Another Genesis HealthCare Disposition
In a move to reduce its debt, raise some cash and focus on its core markets, the beleaguered Genesis HealthCare announced a definitive agreement to sell 23 Texas skilled nursing facilities that comprise 22 owned buildings and one leased. The deal will bring Genesis’ Lone Star State portfolio to one lone leased skilled nursing facility, which the company also plans to exit soon. Assuming both transactions close, Genesis will lose approximately $173.7 million and $7.4 million of aggregate revenue and EBTIDA, respectively. It will also be relieved of about $97 million of indebtedness and $1.8 million of annual cash lease expense, both good signs for the company. New York City-based Regency... Read More »
Pricing “A” vs. “B” Seniors Housing Properties
On Thursday April 12, 2018, we hosted a webinar titled “Pricing “A” vs. “B” Seniors Housing Properties,” where moderator Steve Monroe and panelists Richard Swartz of Cushman & Wakefield, Wayne Kaplan of Premier Senior Living Group and Paul Froning of Focus Healthcare Partners spent 90 minutes detailing the ins and outs of investing in these two very different markets. The panel discussed current pricing of seniors housing properties (broken out between “A” and “B” properties), operating statistics (like occupancy, operating margin and NOI per unit) and cap rates. But they also covered who is buying “A” and “B” properties, and who is selling them, in addition to the risks and rewards of... Read More »
What to Pay for a Stabilized Assisted Living Community
Buyers are increasingly prizing stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%) over non-stabilized communities when making acquisitions. The gap between the two property types continued to widen in 2017, growing from $87,200 per unit in 2016 ($147,700 per unit for non-stabilized properties and $234,900 per unit for stabilized properties) to $128,500 per unit in 2017 ($126,200 per unit for non-stabilized and $254,700 per unit for stabilized), according to the 23rd Edition of The Senior Care Acquisition Report. The widening gulf continues a consistent theme in 2017 of investors continuing to pay up for quality and existing... Read More »
Buying and Selling “A” and “B” Seniors Housing Communities
There are many differences beyond values between “A and “B” communities, including NOI per unit, operating margin and cap rate. In 2017, the range in prices paid for seniors housing communities was from $20,000 to over $700,000 per unit. There are many reasons for this rather wide range, and many people divide the market between “A” and “B” properties. Have you ever wondered what differentiates an “A” community from a “B”? You don’t hear much about those “B” communities, because no one ever markets a “B” property. It just doesn’t sound very, well, marketable. Tomorrow, we are hosting a webinar where we will present our 2017 “A” vs “B” pricing statistics, and the panelists... Read More »
CBRE Does Deal Double
The CBRE National Senior Housing group flexed its muscles this week, closing two acquisition financings and an asset sale. First, Lisa Widmier represented HCP in its divestment of a 159-unit independent living/assisted living community in Beaumont, Texas, for an undisclosed price. Featuring a majority of independent living units, the community was built in 1996. Under management by Atria Senior Living, it was 93% occupied as of February. Chicago Pacific Founders stepped in as the buyer, through its affiliate CPF Living Communities, and hired Grace Management to operate. Then, in comes CBRE’s Aron Will, who secured a seven-year floating rate loan, with 24 months of interest only, through... Read More »
Wisconsin Owner Doubles Portfolio In One Deal
A local assisted living ownership group in southeastern Wisconsin is looking to expand in a big way with its acquisition of a senior living community in the town of Mukwonago (Milwaukee MSA). To this point, the group had owned just eight eight-bed assisted living communities in the area. But, in one transaction, they have now more than doubled their portfolio, by units, in purchasing the 73-unit Mukwonago community. Originally built in 1996 with a 20-unit assisted living community, the property added a 48-unit independent living building in 1999 and five 55+ senior rental homes in the 2000s. Two local partners had owned and operated the community since its inception, but were looking to... Read More »
Blueprint Healthcare Real Estate Advisors Unlocks the Keystone State
Representing a REIT owner in a strategic non-core divestment, Michael Segal and Ben Firestone of Blueprint Healthcare Real Estate Advisors sold a Philly-area skilled nursing facility for an undisclosed price. The transaction was remarkably similar to another deal that Messrs. Segal and Firestone closed earlier this month. That deal featured a 180-bed SNF in the Lehigh Valley region of eastern Pennsylvania that sold for $18.75 million, or about $104,000 per bed. Just a week later, the Blueprint team sold a 181-bed skilled nursing facility also in eastern Pennsylvania (the Philadelphia suburb of Wyndmoor). The in-place management team had assumed operations in 2015, but inconsistent... Read More »
Evans Senior Investments Executes On Everett Sale
The team at Evans Senior Investments is having quite the year, having already well surpassed its 2017 activity in both deals and dollars. Since the start of the year, ESI has closed 10 transactions for over $200 million in deal volume. Its latest transaction was also its largest for the year, when the firm represented the independent owner/operator of a 148-unit independent/assisted living in Everett, Washington (Seattle MSA), for $50.5 million, or $341,200 per unit. Located in an affluent Seattle suburb and boasting a host of amenities including a theater, billiards room, beauty salon and 24-hour bistro, the 15-year old community has a majority of IL units, although every unit was... Read More »
Paying For Stabilized Versus Non-Stabilized SNFs
Given the continual decline in census for the nation’s nursing facilities, it is no longer clear where “stabilized” is in today’s market, especially as lengths of stay have shortened. For your reference, we have traditionally defined stabilized occupancy for skilled nursing facilities as 85% and higher. With that said, nursing facilities with stabilized occupancy declined in value from an average of $114,700 per bed in 2016 to $93,700 per bed in 2017, according to the 23rd Edition of The Senior Care Acquisition Report. This makes sense given the overall deterioration of the market in 2017. For non-stabilized nursing facilities, the reverse occurred. While it might... Read More »
Saul And Clousing Close On Cleveland Campus Sale
A healthcare campus in Cleveland, Ohio with both skilled nursing and Medicaid-waiver assisted living beds just sold to its in-place operating group. Ryan Saul and Brad Clousing of Senior Living Investment Brokerage represented the private partnership seller, which was divesting the property to focus on other investments and areas of the country. Originally built in 1978, with improvements made in 1991 and 2014, the community’s independent living units were converted to assisted in 2014. Operations could improve, as the 66-unit assisted living community was 59% occupied and the 99-bed SNF was 79% occupied. However, one AL wing with 24 units was being renovated at the time of the sale,... Read More »Schedule a demo
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