The Brookdale shuffle
On March 1, Brookdale Senior Living announced a major change to its senior leadership. Effective March 18, the company’s President, Mark Ohlendorf, and effective March 11, its former Chief Accounting Officer and Treasurer and current Executive Vice President, Kristin Ferge, will step down. Mr. Ohlendorf had served a variety of leadership roles for Brookdale, including as its CFO from March 2007 to November 2015, as co-President from August 2005 to May 2013 and as President from 2013 on. And Ms. Ferge has been an Executive Vice President at Brookdale since August 2005 and its Chief Accounting Officer from July 2014 to the beginning of this year. The company’s CEO, Andy Smith, will assume... Read More »
Carrieros of Colliers
In the depths of this winter, let’s head south to Largo, Florida, where the subsidiary of the owner of rehabilitation, skilled nursing, assisted living and independent living communities throughout the country purchased a 128-bed assisted living/memory care community for an undisclosed price. Owned by a religious non-profit, the community was built in 2006 with a mix of AL and MC units and a 30-seat theater. Occupancy was 85% at closing, and the transaction’s cap rate was 7.4%. Ken and Damien Carriero of Colliers International handled the transaction on behalf of the seller, Indian Rocks Assisted Living, Inc. Read More »
2015 SNF and AL prices hit new heights
After a record-setting year across all senior care sectors in 2014, average skilled nursing facility prices soared again to a new record of $85,900 per bed, or 12% higher than in 2014. In the assisted living market, the average price paid per unit just topped the previous record set in 2014 by less than 1.0%, reaching $189,200 per unit in 2015. The only senior care sector to drop was independent living, which was coming off a particularly strong 2014 that saw a number of unusually high-valued deals. These changes came in a year that saw 357 publicly announced transactions, up 18% from 2014. Read More »
Platinum turnaround
Just two years after acquiring a 114-unit assisted living/memory care community in Peoria, Arizona (Phoenix MSA), Platinum Health Care decided to sell, more than doubling its value in the process. Back in February 2014, the Skokie, Illinois-based owner/operator bought the 30-year old community when it was just 64% occupied, and losing money to boot. But pro forma revenues and EBITDA, assuming 83% occupancy, were projected to grow to $2.6 million (from $1.8 million) and $625,000, respectively. Currently, the occupancy is at 77% and EBITDA is postive (though not $625,000), but both are trending upwards. Now, looking to strategically divest some non-core assets, Platinum decided to sell the... Read More »
HFF at it again
After topping our 2015 broker list in terms of dollar volume, with $1.45 billion in transactions closed that year, HFF is off to a strong start in 2016. On the financing side, the company, led by James Fowler, Ryan Maconachy and Chad Lavender, recently arranged $95.5 million in joint venture equity and construction financing for the development of a 201-bed luxury seniors housing community in Orange County, California. The transaction was made on behalf of the developer, Steadfast Companies, to arrange $27.9 million in JV equity capital with Fremont Realty Capital. Plus, HFF secured a $67.6 million construction loan for the JV through a local bank. The community is set to feature 61... Read More »Public-Private Market Disconnect Continues
Record prices again for skilled nursing facilities in 2015, while some of the larger players still struggle. You know I have been talking about the disconnect in the public equity markets for a few months. Some of the largest skilled nursing companies have seen a rough patch recently, and rougher for some than others. One would think that this would also translate into the acquisition market, where buyers might become more conservative as Medicare lengths of stay shorten amid reimbursement pressure, especially with Medicare Advantage plans. But no, the skilled nursing acquisition market is as strong as ever. After setting a record in 2014, the average price per bed soared again in 2015 to... Read More »
Freddie and the Queen
HFF recently announced the closing of a sale that we reported on in the January issue of The SeniorCare Investor (but didn’t have full details). The acquired 93-unit assisted living/memory care community is located in the Upper Queen Anne neighborhood in Seattle, Washington, and sold for $36.25 million, or $390,200 per unit, to Washington D.C.-based Capitol Seniors Housing. The community was originally built in 1908 and 1927, but was purchased by the seller in 2007 for $17.2 million, and underwent an extensive $6 million renovation that also included converting two floors from assisted living to memory care. Milestone Retirement Communities managed the property, which was 96% occupied. In... Read More »KeyBank does double-duty
John Randolph and Charlie Shoop of KeyBank’s Healthcare Mortgage Group recently arranged $47.7 million of permanent financing, which included a $28.5 million HUD loan and a $9.2 million Fannie Mae loan, to refinance a portfolio of six assisted living communities. The HUD loan featured a low fixed rate for 35 years, while the Fannie Mae loan was originated and closed within 50 days. The portfolio includes 319 units and is entirely located in North Carolina. With the funds, the borrower, Ridge Care Inc., improves its cash flow flexibility and will be able to both make capital improvements and grow its portfolio. Back in March 2015, Ridge Care also received a $59.8 million credit facility... Read More »
Lancaster Pollard’s latest promotion
Jason Dopoulos was recently promoted to Managing Director at Lancaster Pollard, after having been with the firm since 2007. With over $1 billion in transaction volume, ranging from bond transactions to mortgage loans for over 100 expansion, new construction and refinance projects. Currently managing Lancaster Pollard’s Newport Beach, California office, Mr. Dopoulos has worked with both taxable and tax-exempt borrowers to facilitate conventional and federal financing structures. He is also the chair of NIC’s Future Leaders Council. Mr. Dopoulos holds a master’s degree in business from the Fisher School of Business at Ohio State University and a master’s in health administration from Ohio... Read More »Welltower’s half-billion-dollar buy
After owning what is known as the Aston Gardens portfolio in Florida for just two and a half years, Kayne Anderson Real Estate Advisors has sold the six-property portfolio with 1,930 units to a joint venture between Welltower and Canada Pension Plan Investment Board (CPPIB) for $555 million. They will own a 97.5% interest, so grossed up to 100% equates to a per-unit value of $295,000. The manager, Discovery Senior Living, will retain a 2.5% interest, down from 10% with the previous owner. Kayne Anderson bought the portfolio in late 2013 for an estimated $400 million from GE Healthcare Finance. During GE’s ownership, occupancy had dropped from 95% to below 85%, which caused them to remove... Read More »Schedule a demo
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