Brookdale’s Q3 Earnings Send Shares Plunging…Again
Brookdale Senior Living just can’t get a break. After its announcement with HCP that is beginning to clear the deck, it came out with its third quarter earnings Monday night, and the results sent the shares down $8.78 during the day, for a decline of 14.7% before recovering a bit. While the market had been focusing on occupancy, that was about the only area where the company had good news. Assisted living occupancy increased 30 basis points from the second quarter, which seems to be the industry average. Its retirement center occupancy also increased by 30 basis points sequentially. But operating income is declining and its assisted living operating margin plunged by 210 basis points... Read More »
Bridge To HUD With Grandbridge Real Estate Capital
Less than a year after receiving bridge financing, a 90-unit assisted living community in Billings, Montana is already refinancing through HUD, with Grandbridge Seniors Housing and Healthcare Finance Group leading them along the way. Through BB&T Real Estate Funding, Grandbridge had originally provided the community a bridge loan at the end of 2016. Now, Richard Thomas and Meredith Davis have originated a $19.93 million HUD loan, with a 35-year term and 35-year amortization schedule, to refinance the community. Read More »
Cambridge Realty Capital Assists In Illinois SNF Sale
Cambridge Realty Capital Companies recently assisted a skilled nursing operator to exercise its purchase option on a 192-bed skilled nursing facility in Glenview, Illinois, with the help of a $20 million bridge loan, plus a $1.0 million asset-based loan to fund the deal. The borrower had taken over operations at the nearly 30-year old facility just nine months prior under a lease, so its own culture was still being implemented at the facility level. However, it decided to go through with the purchase option, utilizing its long-standing relationship with Cambridge to get the job done. Read More »
Recent Senior Care M&A Deals, Week Ending November 3, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Accura HealthCare6 Iowa skilled nursing facilitiesN/A CareTrust REIT, Inc.3 skilled nursing facilities$69 million Kandu Capital, LLCOsprey Health Care Center$5.55 million Regional Owner/OperatorIllinois Knights Templar Home$1.95 million Focus Healthcare Partners LLCBartlett Reserve$15.8... Read More »
Good News from Brookdale and Capital Senior Living
Finally, we have had some good news from the two largest publicly traded senior living companies, Brookdale Senior Living and Capital Senior Living. Let’s just say, it has been a long time coming. Capital Senior Living reported a sequential increase in occupancy of 30 basis points in the third quarter, an increase that was continuing to rise in September and into October, so the fourth quarter should be upbeat as well. In fact, from June to September same-community occupancy increased by 90 basis points. These numbers exclude their two communities impacted by Hurricane Harvey. On the negative side, labor costs increased by 4% in the third quarter, which contributed to a 2.4% decline in... Read More »
Mike Pardoll’s Southeast Swing
Marcus & Millichap’s Mike Pardoll crisscrossed the Southeast to close two transactions. First, Mr. Pardoll sold a 99-unit independent living community in Durham, North Carolina for $15.8 million, or about $160,000 per unit, with a 6.3% cap rate. Originally built as a hotel in 1985, the building was purchased in 2012 and converted to independent living in a multimillion-dollar renovation. It was clearly the right move, with occupancy reaching 100% and the operating margin currently at 32% under management by Meridian Senior Living. The community features an interior courtyard with an in-ground pool, bocce court, putting green and community garden, among other amenities at the property.... Read More »
Buyer Hopes To Turn Around Paxton SNF Performance
A private regional owner/operator purchased a skilled nursing/independent living facility in Paxton, Illinois with major plans to overhaul operations. The facility, built in 1962 with additions in 1975, 1988 and 1995, was owned by a faith-based not-for-profit and originally was built and cared for the local Illinois Knights Templars. However, over the years, the resident makeup has changed, as did the complexities of the skilled nursing reimbursement environment, knocking the facility’s original mission out of line with operating a profitable facility. Adapting to the changes, the not-for-profit’s board hired Heritage Enterprises, an experienced skilled nursing operator, to manage the... Read More »
Evans Senior Investments Sells Value-Add Assisted Living
Evans Senior Investments (ESI) successfully sold a 92-unit assisted living/memory care community, for an undisclosed price, in Greendale, Wisconsin (about 10 miles south of Milwaukee). Built in 1998, with additions in 1999 and 2010, this three-building campus includes 92 units of assisted living and memory care, licensed as a Community-Based Residential Facility. Occupancy has been increasing since January 2016, and now sits in the low-90s, with a significant Medicaid census. Chicago-based SHA Capital Partners was the buyer and brought in Matthews Senior Living to operate the community, which is considered to be a value-add opportunity for them. ESI represented an independent owner in the... Read More »
REITs Having Trouble With Seniors Housing
We have heard more about REITs and their skilled nursing troubles, but LTC Properties’ announcement a month ago has been followed by a much larger seniors housing problem at Ventas. At first, everyone thought it was the skilled nursing sector that was going to give the healthcare REITs heartburn. After all, that was the sector struggling the most, right? But seniors housing has not been as resilient as previously thought. Brookdale Senior Living has had its well-documented problems, and last month LTC Properties disclosed issues it was having with underperforming memory care tenants. Then we had last week’s disclosure by Ventas that it was moving more than 70 communities leased to... Read More »
Summerfield Senior Living Sells
Washington State-based Morningdew, LLC is looking to expand its presence in Florida, and just added a third property to its portfolio in the Sunshine State. Built in 1998 in Summerfield (just north of The Villages), the assisted living community has 46 beds in 42 units. Under its ownership by the not-for-profit Marion County Hospice, the community did not boast a strong operating margin. Ken and Damien Carriero of Colliers International were hired to facilitate the off-market transaction. Interestingly, an individual had the property under contract with the seller, but through a clause stating that he could assign the contract, decided to sell. So, Morningdew purchased the contract for... Read More »Schedule a demo
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