2018: The Year of the Senior Care Deal
Congress and the White House may be at an impasse, but seniors housing and care investors have been making deals at a record-setting pace in 2018. As of now, with a few days left before the usual end-of-year rush of closings, we have recorded 400 publicly announced senior care transactions so far this year. That both beats the previous record (365 deals announced in 2015) and crushes last year’s total of 307 transactions. Dollar value may be a different story when the year wraps up, as the total of all disclosed prices just tops $12.6 billion, the lowest annual sum since 2013’s $11.7 billion. But we have always said the health of the M&A market should be measured by the number of... Read More »
Blueprint Aids In Kansas City CCRC Sale
Last month, The Ensign Group announced its acquisition of a CCRC in Ottawa, Kansas, but now it’s been revealed that Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors represented the not-for-profit faith-based seller. Headquartered in the Midwest, the previous owner decided to divest the property because it was its only asset in the state. Operating from afar proved to be a challenge. Originally built in 1984 and expanded throughout the 1990s to include 93 skilled nursing beds, 71 assisted living units and 24 independent living units, the rental CCRC struggled to maintain stable census and staffing levels. That will be Ensign’s challenge moving forward. Luckily,... Read More »
SunTrust Bank Arranges Atlanta-Area Construction Financing
SunTrust Bank arranged construction financing for the first phase of an enormous senior living development going up in the Atlanta metro area that will include some 600 units when all is said and done. The developer, Village Park Senior Living, will start with 204 high-end units (including 82 independent living, 75 assisted living and 26 memory care units) and most of the common areas being built. Phase One will also include 21 “City Homes” with separate access and gardens with patios. After opening this Phase in Fall 2020, Village Park will then start on Phases Two and Three, all combining for $300 million of development cost. We don’t see developments of that scale too often. SunTrust... Read More »
CareTrust REIT Picks Up Parker, Colorado SNF
CareTrust REIT made its second acquisition in the state of Colorado (nearby its first purchase), spending $19.6 million, or $127,300 per bed, to buy a 154-bed skilled nursing facility in Parker, Colorado (Denver MSA). The REIT’s Salt Lake City-based operating partner, Eduro Healthcare, sourced the transaction with an eye to immediately improve operations at the facility. Built in 2012 across the street from Parker Adventist Hospital, the facility was the only SNF in Parker that is certified for both Medicare and Medicaid. Eduro also benefits from having a local footprint, which includes a 170-bed skilled nursing facility in Lakewood that CareTrust bought in 2015 for $12.2 million, or... Read More »
American House Strikes North
American House Senior Living Communities is continuing its expansion outside of its home states of Michigan and Florida, following up on its first acquisition in Ohio (from September) with its first in New England. The target was built in 2009 with 109 units of independent living and assisted living in Keene, New Hampshire with a variety of one- and two-bedroom floorplans. With Senior Management Group, LLC (a subsidiary of Kaplan Development Group, LLC) managing it, the community was occupied in the high-90s and sold at a roughly 7% cap rate on trailing figures. American House will rebrand the community to the aptly-named American House Keene. IPA Seniors Housing handled the... Read More »
Naples Memory Care Community Gets Fresh Start
Wrapping up his work before the holidays, Brad Clousing of Senior Living Investment Brokerage sold a 72-unit memory care community in Naples, Florida. He found a Florida-based private equity firm to buy the community for $6 million, or $83,300 per unit. That buyer and the new operator, Concordis Senior Living, plan on making a few changes to ramp up operations and take advantage of the highly desirable submarket. Originally built in 1995 and designed for both assisted living and memory care, this community had been well-maintained but operated as strictly memory care under previous ownership. Occupancy was low (just 44%), and it was losing over $40,000 a year on nearly $2.3 million of... Read More »
White Oak Healthcare Finance Buys $700 Million In Senior Care Loans
White Oak Healthcare Finance is aggressively growing its presence in the senior care lender market and purchased a portfolio of 12 skilled nursing and seniors housing loans from Capital One and its participant banks. Financial terms were not disclosed, but the loans totaled approximately $700 million and helped Capital One reduce its skilled nursing exposure. So, it was a win-win for both parties. Capital One also provided debt financing for White Oak to fund the transaction. This isn’t White Oak’s first big wave in the senior care lending market. Last month, the company served as administrative agent and lead lender on the funding of a $190 million senior credit facility of 17 skilled... Read More »
Private Equity Firms Trade New Jersey Assisted Living Community
Ownership of a luxury senior living community in Marlboro, New Jersey flipped from one private equity firm to another. Developed by Capitol Seniors Housing and joint venture partners Formation Development Group and Shelbourne Capital several years ago, the 79-unit community features both assisted living and memory care services under the operation of Chelsea Senior Living. Already located in an affluent area of the county, the community is also near shopping and a number of amenities. Kayne Anderson Real Estate Advisors stepped in as its buyer, retaining Chelsea Senior Living as the operator as well. Richard Swartz, Jay Wagner and Sam Dylag of Cushman & Wakefield handled the... Read More »
Jingle WELLs
‘Twas the night before NIC… ‘Twas the night before NIC And all through the building Not a broker was stirring. Not even brothers Hilding Multifamily developers had forgotten to take their meds While visions of loose money danced in their heads And KBG in her kerchief, and Lerner in his cap Had just settled down for one last look at NIC Map When down in the bar, there arose such a clatter Arnie Whitman sprang into action to see what was the matter Michael and John had just stepped into the ring To see which one had the best swing The swoon of the WASH members was too much to bear As everyone lost interest and headed for the stair When, what to a... Read More »
Blueprint and Birchwood
Birchwood Healthcare Partners is making a successful exit from their skilled nursing/assisted living facility in Huntington, West Virginia, more than doubling the facility’s value after just three years of ownership. When Birchwood originally purchased the 55-bed/unit facility from an individual owner in 2015 for $3.2 million, the facility was losing money. Originally built in 1928, the facility was totally renovated in 2009 making it one of the more modern facilities in the area. It also featured an assisted living component. Although it was 90% occupied, its operator tenant stopped paying rent and filed for bankruptcy, prompting the owner to sell. So, Birchwood brought in Providence... Read More »Schedule a demo
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