Senior Living Investment Brokerage Rises This Fall
As September turned to October, Senior Living Investment Brokerage announced an impressive run of transactions. First, Jason Punzel, Brad Goodsell and Vince Viverito sold two memory care communities in California for $17 million, or $347,000 per unit, with a 9.5% cap rate. With that high price, you might assume the facilities had just opened or were fully occupied, or both. Instead, the communities were built in the mid-1980s (one was renovated in 2001) and were occupied in the mid-80s. They were small too, totaling just 49 units across the two locations (in Menlo Park and Sunnyvale). The operating margin was a solid 32% on nearly $5 million of revenues, and rents were high (close to... Read More »
Not-For-Profits Swap Minnesota Senior Living Communities
Ray Giannini and John Klement of Marcus & Millichap’s Milwaukee Seniors Housing Group represented a not-for-profit in the sale of its two senior living communities in Buffalo, Minnesota (Minneapolis MSA). The buyer? It was another not-for-profit. The portfolio includes one purpose-built memory care community with 24 units (48 beds) and one repurposed 67-unit assisted living community, both built (or repurposed) in the early-1990s, centrally located and well occupied. They sold for a combined $9.3 million, or $102,200 per unit, with an $11.6% cap rate. Read More »
Ziegler Issues Bonds For Large CCRC Acquisition
A large CCRC portfolio sold to The Trousdale Foundation, a Boston-based not-for-profit owner/operator, thanks in part to a $200.57 million bond financing arranged by Ziegler. Totaling nearly 1,600 beds and units, the portfolio features three CCRCs in Dayton, Ohio, Nashville, Tennessee, and Sebring, Florida, and one skilled nursing/assisted living facility in Cincinnati, Ohio. They were originally acquired from 2001 to 2011 by the seller, Covington Senior Living. In those transactions, the CCRCs sold for between $35,000 and $40,000 per bed/unit, while the fourth facility was originally purchased for close to $100,000 per bed/unit. The communities are on the older side (built in the 1970s... Read More »
Recent Senior Care M&A Deals, Week Ending 9/28/2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Northwind GroupSkilled nursing portfolio$182.5 million The Trousdale Foundation, Inc.4 seniors housing properties$157 million Local operatorSilver Point Plaza & Crescent Villa$17 million LCS/TH Real Estate7 senior living... Read More »
Berkadia Bonanza
Berkadia closed over $200 million in loans this month, in both its Proprietary Bridge Lending and Commercial Mortgage platforms. Beginning with its agency transactions, Berkadia’s Jay Healy secured HUD loans totaling over $36 million for two skilled nursing facilities clients. The larger loan, at $29.5 million, was arranged on behalf of a repeat client of Berkadia to retire bridge debt used to acquire three skilled nursing facilities in Colorado, Kansas and Nevada. Acquired in 2017, the facilities total 110 beds and average 94% occupancy. The smaller $6.7 million loan refinanced a 47-bed, 11-year old SNF in New Mexico owned and operated by two other repeat clients of Berkadia. Then, Rafael... Read More »
Is the SNF Market Bottoming Out?
On September 27, our Editor Steve Monroe and a panel of experts that included Ryan Chase of Blueprint Healthcare Real Estate Advisors, Eli Kutner of Harborview Capital Partners and Stefan Oh of American Healthcare Investors, debated an important question: is the skilled nursing market approaching a bottom? And if it is, how do we value those facilities considering Medicare Advantage plans are shortening lengths of stay, Medicaid reimbursement dollars are getting squeezed and SNF censuses across the country are steadily declining? After hitting a peak of nearly $100,000 per bed in 2016, SNF values have dropped off about 20%. But demand is still high, and new buyers (big buyers) are hitting... Read More »
There’s a New Investor in the Skilled Nursing Market
Northwind Group, a Manhattan-based real estate owner/operator, entered the skilled nursing market in a major way, announcing its $182.5 million acquisition of eight skilled nursing and assisted living properties from a large institutional seller. All of the facilities, which include seven skilled nursing facilities (with 1,037 beds) and one 110-unit assisted living community in Ohio and northern Kentucky, are operated by Ohio-based Carespring Health Care under a new long-term triple-net lease. Occupancy averaged 92% across the portfolio, and revenues topped $100 million. To help fund the deal, KeyBank underwrote and closed a $132.7 million loan, in a transaction led by Henry Alonso and... Read More »
Lancaster Pollard Refinances Large Pennsylvania Skilled Nursing Facility
Nearly 10 years after acquiring a large skilled nursing facility in Coal Township, Pennsylvania, Complete Healthcare Resources successfully refinanced the property with the help of Tony Ruberg of Lancaster Pollard. The facility, which features 271 total beds and 115 total units, including eight independent living units, was substantially renovated and added a dementia care wing since the 2009 acquisition. With the $16.8 million HUD loan, Complete Healthcare reduces its overall debt service, improves cash flow and provides funds for future improvements. Read More »
Zom Living Enters the Senior Living Market
A major seniors housing development is about to break ground in Palm Beach County, Florida, after the developers finalized the purchase of a 46-acre plot in a transaction handled by Charlie Hilding, Mark Myers and Josh Jandris of Institutional Property Advisors, a division of Marcus & Millichap. Additionally, Ryan Nee of Marcus & Millichap’s Fort Lauderdale office was the broker of record for the transaction. Originally owned by a partnership and entitled for 462 units of seniors housing, the land sold for $23.25 million to a joint venture between Zom Living and Liberty Senior Living. This is multifamily developer Zom’s first seniors housing deal, and North Carolina-based Liberty’s... Read More »
Pricing SNFs After A Market Peak
Average skilled nursing values have dropped by 20% since the market peak in 2016, and by this time next year we will have a new Medicare reimbursement protocol. How will that figure into valuing skilled nursing facilities today? Is the skilled nursing market approaching a bottom? We know when it peaked in terms of acquisition values, and that was in 2016 at $99,000 per bed. But pricing has dropped by 20% since then, despite continued strong demand for nursing facilities. Now, after a few years of Medicare Advantage plans squeezing cash flow by cutting rates and shortening lengths of stay, a new reimbursement system will become effective a year from now. While the industry has responded... Read More »Schedule a demo
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