HFF’s Sizzling Skilled Nursing Month
HFF showed its strength in the skilled nursing M&A market, closing three transactions at the end of last month. Dave Fasano sold four Florida SNFs currently in receivership to New York-based TL Management for $24 million, or $66,850 per bed. Built between 1965 and 1996, the facilities averaged 87% occupancy but operated at just a 5.7% margin on about $26 million of combined revenues. However, TL Management believes EBITDA could be increased to $3.5 million, which if true would yield a very conservative cap rate of 14.6% on the purchase price. TL, with its over-100 SNF portfolio across 10 states, will have to use all of its experience to get the job done. Mr. Fasano then teamed up... Read More »
New York Investment Fund Wins Bid For Knoxville Property
In late November, the team of Mike Surak, Joshua Jandris and Mark Myers of Institutional Property Advisors, a division of Marcus & Millichap, closed on the sale of a 69-unit assisted living and memory care community in Knoxville, Tennessee. The community opened in early 2017 with 54,000 square feet on 6.91 acres. Of the total, 51 units are assisted living and 18 are memory care. Occupancy had reached 90% by closing, and was forecasted to reach 95%. The IPA team obtained five offers, and the winning bid was $16.8 million from an upstate New York investment fund. This came to just over $243,000 per unit, and a 6.6% cap rate on annualized EBITDA. Read More »
Diversicare Divests Three Kentucky Properties
After a “challenging quarter” when Diversicare Healthcare Services reported a net loss of $7.4 million, (compared with a $600,000 loss last third quarter), a drop in average occupancy to 79.3% (down from 80.1%) a $6.4 million contingent liability fund regarding potential false claims violations, AND the departure of their CEO Kelly Gill, the company completed the sale of three skilled nursing facilities in Kentucky earlier this month. As required by bank agreements, the company used the net proceeds to entirely pay off the associated indebtedness and are probably pretty happy to move on and concentrate on bigger problems. The facilities in question were in Fulton (60 beds), Glasgow (94... Read More »
Alliance Moving Forward at Massachusetts SNF
The not-for-profit senior care operator, Alliance Health & Human Services, secured both a permanent refinance of its 101-bed skilled nursing facility in Braintree, Massachusetts, and a more stable financial future to further its mission there. The $14.2 million HUD loan, arranged by Aaron Becker of Lancaster Pollard, is the sixth overall closed in the relationship. It refinanced existing debt and reimbursed Alliance for prior capital expenditures. Alliance will now be able to file a Determination of Need with the state in order to invest another $3 million to renovate the facility. Under the program, the state would reimburse Alliance the renovation funds through a future increase in... Read More »
SunTrust Sets Eyes On Colorado Bridge Financing
SunTrust Bank’s ears must have been burning, because on the day of our webinar, Bridge Loans: The Hottest Lending Product for Seniors Housing and Care (which you can still listen to here), the bank originated a $31 million bridge loan for an independent living community in Colorado Springs, Colorado. Just completed earlier this year, the community is geared to higher income residents and boasts a number of modern amenities. It was developed by The Wolff Company, an Arizona-based private equity firm that is developing a number of luxury senior living properties a year with operating partner Clearwater Living (which will also manage the Colorado Springs community). Artin Anvar of SunTrust... Read More »
Great Financing Product For Acquisitions
Bridge loans are becoming increasingly important for acquisitions and renovations projects. Find out the details on this important webinar. If you are in the market for acquisitions, especially value-add acquisitions, or you want to do some major renovations on your existing building, do I have a financing product for you. I am talking about bridge loans, which are basically short-term loans to get you from point A to point B with your real estate. Their popularity has been increasing in the past few years, with more lenders and more types of products, providing even more liquidity to the seniors housing and care sector than before. Plus, some of the bridge lenders have created their own... Read More »
HHC Finance Wrapping Up 2018 With Two Northeast Transactions
Seniors housing and care M&A may be slowing towards the end of 2018, but the lenders are still closing plenty of transactions. One of them, Housing & Healthcare Finance (HHC Finance), closed two HUD loans totaling $31 million for a couple of East Coast skilled nursing facilities owned by experienced regional operators (and repeat HHC customers). The smaller loan (for $6 million) was closed for a 108-bed SNF in southern New Jersey and refinanced existing conventional debt. Although it received several improvements in recent years, the facility was built in the mid-1960s and was occupied in the high-80s. The other loan was closed for a large 238-bed skilled nursing facility in... Read More »
Lancaster Pollard Hits the Mark With Life Insurance Financing
Grant Goodman, Casey Moore and Doug Harper of Lancaster Pollard helped structure a life insurance refinance of two memory care communities owned by Agemark Corporation. Both located in Nebraska and totaling 75 units, the properties were encumbered with traditional bank debt. Looking to lock in their interest rate early in this rising rate environment, Agemark was introduced to Protective Life Insurance Company to obtain a 10-year, fixed-rate financing. This was the first transaction between the two but may not be the last. Read More »
Meridian Pushes Past $1 Billion In Financings
Already $1.0 billion deep into its 2018 transaction total by October, Meridian Capital Group took less than a month to close another $217 million in financings. Ari Adlerstein, Ari Dobkin and Josh Simpson did that by arranging the refinance of a large skilled nursing portfolio, the $9 million cash-out refinance of an assisted living community in Pittsburgh, Pennsylvania and an $18 million acquisition loan for a long-term acute care/skilled nursing facility in Ohio. Since the team’s inception in 2011, they have now closed more than $5 billion in financing for seniors housing and healthcare properties. Read More »Recent Senior Care M&A Deals, Week Ending November 30, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Threestones CapitalSkilled nursing facilityN/A Not disclosed3 skilled nursing facilities$18.7... Read More »Schedule a demo
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