Non-Stabilized SNFs Drop in Value
We are fast approaching the publishing of our Senior Care Acquisition Reports, which we’ve split for the first time into the Skilled Nursing Acquisition and Investment Report and the Seniors Housing Acquisition and Investment Report. You can expect these Reports to hit your desk sometime in the next few weeks, if you order them, of course. In them, we’ve included more graphs, stats and analysis than ever before, along with comprehensive lists of the industry’s operators, private equity firms, REITs, lenders and brokers. Here is a taste of what you’d find: Source: The 2019 Skilled Nursing Acquisition and Investment Report Traditionally, we have defined stabilized occupancy for skilled... Read More »
Thoughts On NIC Conference
New programming was just what the industry needed. Fresh from three days in San Diego attending the NIC “Spring” Conference, there were some noticeable changes, other than many new faces again. At past conferences, most of the sessions had to do with real estate, valuations, operations, competition and financing alternatives. While all important, this was the first NIC where there was an unusual amount of attention to things that most people either don’t want to hear about, or just plain don’t understand. I am speaking of Medicaid managed care, in both skilled nursing and assisted living, Medicare Advantage plans in assisted living, I-SNPs and value-based care, and, of course, the new PDPM... Read More »
Maryland Acquisition Update
We previously reported on the sale of two skilled nursing facilities in Maryland, but had few details. Now we do. Both facilities are located in Baltimore and have a total of 307 beds, one with 225 beds with a 16-bed ventilator care unit which was built in 1990 and 1996, and the other with 82 beds, which was built in 2004. All things considered, these can be considered to be fairly new. The seller, Brinton Woods Management Company, did a very good job operating these facilities, which had a four-star and five-star CMS rating. In addition, overall occupancy was 92.5%, and they operated with a 13.4% margin in 2018, not too bad in today’s environment. Actually, quite good. Revenues in 2018... Read More »
CREATIVCAP Closes First Loan
Scott Kavel of Greystone fame has set up his own lending shop at CREATIVCAP, and less than two months since forming the business, he has already closed his first transaction. On behalf of Vista Pointe, an Oregon-based senior living operator, Mr. Kavel arranged $8 million in financing from a life company that featured a seven-year term and an all-in fixed interest rate under 5%. With the financing, Vista Pointe will be able to enter the Washington State market with a to-be-built, 56-unit senior living community, expected to open in early 2020. CREATIVCAP’s correspondent, GG Finance, also made a small equity investment in the project, adding to its portfolio of equity and mezzanine... Read More »
New Team at Newmark
Fresh off a banner year that included over $2.5 billion of closed transactions (including well over $1 billion in December closings alone), the HFF seniors housing and healthcare team that includes Ryan Maconachy, Chad Lavender, David Fasano, Ross Sanders and Sarah Anderson has moved over to Newmark Knight Frank. For Newmark, they get a team that has closed over $42 billion in healthcare and senior care investment sales, plus the more than $7 billion in financing that Ms. Anderson has arranged over the years. There is no reason to think the team can’t continue that impressive haul now they are at Newmark. It’s quite the get for Newmark, we have to say. Read More »
Recent Senior Care Deals, Week Ending February 22, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice The Hallmark Companies, Inc.Highland Court Senior Residences$9.6 million Strawberry Fields REIT LLC3 skilled nursing facilities$21 million CALCAP Real Estate AdvisorsHawthorn Court at... Read More »
Hunt Real Estate Capital Rises in Phoenix
Nearly a year on from its departure from RED Capital Group, the Kathryn Burton Gray-led team at Hunt Real Estate Capital closed a $7.0 million bridge loan to fund the acquisition of a 44-unit memory care community in Phoenix, Arizona. Brady Johnson originated the deal, with help from Ms. Burton Gray and Michael Jones, working on behalf of the joint venture buyer that consisted of CALCAP Real Estate Advisors, a California-based real estate investment firm, and Greg Roderick, President and CEO of Frontier Management. This is CALCAP’s first foray into seniors housing, and they will certainly benefit from Mr. Roderick’s operating experience. Built in 2000 but renovated in 2016, the community... Read More »
Local Governments Exit Senior Care Operations
The team at IPA Seniors Housing including Mark Myers, Josh Jandris and Ryan Fleming announced a couple of public-to-private senior care sales, something the IPA team has seen a lot of in the past several years. Both properties were previously owned by local government and attracted buyers with an eye to adding value. The first sale featured a 36-unit senior living community built by the City of Monona, Iowa in 2005 that was operating well (with occupancy consistently above 85%) but did not align with the City’s eventual consensus that they should not be in the senior living space. Before the sale, the City did invest considerably in capex, including installing new windows and exterior... Read More »
Blueprint Closes Seniors Housing Sales
Coming off an incredibly strong 2018 in M&A (particularly on the skilled nursing side), Jacob Gehl and Scott Frazier of Blueprint Healthcare Real Estate Advisors announced an assisted living sale in Northern California. The pair represented the single-asset owner/operator that was based in California but was looking to exit the industry. The 145-bed community in Lodi currently features no memory care, but the incoming owner and operator are looking to change that, in addition to implementing some substantial renovations. Atlantis Senior Living and a Northern California-based operator teamed up to acquire the community for an undisclosed price. Mr. Gehl was also involved in the sale of... Read More »
HHC Finance’s HUD Haul
The team at Housing & Healthcare Finance (HHC Finance) announced a series of six HUD closings totaling about $81 million on behalf of Cascade Capital Group and its operating affiliate Legacy Healthcare. An owner/operator of more than 135 skilled nursing facilities in 23 states (all acquired since the company’s founding in 2016), Cascade secured these HUD loans on six of its SNFs in the greater Chicago area. They all refinanced higher-rate, shorter-term conventional debt. Read More »Schedule a demo
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