Recent Senior Care M&A Deals, Week Ending November 2, 2018
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Apollo Global Management, LLC17 seniors housing properties$264 million Private investorChandler Health$9.2 million CareTrust REIT, Inc.ManorCare Health Services-Fargo$4.65 million Vantage Point Capital5 skilled nursing... Read More »
HCP Sheds More Brookdale Properties
The team at Cushman & Wakefield announced that they represented HCP, Inc. in the REIT’s sale of 17 Brookdale Senior Living-managed seniors housing communities for $264 million. Richard Swartz, Jay Wagner, James Dooley and Sam Dylag led the way on the transaction and are still working to close on the sale of two more properties, expected later this quarter for a purchase price of approximately $113 million. Private equity firm Apollo Global Management was the buyer, fulfilling both their geographic/product diversity and value-add strategies. HCP is nearing the end of its Brookdale-restructuring process, having also transitioned operations away from Brookdale at 35 other communities and... Read More »
Who Won the Battle For the Post-Acute Patient?
On November 1, we hosted the long-awaited Battle for the Post-Acute Patient: SNFs vs. LTACs vs. IRFs. On the webinar, Steve Monroe (our moderator) and panelists Jim Haulihan of Fox Subacute, Mike Munter of Symphony Post Acute Network and Marc Zimmet of Zimmet Healthcare Services Group had a lively discussion about who’s currently winning that battle, how it’s driving up SNF values and whether managed Medicare and Medicaid will be their friend or foe, among other topics. You can listen to the 90-minute webinar here. But we also wanted to hear what our audience had to say and posed two questions. Here are the results: Do you believe SNFs should be able to care for current LTAC and IRF... Read More »
Ensign Deal Flurry
The temperatures have dropped, and The Ensign Group has announced a flurry of acquisitions across the country to start off November. The largest of the deals involved four senior living communities in the Dallas-Fort Worth, Texas area. Averaging 84% occupancy, the portfolio featured a majority of memory care units (150), with 53 assisted living and 36 independent living units too. Ensign acquired just the operations and brought in its senior living subsidiary Bridgestone Living, LLC to operate, subject to a long-term lease. Next, Ensign acquired both the real estate and operations of two skilled nursing facilities in Meridian and Gooding, Idaho, for an undisclosed price. One facility has... Read More »
CareTrust Completes Second HCR ManorCare Acquisition
CareTrust REIT headed to Fargo, North Dakota for its latest acquisition, adding a 110-bed skilled nursing facility to its portfolio for a purchase price of approximately $4.75 million, or $43,200 per bed, inclusive of transaction costs. There is also an estimated cap rate of about 13.25%. The facility was previously operated by HCR ManorCare and represents the second HCR facility CareTrust has picked up this year, having previously purchased a 99-bed facility in Aberdeen, South Dakota. Like the Aberdeen property, the North Dakota facility was added to an existing master lease with Eduro Healthcare at an annual rate of $425,000, with a remaining term of 12 years, two five-year renewal... Read More »
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 »Schedule a demo
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