Recent Senior Care M&A Deals, Week Ending May 17, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Griffin-American Healthcare REIT IVMichigan Assisted Living Facility Portfolio$24.5 million Invesque Inc.Grand Brook of Allen at Twin Creeks$8.1 million Invesque Inc.3 skilled nursing facilities$52 million Invesque Inc.3 memory care communities$30.7 million Focus Healthcare Partners LLCThe... Read More »
Seniors Housing Prices Jump, Skilled Nursing Continues Decline
Seniors housing prices saw significant rises in average prices in the 12 months ended March 31, 2019. Assisted living itself jumped 10% from $186,400 per unit in 2018 (according to our Seniors Housing Acquisition & Investment Report) to $204,000 per unit in the latest four-quarter period. Meanwhile, independent living rose a more moderate 6% from $238,100 per unit to $251,800 per unit, the highest level ever recorded for the sector. The small size of the IL market means that a few transactions can have an outsized impact on the average, but given the healthier occupancy and lower labor costs of the IL industry today, it makes sense that these communities have become more desirable.... Read More »
Merchants Capital Finances New Middle-Income Communities
A Midwestern developer of affordable and middle-income senior living communities, Wallick Communities, recently opened three assisted living communities in Ohio and obtained bridge financing to fund them through lease-up towards an eventual refinance with HUD. Merchants Capital, a division of Merchants Bank, arranged the nearly $50 million in bridge loans for the three developments. They include a 124-unit community in Cincinnati (which got a $13 million loan at a 24-month term), a 131-unit property in Columbus (with a 36-month $16 million loan) and a 124-unit community on the campus of another Wallick affordable senior living community in Hilliard (which obtained a $20 million loan for a... Read More »
California SNF Acquisition Gets Financing from Harborview
An experienced private investment group acquired a portfolio of six skilled nursing facilities thanks to bridge financing at 90% loan-to-cost. Totaling $51.9 million, the three-year loan was originated by Jonathan Kutner and Eli Kutner of Harborview Capital Partners, and negotiated by Robert Kellerman. The acquired facilities combine for 678 beds and are located throughout California. Read More »
The 55+ Active Adult Market: The New Frontier of Seniors Housing
Judging by the number of questions we got during our May 16th webinar called “The 55+ Active Adult Market: The New Frontier of Seniors Housing,” it is safe to say that there is plenty of interest in this growing market. Our listeners tuned in to find out what prices active adult communities have been trading at, their cap rates, and what exactly operationally goes into this no-care and low-services senior living option. You can still listen here. Our Editor, Steve Monroe, and several experts that included Ryan Maconachy of Newmark Knight Frank, Ryan Frederick of SmartLiving 360 and Michael Hartman of Capitol Seniors Housing made up our panel, bringing in different perspectives on how to... Read More »
Pricing Age in Skilled Nursing Facilities
There are plenty of issues that come along with the aging of the skilled nursing facility inventory. Older facilities require more capex to keep operations up to snuff, have trouble attracting the coveted Medicare and private insurance patients, and often have far fewer private units but more three- or four-bed wards. In addition, it has to be more difficult attracting and retaining staff at an older facility, especially when a newer facility often comes with more bells and whistles in addition to newer technology that makes those employees’ jobs easier. Where would you rather work? So, in the M&A market, how did those older facilities fare compare with the newer ones? Well, there was... Read More »
Juniper Communities Jumps on Pennsylvania Property
New Jersey-based Juniper Communities added another Pennsylvania senior living property to its portfolio with the acquisition of a 103-unit assisted living/memory care community in Chestnut Hill (Philadelphia MSA). With the deal, Juniper now owns or operates 12 properties in the Keystone State. The campus is centered around a stone mansion built in 1865 set alongside sprawling grounds and walking paths. There was an addition in 1986 that added common areas plus AL units, and another addition in 1998 that added memory care units, AL units and even more common areas. Carlyle Senior Living acquired the community in 2006 for $8 million, or $77,700 per unit. How times have changed. We’re unsure... Read More »
SunTrust Secures CCRC Financing
An established CCRC in Ridgeland, Mississippi is set to expand its memory care services with a loan provided by SunTrust Bank in hand. Opened in the mid-1980s, the community includes the full continuum of care from independent living and assisted living to rehabilitation therapy and skilled nursing services. However, the time had come to replace its 13-unit memory care building with a new 40-unit community. With the expansion, the CCRC will then be able to accept male residents in need of memory care, an option not previously possible due to size and design restrictions. Construction should start this summer and is set to open next summer. The property’s owner, Wakefield Capital, obtained... Read More »
The Forgotten Middle
There may be more than 14 million boomers that will not be able to afford seniors housing plus their health care needs. It is time to address the issue. We have been saying it for years. The largest unmet need in seniors housing is the bulging middle income cohort, which some researchers have defined as between the 40th and 80th percentile in terms of financial resources. In other words, the largest cohort. When they really start to need it in 10 years, more than 14 million seniors will not be able to afford the current assisted living or independent living models, plus the other health care needs they will have. Unfortunately, this has not been a secret. But it is one that has largely... Read More »
Alley Nails Two Central Texas Sales
Matthew Alley of Senior Living Investment Brokerage closed a couple of his transactions right in his wheelhouse in central Texas. That makes 107 seniors housing and long-term care assets sold in the Lone Star State for Mr. Alley. First, he sold a 174-bed skilled nursing facility in San Marcos (30 miles south of downtown Austin), working on behalf of the previous not-for-profit owner. The SNF market in Texas seems to have become more attractive to buyers, with the QIPP program entering its third year, two bills in the state legislature that if passed would increase the per-Medicaid resident pay out, PDPM going into effect later this year, and CMS’ proposed 2.5% national increase to the... Read More »Schedule a demo
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