The Price of Empty Units in Assisted Living
When comparing stabilized and non-stabilized assisted living communities (with stabilized defined as having an occupancy equal to or higher than 85%), there is a clear difference in the price per unit, according to the 2017 Senior Care Acquisition Report. The gap between stabilized and non-stabilized properties grew year over year from $61,500 per unit in 2015 ($139,100 per unit for non-stabilized and $200,600 per unit for stabilized) to $87,200 in 2016 ($147,700 per unit for non-stabilized and $234,900 per unit for stabilized). That does not surpass the disparity recorded in 2014, however, when stabilized properties sold for $230,300 per unit compared with just $139,000 per unit for... Read More »
Busy Berkadia
Berkadia has been busy so far this month, closing four transactions that ranged from Fannie Mae financing to HUD debt to a bridge loan. Starting with the largest, the team of Heidi Brunet and Jay Healy utilized Berkadia’s proprietary bridge loan program to finance the $28 million acquisition of three skilled nursing facilities, totaling 222 Medicare-certified beds, in Colorado, Kansas and Nevada. The borrower used the proceeds of the 12-month loan to fund 100% of the purchase price, plus transaction costs, and plans to refinance through HUD. Brunet and Healy also closed two HUD loans as well, including a $2.5 million, 35-year loan for a 120-bed skilled nursing facility in Sarasota,... Read More »Recent Senior Care M&A Deals, Week Ending April 7, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice The Ensign Group, Inc.Rehabilitation Center of Des MoinesN/A O&M Investments, LLCRenaissance Terrace$6.1 million Owner/operatorThe Bridge at Bay St. Joe$9.35 million Cascade Capital Group, LLC18 skilled nursing facilities$82... Read More »Blueprint Healthcare Real Estate Advisors Is Booming
Blueprint Healthcare Real Estate Advisors has been on a roll recently, to say the least. Perhaps this sales spurt was kick started by some new energy entering the firm in the form of Pamela Pyms and Hayden Behnke of Pyms Capital Resources, because since that announcement, Blueprint has closed seven transactions accounting for 30 facilities. We detailed the first four in this month’s issue of The SeniorCare Investor, which will hit your desks next week. Which included Blueprint’s largest transaction of the bunch, involving 18 skilled nursing facilities and some 1,843 total licensed beds. Located in Kansas (9), Missouri (6), Iowa (2) and Nebraska (1), these midwestern SNFs were part of the... Read More »
Luxury Senior Living Community Sells in Hoover, Alabama
LCS is selling its 232-unit senior living community in Hoover, Alabama, almost exactly three years after acquiring it in a joint venture with Walton Street Capital. LCS still left its mark at the community, converting 24 assisted living units to memory care in 2015. Built in 2009, the community currently features 160 independent living, 48 assisted living and now 24 memory care units on its 17-acre campus. Monthly rents averaged $4,148 for independent living, $4,700 for assisted living and $5,500 for memory care. The average income in Hoover (just outside of Birmingham) exceeds $110,000 per household, making it one of the wealthier areas of the southeast. So, the facility hasn’t had a... Read More »
A Not-for-Profit’s Skilled Nursing Saga
After several years of operational difficulties and financial losses, a not-for-profit owner is selling its 75-bed skilled nursing facility in Odessa, Texas, with the help of Charles Hilding, Ryan Fleming, Mark Myers and Joshua Jandris of IPA Seniors Housing. The facility, which we believe to be on the older side, hadn’t always been a financial drain. In fact, as recently as 2014, it generated revenues of over $3 million and operated at a 10% margin. However, ownership extensively renovated the building in 2015/16, which required the closure of a wing. The project hit both operations and the owner’s liquidity hard, prompting the sale. The buyer, Trinity Healthcare, assumed operations in... Read More »Paying Up for “A” Quality in Independent Living
Last week, we examined what buyers paid for “A” quality assisted living properties versus “B” quality, according to the 22nd Edition of The Senior Care Acquisition Report. But what about independent living, which has not received the same attention that assisted living has in recent years and has not seen as much new construction (which are often categorized as “A” properties). Nevertheless, hitting new heights this year was the average price paid for “A” quality independent living communities. Those properties, which we determine on several factors including age, size and location, sold for an average of $285,800 per unit, or about $8,000 per unit higher than in 2015. “B” properties, on... Read More »
The Ensign Group Shores Up Its Iowa Skilled Nursing Presence
The Ensign Group kept its steady deal flow coming with the acquisition of a 74-bed skilled nursing facility in Des Moines, Iowa. This makes six properties in Iowa for Ensign, which leased the facility to its Midwest-based subsidiary, Gateway Healthcare. Occupancy was just 74%, but that is typical of Ensign acquisitions. The Iowa deal is similar to the company’s acquisition of a 100-unit assisted living/memory care community in Las Vegas, Nevada, which we detailed in the April issue of The SeniorCare Investor. That property could also improve its census, which stood at 45% at the time of the sale. This tendency of Ensign to acquire value-add properties (at the pace it has been acquiring)... Read More »
March Madness and Washington Madness
While March Madness for basketball may be over, the madness in Washington with healthcare reform and Medicaid block grants may be just beginning. First of all, although I am not a gambler, and do not like to speculate in stocks, I do love to fill in my brackets for March Madness. And I have been participating in Randy Bufford’s Trilogy Health Services Madness group for about 10 years now. And….this year I came in fourth out of 695 participants, my second top five finish in 10 years. That’s the good news. The other good news is that, although we were subject to quite a bit of dysfunction in Washington two weeks ago, it looks like the skilled nursing industry has been spared the chaos that... Read More »
Two Quick Sales for Senior Living Investment Brokerage
Ryan Saul of Senior Living Investment Brokerage closed out the month in style with two transactions. First, in Decatur, Illinois, Mr. Saul sold two senior living communities located across the street from each other. Built in 2001, Keystone Gardens is a 50-unit independent living community, while Keystone Meadows, which was built in 1999, features 60 units of assisted living. Both communities are 72% occupied. These were the only Illinois properties for the Michigan-based seller, which had reached their hold on the investment and decided to liquidate. The buyer, a Michigan-based regional operator with three other communities in Illinois and others across the Midwest, plans to leverage... Read More »Schedule a demo
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