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 »
Aurora Boreali-SNF
Recent operational difficulties certainly affected the value of a recently sold skilled nursing facility in Aurora, Colorado, but it is certainly on the upswing. Built in 1973, this 120-bed facility was traded back and forth in the 1990s (selling for $4.85 million in 1995 and for $6.62 million in 1998) and eventually became part of a California-based publicly traded REIT’s portfolio. It recently ran into some operational difficulties (including a stint on the special facility focus list), prompting the REIT to hire a new operator and get the facility back on track towards regulatory compliance and improved operations. The operator had succeeded in turning around the property, but the REIT... Read More »
Assisted Living Purchase in the Idaho Panhandle
Jason Punzel and Brad Goodsell of Senior Living Investment Brokerage helped a local operator in Rathdrum, Idaho (in the state’s panhandle) sell their only seniors housing asset. Despite its rural location, the assisted living community operated well. Built in 2005 with expansions in 2007 and 2013, it operated at over a 35% margin on approximately $2.2 million of revenues, and occupancy reached 98%. However, its remote location certainly did not push up the price, as the community sold for $8 million, or a below-average $166,700 per unit. To put it in perspective, the national average price for assisted living, according to the 2017 Senior Care Acquisition Report, is $193,650 per unit. An... Read More »Trust In SunTrust Bank
SunTrust Bank pulled double duty for an entrance fee CCRC in Stone Mountain, Georgia, providing permanent financing for both the existing community and a new addition in the form of a $74.4 million loan on behalf of the owner/operator, Isakson Living. Through its Aging Services practice, SunTrust provided a mix of fixed- and floating-rate debt, about 60% of which went towards refinancing the existing 398-unit CCRC, known as Park Springs. Built in 1999, the community was over 90% occupied and was ready to expand. So, the remaining 40% of the financing (about $27.8 million) funded a brand-new health center to feature an 18-unit skilled nursing rehab facility next to a new physical therapy... Read More »Recent Senior Care M&A Deals, Week Ending July 14, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice MedEquities Realty Trust, Inc.2 skilled nursing facilities$15 million The Ensign Group2 CCRCsN/A Harbert Seniors Housing Fund IMorningStar of Wheat Ridge and... Read More »
What Do The Experts (and the Audience) Say On The Labor Crisis?
On Thursday, July 13, we hosted a webinar entitled, “The Coming Labor Market Shock to Senior Care,” with panelists Glenn Barclay of Quality Senior Living, John Gonzales of SDG Senior Living and Lori Porter of the National Association of Health Care Assistants. For 90 minutes, the panel discussed how the industry will deal with a labor shortage, improving retention rates, improving onboarding and training practices, an increased minimum wage to $15 per hour in the coming years, technology’s impact on labor demands and how middle market operators will be able to deal with these changes. If you’d like to hear a recording of the webinar, click here. Needless the say, the industry has a lot of... Read More »Seniors Housing Occupancy Weakens
NIC announced their second quarter occupancy and development trends, and unfortunately it was not pretty. After a first quarter which suffered from the ubiquitous flu season census declines, we had expected, at worst, a small sequential decline in the second quarter, but perhaps a small 10 to 20 basis point uptick, maybe even better. For majority assisted living in the top 31 MSAs, for those properties open for two years (stabilized properties) average occupancy dropped 50 basis points from the first quarter to 88.9%, but down 80 basis points from the year-ago quarter. Historically, the average second quarter sequential decline is 10 basis points, and the current 50 basis point drop was... Read More »Schedule a demo
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