Preliminary 2018 M&A Results Are In
The preliminary numbers are in, and 2018 has shattered the previous record for healthcare M&A deal volume with 1,850 transactions announced, and counting, according to Deal Search Online. That is more than 200 deals more than the previous record of 1,617 transactions announced in 2017. Of the 591 deals that disclosed a price across all 13 healthcare sectors, the total dollar volume comes out to about $330 billion, including two mega deals: Takeda Pharmaceutical Company’s $81.5 billion acquisition of rare disease pharmaceutical company Shire plc and Cigna’s purchase of pharmacy benefit manager Express Scripts for $67 billion. By contrast, 2017’s total reached $311.6 billion, the largest... Read More »
Colliers Team Closes Two Florida Sales
Ken and Damien Carriero of Colliers International wrapped up their 2018 campaign with a couple of closings in central Florida. They found the same buyer for both acquisitions, the not-for-profit Family Extended Care which owns five other communities in the state. The first deal involved two assisted living communities previously owned by Americare Communities Florida, LLC. Located in Sebring and Spring Hills and operated under the CrownPointe brand, both communities were built in 1999. The 66-unit community in Sebring was 76% occupied and operated at a 23% margin on over $2.0 million of revenues, while the 40-unit Spring Hills community was just 65% occupied and operated at a 25% margin on... Read More »
Capital One Secures Refinance of Illinois Assisted Living Community
Five years after acquiring a 154-bed assisted living community in Park Ridge, Illinois, Cascade Capital Group (with Legacy Healthcare as its operating partner) is refinancing with the help of Capital One. Joshua Rosen originated the HUD loan, which totaled $15.1 million, came with a 35-year term and replaced conventional bank debt. In the years since acquiring the facility, Cascade had extensively renovated the community, which now has a five-star rating from CMS. The transaction recoups capital expenditures and partner debt, and frees up cash for Cascade to pursue other projects. Read More »
Berkadia’s Big End-of-Year Closing
Berkadia headed out of 2018 with a bang, closing a credit facility that totaled more than $200 million. Secured by 19 senior living communities owned by Capital Senior Living Corporation, the facility came with both fixed and variable interest rates, a 10-year term and 30-year amortization schedule financed through Fannie Mae. Approximately $150.8 million of the debt had the fixed rate and over $50.2 million featured the variable rate. Berkadia’s Lisa Lautner originated the transaction, closing right before Christmas. Read More »
The Ensign Group Is At It Again
The Ensign Group started off 2019 with a skilled nursing acquisition right in its wheelhouse. Located in southwest Utah, in the town of Cedar City, this 120-bed skilled nursing facility was just 50% occupied at the time of sale. That kind of turnaround opportunity seems to be Ensign’s specialty. Indeed, occupancy at its last couple of skilled nursing acquisitions ranged from 67% to 70%. So, they’ll hope to use that experience turning operations around at the Utah facility. Read More »
Omega Healthcare Investors Snags Small REIT
Omega agrees to buy MedEquities Realty Trust in a cash and stock deal worth $632 million plus assumed debt. I hope everyone had a good break these past few days. Everyone, that is, except the folks at Omega Healthcare Investors and MedEquities Realty Trust (MRT). Omega announced today that it is buying MedEquities in a stock and cash transaction valued at about $633 million plus $265 million of net debt. Shareholders are receiving a very healthy 50% premium. MRT owns 34 facilities in seven states with 2,755 beds run by 10 different operators. About 75% of the beds are skilled nursing with some assisted living, and the remainder is a smattering of LTACs, IRFs, behavioral health and an MOB.... Read More »
REIT Buys Three Repositioned SNFs
Improving occupancy and operating margins at a portfolio of three Pennsylvania skilled nursing facilities caught the attention of a REIT buyer and their experienced operating partner, which purchased the portfolio from a private investor. Located in the Scranton/Wilkes-Barre market, the portfolio consists of 416 licensed beds. Things were looking up for the facilities, which were recently substantially renovated to attract a higher quality mix from six regional hospitals. Combined, they were 85% occupied and generated $34 million in revenues, with a continuously improving operating margin. An operator with a considerable presence in Pennsylvania took over the facilities’ operations and... Read More »
CBRE Secures HUD Construction Financing in Illinois
Illinois’ Lake County is getting a new post-acute/transitional care facility, helped by a $25.92 million HUD construction loan arranged by Aron Will and Mark Tran of CBRE. Innovative Health obtained the 40-year loan, which featured an 18-month construction period and was provided through CBRE’s HUD 232 direct lending program. Innovative’s new 185-bed facility will replace the previous county-owned skilled nursing facility, at a development cost of approximately $30 million, or $162,200 per bed. The new location (expected to open in mid-2020) sits within five miles of Advocate Condell Medical Center, a 215-bed medical campus that was named a “Best Hospital” by U.S. News & World... Read More »Cambridge Replaces Bridge Loan at Illinois Skilled Nursing Facility
Cambridge Realty Capital Companies returned to Glenview, Illinois to retire the original bridge loan it provided for a 144-bed skilled nursing facility with a HUD refinance. The previous financing, consisting of a $20 million bridge loan and a $1 million asset-based loan, was provided in November 2017 to an Illinois LLC to acquire the facility, which provides skilled nursing, wound, colorectal and respite care, along with a Progressive Supranuclear Palsy support group. Now, just 13 months later, Cambridge is refinancing the facility with a $21.2 million HUD loan, with a 35-year term. Read More »Recent Senior Care M&A Deals, Week Ending December 28, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice O&M Investments, LLCSanta Fe skilled nursing facilityN/A Private REITSkilled nursing facilityN/A Aedifica SA93 care homes$571.3... Read More »Schedule a demo
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