Recent Senior Care M&A Deals, Week Ending October 6, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Sagora Senior LivingStorey Oaks of TulsaN/A Owner/operatorEnnis Care Center$4.9 million CareTrust REIT, Inc.3 Virginia assisted living... Read More »
Third Quarter M&A Results Are In
We will be addressing the quarterly seniors housing and care M&A results in both the October issue of The SeniorCare Investor, as well as in our Health Care M&A Quarterly Report, which covers all 13 health care sectors. But, here is a preview: Although it remained above 70 deals for the quarter, seniors housing and care M&A activity fell to a year-low, tying with last year’s third quarter at 71 publicly announced transactions. Dollar volume also fell from its recent peak of $9.7 billion in the second quarter of 2017, recording $2.5 billion in transaction value based on disclosed prices. Increasingly, we have seen buyers prefer the one-off deals that come with one or two... Read More »
Northeast Owner Heads To South Carolina
As an owner/operator was exiting the assisted living industry, and trying to sell its 31-unit AL/memory care community in Santee, South Carolina (situated halfway between Columbia and Charleston), a Northeast-based owner/operator swooped in and purchased it, marking its entry into the state. Shades of 1865…but we digress. The previous owner was based in neighboring Georgia, but took a “hands-off” approach to managing. As a result, the building, although it wasn’t particularly “old” (it was built in 1999 with a recent renovation) and featured a 97% occupancy rate, was only operating at a 17% margin on nearly $1.2 million of revenues. The new owner has plans to further update the community... Read More »
CBRE Closes Financing For Two Joint Ventures
Aron Will of CBRE once again showed off his range, and his reach, closing two financings for clients in California and Michigan. First, in Traverse City, Michigan, a 388,000-square foot former asylum that underwent a decade-long redevelopment into a massive mixed-use neighborhood capped off the project with a brand-new, 110-unit independent living/assisted living community in the 130-year old building’s north wing. The $31 million senior living community opened in 2014 and has experienced steady lease-up, nearing stabilization today. Adding to the site’s appeal is that it is now surrounded by numerous restaurants, wineries, boutiques and over 70 small businesses. Developed by a joint... Read More »
Pillar Powers Through Two HUD Financings
The team of Pillar Financial, a division of SunTrust Bank, has been active lately, closing more than $20.7 million in financings for two Rust Belt seniors housing communities. Don Husi, based in Pillar’s Nashville office, first originated a $13.59 million HUD loan, with a 30-year term, to refinance a scattered-site that includes 143 beds spread across one large skilled nursing facility and two small assisted living communities in Menasha and Appleton, Wisconsin. The properties offer their residents a continuum of care, if need be. Then, in Moosic, Pennsylvania, Mr. Husi originated a $7.18 million HUD refinance for a 35-unit/58-bed memory care community. The 35-year loan took out an... Read More »
HJ Sims Helps Out New North Dakota Joint Venture
HJ Sims helped finance a couple of the largest not-for-profit providers of senior care and health care in the country in order to team up and combine their services in the Bismarck/Mandan area of North Dakota. The Evangelical Lutheran Good Samaritan Society (ELGSS), which currently operates over 224 senior living and care communities, and Sanford Health, the largest rural, not-for-profit health care system with 45 hospitals and 289 other locations, each operate skilled nursing and assisted living facilities in the Bismarck area. In addition, Sanford Health operates an acute care hospital in the city. So, the organizations decided to form a joint venture to operate the facilities in the... Read More »
Takeaways From Fall NIC Conference
Last week’s NIC conference displayed the growing divergence of opinion on the state of the seniors housing and care market. A lot of people have asked me what I thought about the recent NIC conference in Chicago. Well, I have been covering the seniors housing and care sector for 30 years, I have attended all 27 fall conferences, but never have I heard such divergent opinions regarding the state of the market as I did last week. On the one side, you have those who are hoarding their cash, or raising new money, waiting for the market to take a plunge so they can take advantage of cheap prices. Most of these people have been around for a while, and like me, let their historical... Read More »
Should Diversicare Health Be Worth Double Its Current Price?
Although Diversicare Health and a few others may disagree, it is not always a bad thing to have an activist shareholder or two as investors in your company. They can keep you on your toes, force you to look at options to enhance value that you may not be considering, and their actions often result in publicity for an “undervalued” stock that may bring other shareholders in, which should help in driving the price up. Diversicare Health is a small company, with a stock market capitalization of around $70 million. It has been growing, but mostly with new leases which did not need much capital to acquire. That is good news, at least on the capital side. Currently, about 19% of the skilled... Read More »CareTrust REIT Keeps It Up
CareTrust REIT is heading closer and closer to the 200-facility mark, currently sitting at 181 properties in 23 states, as it continues to purchase senior care facilities across the country. Just last month, the REIT bought 13 skilled nursing facilities in Washington, Texas and Idaho, all formerly operated by affiliates of Kindred Healthcare. Now, CareTrust has added three more Kindred facilities in Washington State to its growing portfolio. Located in Arden, Lakewood and Vancouver, the facilities total 268 beds. CareTrust added them to its existing master lease with affiliates of Five Oaks Healthcare, which has a remaining initial term of about 13 years, two five-year renewal options and... Read More »Aging Skilled Nursing Facility Sells In Texas
September saw many deals that featured older, struggling skilled nursing facilities. This comes at a time of record-high SNF prices, on a per-bed basis, although maybe not for long if the fourth quarter follows September’s performance. The truth is that despite the record high prices we have seen (reaching nearly $100,000 per bed in the four quarters ended March 31, 2017), the SNF industry probably faces more headwinds than tailwinds, ranging from aging facilities and shorter patient days to reimbursement risks and poor lease coverage, to name a few. Another truth is that the industry is becoming more and more bifurcated by the older, traditional nursing facilities on one end to the brand... Read More »Schedule a demo
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