Evans Senior Investments Closes in Connecticut
Evans Senior Investments traveled to Danbury, Connecticut to sell an assisted living community with a lot of room for improvement, operationally. Built in 2000, the 48-unit community was independently owned and operated but ran with unusually high expenses. Cash flow was still positive, but the operating margin fell just below 12%. Occupancy averaged 85% over the last 12 months, with a 100% private pay census. The new Maryland-based owner/operator expects to immediately improve profitability and paid $9.75 million, or $203,000 per unit, for the property. Read More »Recent Senior Care M&A Deals, Week Ending February 8, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Next Healthcare Capital15 skilled nursing facilities$204 million National Health Investors, Inc.Isles of Vero Beach$38 million Regional owner/operatorRegent Care Center of Reno$13.6 million CareTrust REIT, Inc.Oakview$8.96... Read More »
CareTrust REIT Adds to Its Illinois Portfolio
Seeking to expand a partnership that is clearly working, CareTrust REIT tacked on an extra senior care campus to its existing seven-property master lease with WLC Firm, LLC. Located in the southern Illinois town of Mt. Carmel (and right in WLC’s geographic wheelhouse), the facility features 90 licensed skilled nursing beds and 38 supportive living beds. WLC will replace the outgoing operator, which is leaving behind a sold four-star rated facility. The initial annual cash rent for the property is expected to be about $853,000, and the lease comes with a 15-year term, plus two five-year extension options. CareTrust used cash on hand to pay to purchase price, which came out to about $9.0... Read More »
NHI Adds Another Holiday Retirement Community to Master Lease
In the middle of restructuring and extending its master lease with Holiday Retirement, National Health Investors also was able to acquire a senior living community in Vero Beach, Florida. Consisting of 157 independent living and 75 assisted living units, the community was leased back to Holiday for approximately $2.6 million in rent annually. It falls under the new lease terms, which come with annual lease escalators beginning November 1, 2020 and varying between 2% and 3% depending on the annual revenue growth of the 26-property Holiday portfolio. As part of the acquisition and lease restructuring, Holiday also paid NHI $17.1 million in cash and relinquished a $10.6 million cash security... Read More »
Joint Venture Acquires Former Emeritus Community Outside of St. Louis
Veritas Senior Living and Curis Capital joined forces to acquire a 107-unit senior living community in Herculaneum, Missouri (St. Louis MSA). Previously an Emeritus-owned community (before Emeritus sold it to Platinum Healthcare in 2009 and before the Emeritus-Brookdale blow-up), the 30-year old property currently features 81 assisted living and 26 independent living units. The purchase price was not disclosed, but the property last sold for $3 million in 2009. We expect its value has risen since then. The buyers plan on adding an in-house therapy space in partnership with HealthPro. Read More »
HTG Sells Two Baltimore Brinton Woods SNFs
Healthcare Transactions Group continued its prolificacy in the Maryland M&A market with the sale of two more Brinton Woods skilled nursing facilities in Baltimore. Previously owned and operated by Brinton Woods Management Company since 2007 and 2008, the facilities are located across the city from each other. The East Baltimore SNF features a four-star rating and 225 beds, including a 16-bed ventilator unit. It draws most of its patients from MedStar Health and the Johns Hopkins Health System. In West Baltimore, the 82-bed SNF boasts a five-star rating and gets the majority of its patients from Lifebridge Health and the University of Maryland Health System. A New York-based... Read More »
Monticello Magic
To finance the acquisition of two skilled nursing facilities in New Jersey, Monticello Asset Management worked on behalf of a previous client to provide first lien debt financing for the deal. The two facilities totaled 328 beds and were acquired on the heels of another SNF acquisition by the buyer in 2018. The 2019 acquisition was funded by $37.8 million in financing, but Monticello’s asset-based lending group, Monticello Commercial Capital, also provided a $3 million working capital loan to the operating companies. In the end, the borrower expects to refinance through HUD. Read More »
Average SNF And Seniors Housing Prices Hit Four-Year Low
The headwinds facing skilled nursing and assisted living have finally had their impact on acquisition values. We are obviously not in good times right now, but it is also not as bad as it sometimes appears. The mood is cautious for most, but hopeful for many, as occupancy and labor continue to be the problem issues facing the entire industry. What I don’t like, however, is when news reports come out saying that 50% of SNFs nationally lose money. What they fail to say is that this is after depreciation, amortization, interest and lease expense. Before these costs, the vast majority of nursing facilities are still making money, just not as much as in the past. It looks like 2018 was finally... Read More »
Genesis HealthCare Buys and Divests
As it continues to improve its capital structure and rationalize its lease exposure, Genesis HealthCare has joint ventured with Next Healthcare Capital to buy 15 skilled nursing facilities with 2,147 total beds previously leased from Welltower located in Pennsylvania (6), New Jersey (4), Connecticut (3), West Virginia and Massachusetts. Genesis will own a 46% stake in the venture, and lease the properties, at presumably a lower rate than with Welltower, and there will be no escalators for the first five years. Welltower’s lease had 2% annual escalators. Next Healthcare appears to be willing to wait for that extra return, since Genesis has a purchase option beginning in 2026 to buy out the... Read More »
Senior Living Investment Brokerage Shows Its Strength
Starting his year off strong, Dave Balow of Senior Living Investment Brokerage sold an Assisted Living Program (ALP) community in western New York for $3.0 million, or $125,000 per unit, at a 10.2% cap rate. Introduced in the state around 30 years ago, the ALP program essentially provides a higher level of care (close to skilled nursing) in an assisted living setting for Medicaid residents. It’s proven to be a win for the state, which can reimburse nearly skilled nursing level care at a lower rate, and for the providers, which can take in Medicaid residents at a significantly higher rate. Even with the higher care and staffing costs, those all-Medicaid facilities can often boast 30%... Read More »Schedule a demo
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