Recent Senior Care M&A Deals, Week Ending September 1, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Regional ownerKentucky skilled nursing facilityN/A Private equity fund2 memory care communities$29 million Regional ownerArkansas skilled nursing facility$4.25... Read More »
Private Equity Taking Center Stage
In every investment cycle, there are different factors that impact valuations and transaction volume. In the seniors housing and care acquisition market, there have been periods when public REITs came to dominate acquisition activity, then there were nontraded REITs that took center stage (at least for smaller transactions), and there has been the private equity (PE) market, which has very different investment criteria and time horizons than many of the other buyers. The two largest acquisitions by private equity firms in the seniors housing and care market occurred about 10 years ago. This was The Carlyle Group’s acquisition of Manor Care for $6.3 billion and The Fortress Group’s purchase... Read More »Myers and Jandris Close Out the Summer in Style
Mark Myers and Josh Jandris of IPA Seniors Housing impressed in the Southeast this month, closing a couple of single-SNF transactions. With an assist from Ryan Fleming, Myers and Jandris first helped a Northeast-based regional owner on its way to divesting itself completely from Kentucky, and from the SNF market as well, with the sale of its facility in Covington (Cincinnati MSA). The facility, with about 80 beds, is one of seven other tenants that operate out of a 100-year old former hospital. It generates just over $800,000 in annual NOI, or about $9,760 per bed, which is slightly above the market average of the last few years, based on sold properties. But the buyer, also a... Read More »
Aztec Group Refinances Florida Memory Care Communities
We don’t hear much in the seniors housing and care business from Florida-based investment and merchant bankers Aztec Group, Inc., but the firm recently refinanced two memory care communities in Tampa and Oviedo, Florida. Each community, under the Memory Lane Cottages brand, comes with 20 private suites, with bathrooms in all, and stable operations. They are owned by a joint venture between Mayan Properties, which is affiliated with Aztec’s CEO Ezra Katz, Facility Investments, LLC, and National Healthcare Associates, Inc., a healthcare consulting firm based and operating out of the Northeast. The refinance totaled $5.1 million, with about $3 million going towards the Oviedo property and the... Read More »
After Assuming Operations, American House Acquires Too
Michigan-based real estate developer REDICO, through its senior living affiliate American House, acquired its first 100% independent living community in the state of Florida when it purchased a 173-unit community in Wildwood. American House had assumed management of the property in March 2017, and has added personal care services through Allegiance Home Care Services, Inc. Unit sizes range from 500-square foot studios to 1,090-SF two-bedroom suites, and amenities include an outdoor heated exercise pool/spa, putting green, shuffleboard court, card/billiard rooms and a full-service bar and restaurant, among others. The acquisition brings American House’s presence in The Sunshine State to six... Read More »
Financial Modeling for Seniors Housing Acquisitions Has Changed
Financial modeling for seniors housing and care is not as easy as it used to be, when revenues could be assumed to rise faster than expenses. Have you noticed that financial modeling for seniors housing and care is not as easy as it used to be? In the past, forecasters (and buyers) would model 2% increases in annual costs and 3% increases in revenues. This would build in a growing profit amount, which always looked good to lenders and investors. One of the problems with this was that annual capital expenditures were always, and I mean always, low-balled. Often it was a plug number at $300 per unit or bed, when it should have been three, four or five times that amount. The problem today is... Read More »Capital One Provides Financing To PruittHealth
Since the start of July, Capital One has closed a flurry of deals for seniors housing and care borrowers, and has crisscrossed the country doing so. The bank has so far provided a $27.2 million HUD refinance for three skilled nursing facilities in Tennessee, a $12 million HUD loan for a Portland, Oregon-area SNF, $77.7 million in financing for a portfolio of nine Pacifica Companies-owned seniors housing communities, and a $41.1 million first mortgage, plus a $5 million senior credit facility, on behalf of Oregon-based Prestige Care to both acquire four senior care properties and refinance three others in the Pacific Northwest. The activity continued for Capital One, when it recently helped... Read More »HJ Sims Secures Financing For D.C. CCRC
A CCRC in northwest Washington, D.C. is ready to expand, and in a big way. Currently featuring 127 independent living units, seven assisted living units and 60 skilled nursing beds, not-for-profit Ingleside at Rock Creek faced a growing wait list and limited health care services. So, a couple of years ago, ownership decided it was time to grow, with a plan to add 105 IL units, 32 memory care units, 34 skilled nursing suites, 21 assisted living units and therapy/rehab spaces. Expected to break ground soon, the project will nearly double the CCRC’s units, even though most of the existing AL units will be taken offline to complete it. HJ Sims arranged the construction financing, through a mix... Read More »
Luxury Senior Living In Salt Lake City
A luxury assisted living/memory care community recently opened in Salt Lake City, Utah, and hopes to stand out among its competitors for not only its care, but its look too. Interior designer, studioSIX5, and architect AJC Architects designed the 148-unit community with an eye for its surrounding environment in view of the Wasatch Range, with many resident rooms designed to highlight the natural beauty. The community cost approximately $35 million, or $236,500 per unit, to develop, which is nearly equal to the average construction cost for the region of $233,700 per unit. We have not observed much seniors housing construction in the Salt Lake City MSA, at least on a relative basis, but... Read More »Recent Senior Care M&A Deals, Week Ending August 25, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice In-state operator2 Kansas assisted living communitiesN/A Harrison Street Real Estate CapitalBrightpointe at... Read More »Schedule a demo
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