More Publicly-Traded REIT SNF Sales
Blueprint Healthcare Real Estate Advisors announced a slew of skilled nursing transactions at the beginning of December, closing five for clients (mainly publicly traded REITs) across the country. Ben Firestone and Mike Segal represented a publicly traded REIT owner in its disposition of a 119-bed SNF in Nashville, Tennessee for $16 million, or $134,500 per bed, which according to our database is the highest-valued SNF deal in Tennessee ever, on a per-bed basis. The recently upgraded facility was previously purchased in a portfolio, but it piqued the interest of a regional operator, which emerged as the buyer. The same public REIT seller decided to wind down its relationship with a... Read More »
CBRE Finds Financing With Freddie Mac
Aron Will of CBRE worked with Freddie Mac for his two latest transactions, and crisscrossed the country to do so. First, with Andrew Behrens of CBRE Multifamily Institutional Group, Mr. Will closed a $29.8 million financing for a 144-unit senior living community in Escondido, California (San Diego MSA). Purchased in 2012 by Westmont Living, the community underwent a three-year capital improvement project that involved adding a 22-unit memory care wing. It clearly worked, as occupancy stands at 92% for the property. Westmont received a 10-year, fixed-rate loan with 60 months of interest only payments. Then, to Cincinnati, Ohio, where Mr. Will arranged acquisition financing (again through... Read More »
Greystone Arranges Tulsa Transaction
National Health Investors announced a one-off acquisition of a 200-unit independent/assisted living community in Tulsa, Oklahoma, paying $34.6 million, or $173,000 per unit. Originally built in 1987 by a local real estate developer, the community was previously owned and operated by Triad Senior Living, which manages over 1,000 senior living units across Oklahoma, Illinois and Florida. Occupancy was strong, at 95%, but moving forward, Discovery Senior Living will take over operations under a lease with NHI for a term of 15 years, with renewal options, at an initial lease rate of 7.0% plus annual fixed escalators. NHI has also set aside $500,000 for capital improvements and funded the deal... Read More »
HJ Sims Generates Significant Savings Through Bond Issue
American Baptist Homes of the Midwest successfully refunded its outstanding bonds with the help of HJ Sims, generating millions in savings in the process. Recently, across ABHM’s 13-property portfolio, the provider has funded repositioning projects at many locations, significantly lowering their cash reserves. So, HJ Sims worked to refund ABHM’s Series 2007 and Series 2009 bonds in a way that lowered the Obligated Group’s cost of capital. Sims priced a $61.785 million issue with an arbitrage yield of 4.811%. That generated a net present value savings of approximately $6.5 million, or about 11% of the par amount of the refunded bonds. And, ABHM will realize 82% of the savings within the... Read More »
Investing In The Seniors Housing Sector
There are a lot of reasons to invest in seniors housing, but now some people are making up numbers to bolster the case. I realize there is a lot of general excitement about investing in the seniors housing sector. And there should be, despite the current headwinds. The population is aging, the quality of the properties is at its highest, the choices for consumers are wider than ever before. But what really gets me is when people start exploiting the situation and simply fabricate numbers to make their investment case. Take the case of a relatively new retail investment fund investing in seniors housing development and acquisitions. In one of their promotional pieces, they stated that the... Read More »
All In The Family
The phrase “it’s not personal, it’s just business,” doesn’t always apply. Sometimes it’s both. That was the case with Ben Firestone’s (of Blueprint Healthcare Real Estate Advisors) latest sale, which was sourced by his 90-year old grandfather. Still involved in the real estate business and showing up to work every day at 90 years old, Ben’s grandfather knew of a friend who owns a paper company in Houston, Texas but also recently decided to build a 98-unit assisted living/memory care community in the area, hiring a third-party manager at the same time. The lead paid off, as Mr. Firestone was able to sell the community (still in lease-up and 70% occupied at closing) to a private equity firm... Read More »
Nice Sale In Bluewater Bay, Florida
American House Senior Living Communities continued its growth in Florida with the acquisition of a 94-unit independent living community, its seventh senior living property in the Sunshine State. There are plenty of things going for this property. It is located in the mixed-use residential/resort community of Bluewater Bay, adjacent to Elgin Airforce Base. So, in addition to enjoying the local amenities, the property also draws some of its census from affluent retired military officers. There is also a large fifth floor bar and lounge, a movie theater, heated pool, full-service concierge and valet parking. It was developed in 2015 by a partnership between Bluewater Commercial Developers,... Read More »
Skilled Nursing Facility Receivership Ends With Sale
A Kansas skilled nursing facility in receivership recently sold with the help of Evans Senior Investments, for an undisclosed price. Built in 1977, the facility has 67 skilled nursing beds and 15 residential care units, and it was 81% occupied. However, despite its location five blocks away from the area’s only community hospital, it was in receivership at the time of listing. ESI represented the court-appointed receiver in the facility’s sale to an experienced operator that plans to use its economies of scale to increase revenues and improve the operating margin. Read More »Recent Senior Care M&A Deals, Week Ending December 1, 2017
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Koelsch CommunitiesRock Creek Memory Care CommunityN/A Birchwood Health Care PropertiesQuail Run Assisted Living$6 million Care Property Invest2 Assisted Living Communities$35.7 million Chicago Pacific FoundersNorthgate Park Senior... Read More »
Private Evening in NYC
Members of the American Seniors Housing Association and subscribers to The SeniorCare Investor gathered in New York City on the night of the Rockefeller Center tree lighting in an intimate setting at The Penn Club to hear what Rick Atlas (Atria Senior Living), David Reis (Senior Care Development) and Scott Stewart (Capitol Senior Housing) had to say about investing in seniors housing today. While all three were very bullish on the future of the seniors housing business and long-term investment values, there were certainly differences of opinion as to where they see strength. For example, David Reis stated that not only is the CCRC model alive and well, but several of his CCRCs are... Read More »Schedule a demo
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