Enlivant, Brookdale Senior Living and Hawthorn Retirement
After the announcement of Sabra Health Care REIT’s 49% investment in the majority of Enlivant’s assisted living properties at a value of $195,000 per unit, the market chatter started anew. The common theme was that if Enlivant’s properties, which were designed and built in areas assuming a 20% to 40% Medicaid census, could sell for that high a price, surely someone would belly up to the bar and take Brookdale Senior Living private, which generally has nicer properties. Not so fast. Like Hawthorn Retirement before it, which went for a high price, these two companies are relatively “clean,” meaning there are not complex issues to work out, such as landlord permissions, ADA... Read More »
Skilled Nursing Divestitures Continue
Large skilled nursing divestitures seem to be in vogue these days, as another institutional skilled nursing owner sold 23 of its non-core facilities in Ohio and Pennsylvania, with the help of Evans Senior Investments. Consisting of 1,682 total licensed beds, the portfolio was approximately 84% occupied, but five facilities were 90% occupied or higher. Some facilities were also operationally underperforming, and their EBITDAR margins took a hit. So, there is clearly some work to do, and some value to add. It certainly helps that most of the facilities are located in major metro areas in Ohio and Pennsylvania. The buyer, an owner/operator based on the East Coast, paid $94 million, or about... Read More »Sabra Health Care REIT Buys Again
Fresh off the heels of its $3.0 billion merger with Care Capital Properties in August and its $430 million joint venture acquisition of most of Enlivant’s assisted living properties for an investment of $371 million, Sabra Health Care REIT announced a $430 million acquisition of 24 skilled nursing facilities with 2,216 beds, or a price of $194,000 per bed. That price will certainly help bolster what has been a mostly down year for SNF pricing, where we have seen more below-average facilities sold than in the previous two years. But this portfolio is certainly not average, with a 92% occupancy rate and a 59% skilled mix, which is huge for a portfolio of this size. In addition, 21 of the... Read More »
Ziegler Arranges Bond Financing For First Vermont CCRC
When Vermont’s first CCRC, Wake Robin, was ready to expand its services and its campus to accommodate for its growing demand, it turned to Ziegler to arrange a $67.1 million bond financing to fund the project. Situated near Lake Champlain in a wooded 123-acre campus with many walking trails, the not-for-profit community got its start in 1984 and currently features 212 independent living, 51 skilled nursing and 31 residential care units. However, strong demand led the owners to expand each of the CCRC’s offerings, adding 38 new independent living units, 10 residential care units, six skilled nursing units, in addition to renovating the common areas and the existing skilled nursing facility.... Read More »Recent Senior Care M&A Deals, Week Ending September 22, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Bridge Investment GroupSymphony at Oak Lawn$29.25 million Welltower Inc.The Orchard KatyN/A East Coast owner/operator23 skilled nursing facilities$94... Read More »KeyBank, Kindred and BlueMountain
BlueMountain Capital Management has been steadily working to close its large acquisition of 96 skilled nursing facilities from Kindred Healthcare (a deal valued at approximately $700 million). For its latest tranche of closings, the firm received $128 million in acquisition financing originated by Grant Saunders and Peter Trazzera of KeyBank Real Estate Capital’s Healthcare Mortgage Group. The term loan funded the purchase of 13 facilities including nine in California, three in Massachusetts (that are nearing approval) and one in Nashua, New Hampshire. Of the California facilities, five are located in San Francisco, plus one each in Salinas, Stockton, Walnut Creek and Livermore. This marks... Read More »
REIT Financing: RIDEA vs. Sale/Leaseback
During our recent webinar on REIT financing where we discussed the pros and cons of using the more traditional sale/leaseback structure, we posed a few questions to the audience. Let’s just say, the answers surprised us. The first was whether, if choosing REIT financing today, they would prefer the traditional sale/leaseback structure which involves fixed lease payments that increase every year, or the newer RIDEA structure, where they enter into a joint venture with the REIT and manage the properties for the joint venture. We assumed that most people would prefer the RIDEA structure given the nature of the sale/leaseback structure with 2.5% to 3.0% annual escalators. Wrong. A slight... Read More »
CBRE Finances Midwest Portfolio Purchase
A brand-new portfolio of four assisted living/memory care communities gained a new owner, thanks to acquisition financing arranged by Aron Will of CBRE. These communities, featuring 285 assisted living and 155 memory care units, opened in 2016 and 2017 in the Chicago and Kansas City MSAs. And being the highest quality communities in their respective submarkets, they were filling fast, with a favorable lease-up trajectory. Chicago-based CA Ventures developed them and will also maintain an ownership interest in the portfolio, acquiring the communities in a joint venture with a global investment manager. Mr. Will secured a non-recourse, floating-rate loan, with a three-year term and three... Read More »
Grandbridge Real Estate Capital Closes Kansas City Financing
Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Group announced its latest closing, facilitating a $14.5 million first mortgage for a 163-unit seniors housing community in Kansas City, Missouri. An insurance company provided the loan, which came with a 20-year term and a fixed rate. Originally built in 2014, the community in question followed up on a successful lease-up by breaking ground in 2016 on an $18 million, 96-bed expansion of short-term rehab, long-term care and memory care services. It is owned by the McCrite family, which also owns senior living community in Topeka, Kansas. Richard Thomas and Meredith Davis, along with Joseph Platt out of Grandbridge’s... Read More »
Skilled Nursing Facility Irma Fall-Out
Eight horrible deaths in one skilled nursing facility should not result in new regulations. By now we have all heard about the disaster at the skilled nursing facility in Hollywood, Florida where eight residents died from the heat during Hurricane Irma. It never should have happened, and we all have to wonder what the staff was thinking when inside temperatures soared and vital signs hit the danger zone. What we should have expected is politicians, regulators and other groups demanding more staffing so something like this does not happen again. While I agree that this should never happen again, I don’t agree that staffing levels should be re-evaluated as a result of one horrible event. And... Read More »Schedule a demo
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