Adding Value In Arkansas
A couple of value-add skilled nursing facilities sold in Arkansas with the help of Ben Firestone, Michael Segal and Brooks Blackmon of Blueprint Healthcare Real Estate Advisors. Previously owned by a publicly-traded REIT, the facilities are located on opposite sides of the state and had almost no geographic synergies. Totaling 234 beds, they reported in-place cash flow but were not stabilized during the sales process. So, positioning them as a value-add opportunity (if some capital improvements are made), Blueprint found a Louisiana-based healthcare real estate investor to purchase the facilities, which are their first-ever SNFs. To help ease their entry into the market, the buyer kept the... Read More »
The Survival of SNFs
As skilled nursing facilities look to the future, competing with LTACs and IRFs must be on the agenda, which will help to increase values. If you own, operate, lend to or want to invest in a skilled nursing facility, our webinar tomorrow is the one you just can’t miss. Why? Because we are going to explore how skilled nursing facilities will go up against LTACs and inpatient rehab facilities (IRFs) in the battle for the post-acute patient. Not just how, but why it is crucial for the future of the entire SNF sector. And what it will do to values. Historically, LTACs and IRFs have taken in higher acuity patients than SNFs, and have the associated staff to take care of those patients. But as... Read More »
All In, In Alabaster, Alabama
A tenant bankruptcy brought in a new operator and ultimately a new owner at a 198-bed skilled nursing facility in Alabaster, Alabama. Originally built in 1972, this SNF was historically above 90% occupancy with cash flow exceeding $1.5 million. However, licensure issues led to a drop in both census and operating margin (and combined with other reasons, bankruptcy) for the previous tenant, a regional operator. The owners of the real estate, two private families, were also in bankruptcy but had court-approval to sell the asset. When the tenant decided to vacate the property, the eventual buyer, a private investor from New York, stepped in to operate for six months before closing on the sale... Read More »
Capital Funding Group’s Comprehensive Closing in Ohio
Capital Funding Group (CFG) pulled out all the stops for its latest transaction. It involved Vantage Point Capital’s acquisition of five skilled nursing facilities in Ohio, which Crown Healthcare Group leased concurrently on an arm’s length basis. CFG’s Tim Eberhardt and Erik Howard originated the real estate acquisition financing, which comprised a term loan, with both an A-piece and a B-piece, and a mezzanine loan, which represents about 88% of the transaction costs. CFG participated in the A-piece but funded 100% of both the B-piece and the mezzanine loan. Meanwhile, for the operator, Jeffrey Stein of CFG closed a multimillion dollar working capital line of credit that includes a... Read More »
Garden State Acquisition Gets Financing From Monticello
A large skilled nursing portfolio in New Jersey sold thanks to financing provided by two of Monticello Asset Management’s investment vehicles. The $69 million bridge financing is comprised of $65 million in first lien debt and a $4 million working capital loan, which the borrower expects to refinance with HUD. A New Jersey-based operator was the borrower and brings some experience in acquiring skilled nursing facility, having added eight similar facilities to its portfolio in the past three years. This current acquisition involves four facilities and 654 total beds, including 74 memory care and 60 assisted living units, as well as a 16-bed ventilator unit. Read More »Recent Senior Care M&A Deals, Week Ending October 26, 2018
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice The Reliant GroupThe Windham Senior LivingN/A Legacy HealthcareAdvocate Sherman West Court$5 million Not-for-profit organizationRose Apartments$2 million Alternative Living SolutionsOntario CommonsN/A Large strategic investorSagebrook Senior Living at... Read More »
Meridian Capital Group’s Billion-Dollar Year (So Far)
The team at Meridian Capital Group just hit $1.0 billion in seniors housing and health care financings so far this year. That impressive haul is spread across more than 40 transactions in 16 states. Most recently, the team, led by Ari Adlerstein, Ari Dobkin and Josh Simpson, arranged $36 million in acquisition financing for a 700-bed skilled nursing/assisted living portfolio in Indiana. The same trio also arranged $24 million in acquisition financing for a portfolio of rehabilitation and skilled nursing facilities with 383 beds in Kansas and Nebraska, and a $20 million construction loan for a 124-bed assisted living/memory care community in Florida. Well done! Read More »
SHA Capital Partners (And Partners) Win with Refinance
Nearly four years after it acquired a 66-unit assisted living community in Portage, Wisconsin (Madison MSA), SHA Capital Partners’ efforts were rewarded when it refinanced and earned a 30.0% IRR and 2.25x equity multiple for its primary equity partner. When SHA and its partner, Matthews Senior Living, made the 2015 acquisition, the community was operating well enough. Built in 1999 and renovated in 2006, it was 80% occupied (with a 20% Medicaid census) and operated at a 32% margin on about $1.55 million of revenues. Paying $5.3 million, or $80,300 per unit, SHA and Matthews then spent $350,000 to upgrade the common area and hired a new marketing director who brought occupancy up to 100%.... Read More »
BMO Harris Bank Finances Seattle Senior Living Acquisition
A large strategic seniors housing investor teamed up with a regional operator to acquire an assisted living/memory care community in Bellevue, Washington (Seattle MSA). Altum Senior Living will take over management and oversee a renovation to the community. To fund the acquisition and upcoming renovation, BMO Harris Bank’s Commercial Real Estate Healthcare group acted as sole lender of more than $16.7 million in financing. Read More »
Bourne Financial Group Finances Brand-New Community With CBRE
Aron Will and Tim Root of CBRE successfully refinanced a brand-new memory care community in the central Washington town of Wenatchee. The 48-unit community just received its certificate of occupancy and expects to obtain its licensure shortly. Then, fill-up will commence. The property’s location in downtown Wenatchee, less than a quarter of a mile from one of the top regional hospitals, should help attract residents. It also features a number of high-end amenities, including a spa, solarium and beauty salon. Bourne Financial Group owns the community in a joint venture with operator Cascadia Senior Living. Thanks to CBRE, they received a $9 million floating rate loan, with a five-year term... Read More »Schedule a demo
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