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 »
KeyBank Plays Key Role In Record Oregon Acquisition
A few weeks ago, we reported the closing of the highest-priced single-asset seniors housing sale in the state of Oregon. Now, we’ve learned that KeyBank Real Estate Capital financed it with a $63.2 million Freddie Mac loan, which Charlie Shoop arranged with a fixed rate, 10-year term, four years of interest only and a 30-year amortization period. Blueprint Healthcare Real Estate Advisors handled the sale on behalf of the original developer/owner, eventually securing a $92 million, or $321,700 per unit, purchase price from the buyer, Strategic Student & Senior Housing Trust. That represented a 6.4% cap rate based on estimated trailing EBITDAR. Integral Senior Living, the property’s... Read More »
CBRE’s Late-Summer Surge
CBRE’s Aron Will has been on a roll lately, having just closed his fifth transaction in under a month. The latest helped fund the acquisition of four seniors housing communities in the Louisville, Kentucky and Indianapolis, Indiana MSAs. They actually represent the stabilized properties within a seven-property portfolio acquisition (totaling 688 units) that CBRE also provided financing for. Totaling 360 units, of which 278 are dedicated to assisted living and the remainder to memory care, the stabilized portfolio has been third-party managed by LCS since 2015 and will continue to be. The buyer, a joint venture between LCS and TH Real Estate, the real estate private equity affiliate of... Read More »
Regions Bank Repeats In Midwest
The Regions Healthcare Real Estate group closed yet another acquisition financing, following its recent Ohio deal that involved a joint venture buying a 100-unit assisted living/memory care community. The latest transaction saw Trilogy Health Services receive a $47.5 million three-year bridge loan to fund its purchase of four senior living campuses and over 400 beds in Kentucky, Michigan and Ohio. After a seasoning period, Regions Real Estate Capital will underwrite and permanently finance all the properties with HUD. Read More »
Recent Senior Care M&A Deals, Week Ending 9/21/18
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Local owner/operatorIndependent living community$8.165 million Impact Healthcare REITYew Tree Care Centre$3.66 million Millennium Management LLC2 skilled nursing facilities$29.6 million Local owner/operatorRichman... Read More »
Knapp Group Closes Maryland and Michigan Transactions
The Knapp Group of Marcus & Millichap, led by Jim and Justin Knapp, closed two deals in succession, one in Maryland and one in Michigan. First, after yielding five offers that pushed the selling price $1.75 million over list, Messrs. Knapp sold a 145-bed skilled nursing facility in Burtonsville, Maryland, for around $17.25 million, or just under $119,000 per bed. That price is impressive, considering the 20-year old facility was losing over $500,000 annually. Occupancy was actually above average at 85%, but given that the current average of the national skilled nursing census just plunged to a new record-low of 81.7%, according to NIC, “above average” doesn’t mean what it once did. The... Read More »
Blueprint Sells Boutique Memory Care Community In Orange County
A boutique 12-unit memory care community in Orange County, California sold to a local owner/operator in a transaction facilitated by Jacob Gehl, Ben Firestone and Scott Frazier of Blueprint Healthcare Real Estate Advisors. Its owners, a joint venture between a REIT and a national operator decided to sell as a part of a larger portfolio disposition strategy. Originally opened in 1983, the community will be substantially renovated by its new owner, which is looking to expand its Southern California presence and is making its first Orange County acquisition. Read More »
HHC Finance Finishing HUD Year Strong
The HUD fiscal year is about to end, and Housing & Healthcare Finance (HHC Finance) is finishing with a flourish, closing a $19 million refinance for a 90-bed skilled nursing facility located in central Pennsylvania. The facility was built in 2014 with state-of the-art components, making it the most modern SNF in the general area. The 35-year, fixed rate HUD loan took out the original construction financing. Read More »
Another Civitas Development in the Lone Star State
Civitas Senior Living may have already expanded outside its home state of Texas, with three existing communities and four more on the way in Florida, Kentucky, Colorado and Arizona, but the Fort Worth-based company is coming home for its latest development. The 188-unit community, located in the Red Oak suburb of Dallas, will feature independent living, assisted living and memory care services and will join the 32 other properties currently owned and operated by Civitas. To finance the development, HJ Sims invested $5.85 million of preferred equity, which it funded by placing corporate taxable bonds. The subordinate financing was structured to meet the requirements of the senior lenders... Read More »
We Can All Help To End Alzheimer’s
Alzheimer’s is a terrible disease, but everyone can help find a cure. We participated in our first Walk To End Alzheimer’s yesterday, along with about 2,000 other walkers in Norwalk, CT. While we raised $3,500 so far, it is only 50% of our goal, or $100 for each of the 70 years we have been in business. But there is still time to join our team, as the deadline is December 15. Check out our team page to make a donation to this very worthy cause. Kudos to Bill and Bob Thomas of Senior Star, who ranked second and third, respectively, for top walkers nationally, raising $108,558 (Bill) and $107,558 (Bob). Nothing like a family competition. Five of the top 10 walkers were from Oklahoma,... Read More »Schedule a demo
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