Frontier Management Sells The Frontier Four
Frontier Management just sold four of its Pacific Northwest seniors housing communities to a publicly-traded REIT but won’t be exiting entirely. In addition to continuing as the operator, Frontier also retained a joint venture ownership interest in the portfolio. Totaling 139 assisted living and memory care units (244 beds), these communities are located in Burlington and Oak Harbor, Washington, and the greater Portland, Oregon MSA. They were well occupied and of institutional quality too, which clearly attracted the REIT buyer. Matthew Whitlock of CBRE National Senior Housing represented Frontier and arranged a successful outcome for them. Read More »
IPA Handles Pittsburgh Personal Care Facility Sale
Andrew Hilding, Joshua Jandris and Mark Myers of IPA Seniors Housing represented the seller of a personal care facility north of Pittsburgh, Pennsylvania. Stepping in to purchase the facility was a local operator in the Pittsburgh area looking to expand their presence in the state. They are acquiring an 80-unit/100-bed facility that was built in 1999. Occupancy was strong at 96%, so they should be hitting the ground running. That strong historical performance and IPA’s targeted marketing process led to about 25 groups reviewing the acquisition opportunity. Read More »
The Closing of Rural Nursing Homes
The New York Times recently wrote about the problems rural nursing facilities are having, but didn’t report on my solution. If you happened to see the front-page article in the New York Times this past Monday on the shuttering of rural nursing homes, you might be surprised that I spent more than 20 minutes on the phone with the reporter talking about some good ideas. Instead, he chose a flippant quote which really had nothing to do with the story. I spent my time trying to educate him about the industry, and then explained my solution to the problem. My solution was to turn these facilities into the central healthcare provider for the county, or a tri-county area, if they are very... Read More »
Private Equity Firm Expands Portland Portfolio
A Southern California-based private equity firm added to their Portland, Oregon portfolio with the addition of a 38-unit assisted living community. Built in 2011, the small community was previously owned by a local operator who will be using the proceeds to invest in other real estate assets. It was 89% occupied (a solid figure these days) and operated at a 34% margin on under $2.5 million of revenues. So, there is some room for improvement. Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage handled the transaction, which resulted in an $8.5 million, or $223,700 per unit, purchase price and a 10.0% cap rate. Read More »
SunTrust Bank Lends in Florida
SunTrust Bank just announced it provided $28.6 million in financing for the Imperial Club Tower in Aventura. Florida. Imperial Club has both assisted living and independent living services totaling 214 units. Part of the funding will be used for renovations and a 10,000 addition to the main level, in addition to enhancing the major common areas throughout 2019. No residents will be displaced. The seller was Affordable Community Housing Trust Alpha and Silver Tree Residential, LLC will be the manager. Read More »
Capital Health Group Divests Four Pennsylvania Properties
Just two years after acquiring four seniors housing properties totaling 534 beds in southeastern Pennsylvania, Capital Health Group is turning around and selling them. After CHG’s operating affiliate Milestone Retirement Communities took over management of the portfolio, occupancy has averaged 93% and the operating margin consistently surpassed 38%. In today’s operating environment, that’s quite a feat. A national REIT was the buyer. CHG sold the communities on behalf of its sponsored operating community, CHH Senior Housing, LP, which is capitalized by Akard Street Partners, an investment venture with the Teacher Retirement System of Texas. Read More »Recent Senior Care Deals, Week Ending March 1, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Bristol care homeLXi REIT$18.2 million MedCore Partners4 assisted living communities$98 million Compass Senior LivingGreentree at Mount Vernon$6 million RDCP CareDignus Healthcare... Read More »
Capital Senior Living Misses the Mark, Again
As we were watching the share price of Capital Senior Living drop for several days in a row before announcing their fourth quarter earnings results, we were wondering whether something had leaked out, or whether it was the usual sell off because the company had underperformed relative to expectations for too many quarters in a row. We may never know which it was, and maybe a bit of both, but underperformance was there again. Now, we can’t shoot the messenger because Kim Lody took over as CEO at the beginning of this year and was just a Board member before that, but the results were probably worse than anyone expected. Sequential occupancy declined by a whopping 110 basis points from the... Read More »
Cushman & Wakefield Assists in Assisted Living Disposition
As part of a larger effort to exit several non-core assets, an institutional owner decided to sell its 112-unit assisted living/memory care in Mount Vernon, Illinois (about 80 miles southeast of St. Louis), with the help of the Richard Swartz, Jay Wagner, Jim Dooley and Sam Dylag of Cushman & Wakefield. Built in phases from 2001 to 2009 and substantially renovated in 2017, the community struggled against newer competitors in the area and their rent discounting tactics. As a result, occupancy fell to just 60% in 2018. Compass Senior Living stepped in to acquire the asset for $6 million, or $53,600 per unit, leaving plenty of wiggle room for an operational turnaround. From the sound of... Read More »
Hats Off to Capital Funding
About three years after it acquired a 140-bed skilled nursing facility in Hatboro, Pennsylvania, Vita Healthcare Group decided to refinance the property with a HUD loan provided by Capital Funding. Craig Casagrande originated the $16.1 million mortgage, which takes out the original $13.36 million bridge loan and $1.5 million working capital loan provided by the firm to support the 2016 acquisition. That original financing included a turnaround component that increased the loan amount based on projected improvements to the facility’s performance. So, assuming a roughly 90% loan-to-cost, the 2016 purchase price can be estimated just below $15 million, or $106,100 per bed. In early 2016, the... Read More »Schedule a demo
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