care units on a four-acre campus. Then, Solvere added two Florida facilities. One, with 83 assisted living and 38 memory care units, is located in Jensen Beach (Port St. Lucie area) and features amenities including a pool, salon, spa, putting green and an outdoor entertainment center, among others. There is also an in-house rehabilitation clinic for... Read More »
The Skilled Nursing M&A Market
Have we hit bottom, or will values continue to decline? Join us next Thursday as we try to decipher what the market holds for investors over the next several years. Depending on who you talk to, skilled nursing facility values, and the SNF M&A market in general, are going to be troubled for a while. Or, we have hit bottom, and with the new PDPM reimbursement system starting in a few months, SNFs will claim their rightful spot in the healthcare delivery food chain, with values increasing. That is quite a difference in opinion, and one where billions of dollars are at stake. Next Thursday, we are hosting a webinar on the skilled nursing acquisition market to try to decipher where it is... Read More »
Ventas Doubles Down on Canadian Seniors Housing Market
The Big-3 REITs are back as buyers, with Ventas making the biggest splash of them all by acquiring 31 senior living communities in Quebec for approximately C$2.4 billion, or US$1.8 billion. Made in an 85/15% partnership with the in-place operator, Le Groupe Maurice, the acquisition is expected to generate compound annual NOI growth of 4% over the next five years. The stabilized portfolio, consisting of 28 communities located in core urban markets, has 7,885 units, an occupancy of 97%, an average age of seven years and more than C$2,600 in monthly revenue per-occupied unit. It certainly helps that the penetration rate for seniors housing in Quebec is twice that of the rest of Canada at 18%.... Read More »Schedule a demo
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