No Deal For Brookdale Senior Living Yet
Brookdale Senior Living remains in a rut, and the Chinese option may be disappearing. For some reason, Brookdale Senior Living has kept out of the news recently, which is a good thing. What’s not so good is that its share price continues to be stuck in a rut. What also is not so good is that with the recent second quarter occupancy numbers out of NIC, we have to assume that given Brookdale’s size, their occupancy levels contributed to the downward trend in occupancy. Also not good. Everyone continues to wait on news of a buyer for Brookdale to come forward. The Chinese card seems to be disappearing given that the U.S. authorities are scrutinizing Chinese sponsored acquisitions more... Read More »Capital One Heads To HUD
The future for a 40-year old skilled nursing facility is not rosy, as we have discussed recently, and with every passing year, it becomes bleaker. These facilities face new competition in the form of short-term rehab and transitional care facilities, which feature nearly all private rooms and take a majority of the Medicare patients. And with lengths of stay decreasing, reimbursement tightening and wages increasing, an older SNF has fewer options to remain profitable while still providing quality care. There are potential solutions, however, which the experienced owner/operators of a skilled nursing facility in Gresham, Oregon (Portland MSA) are putting into practice. The 128-bed facility... Read More »
SNF, AL and IL Values All Remain High
For the four quarters ended June 30, 2017, skilled nursing, assisted living and independent living properties remained at or near their all-time high values, while cap rates decreased across the board. A quarter does not make a trend, but across the seniors housing and care spectrum, values have remained stubbornly high. Stubbornly? Skilled nursing values peaked in 2016, while seniors housing peaked in 2014 with a matching peak in 2016. People, including myself, thought that values would slowing decline, especially if interest rates spiked up. Well, neither event has occurred. For the 12 months ended June 30, 2017, skilled nursing average prices posted a small decline to $97,900 per bed... Read More »Housing & Healthcare Finance’s Bridge Lending Success
Housing & Healthcare Finance’s Capital Advisory Group has certainly been a success since its launch nearly two years ago. Focusing on bridge loans and credit facilities, the program has closed over $650 million in transactions, so far. Isaac Haas and Neil Gamss, who lead the group, continued their good work into this summer, arranging over $100 million in bridge loans and credit lines in May and June. The largest of the closings included a $53 million bridge loan for a portfolio of skilled nursing facilities (and 948 total beds) in Wisconsin. Next up, Messrs. Haas and Gamss arranged a $37 million bridge loan on behalf of a SNF portfolio in Ohio with a combined 760 beds. A skilled... Read More »Recent Senior Care M&A Deals, Week Ending July 21, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Investment GroupGenerations Assisted Living and Wellness$8 million Real estate investorSable Care & Rehabilitation Center$5.4 million Summit Healthcare REIT, Inc.Pennington Gardens$13.4 million Chartwell Retirement ResidencesChartwell Le Teasdale$56.95... Read More »Heavenrich Closes Sale To Summit Healthcare REIT
Brian Clark of Heavenrich & Company just sold a 77-unit assisted living/memory care community in Chandler, Arizona (Phoenix MSA) for $13.4 million, or about $174,000 per unit. Mr. Clark represented the stand-alone not-for-profit seller, Pennington Gardens, in the community’s sale to Summit Healthcare REIT, a public non-traded REIT. Built in 2000, the community was 87% occupied at the time of the sale. We imagine operations could improve somewhat, as despite its good location and age, it sold for nearly $40,000 per unit less than the national average price of $217,000 per unit, for the 12 months ended June 30, 2017. Summit leased the community to Compass Senior Living, which already... Read More »
Big Sale In The Big Apple
When sales of skilled nursing facilities in New York occur, they can often come with a big price. That big price can be in total dollars invested as well as the price per bed. In a recent sale, it was both. Bon Secours New York Health System sold its Schervier Nursing Care Center in the Riverdale section of the Bronx for $87 million, or $239,000 per bed. The buyer was TL Management, LLC. The 364-bed skilled nursing facility was built in the mid-1970s on nine acres and has approximately 250,000 square feet. Occupancy has been strong, averaging between 90% and 95%, and revenues in 2015 were $54.3 million. The 2016 Medicare cost report has not been filed yet. EBITDA in 2015 may have been... Read More »
Greystone Centers In On Brooklyn
Six years since being acquired by Centers Health Care (then Centers for Specialty Care), a 510-bed skilled nursing facility in Brooklyn, New York is refinancing through HUD with the help of Greystone’s Fred Levine. The transaction comes at a good time for the facility, which has significantly improved its operations since Centers took over in 2011. The company has so far invested over $20 million in renovating the facility, which now maintains a five-star rating from CMS. Built in 1973, it is 97% occupied with a 49% Medicaid, 25% Medicare and 26% private pay census. Its services are comprehensive as well, including amputee recovery and training, cardiac care, palliative care, dental... Read More »
Strawberry Fields REIT Forever
Strawberry Fields REIT just added a 58th skilled nursing facility to its growing portfolio, at a price of $1.0 million, or $15,625 per bed, in cash. The company bought the 64-bed facility in Lebanon, Indiana and leased it to The Waters under a 10-year term with two five-year extensions. Strawberry Fields certainly got a good price for the property, but for good reason. Built in the 1970s, it was only 47% occupied with an 80% Medicaid, 7% Medicare and 13% private pay census. We can’t imagine cash flow was high either. And while we hear the facility is in relatively good condition, Strawberry Fields will invest in improvements. The seller is Hickory Creek Healthcare Foundation, a skilled... Read More »
Is The Carlyle Group Going To Sell HCR ManorCare?
While we are sure Carlyle would like to divest HCR, they may sell their German SNF company first. Okay, so is The Carlyle Group going to sell its HCR ManorCare portfolio company or not? Well, we may not know that answer for a few weeks, maybe days, but the large PE firm is on the move to dispose of other nursing facility assets. Just not in this country. Apparently, Carlyle is planning to sell its German nursing home company, Alloheim, which is the third largest nursing home company in Germany with more than 124 facilities in 2016. Carlyle bought it in 2013 for about 180 million euros when the company had just 49 facilities, up from 13 when London-based private equity firm Star Capital... Read More »Schedule a demo
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