HCR ManorCare Fails To Pay Rent, Again
Quality Care Properties receives partial rent payment for the second month in a row, triggering a notice of default. In our June issue of The SeniorCare Investor, we laid out the issues in the battle between Quality Care Properties and HCR ManorCare, including the partial rent that HCRMC paid on June 1. The battle escalated this week when HCRMC paid just $8.2 million of the $39.5 million it owed QCP for July rent. Quality Care sent a notice of default demanding payment of all current and past due rent by July 14, which comes to $79.6 million. I don’t think they will comply with the demand. Otherwise, why waste everyone’s time with these partial payments? Is this gamesmanship on the part of... Read More »Will the Labor Crisis Bring Senior Care To Its Knees?
The issue of labor will challenge the senior care industry and potentially bring it to its knees. That is at least our opinion, and that of many in the industry, as demand for senior care services (which will only increase in the next 10-15 years and beyond) must be met with an appropriate supply of skilled labor. The number of CNA, food service, maintenance, RN and LPN positions required to serve the aging population is only growing, and those jobs, particularly CNAs, RNs and LPNs, are getting more complex as the average resident acuity rises at assisted living and skilled nursing facilities. Operators, if they find the skilled labor to fill these roles (a big if), will have to contend... Read More »
Griffin-American Closes First Tranche of California Senior Portfolio Deal
Griffin-American Healthcare REIT IV closed the first of two tranches for an eight-property seniors housing acquisition in Northern California, bringing the REIT’s total to 27 medical office and seniors housing properties since its first acquisition in June 2016. Located in high-barrier-to-entry markets in California, these communities were owned by affiliates of Nazareth Healthcare, Inc. and featured 327 units of assisted living, memory care and skilled nursing.The portfolio was fully occupied, certainly adding to its appeal. Built on average 43 years ago (although with renovations since), the first tranche of properties included a 22-unit memory care community in Menlo Park, a 65-unit... Read More »
Two Years After Acquisition, Queens SNF Refinances with Greystone
Greystone just couldn’t get out of Queens this summer (must have hit the Van Wyck). After providing nearly $60 million in HUD financing for a 302-bed skilled nursing facility in the borough last month, Fred Levine of Greystone’s Monsey, New York office closed yet another transaction for a Queens SNF. Located in Flushing, the facility features 227 beds and was recently renovated to include a brand-new rehab room and therapy offerings. It was acquired in 2015 by Sapphire Care Group, with the help of a highly-leveraged bridge-to-HUD loan arranged by Greystone too. With the renovation completed and operations improved, the owner sought to refinance with a $29 million HUD loan, originated by... Read More »Recent Senior Care M&A Deals, Week Ending July 7, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Joint ventureBlue Ridge Assisted Living$17 million The Ensign Group2 senior care communitiesN/A Harbert Seniors Housing Fund IMorningStar of Wheat Ridge and AlbuquerqueN/A Diversicare Healthcare Services, Inc.Park Place in Selma$8.75... Read More »QCP vs. HCRMC Heats Up
Other than its increased share price, the news does not seem to be getting better with regard to the negotiations between Quality Care Properties (NYSE: QCP), HCR ManorCare and the various stakeholders. After making only a partial rent payment for June because of liquidity concerns, it looks like HCRMC has skipped the July payment in its entirety. The two sides have been trying to negotiate a deal, which seems to be the acquisition or merger of HCRMC into QCP, which would wipe out the burdensome lease payments. Our guess is that they just can’t over a few of the major sticking points, which include the Department of Justice investigation and the unfunded deferred compensation totaling more... Read More »
Chicago Pacific Founders All-In in Las Vegas
For the third time in the firm’s three-year history, Chicago Pacific Founders is acquiring a senior living community in the Las Vegas market, with the help of financing arranged by Aron Will of CBRE. Located about 13 miles west of the Strip (and 3.5 miles northwest of Spring Valley Medical Center), the community features 160 units of about 80% independent living and 20% assisted living. Built in 1999, it will be operated by Grace Management, which believes it can improve on the census and operations. Mr. Will originated a $13.5 million Fannie Mae loan, with a seven-year term and 3.5 years of interest only, on behalf of CPF’s private equity arm, CPF Living Communities. One of CPF’s other... Read More »
After Filling in 30 Days, Georgia Assisted Living Community Sells
Brad Clousing of Senior Living Investment Brokerage sold a brand-new assisted living/memory care community in Blue Ridge, Georgia, which is already 100% occupied. In fact, the community filled in just 30 days after its October 2016 opening and has more than 20 people on the wait list with deposits made. Quite impressive. A local developer/operator built the community with 50 AL and 17 MC units, but the buyer, a joint venture between a Maryland-based fund and a Florida-based operator, plans to build a Phase II in response to the strong demand. And why not, with the community already operating at a 41% margin on approximately $3.1 million of revenues. Mr. Clousing sold the community for $17... Read More »
Ziegler’s June Surge
Ziegler impressed in June, closing over $350 million in tax-exempt bond financing for two CCRC clients. Buckner Senior Living was on the receiving end of the larger closing, a $232.5 million fixed-rate bond issuance to fund the development of its 325-unit entrance fee CCRC in the North Park neighborhood of Dallas. The luxury community is expected to cost around $136 million to build, or about $418,000 per unit. With that high cost comes a number of amenities like a roof-top garden, top-floor “Sky Lounge,” heated indoor pool and a salon/spa, among others. Placed on a three-acre parcel, the community will feature 189 independent living, 38 assisted living, 26 memory care, 48 skilled nursing... Read More »Kindred Healthcare Sells SNF Division To BlueMountain
Kindred Healthcare announced an agreement to sell 89 skilled nursing facilities with 11,308 beds and seven assisted living communities with 380 licensed beds for $700 million, or $59,890 per bed. In today’s world, that can be considered cheap, since it is nearly 40% below the average price paid per bed in 2016, but there is more to it than meets the casual eye, since there is a group of leased facilities outside of the Ventas-owned properties that will be purchased from Ventas as part of the larger transaction. However, occupancy stands at 78%, which is below the historically low current national average of about 82%. The buyer is private equity firm BlueMountain Capital Management, LLC,... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
