M&A Market Surges
After a very slow March, April seniors housing and care M&A transactions surged to nearly 50 acquisitions, more than double the number in March. In the first quarter this year, we averaged about 26 seniors housing and care acquisitions each month for a total of 77 in the quarter. That was close to what we have been seeing in the past few quarters, so nothing out of the ordinary. That is, until April. Last month we recorded 46 separate acquisitions, or double March’s volume. While it may not be a record, it is awfully close. The number will most likely rise above 50 as more deals come to light. It is too early to say this represents a trend in renewed M&A activity, but other than... Read More »
Public Companies Trade Assisted Living Portfolio
National Health Investors purchased from LTC Properties a portfolio of four assisted living communities and an AL/memory care community in Pennsylvania and Ohio for $67.5 million, or $210,900 per unit. Known as the Sunrise Portfolio, these communities will now be operated by Bickford Senior Living at an initial rate of 6.85% with annual fixed escalators and a 15-year maturity. Rental revenue under the lease for the four months ended April 30, 2018 was approximately $1.5 million. The properties, located in Columbus and Cleveland, Ohio and Erie, Pennsylvania, are also due to receive $1.75 million in capital improvements. KeyBanc Capital Markets Inc. and CS Capital Advisors, LLC acted as... Read More »
Lancaster Pollard’s Active April
Lancaster Pollard closed a trifecta of transactions this month. The largest was a $23.4 million HUD loan closed on behalf of Hillcrest Health Services to refinance its skilled nursing facility in Papillion, Nebraska. Located on the 44-acre senior living community of Hillcrest Country Estates, the SNF features 126 skilled nursing beds and 12 independent living units. Built in a household model, with 13 residents each in eight cottages and a 22-unit post-acute rehab cottage, the facility was developed in a way to receive financing separate from the rest of the senior living community. The 35-year loan, arranged by Quintin Harris, refinances the existing bank debt and inter-company notes used... Read More »
The Ensign Group Acquires Dallas Post-Acute Care Campus
The Ensign Group added a large post-acute care and senior living campus in Dallas, Texas to its growing portfolio of 234 total healthcare facilities. Located on 26 acres, the campus runs the gamut of senior care services and includes 125 skilled nursing beds, 81 independent living units, 36 assisted living units and 26 memory care units. It operated as a not-for-profit organization for over 50 years, but significant operational challenges forced the owner, Presbyterian Communities and Services, to sell the community. Ensign’s Texas-based subsidiary, Keystone Care LLC, will take over operations and change the community’s name to The Villages of Dallas. Occupancy was 79% at the time of the... Read More »
Recent Senior Care M&A Deals
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Welltower Inc.Quality Care Properties$4 billion National Health Investors, Inc.Sunrise portfolio$67.5 million Regional Owner/Operator2 NC skilled nursing facilities$30 million California-based owner/operatorBrentwood Healthcare$20 million Saber Healthcare Group, LLC10 skilled nursing... Read More »
A Fearsome Threesome: Welltower, Quality Care Properties and ProMedica Health Deal
We would be lying if we said we were not surprised by the announcement that Welltower will be buying Quality Care Properties for about $2 billion plus assumed debt, that ProMedica Health Systems would be buying the operating assets of HCR ManorCare, and that Welltower and ProMedica would be joint venturing. Strange bedfellows, for sure. While we are sure there was some time pressure to get the news out, we are also sure there were some unhappy analysts who were asleep at 11.58 pm on April 25 when Welltower announced to deaf ears that it moved up its second quarter earnings call to……8 hours later at the bright and early time of 8:00 am the following morning. Looks like management pulled a... Read More »
Big Rock Partners Opens Second Senior Living Community
Big Rock Partners had cause for celebration this week, as its second senior living development opened in Florida, at a total cost of $82 million, or $343,000 per unit. Situated on nine acres (purchased in 2014 with the help of a $4.5 million loan from Sabra Health Care REIT) in the Walt Disney Company-developed master planned community of Celebration (Orlando MSA), the community features 151 independent living units, 55 assisted living units and 33 memory care units. Life Care Services operates the campus, which not only is pet-friendly, but comes with a host of amenities such as gourmet dining venues, a high-end cinema, indoor aquatic center and a rooftop bar, among others. Adventist... Read More »
Monticello Gets A “W” In New York
One of Monticello Asset Management’s investment vehicles provided $31.21 million in first lien debt for The W Group to fund the acquisition of a 200-bed assisted living community in Staten Island, New York. Built on a 0.81-acre property in 1974, with an additional fifth floor built in 1999, the community consists of 116 beds licensed for the New York State Assisted Living Program and 84 beds managed by an affiliated home health care agency. Its new owner’s principals have over 20 years of combined experience in the health care industry and plan to take out the financing through HUD in the future. Read More »
Where There’s a Will, There’s a Waypoint
There’s a new entrant in the seniors housing industry. Real estate investment manager Waypoint Residential, predominantly focused on conventional multifamily and student housing, just made its first acquisition of a senior living community in the town of Starkville, Mississippi (home of Mississippi State University), for $22.7 million, or about $276,800 per unit. Developed in January 2016 by CR Properties, LLC and Blake Management Group, this community has 14 independent living, 43 assisted living and 25 memory care units. After already bringing occupancy to 100%, Blake Management Group will continue to manage the community. Josh Randolph of Colliers International represented the seller in... Read More »
M&A Values Dip
For the 12 months ended March 31, 2018, assisted and independent living average prices fell, while skilled nursing stayed the same as in 2017. After a record 2017 for assisted living average prices, for the trailing 12 months ended March 31, the prices have come down to earth, a bit. In this most recent period, the average price per unit fell 5% from calendar year 2017, to $210,100 per unit, and the unweighted average cap rate rose to 7.9% from 7.6%. This makes sense given rising interest rates and the continued market headwinds. The independent living market dropped by 9%, to $209,300 per unit, for the 12 months ended March 31, but I would assign less meaning to that because it is a much... Read More »Schedule a demo
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