Blueprint Continues Its Streak In Kansas
Continuing its busy season, Blueprint Healthcare Real Estate Advisors announced another closing in the Midwest, following six other announced August transactions in the states of Ohio, Michigan and Kansas. In this latest closing, the team of Ben Firestone, Jacob Gehl and Michael Segal went back to Kansas to sell a couple of small assisted living/memory care communities in the southeastern part of the state. Built in the 1990s, the properties combined for 49 units and are the county’s only licensed providers of AL services. They were deemed to be non-core by the public REIT and private equity firm joint venture owners, following the JV’s portfolio acquisition of a number of AL/MC properties... Read More »Capital One Closes Two-Part Financing For Prestige Care
Presitge Care killed two birds with one stone in its latest transaction with Capital One. The Oregon-based owner/operator of senior care facilities in the Pacific Northwest received a $41.1 million first mortgage from Capital One to both finance the acquisition of four seniors housing and skilled nursing facilities (which was announced last August) and refinance three of its existing facilities. Capital One also provided a $5 million senior credit facility for general corporate purposes and working capital needs. Located in Wenatchee, East Wenatchee and Ellensburg, Washington, and Nampa, Idaho, the acquired communities, which were previously owned by industry veteran Carl Campbell, were in... Read More »Recent Senior Care M&A Deals, Week Ending August 18, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Ohio-based owner/operator2 skilled nursing facilities$16.75 million Mozart HealthcareMaple Heights Retirement CommunityN/A Summit Healthcare REIT, Inc.9 skilled nursing facilities$60... Read More »Quality Care Properties Seeking Receiver for HCR ManorCare
Quality Care Properties is taking its issues with HCR ManorCare (the lack of full rent payments) one step further. Late yesterday QCP announced that it is initiating a legal process to appoint an independent receiver to oversee the operation of the skilled nursing and assisted living properties that it owns which are leased to HCRMC. Apparently, the two companies had previously agreed that QCP would have the right to appoint a receiver to operate the properties if HCRMC defaulted on the leases. That default has already occurred. Assuming the California State Court appoints a receiver, QCP plans to start transitioning the properties to new owners and operators. They believe there will... Read More »California-Based Summit Healthcare REIT Heads Northeast
Summit Healthcare REIT just expanded its holdings in the Northeast, adding nine skilled nursing facilities with 1,285 licensed beds. Along with joint venture partner Fantasia Investment III LLC, a U.S.-based affiliate of Fantasia Holdings Group Co., Ltd., Summit acquired an interest in these facilities out of receivership. They were previously owned by a Colorado-based private investment group, but the existing operator will stay on to manage the portfolio. Quality of care is high, with each facility reporting at least a four-star rating from CMS. The joint venture ended up paying $60 million, or $46,700 per bed. Steve Thomes, Chris Hyldahl, and Gideon Orion of Blueprint Healthcare Real... Read More »
One Memory Care Community’s Evolution In Rye, New Hampshire
A 40-unit (56-bed) memory care community on the coast of New Hampshire that recently went through a Chapter 11 bankruptcy restructuring just sold to Port Development, a private investor group, for $11 million, or $275,000 per unit. Sanctuary Care had developed the Rye community in 2013 for approximately $13 million, or $325,000 per unit. But, operations, care quality and staffing had significantly fallen off, with occupancy currently standing at 48% based on beds and cash flow around breakeven. EvoLve Senior Living, founded by Ben Pearce and Ed LaFrance, will operate the community, which will be renamed EvoLve at Rye. National Health Investors provided a $10 million first mortgage with an... Read More »Trilogy Health Services and Lancaster Pollard Meet Again
Chris Blanda of Lancaster Pollard continued his work with Trilogy Health Services, recently refinancing a portfolio of 10 health campuses in Indiana with a $158.4 million HUD loan. Typical of many Trilogy-developed properties, this portfolio includes a mix of skilled nursing, rehab, assisted living, memory care and independent living units. The refinance comes with a low interest rate and pays off existing bridge loans as well as a real estate revolver that were used to acquire the properties from HCP, Inc. Mr. Blanda also previously arranged a $38.5 million refinance of four Trilogy healthcare campuses in Indiana and Kentucky back in 2014, and Lancaster Pollard also closed a $63.4 million... Read More »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 »Schedule a demo
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