Recent Senior Care M&A Deals, Week Ending March 22, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Private ownership groupParkside Ellijay$7.3 million Altitude Health ServicesProvidence Healthcare and Rehab Center of Palos HeightsN/A Regional operatorWindridge Nursing... Read More »
Avalon Senior Living Grows
Avalon Senior Living has partnered again with Eastridge Pacific Holdings, LLC (EPH), this time buying three senior living communities in California from HCP, Inc. that had been leased to Brookdale Senior Living. The 205 units (210 beds) offer independent living, assisted living and memory care services. The purchase price was $15.7 million, or $76,585 per unit, and came with an approximate cap rate of 8.0%. Mike Garbers, formerly of Greystone and now with JLL, represented the seller, and MidCap Financial provided the mortgage financing. Eastridge Pacific entered the senior living industry in 2016 as an equity partner in Kalakaua Gardens, a 17-story community in Honolulu with 216 beds. It... Read More »
SLIB Heads Southeast to Sell Sunlink SNF
A 100-bed skilled nursing facility in the affluent northern Georgia town of Ellijay was purchased by a private Northeast-based group looking to expand their current Peach State presence. Being the only facility in an area with a growing number of retirees, this SNF was consistently well occupied above 90%. Plus, once the adjacent hospital relocated in 2016, this 50-year old facility was able to expand into much of the old building, adding more resident rooms, a senior day care center, new administrative offices and outpatient rehab. It also operated at a solid 14% margin; pretty good these days. Its previous owner, Sunlink Health Systems Inc., was looking to redeploy capital and focus on... Read More »
Blueprint Closes Two Large Skilled Nursing Deals
Blueprint Healthcare Real Estate Advisors closed a couple of sales in the Old Northwest. First, Amy Sitzman and Michael Segal represented Sioux Falls, South Dakota-based The Evangelical Lutheran Good Samaritan Society in the not-for-profit’s sale of three Wisconsin skilled nursing facilities. Considered to be non-core, these facilities feature 162 skilled nursing beds, 19 independent living units and 12 age-restricted apartments. They were originally built in 1960s but had maintained a good reputation. In addition, occupancy and quality mix were strong, but despite high per-resident-day revenues, expenses ran too high. Expense management will be the job of the new owner/operator, which is... Read More »
Dwight Capital Stays Active in 2019
Dwight Capital has closed a slew of bridge financings in the last couple of months totaling more than $17 million. These transactions included a $3.96 million bridge loan for a 120-bed skilled nursing facility in Overland Park, Kansas, a $2.34 million loan for a 32-bed assisted living community in Hinsdale, New York and a $3.77 million acquisition loan for a 116-bed SNF in Cape May Court House, New Jersey that was bought by an owner/operator of several other facilities in the state. Dwight Capital also funded the acquisition of a skilled nursing portfolio in Wisconsin (in a sale led by Amy Sitzman and Michael Segal of Blueprint Healthcare Real Estate Advisors) with a $3.7 million loan... Read More »
Monticello Funds Tennessee SNF Purchase
Following up on several other acquisition financings closed on behalf of a previous borrower in the past three years, Monticello Asset Management funded the purchase of two more skilled nursing facilities in Tennessee. Totaling $16 million in first lien debt that Monticello expects to refinance through HUD in the coming years, the transaction was arranged for an experienced owner/operator with a current portfolio of more than 3,700 licensed beds. This latest acquisition totaled 303 beds across the two Tennessee locations. Monticello’s asset-based lending group, Monticello Commercial Capital, also provided a $3 million working capital loan to the operating companies. Read More »
Genesis Occupancy Stabilizes, Finally
After several years of declining occupancy, operations seem to be stabilizing at the largest skilled nursing provider in the country. It has not been an easy past few years for Genesis Healthcare, or for the entire skilled nursing sector. But we always thought there would be some light at the end of the tunnel, and that nursing facilities would not go away, despite predictions of that for two or three decades. Genesis had seen its occupancy decline pretty steadily for several years. But in the 2018 fourth quarter, census actually increased by 90 basis points from the year-ago quarter, to 85.6% based on operating beds. Genesis also posted sequential and same-facility increases. The company... Read More »
Blueprint Closes New England Assisted Living Sale
The husband and wife owners of an assisted living community in Dover, New Hampshire started on their path to retirement with the help of Steve Thomes of Blueprint Healthcare Real Estate Advisors. Originally a historic colonial home that was converted to assisted living, the unique community still has a bed a breakfast feel to it. However, a local operator/developer saw the chance to refurbish and expand the property, purchasing it for an undisclosed amount. The husband and wife team will remain as the operator under a lease until the development project is completed, at which point operations will transfer to the new real estate owner. The transaction closed with an assist from former... Read More »
Breaking News
Chicago-based JLL announced it is buying HFF, Inc. in a $2 billion cash and stock deal. We wonder whether HFF management was so distraught after the seniors housing team jumped ship two months ago that they just had to sell. All kidding aside, the combination of these two firms will create one sizable company that will compete on many fronts. Read More »
Does Size Matter in Seniors Housing?
Last week, we took a look at the relationship between the size of the skilled nursing facility and the price it sold at, according to statistics from our just-published Skilled Nursing Acquisition & Investment Report. And like skilled nursing facilities, the larger the seniors housing property, the higher price paid for it, generally. That is because larger institutional properties can take advantage of scale to boost cash flow and thus its value. In addition, the majority IL communities tend to be large and IL has commanded high prices in most years. There are indeed smaller “boutique” memory care communities that can command a high per-unit price because of the rents they can charge... Read More »Schedule a demo
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