Recent Senior Care M&A Deals, Week Ending May 5, 2017
Check out our recent transactions! Long-Term Care AcquirerTargetPrice Kayne Anderson Real Estate AdvisorsSentio Healthcare Properties$825 million Capital Healthcare InvestmentsSkilled nursing portfolio$130 million O&M Investments, LLCBlue Ash Care Center$4 million Sunrise Senior LivingProvision Living at Webster... Read More »Sentio Healthcare Properties Agrees To Sell
In breaking news, Kayne Anderson Real Estate Advisors announced that it entered into a definitive merger agreement to buy Sentio Healthcare Properties, which is partly owned by KKR (NYSE: KKR), in a transaction valued at $825 million. Kayne is paying $14.37 per Sentio share in cash about 11.5 million shares) with some upward adjustments that will most likely take the price to $14.65, with the deal expected to close in the third quarter. Sentio is a public, non-traded REIT that owns a mix of seniors housing properties and MOBs. Citigroup Global Markets and Holliday Fenoglio Fowler (nice month they are having) were the financial advisors to Kayne, and Robert A. Stanger & Co. and UBS... Read More »Expensive Seniors Housing Sales With Low Expense Ratios
It’s no surprise that as a community’s expense ratio declines, its value increases. As such, there was a near-perfect correlation between the expense ratio and the average price per unit paid in the seniors housing market in 2016 (including independent living and assisted living communities), according to the The Senior Care Acquisition Report. The best-operating communities with expense ratios under 65% were valued on average at $298,100 per unit, way up from the $256,100 per unit recorded in 2015. Both years were still heavily influenced by high-quality independent living sales. Meanwhile, the grouping with a 65% to 69% expense ratio fell in value year over year, from $193,000 per unit... Read More »Aron Will and Avanti Senior Living
Plans for an Avanti Senior Living community in Covington, Louisiana (New Orleans MSA) have been in the works for several years. Now, it is one step closer, with Aron Will of CBRE arranging a $14 million construction loan to fund the project. A regional bank provided the financing, which features a four year, floating rate term and 48 months of interest only. Avanti is developing the project in a joint venture with Iron Point Partners, an investment manager that manages several real estate private equity funds. Designed with the local style in mind, the planned community will resemble a large manor house, featuring 60 assisted living units and 50 memory care units. Adding to its appeal, the... Read More »
Skilled Nursing Facility Turnaround a Priority
Revera, Inc., a Canadian senior care operator, has at last completed the sale of its portfolio of Northeast skilled nursing facilities, with the sale of a struggling 96-bed skilled nursing facility in Barre, Vermont. The deal was a long time coming and part of a four-property portfolio, which included facilities in Connecticut, New Jersey and Massachusetts that sold in 2015 and 2016. The parties agreed that each transaction would close as change of ownership was approved, and Barre was the last one. The property has seen better days. Built in 1972, the single-story facility with a majority of semiprivate units was recently designated a special focus facility by CMS. Occupancy and the... Read More »
New Senior Care M&A Data
Assisted living per-unit prices rise for the latest four quarters, while skilled nursing remains the same. It was a relatively slow first quarter with regard to publicly announced seniors housing and care acquisitions, other than some old large deals announced last year that finally closed in the quarter. On a rolling four quarters basis, the average price for assisted living jumped to $210,300 per unit for the period ended March 31, compared with $193,650 per unit for calendar year 2016. The average cap rate remained at 8.5% but with an obvious wide range. Meanwhile, independent living did the reverse, dropping to $208,900 per unit for the four quarters ended March 31 compared with... Read More »
Blueprint And O&M
Blueprint Healthcare Real Estate Advisors was involved in yet another acquisition by O&M Investments, LLC this month. The team of Ben Firestone, Connor Doherty and Michael Segal represented a publicly traded REIT and a regional operator in their strategic divestment (to O&M) of a 64-bed skilled nursing facility in Blue Ash, Ohio, an affluent suburb of Cincinnati. Built in 1969 but renovated in 2006, this single-story facility features 10 private units and 27 semiprivates. Los Angeles-based O&M, which is led by principals Nick Martinez and Todd Okum, will have their work cut out for them, as the facility reported negative cash flow on $4.4 million of revenues at the time of the... Read More »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 »Schedule a demo
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