Legacy Tenant Capital Structures Create REIT Turmoil
It all started when HCP, Inc. completed a series of rent negotiations with HCR ManorCare, but to no avail. It just wasn’t enough for a long-term solution, and they ended up spinning the HCRMC portfolio into a new entity (Quality Care Properties) that was supposed to be a REIT but may end up not being one depending on the final solution. Even after those lowered rents, HCRMC defaulted on some payments to QCP, and it got messier after that. As everyone now knows, that was the tip of the iceberg. Practically every major REIT has reported “issues” with tenants, ranging from covenants broken, inability to make rent payments, and high likelihood of not being able to make rent payments in the... Read More »
Another Financing For Next Healthcare Group
HJ Sims showed its range of services in recapitalizing two skilled nursing facilities in Florida on behalf of a private healthcare real estate investment firm, Next Healthcare Group (NHG). Sims’ involvement with the facilities goes back to 2013, when it provided a $3.4 million HUD Plus™ subordinate loan to a related company of NHG, HBS Assets, to finance the acquisition of the two facilities located in Lake City and Bushnell, Florida. Built in the 1990s, which was relatively new for other northern Florida SNFs, the facilities were well occupied (at 92%) at the time of the sale with a high 40% Medicare census and 17% operating margin. HBS Assets had paid $20.86 million, or $139,100 per bed,... Read More »
Griffin-American and Greystone
A month ago, we learned of a couple of large divestments by New Senior Investment Group, in a move to bring its share price up to where management believes it should be, by increasing the share of its independent living portfolio, decreasing its Holiday Retirement exposure, and reducing its concentration in the three states of Florida, Texas and California. We have also just learned that Cody Tremper and Mike Garbers of Greystone represented SNR in the transaction. Spread out across Central Florida, the portfolio consists of nine properties and were all formerly operated by Holiday Retirement. However, operations have dropped off since Holiday stopped having live-in managers at its... Read More »
The Assisted Living Investors Speak
On November 9, 2017, we held a webinar titled “Assisted Living: Buying, Selling and Valuing in a Market Peak,” which you can watch here. Over the course of 90 minutes, our Editor, Steve Monroe, led a discussion featuring Jeff Binder of Senior Living Investment Brokerage, Kevin Kreshover of KeyBanc Capital Markets, Chris Kronenberger of Blue Moon Capital Partners, and Chris Wettig of Legend Senior Living, covering topics that varied from selling AL communities in today’s market, to the added value of adding memory care to an AL community, to whether it is cheaper to build or buy now. And of course, are we currently in, passed, or heading towards a market peak? The webinar yielded some... Read More »
Investing in Assisted Living at a Market Peak
Is now the time to invest in assisted living, build new communities, or sell your inventory? Join me tomorrow as we dissect the current market. Okay, so you have now all seen Brookdale Senior Living’s share price plunge below $9.00 a share yesterday. It was not so much no news on the sale of the company, but that operations continue to deteriorate from a financial perspective. Costs are up, discount pricing seems prevalent, and while occupancy increased a bit, it was not enough to help. These are real problems, yet in the assisted living acquisition market, average prices remain at record levels. If it is getting worse out there, why are investors continuing to plow money into the sector?... Read More »
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 »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
