Love Funding Lends in Lexington
Ken Charbauski of Love Funding secured a HUD refinance for a 42-unit assisted living/memory care community in Lexington, North Carolina. This community, which features both private and shared units, is part of the state’s Medicaid home- and community-based services waiver program. Its family owner, Southland Real Estate, successfully refinanced its previous floating-rate debt with the $4.8 million, 35-year loan. Read More »Recent Senior Care M&A Deals, Week Ending November 16, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Regional owner/operatorHeritage Inn Retirement Center$3.25 million Regional owner/operatorGaymont Nursing Center$7.3 million Not disclosedAutumn Wood & Wood Manor$11 million University Health Care SystemKeysville Nursing and Rehab... Read More »
Five Star Not Shining
Hindsight is usually 20-20, and in the case of Five Star Senior Living, looking back two years, the company should have accepted the offer from Gemini Properties and the Thomas brothers of Senior Star, who offered to pay $325 million for 33 owned Five Star communities. They had already accumulated more than 6% of the company’s stock, an investment they most likely regret. But management, and really the then-controlling shareholder, the late Barry Portnoy, wanted nothing of it. In fact, Mr. Portnoy announced a tender offer to buy 10 million shares of Five Star at $3.00 per share to enhance his controlling position. That’s an investment where his estate would like a re-do. The Gemini/Senior... Read More »
Are Assisted Living Prices Sustainable?
On November 15th, we hosted a webinar entitled “Are Assisted Living Prices Sustainable? Premium Prices for a Premium Product.” In it, our editor Steve Monroe and a panel of experts including Brad Clousing of Senior Living Investment Brokerage, Jacob Gehl of Blueprint Healthcare Real Estate Advisors, Adam Kaplan of Solera Senior Living and Jesse Marinko of Phoenix Senior Living, had a wide-ranging discussion on the state of the assisted living market today. Are current values sustainable as high as they are? How do you finance those high-cost transactions and get your desired returns? Is it actually cheaper to build rather than buy an existing community, especially when there’s the risk of... Read More »
Evans Senior Investments Sells Ohio Senior Care Campus
An independent owner/operator’s only senior care campus in Norwalk, Ohio sold to a regional operator thanks to the guidance of Evans Senior Investments. In the exit, the seller received $7.3 million, or nearly $55,000 per bed/unit, at an 8.9% cap rate, for the campus. This is not like any senior care campus. The property includes a 112-bed skilled nursing facility, a 21-unit independent living community and an adult day care center open to the public. Spread out across seven buildings, the IL community gets its meals and services from the SNF and operates at a roughly 30% margin at full occupancy. Meanwhile, the SNF (which operates on 110 beds) is just 75% occupied, with a 10% quality mix.... Read More »
Blueprint Sells Two Philly Prizes
A growing seniors housing investor saw upside at two assisted living/memory care communities in high barrier-to-entry markets in Philadelphia, Pennsylvania and purchased the pair for an undisclosed price. Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors led the sales process on behalf of the publicly-traded REIT owner and the in-place operator, which will stay on to manage the communities. Built over 15 years ago, the properties were all-private pay but could improve their occupancy. Some capex could also make them more competitive in their respective markets. Operations were on the upswing throughout the marketing process, however, which is good news for the... Read More »
Lancaster Pollard Provides Bridge Loan to Midwest Operator Medicalodges
The 100% employee-owned senior care operator Medicalodges, Inc. recently obtained short-term financing from Lancaster Pollard for three of its skilled nursing facilities in Kansas and Missouri. Bill Wilson of Lancaster Pollard and Joe Munhall of LP’s Debt Syndications group arranged a $7.6 million bridge loan with a 36-month term through First Bank that will provide for capital expenditures at the three facilities and the repurchase of employee stock ownership plans. Medicalodges expects to take the loan out with HUD debt after the seasoning period. Read More »
Brookdale Senior Living and Transparency
How transparent are the activist shareholders about what would happen to Brookdale Senior Living if it followed through on their recommendations? Not very. After spending four years being critical of practically everything Brookdale did since the acquisition of Emeritus, the one thing I did not criticize the company for doing was not selling off its owned real estate. Brookdale investor Land & Buildings has been all over management to sell some assets or the entire company. Now, with a 3.7% stake in Brookdale, Macquarie Group has sent a letter to shareholders urging the same thing, claiming the stock is trading at 50% of its asset value. What these “activist” shareholders don’t... Read More »
Arkansas Operator Exits Assisted Living Industry
When a local assisted living operator in Arkansas wanted to exit the seniors housing industry, they turned to Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage to get the job done. Their final property was a 30-unit assisted living community in the town of Clarksville in northwest Arkansas. Built in 1996 and 2008, it converted from all-independent living to assisted living in early 2017 to become the only ALF in the county. Each unit was recently renovated, and rates were also increased. With 97% occupancy and an operating margin above 35%, we imagine the new owner won’t have to change much. That buyer was a Mississippi-based regional owner/operator who paid $3.25... Read More »
PGIM Arranges Refinance of Watercrest Community
One of Watercrest Senior Living Group’s success stories just reached stabilization and refinanced with the help of Chris Fenton of PGIM Real Estate Finance. Developed at an approximate cost of $17 million, or $191,000 per unit, in Sebastian, Florida, the 89-unit property opened in May 2016 and shot out of the gates in its lease-up, reaching 62% occupancy by August of that year. Since then, the community has fully stabilized and became eligible for permanent financing. To refinance an existing bank loan from Community & Southern Bank (now Bank of the Ozarks), PGIM originated a $10 million Freddie Mac loan, with a variable rate, seven-year term and 20 years of amortization at... Read More »Schedule a demo
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