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 »
Greystone Gets It Done for Healthcap Partners
Healthcap Partners enlisted the help of Cody Tremper and Mike Garbers of Greystone Real Estate Advisors to sell their 60-unit/72-bed assisted living/memory care community in Forney, Texas (Dallas MSA). Cornerstone Senior Living was the buyer, adding their eighth community in 18 months at a price of $12.5 million, or $208,333 per unit. The community was recently built in 2013 and sits on a 13-acre lot with room to expand. This shouldn’t be the last we hear of the partnership between Greystone and private equity firm Healthcap Partners, as Greystone will also list Healthcap’s second senior living asset in north Houston. Read More »The Price of Age in Skilled Nursing
We have covered the demise of the 40-year-old skilled nursing facility in articles and webinars over the past few years, and the acquisition market has taken notice. In 2015, 52% of the properties sold were 40 years old and older, which made sense since nearly half the entire U.S. inventory of SNFs are this old. By 2016, however, 52% of the properties sold were between 20 and 40 years old, which in many cases are considered to be relatively “new.” This helps explain why the average and median price per bed jumped so much in 2016. The percentage in the newest category (less than 20 years old) remained relatively similar from 2015 (22%) to 2016 (20%). With the newer skilled nursing... Read More »Meridian Capital Group Funds Chicago SNF Deal
When three skilled nursing facilities sold in Chicago, Meridian Capital Group was there to arrange $48 million in balance sheet financing for the undisclosed buyer to fund the deal. Located across the city, the portfolio includes a large 310-bed facility, plus two smaller facilities with 156 and 143 beds. Occupancy averaged 85% across the portfolio. The financing covered 75% of the acquisition costs, so we can estimate the purchase price to be around $64 million, or $105,100 per bed. That would be near the national average for skilled nursing prices a few years ago, but not anymore with the prevalence of facilities valued over $100,000 in the last couple of years. The Meridian team of Ari... Read More »Recent Senior Care M&A Deals, Week Ending April 21, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice CareTrust REIT, Inc.Hope Center$11 million Regional operatorBella Vista Manor$3.3 million Edgewood Real Estate Investment TrustLegends at Heritage... Read More »Schedule a demo
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