Two Seniors Housing Developments Find Financing With HJ Sims
HJ Sims helped land financing for a couple of luxury senior living developments across the country this month, with two bond placements totaling over $45 million. The larger project, located in Palm Coast, Florida, is being developed by affiliates of the Tuscan Garden Group to include 86 assisted living and 44 memory care units (166 total beds). At a cost of approximately $56 million, or $430,000 per unit, the three-building community is located adjacent to the master-planned community of Grand Haven. Sims sold about $11 million of the bonds to its accredited investor base, with the balance going to six institutional investors. The issuance included $39.55 million of senior... Read More »
Sabra and Care Capital Properties Merger Is Passed
After some dissidents tried to torpedo the deal, shareholders decided bigger was better. Well, the vote is in, and it looks like the merger of Sabra Health Care REIT and Care Capital Properties will go through as planned. It wasn’t easy, and Sabra’s CEO Rick Matros had to deal with two dissident shareholders who controlled only about 8% of the shares between them. They came into the stock late in the game and had no intention of staying around for long. But they caused enough of a ruckus to have shareholder advisory service firm, Institutional Shareholder Services, recommend a no vote against the merger. Let’s just say, we suspect ISS knows little about the skilled nursing business, and... Read More »
LTC Properties Deals With A Problem
By now, most everyone has heard of the problems LTC Properties has had with one of its tenants, Anthem Memory Care. The REIT has a master lease covering 11 Anthem memory care properties located in California, Illinois, Colorado and Kansas. Stand-alone memory care communities, at least those developed recently, have come under some fire as not the right way to go. LTC, for one, has decided to take a breather from financing stand-alone MC until the market stabilizes from all the new development. In Colorado and Illinois, that is the right thing to do. What many people are missing, however, is how calmly LTC is going about the problem. Sure, they issued a notice of default, which was... Read More »
Two More Sales From Blueprint Healthcare Real Estate Advisors
Plugging along this summer with a healthy number of transactions closed so far has been the team at Blueprint Healthcare Real Estate Advisors. After announcing five deals since the start of June, the firm closed two more this August in the Midwest. First, to Ohio, where the team of Connor Doherty and Brian Payant represented an Ohio-based owner/operator in its sale of two skilled nursing facilities for $16.75 million, or $66,500 per bed. Both assets were cash flow-neutral and could obviously improve their operations. That will be the job of the buyer, another Ohio-based owner/operator. Blueprint continued their work over the border in Michigan, with Ben Firestone and Michael Segal selling... Read More »Harborview Capital Partners Closes Another Bridge Loan
Four skilled nursing facilities in Texas recently refinanced their debt with the help of Avi Begun and David Nussbaum of Harborview Capital Partners. Mr. Begun and Mr. Nussbaum arranged a $14.2 million bridge-to-HUD loan with a competitive LIBOR-based rate and three-year term. The portfolio features 472 total beds. Read More »Recent Senior Care M+A Deals, Week Ending August 11, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Chevalier International Holdings Ltd.Ashford Court & Sterling Place$33 million EvoLve Senior LivingSanctuary Care at Rye$10 million Not disclosedLegend at Tulsa... Read More »
Genesis Healthcare Pulls Guidance
A lot of people have been nervous about the skilled nursing sector recently, given the deteriorating finances at HCR ManorCare and other companies. However, that has not seemed to impact acquisition prices in the market, at least for the better facilities and facilities in general in attractive markets. Genesis Healthcare is another company that has had a tough time negotiating through the Medicare Advantage reimbursement changes and declining industry occupancy in general. The company’s earnings announcement from earlier this week came without a typical “pre-notice” of the release date, and the conference call with analysts was a rather early 8:30 am ET, which may have also caught some... Read More »Chevalier Shines In Seniors Housing Market
Amid rumors that a moratorium has been placed on large Chinese companies making significant purchases in the U.S. senior care market (like Zhonghong Zhuoye Group Co Ltd.’s proposed acquisition of Brookdale Senior Living), Hong Kong-based Chevalier International Holdings Ltd. continues to invest, recently adding two more senior living communities and 299 units in the Detroit, Michigan area to its growing portfolio. Getting its start in the market in 2011 with the purchase of three assisted living/memory care communities and 336 beds in Oregon, the company stepped it up in late 2012, when it bought 18 assisted living communities (and 1,322 licensed beds) in North Carolina from a joint... Read More »
Lifespace Communities Redeveloping Its Chicago-Area CCRC
A 247-unit CCRC in Downers Grove, Illinois (Chicago MSA) is in line for a massive $150 million redevelopment of its campus. In the first phase breaking ground this Fall, the owner, not-for-profit Lifespace Communities, Inc., will look to add 66 assisted living units, 28 memory care units and 102 skilled nursing suites, with private courtyards. The initial project will cost an estimated $61 million, or $311,200 per unit. According to our in-house construction database, which tracks senior care developments dating back to 2013, CCRC expansion or new construction projects cost approximately $420,000 per unit, or more than $100,000 per unit over the cost of Phase I. But, when you add in the... Read More »
Missing Out On Bad News
A vacation is a horrible thing when bad news hits the market. It is a horrible thing to go on vacation when all sorts of things are happening in the market, but such was the case last week. What I missed was the roll-out of earnings and the very disappointing occupancy numbers. For some, they were worse than the weak results posted for the second quarter by NIC. The ubiquitous villain was the tail of last winter’s flu season. But it seems the seniors housing sector is surviving on a two steps backward, one step forward cycle, and not making up much ground. What still amazes me is that the warning signs were there in abundance well over a year ago, yet too many people ignored them. Leading... Read More »Schedule a demo
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