SmartStop Shops In Seniors Housing For First Time
There is a new entrant in the seniors housing market. Coming from the self-storage industry, California-based SmartStop Asset Management just acquired three seniors housing communities in Utah through its private REIT, Strategic Student & Senior Housing Trust, marking its first acquisition in the space. Totaling 294 units, the portfolio is located in the Salt Lake City MSA, and includes a 119-unit/140-bed assisted living community, a 111-unit/136-bed AL community (with balconies or patios at each unit) and a 64-unit/78-bed AL property that also offers short-term/respite care. They are not new properties (built from 10 to 30 years ago) but they operated very well under previous... Read More »
Brookdale Blows Up
Talk about missed opportunities. For the past 12 to 18 months, or much longer depending on which “process” you were talking about, Brookdale Senior Living has been looking to do a strategic capital event, which everyone took to mean a sale of the company to the highest bidder. The problem has been the phrase “highest bidder,” as the price a bidder would be willing to pay kept falling throughout the process, and the longer the process went on, the lower Brookdale’s stock price fell, which resulted in lower bid prices, and the cycle just continued until the fiasco that unfolded yesterday. In the middle of the night, Brookdale issued a press release disclosing that they would hold their... Read More »
Marcus & Millichap Closes Montana M&A
We don’t see much Montana M&A, but Tony Cassie of Marcus & Millichap closed two skilled nursing transactions in Big Sky Country, plus one in Washington State. Both Montana facilities are located in Billings. The 161-bed facility was built in the 1960s, while the 150-bed facility was built in stages in 1964 and 1974. A private real estate investment firm and an operating partner stepped in to purchase the facilities from a national owner/operator for a combined $13.7 million, or $44,050 per bed. Mr. Cassie also sold a 105-bed skilled nursing facility in Renton, Washington (Seattle MSA) on behalf of a private individual owner. Built in 1969, the facility was purchased by a real... Read More »
Pathway to Michigan
Jeff Binder, Brad Clousing and Ryan Saul of Senior Living Investment Brokerage represented a public REIT in their divestment of a Grand Rapids, Michigan-area assisted living/memory care community as part of a broader repositioning effort with its existing tenant portfolio. Built in 2001, the community is located in the town of Kentwood, about 10 miles south of Grand Rapids. With 103 licensed beds in 81 units, the community was struggling, with just 58% occupancy at the time of marketing and a loss of about $100,000 on $2.52 million of revenues. The new owner, Illinois-based Pathway to Living (formerly Pathway Senior Living), plans to invest capital into the physical plant and add services... Read More »
Live Oak Bank Comes Alive In Seniors Housing Lending
After launching its senior care lending division and hiring Adam Sherman (most recently of Blueprint Healthcare Real Estate Advisors and before that of RED Capital Group) as the new division’s industry expert late last year, Live Oak Bank just provided its first loan to a seniors housing property. The bank (the second-largest SBA lender in the country) closed a $3.6 million SBA 7a construction loan for a private owner/operator to build a 24-unit memory care community in Springboro, Ohio (Cincinnati MSA). It came with a 24-month interest-only period and 26-year fully amortizing term. The bank is looking to grow this business in the seniors housing space, rather than the more-regulated... Read More »
Bad Flu Season, But That’s Not The Story
It is a horrific flu season, but it may be unfairly blamed for current seniors housing woes. So, we have all been hearing about this horrible flu season, especially with the unusual number of children’s deaths, including in my home town. But what I fear is that it will be blamed for more than its fair share of census problems in the senior care market. Granted, when the worst flu season in nearly a decade hits, it is bound to impact senior care communities, where the residents are much more frail than the population as a whole. But for some reason, this flu season is impacting seniors housing communities, and companies, in very different ways. Believe it or not, some have seen little to no... Read More »
Private Equity Firm Buys High-Medicaid Assisted Living Community
Despite having a nearly two-thirds Medicaid census, an assisted living community in Bellingham, Washington still maintained a healthy profit margin and sold to a California-based private equity firm. Built 40 years ago, the 66-unit community features mostly studio units, with 10 one-bedroom units, and was 93% occupied. Private pay residents only made up 30% of the total census, and yet, the community posted a 27% EBITDAR margin on approximately $2.22 million of revenues. That’s impressive from the previous independent owner/operator, who sold the community for $7.025 million, or about $106,400 per unit, with an 8.5% cap rate. There is still room for improvement for the incoming private... Read More »
Trust In Arbor Realty Trust
It was revealed that Arbor Realty Trust funded the recent acquisition of a 440-bed skilled nursing facility in Syracuse, New York. Alexander Kaushansky of Arbor worked on behalf of the borrower, VestraCare, to arrange a $41.6 million bridge loan, with Evan Goldenberg of EBEX Holdings and Ari Dobkin of Meridian Capital Group also assisting in the financing. The facility had a history of operational challenges, but since being acquired in 2015 by a partnership between a New-Jersey based skilled nursing operator and an Illinois lawyer, occupancy had improved from 64% to 89% in just a year. Now, VestraCare, which is controlled by Long Island-based Edward Farbenblum, is taking over at a cost of... Read More »
Wingate Healthcare Gets Financing From Gemino Healthcare Finance
Gemino Healthcare Finance, a specialty finance company and portfolio company of Solar Senior Capital Ltd. that is focused on providing senior secured loans to healthcare service providers, recently funded a $6 million senior secured credit facility on behalf of an affiliate of New England senior living operator, Wingate Healthcare. Family-owned for nearly 30 years, Wingate operates over 35 senior living communities mostly in Massachusetts (where it is based) but also in New York and Rhode Island. The company used the loan proceeds to pay off existing debt and for working capital purposes, gaining additional liquidity as it continues to grow. Read More »
Will New Records Be Set in 2018?
On Thursday, February 15, our Editor Steve Monroe moderated a 90-minute webinar titled “Will New Records Be Set? The Numbers, the Deals, the Stats on all Seniors Housing and Care M&A,” with a panel of experts to discuss the 2017 seniors housing and care M&A market, with pricing statistics from our upcoming Senior Care Acquisition Report, to be published next month. There were a few records set in 2017 (for details on those records, check out either the webinar or the Report), but with labor, occupancy, overdevelopment and interest rate headwinds facing the seniors housing and care industry, would that robust M&A market continue into 2018? That’s what our panel of experts,... Read More »Schedule a demo
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