New York Real Estate Firm Enters SNF Market
Patrick Burke of Senior Living Investment Brokerage sold a pair of southern skilled nursing facilities to a Northeast-based real estate investment firm. Totaling 243 beds, the facilities were built between 1986 and 1990 and combined for 75% occupancy. The seller, an independent owner/operator, decided to exit the long-term care industry, after the problems started mounting at the Kentucky facility. Litigation concerns and rising insurance premiums caused cash flow to plummet at the location. The Tennessee facility was essentially operating at breakeven, and combined, they brought in nearly $14.1 million in revenues. Around 36% of the census came from private pay and Medicare patients (not... Read More »
Harborview’s HUD Haul
Despite the backlog caused by the government shutdown earlier this year, Harborview Capital Partners’ HUD pipeline has been particularly active lately, totaling over $46 million in two March transactions. The larger transaction featured a $23.9 million loan closed on behalf of a brand-new 180-bed skilled nursing facility in Middlesex County, New Jersey. The team then closed a $22.25 million HUD loan for a 164-bed SNF in Chicago, Illinois. In addition, Harborview flew down to sunny Florida to arrange two transactions for assisted living clients. First, for a 136-bed community on the Gulf Coast of Florida, they closed a $6.7 million loan with a five-year term, 20-year amortization and 12... Read More »
HHC Finance Refinances New York-Area SNF
Several years after acquiring a 160-bed skilled nursing facility, an experienced owner/operator is refinancing with the help of Housing & Healthcare Finance. Working through HUD, HHC Finance closed a $28 million loan for the greater New York area facility, replacing higher-rate and shorter-term debt in the process. Since the acquisition, the owner has significantly improved operations and obtained a five-star rating from CMS. Still, renovations were needed at the 20-year old facility, and the HUD loan will provide for around $7 million in improvements. Read More »Recent Senior Care M&A Deals, Week Ending March 8, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Real estate investment firm2 skilled nursing facilities in KY & TN$12.15 million Granite Investment GroupRn Villa Care Center$8.5 million Publicly-traded REITFrontier Four portfolioN/A The Ensign Group, Inc.Downey Care... Read More »
What Happened To Assisted Living Prices?
The assisted living sector fell back to earth in 2018 and dragged the rest of the seniors housing sector with it, according to the soon-to-be-published Seniors Housing Acquisition & Investment Report. Following three successive years of steady increases and a record-high price per unit in 2017 of $221,250, assisted living properties sold on average for just $186,400 per unit in 2018, a 15.8% decline. What could have happened in only a year to cause such a fall? Partially, it was because the share of communities with either 100% or some component of memory care units (which are usually valued higher for their higher rents and more need-based residents) fell from 70% of all communities... Read More »
Ensign Expands California SNF Portfolio
One of the reasons big seniors housing and senior care operators (by big, we mean Brookdale- or HCR ManorCare-big) so often run into problems is that the business is difficult to scale. It is still largely a local business, with the Executive Directors and Marketing/Sales Directors responsible for filling units and maximizing cash flow. When you have a large firm, your key staff at the community-level, who may not be receiving enough attention or enough incentive to do well, could be inclined to jump ship. Just look at the number of Brookdale ED resumes floating around following the Emeritus acquisition. One company that seems to have figured out how to scale correctly is The Ensign Group,... Read More »
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 »Schedule a demo
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