Sizing Up the Seniors Housing Market
In 2016, buyers paid up for larger seniors housing communities (including independent living and assisted living) compared to 2015. We observed in the 22nd Edition of The Senior Care Acquisition Report that once again, the largest properties, with 150 units or more, still beat out smaller properties in price, averaging $226,200 per unit, 16% higher than 2015’s $195,600 per unit. Here is where the high-priced independent living communities that sold in 2016 exerted their influence in the overall market, representing a clear majority of the largest properties and pushing up the price. Communities with between 100 and 149 units came with a lower price than 50- to 99-unit communities,... Read More »
Evans Senior Investments’ Big Texas Sale
We wrote last week that Texas accounted for over a third of transactions in April, but Evans Senior Investments closed out the month with one more, and it was the largest. Featuring three private pay assisted living/memory care communities and 221 total units, the Stoney Brook portfolio sold for $45 million, or $203,620 per unit, with a 6.4% cap rate. They were owned by Stoney Brook Communities and built in 2010 and 2011 in the central Texas towns of Belton, Hewitt and Copperas Cove. Two are stabilized, with occupancy in the high-90s and operating margins around 35%, but the Copperas Cove community is considered value-add at 80% occupancy and an 8% operating margin. In addition to... Read More »Recent Senior Care M&A Deals, Week Ending April 28, 2017
Check out our recent transactions! Long-Term Care AcquirerTargetPrice Regional companyThe Lodge at Quail Park$7.86 million Private equity groupArbor House of Dallas$1.48 million Cornerstone Senior LivingThree Forks of Forney$12.5... Read More »An Optimal Size for Skilled Nursing?
As the skilled nursing market evolves, lengths of stay and occupancy decline, and new entrants like Mainstreet change the way we view skilled nursing/post-acute care facilities, what is the ideal size of facility now? Based on 2016 sales according to the 22nd Edition of The Senior Care Acquisition Report, the average size of skilled nursing facilities sold dropped for the first time in three years to 122 beds, and was closer to the historical norm of 120 beds. That fell from 130 beds in 2015, and is the lowest since 2013, when facilities averaged 121 beds. The smallest facility sold in 2016 was 40 beds, compared with 30 beds in 2015, while the largest facility sold in 2016 was 744 beds,... Read More »Regional Owner/Operator Grows in Texas
Texas transactions make up over 30% of the senior care deals announced so far in April, involving mostly assisted living communities and one skilled nursing facility trading hands in what is an overall slow month (so far). Evans Senior Investments arranged the most recent: the purchase of a 64-unit assisted living community that is nearly all private pay but could improve its 81% occupancy. Built in 2001 and renovated in 2007, the community was owned by Living Care Senior Housing Development and is located on about four acres just outside of Dallas, in the town of Frisco. In addition to census, operations could also improve, with just a 12.5% margin on $2.65 million of revenues. There is... Read More »
Opportunity Knocks for Memory Care Community in Texas
A stand-alone memory care community in Dallas, Texas has some clear room for improvement, despite being built less than 10 years ago. Located just 10 miles from downtown, the community is made up of four “neighborhoods,” each with a dining area, living room, family/TV rooms and courtyards. Despite its relatively new build (in 2008), it was just 56% occupied and operated on an 8.7% margin on $1.47 million of revenues. Perhaps that is due to the increased construction in the Dallas-Fort Worth area, meaning a 2008 build is not state-of-the-art anymore. The buyer, a private equity group located in Southern California, has plans to invest in capital improvements at the community to make it more... Read More »Housing & Healthcare Finance’s Bridge Lending Business
The bridge lending program at Housing & Healthcare Finance seems to be flourishing since its launch in Fall 2015. It had a strong year in 2016, when the Capital Advisory Group (which arranges bridge loans and revolving lines of credit) closed about $350 million in transactions. Now, the team of Isaac Haas and Neil Gamss isn’t letting up, closing over $65 million in bridge loans in April alone. All of the loans were for skilled nursing clients across the country, including a $14.8 million loan for two facilities (with 213 combined beds) in Cincinnati, Ohio, a $21.5 million loan for three facilities (with 346 beds) in Oklahoma and a $13 million loan for two facilities (also with 213... Read More »
The Audience Has Spoken
On April 27, The SeniorCare Investor’s Steve Monroe moderated a webinar entitled “Investing in the CCRC and Independent Living Market,” with panelists Breck Collingsworth of Resort Lifestyle Communities, Adam Kane of Erickson Living and Rick Swartz of Cushman & Wakefield. During the wide-ranging 90-minute discussion, which you can listen to here, the panel tackled CCRC valuations, cap rates, the IL/CCRC development market, whether these property types will suffer in the next recession as much as the last one. We also brought in the audience a few times to get their insight. First, we asked which property should have a higher cap rate, 100% independent living or a mix of IL, assisted... Read More »
Kindred Healthcare For Sale, Or Not
Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company. Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not... Read More »
Two Southeast Sales from Senior Living Investment Brokerage
Brad Clousing of Senior Living Investment Brokerage showed his strength in the Southeast, closing two transactions in Georgia and Florida. He first helped a partnership exit the seniors housing industry with the sale of their 64-unit memory care community in Fayetteville, Georgia (20 miles south of Atlanta). The partnership hadn’t been together long (the facility only opened in 2013), but a death within it affected the lease-up process and prompted the sale. The purpose-built community is currently 81% occupied, and working towards stabilization. Since it’s still in lease-up, it was offered at a slightly discounted price per unit, selling for $11 million, or $171,875 per unit. New... Read More »Schedule a demo
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