New York Not-For-Profit Sells To Post Acute Partners
The IPA Seniors Housing team represented a not-for-profit health system in its sale of a 120-bed skilled nursing facility in Brockport, NY. Founded in 1944, the facility was part of the Lakeside Health System until, after years of financial distress, the system sold most of its assets and closed the 61-bed acute-care hospital adjacent to the Brockport SNF. The facility, whose current four-story building was constructed in 1997, remained a separate not-for-profit corporation without a union. It is composed of one floor of administrative offices, the kitchen and dining services, and the top three floors each containing six private rooms and 17 semi-private units, for a total of 120 beds.... Read More »
Watercrest and Waypoint
With its latest seniors housing development in Georgia, Watercrest Senior Living Group is also adding a new partner to its growing roster of development/equity partners. Waypoint Residential, a real estate investment firm focused on multifamily and student housing, is making its debut in the seniors housing industry with this project. Expected to break ground next month and open in late Spring 2019, the community is one of Watercrest’s new prototypes (with at least two others like it to be built in Columbia and Bluffton, South Carolina) with 75 units of assisted living and 32 memory care units. It is located in Newnan, Georgia, which is about 20 miles southwest of Atlanta, and marks... Read More »
Tryko Partners Purchases Another Philly-Area SNF
New Jersey-based private equity firm Tryko Partners, just added a third Pennsylvania property to its portfolio in a deal handled by Toby Siefert and Ryan Saul of Senior Living Investment Brokerage. Located near Philadelphia, the 129-bed skilled nursing facility was built in 1995 but recently received $1 million in capital improvements while under management by a national operator. In those projects, a new 1,500-square foot therapy space was added. Operations were solid, with an operating margin above 10%, a 95% occupancy rate and a quality mix above 35%. Like in all of its senior care transactions, Tryko will have its in-house operating company, Marquis Health Services, manage the... Read More »
LCB Senior Living Leaves New England For First Time
LCB Senior Living is venturing outside of New England for the first time with the help of a construction loan arranged by Cushman & Wakefield. The property in question, located in Chadds Ford, Pennsylvania (Philadelphia/Wilmington MSA), will have 84 units of independent living, assisted living and memory care services, and will be the Massachusetts-based operator’s 15th seniors housing development and the first south of Connecticut. LCB, and its institutional joint venture partner, expects to complete the project in the second quarter of 2019. To finance the project, Rick Swartz, Jay Wagner, Aaron Rosenzweig, Jim Dooley and Caryn Donahue of Cushman & Wakefield arranged a $20.5... Read More »
When Profits Trump Care In SNFs
One family wins a $30 million verdict after citing irresponsibly poor care. In case you missed it, The New York Times had yet another expose on the skilled nursing sector, this time blaming private companies for setting up separate entities that provide services, allegedly at higher prices than market, so their profits do not appear on the facility’s P&L. One such company accused of using this strategy lost a lawsuit with a $30 million verdict after family members came in one day, removed their mother’s sock, and her foot looked like black charcoal. She soon went to the hospital and had her leg amputated above the knee. This is just plain inexcusable, and while there are always claims... Read More »
HCP In Hot Water Again
We are sure that management at HCP, Inc. is happy that they spun out the HCR ManorCare assets to a new REIT, since they have not had to deal with the continuing rent shortfall, which started when HCP still owned the assets. But leveraged investments of any kind seem to be taking their toll across the board. From July 2012 through May 2015, HCP funded a total of $257 million under a collateralized mezzanine loan facility with Tandem Health Care. This loan matures in nine months and has a weighted average interest rate of 11.5% (ouch). In tandem with this loan, there is a $257 million syndicated senior loan that matures in six months. Through sales of various SNFs, most of the net proceeds... Read More »
Contemporary Healthcare Capital Closes Two Mezzanine Loans
Contemporary Healthcare Capital (CHC) announced two small mezzanine loan closings for clients in the Southeastern United States. First, in Anniston, Alabama, the firm closed an $830,000 loan to fund the acquisition of a 56-unit assisted living/memory care community. Then, to Palm Coast, Florida, where CHC arranged a $2.985 million mezzanine loan, with the help of Peninsula Alternative Real Estate, for a to-be-built 64-unit memory care community. CHC’s lending partner, United Community Bank, provided both loans. Read More »
KeyBank Real Estate Capital Refinances Two Pennsylvania Properties
A large regional owner/operator in the Northeast refinanced two of its senior care facilities through HUD, with the help of John Randolph of KeyBank Real Estate Capital. Located in Pennsylvania, the properties include a 180-bed skilled nursing facility and a 120-bed skilled nursing facility, the latter of which also features a 73-bed independent/assisted living wing. Mr. Randolph arranged $57.7 million in HUD financing to pay down a portion of an existing bridge loan, originally secured by KeyBank’s Henry Alonso and Brandon Taseff, that was used to fund the initial acquisition, and subsequent recapitalization, of a portfolio of healthcare facilities located in the Northeast. Read More »
Slowest Q4 For Senior Care M&A Since 2014
Despite a strong December, when we recorded 30 long-term care transactions, the fourth quarter of 2017 was slow by all recent standards. These are preliminary numbers and may be revised upward in the coming weeks, but with just 69 announced acquisitions, Q4:17 was the least active quarter in terms of number of transactions since Q2:14, when we recorded just 63 deal announcements. Compared to the previous years’ fourth quarters, 2017 fell short significantly, down from the 93 deals recorded in Q4:16 and from the 108 deals recorded in Q4:15 (the all-time high for a quarter). There were few high-priced deals, as well, with the largest of the quarter (Mainstreet’s $425 million acquisition of... Read More »
Sabra Health Care REIT Sells 20 More Genesis SNFs
After already announcing that it has put on the market 35 of its properties leased to Genesis Healthcare, Sabra Health Care REIT has successfully sold 20 of them to an undisclosed buyer for $103 million. The memorandum of understanding with Genesis to market and sell these 35 properties followed Sabra’s merger with Care Capital Properties and was aimed, clearly, at reducing the Sabra’s lease exposure to Genesis. With this deal, which featured skilled nursing facilities in Kentucky, Ohio and Indiana, Sabra’s annual rent from Genesis is reduced by $9.3 million. Plus, the deal is on top of the sale of four other facilities under the memorandum of understanding in the second half of 2017.... Read More »Schedule a demo
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