Recent Senior Care M&A Deals, Week Ending March 31, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Regional operatorThe McGuire portfolioN/A Not disclosedRiverwood Lodge Assisted Living$1.5 million Regional owner/operatorSerenity Gardens$3.8 million Regional companyKeystone Gardens & Keystone Meadows$11.15... Read More »KeyBank Arranges Over $700 Million for Blackstone’s Big Brookdale Acquisition
Blackstone and Brookdale Senior Living are in the news again. Working with KeyBank Real Estate Capital’s healthcare business, the joint venture received about $703 million in financing to fund Blackstone’s acquisition of 64 Brookdale-operated communities from HCP, Inc. A Fannie Mae credit facility makes up most the financing, which was arranged by Charlie Shoop of KeyBank and provides long-term, non-recourse, flexible financing. Meanwhile, KeyBank provided the balance from its balance sheet, in a transaction led by Peter Trazzera. The total financing represents about 62% of the $1.125 billion purchase price, which came out to approximately $188,500 per unit. That was for 100% of the... Read More »What to Pay For an “A” Quality Assisted Living Community
It is becoming increasingly apparent that there are two separate markets for assisted living properties between those we consider “A” properties and those that are “B” properties. We first separated out these two markets in 2012 (and did so again in our just-published 2017 Senior Care Acquisition Report) based on the properties’ age, size and location, and while there will likely be some “A” communities in with the “B” communities (and the other way around), it all evens out. The difference was stark in 2016, with “A” properties averaging $265,700 per unit, compared with $94,200 per unit for “B” properties. That difference of $171,500 per unit easily beats out 2015’s $110,100 per unit gap... Read More »
Strawberry Fields REIT Refinances Scottsburg Skilled Nursing Facility
Six years after initially leasing a skilled nursing facility in Scottsburg, Indiana, and three years after purchasing it, Strawberry Fields REIT LLC is refinancing the facility with a $4.4 million 35-year HUD loan, featuring a 3.65% fixed interest rate. The REIT utilized a new FHA lending partner to execute the transaction, which took out an existing conventional bank acquisition loan. The 99-bed facility certainly has room to improve, with occupancy of 69% based on licensed beds and around 80% based on operational beds. But it has increased in value since Strawberry Fields’ 2014 purchase, when the facility sold for $3.415 million, or $34,495 per bed. Recently, it has been appraised for... Read More »
Another Bridge Loan Arranged By Harborview
Eli Kutner, Senior Originator at Harborview Capital Partners, recently arranged a $36.3 million bridge loan to finance the purchase of two skilled nursing facilities in Nashville, Tennessee. Including both a senior acquisition loan, capex loans and an A/R line of credit, the financing features 12 months of interest only and partial recourse at 85% loan-to-cost. Mr. Kutner also arranged a competitive LIBOR+235 interest rate for all the loans. Well done. Read More »
Record Skilled Nursing Prices Have Peaked
After setting record prices for four straight years, the 2016 record price may have some staying power. As you know, the average price per bed for skilled nursing facilities hit a record in 2016 for the fourth year in a row. The number of properties selling for more than $100,000 per bed, which used to be reserved for only the very best facilities, also hit a record. I hate to be the bearer of bad news, but I believe last year’s record average price may have some staying power. As I said last week, I have been accused of being Mr. Doom and Gloom, but realistically, when looking at the landscape, there is little positive that would push prices higher. Medicare Advantage is pushing down... Read More »Investor Sentiment at the NIC Conference
Last week’s 60 Seconds with Steve video greeted everyone attending the NIC Conference in San Diego and asked what the sentiment might be during the conference. In years past, you could tell we were in a bull market with all the deal making going on in public, the exuberance of the crowds and the general noise level. Although the stated attendance was approximately 1,500, it did seem a little smaller than that, without the usual crowds in the lobby bar for one last nightcap and another round of industry gossip. The overall sentiment was one of caution, and this was especially true in the skilled nursing side of the business (see today’s 60 Seconds video). As we all know, the American Health... Read More »Capital Funding’s Trio of Financings
Showing off its prowess at HUD refinances, Capital Funding Group closed three of them for clients in the Southeast. First, in Washington D.C., Patrick McGovern provided a $10.5 million HUD loan to a 183-bed skilled nursing facility. This transaction comes full circle for Mr. McGovern, who arranged the original bridge acquisition loan (being taken out by the current HUD refinance) in addition to a $2 million working capital line to finance operations. Then, Gary Sever of Capital Funding Group closed two other transactions, including a $2.57 million HUD loan for an assisted living community in North Carolina and an $18.9 million HUD refinance of an assisted living community in Crozet,... Read More »HJ Sims Helps Volunteers of America
Volunteers of America partnered with HJ Sims to issue $39.73 million in tax-exempt bonds to refinance its 268-unit/bed CCRC in Anoka, Minnesota. Originally built in 2012 with 120 skilled nursing beds and 59 assisted/independent living units, this community added 65 IL units and 24 memory care units to the campus, in addition to converting the 59 AL/IL units to all-assisted living. The borrower is an affiliate of Volunteers of America, an interdenominational church and Christian human services organization that has been in operation since 1896. Series 2011 and Series 2014 bonds financed the development of both phases of the community, and the Series 2017 bonds will advance refund only the... Read More »Recent Senior Care M&A Deals, Week Ending March 24, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Carefield Senior LivingPark Visalia Assisted Living$7.65 million The Ensign Group, Inc. Desert View Senior LivingN/A Tryko Partners, LLC Spaulding Nursing and Therapy CenterN/A Institutional investor The Waters of... Read More »Schedule a demo
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