More in the Lone Star State
Matthew Alley of Senior Living Investment Brokerage handled the sale of a 110-bed skilled nursing facility located about 30 miles from Odessa, Texas. Built in 1996, it has 37,043 square feet on 6.1 acres, but occupancy was just 67%. Revenues and EBITDA were $4.1 million and $744,000, respectively, but the EBITDA excludes about $384,000 in payments under the UPL program in Texas, which helps to supplement Medicaid rates. The purchase price came to $5.0 million, or $45,500 per bed, with a cap rate of 14.9% excluding the UPL payments. The seller was an owner and operator in central Texas, while the buyer was an operator in the Dallas area with several facilities in the region. Read More »
The Ensign Group and National Healthcare Investors Score Big
National Healthcare Investors (NYSE: NHI) announced a major transaction with Texas-based Legend Healthcare, an existing tenant. NHI has purchased eight skilled nursing facilities with 931 beds from Legend for $118.5 million, or $127,300 per bed. These will now be leased to The Ensign Group (NASDAQ: ENSG), which is a new relationship for NHI. In addition, Legend was already leasing nine SNFs from NHI, and two of these will be sold to Ensign for $24.6 million, or $100,400 per bed, and the remaining seven will be added to the new lease between Ensign and NHI, bringing Ensign’s total additional properties it is adding in Texas to 17, with 15 leased from NHI. The initial annual lease rate for... Read More »
Stat of the Day
You should know by now that skilled nursing facilities set a new record for the average price per bed sold of $85,900 in 2015, shattering the record set in 2014. What was driving this increase was the large number of high-priced sales, with a record number of transactions priced above $100,000 per bed. Because of this, the upper quartile price of skilled nursing facilities last year was $123,000 per bed, meaning that 25% of the sales were at this price or higher. Meanwhile, the lower quartile was just $44,000 per bed, meaning that 25% sold at this price or lower. We suspect many of these were more than 40 years old. These and many more statistics can be found in our just released Senior... Read More »The Future of the 40-Year Old SNF
Nearly half of the skilled nursing facilities in the U.S. are 40 years old and older, and that is going to be a big problem? Have you ever wondered what is going to happen to all those skilled nursing facilities that were built in the 1960s and 1970s, and look it? Some are even older, although I hope most of them have had some sort of renovation over the years. These “old” nursing facilities are going to struggle over the next 10 years, if they are not already struggling today. They are usually small from a square feet per bed basis with a high Medicaid census. Many would have difficulty taking care of high acuity subacute patients. And I suspect most would not be sought after in any kind... Read More »
ROC Buys StoneRidge
In Mystic, Connecticut, a 267-unit entrance fee CCRC experienced a shift in ownership when ROC Seniors Housing Fund Manager bought out Westminster Capital’s majority stake in the community for an undisclosed price. Life Care Services will stay one as the minority owner and manager. The property was developed by LCS Development in three phases starting in 2004, featuring 267 independent living units, 12 memory care units and 40 skilled nursing beds. For this deal, Cushman & Wakefield arranged acquisition financing with Bank of America Merrill Lynch on behalf of the buyer group, and Richard Swartz, Jay Wager and Aaron Rosenzweig, with Stuart Kim and Caryn Miller, handled the... Read More »
Clousing Closes
Brad Clousing of Senior Living Investment Brokerage continued his busy month by facilitating, with Patrick Byrne, the sale of three skilled nursing facilities in Florida. Totaling 436 beds, the properties included a 155-bed skilled nursing facility in Clewiston that was built in 1978 with an addition in 1995 and renovations in 2005 and 2012, a 185-bed facility in Lakeland built in 1960 with renovations in 1980, 1990 and 2014, and a 96-bed facility in St. Petersburg that was built in 1946 and 1964 with a recent renovation. Overall occupancy was 85%. The real estate and operations were sold separately, as the operations sales was the result of a Chapter 11 bankruptcy. Combined, the purchase... Read More »A Message From The Editor
It’s been a great 30 years writing The SeniorCare Investor… It is with mixed emotions that I am announcing my retirement effective the end of this year when I will qualify for Social Security payments. I have had a good run for the past 30 years writing about the seniors housing and care industry, and while some of you may miss my musings, I am sure others will not. If you can believe it, when I got in this business in 1986, I was also brokering senior care properties. Unfortunately, not as many as I would have liked, so I turned to my pen, which over the years became my keyboard. And boy did I enjoy writing some of the stories. As you know, I liked to call it like I saw it,... Read More »SLIB’s successful sale
A New York-based buyer hopped across the border to Connecticut to acquire a 162-bed skilled nursing facility. Built in the 1970s, the facility was lagging slightly in census and quality mix from historical levels. The seller was a regional operator, which enlisted the help of Toby Siefert, Nick Cacciabando and Pat Byrne of Senior Living Investment Brokerage to handle the transaction. Read More »Building Boston
Aaron Rosenzweig, Jim Dooley and Rick Swartz of Cushman & Wakefield recently arranged $16.3 million in construction financing and joint venture equity for LCB Senior Living and Blue Moon Capital Partners to develop an 80-unit senior living community in Shrewsbury, Massachusetts. Located about 35 miles west of Boston on a 5.4-acre site, the three-story building will feature 60 independent/assisted living units (though all AL-licensed) and 20 memory care units. C&W arranged a five-year loan at 65% loan-to-cost, provided by M&T Bank. At an estimated cost of $25 million, or $310,000 per unit, the project is expected to break ground this month, with an opening scheduled for... Read More »Assisted Living “Lite” Or Not
Whether you think you operate your assisted living community under a hospitality model or a healthcare model, there will only be more health care in the future. Recently, there have been some stories in the senior care media about the hospitality model for assisted living compared with the healthcare model. That was a big debate in the late 1990s when 20 assisted living companies went public as some companies didn’t want to be labeled as “healthcare” companies, with all the regulatory and reimbursement baggage that comes with it. Some preferred to call the hospitality model “assisted living lite.” In fact, the founder of Sunrise Senior Living was famously quoted as saying Sunrise did not... Read More »Schedule a demo
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