Second-Generation Owner Exits Skilled Nursing Business
Bradley Clousing, Daniel Geraghty and Toby Siefert of Senior Living Investment Brokerage helped a second-generation owner of a skilled nursing facility in Northport, Alabama (Tuscaloosa MSA) exit their only asset and the industry altogether with the facility’s sale. Built in stages from 1973 to 2008, the facility earned a good reputation in the local market and was 90% occupied with a 46% quality mix. It also has a well-maintained physical plant and a high percentage of private units across the 182 total beds. The operating margin, however, can be significantly improved from the current 2%. That onus will be on a private group based in New York who is looking to expand in growing markets... Read More »
Griffin-American IV Closes Fourth Quarter Acquisition in Michigan
Griffin-American Healthcare REIT IV announced a number of transactions that they closed in the fourth quarter of 2018. Most of them involved medical office building portfolios, but one saw the acquisition of five assisted living communities in Michigan for an undisclosed price. Totaling 302 units with locations in Grand Rapids, Holland, Howell, Lansing and Wyoming, the communities were previously owned and operated by Vista Springs Assisted Living, which promptly leased them back to continue as operator through 2033 under an absolute net lease structure. This is the first tranche closed of a larger Michigan assisted living portfolio, so we await Part-II. Read More »
Maximizing Occupancy in 2019
If you want to increase your occupancy, cash flow and value, you will have to listen to this upcoming webinar. We are now at the start of a new year, and a new flu season, so all eyes will be on what this year’s flu season will do to occupancy levels. But if you wait and are reactive to something you have little control over, then it will be too late. Flu season aside, occupancy has been one of the major topics in the industry for the past few years. But there are reasons why some communities are at 100% year in and year out, and others can’t get above 80%. Join me next Thursday, January 17, for our 2019 kick-off webinar on Building Occupancy and Value in Seniors Housing. You will learn... Read More »
Alternative Living Acquires Auglaize County-Owned SNF
Drawing on plenty of experience selling county-owned skilled nursing facilities, Joshua Jandris, Mark Myers and Alex Vice of IPA Seniors Housing just sold their first in the state of Ohio. Although this was the team’s first county-owned SNF sale in the state, it was their 64th overall in Ohio (for $600 million in total transaction value) and 21st county-owned SNF deal to date. Quite prolific. Owned by Auglaize County, which was looking to follow many counties out of the long-term care industry, this 91-bed facility in Wapakoneta was originally built in 1909 with a renovation in 1976. Its new owner, Auglaize Holdings LLC will lease the facility to Alternative Living Solutions, which has... Read More »
Lancaster Pollard Closes Bridge Loan Trifecta
Lancaster Pollard’s bridge lending program got a good workout in the new year with three new closings. The team of Scott Blount, Chris Mauger, Brian Cafarella and Eric Sengpiel closed the largest transaction, which totaled $12 million, on behalf of Advanced Healthcare Management to acquire a 120-bed skilled nursing facility in Southaven, Mississippi. A local hospital looking to exit the SNF business was the seller. That same team from Lancaster Pollard also closed a $6.7 million bridge loan for a 107-bed skilled nursing facility in Welsh, Louisiana. The transaction refinanced existing debt and capital improvement costs, and also provided some equity cash out. Finally, Mr. Mauger and Kyle... Read More »
Dakota Dealing
A private REIT based in North Dakota purchased a private pay assisted living community in Rapid City, South Dakota with hopes of improving occupancy and operations to increase value. Built in 2004, the 87-unit community was 85% occupied with a 20% EBITDAR margin in the trailing 12 months. The seller was an independent owner/operator, so the buyer should be able to introduce some economies of scale and professional management to the community. Evans Senior Investments handled the sale, closing the purchase price of $7.1 million, or $81,600 per unit. Read More »Recent Senior Care M&A Deals, Week Ending January 4, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Omega Healthcare Investors, Inc.MedEquities Realty Trust, Inc.$898 million Family Extended CareCrownPointe of Sebring & CrownPointe of Spring Hills$12 million Family Extended CareCentral Tampa Assisted Living$8.5 million Allegiant Healthcare17 skilled nursing... Read More »
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 »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
