Assisted Living Acquisition in Acworth
An undisclosed institutional buyer purchased a 92-unit assisted living/memory care community in Acworth, Georgia, with the help of an acquisition loan arranged by Aron Will of CBRE. A life insurance company provided the $22.5 million financing, which came with a five-year term, a fixed interest rate and 24 months of interest only. This community has had a brief but strong operating history. Owned by CNL Healthcare Trust, it was developed by Solomon Development for about $2.8 million under budget (altogether, approximately $19 million, or $206,500 per unit). When it opened in July 2014 with 68 assisted living and 24 memory care units, it was already 50% preleased and reached 100% occupancy... Read More »Meridian Capital Group’s Strong 2017 Start
Meridian Capital Group shot out of the gates in 2017, already with $175 million in closings to date. In addition to its impressive volume, the firm’s healthcare division, led by Ari Adlerstein, Ari Dobkin and Josh Simpson, showed off its variety, closing construction, mezzanine, bridge, balance sheet and asset-based loans for its clients. The largest of the financings was a $93 million loan to facilitate the acquisition of a 900-bed skilled nursing portfolio in the Northeast. Meridian arranged three other acquisition financings, including $9.9 million for a 120-bed skilled nursing facility in Maryland, $3 million for a 230-unit senior living community (with independent living, assisted... Read More »
Lancaster Pollard Nets Fannie Mae Financing for Oregon Assisted Living Community
When BPM Senior Living Company decided to permanently finance its assisted living/memory care community in Milwaukie, Oregon, Lancaster Pollard had the solution. Matt Lindsay and Doug Harper of Lancaster Pollard successfully arranged a $5.3 million loan from Fannie Mae, going from engagement to closing in under 60 days. Making that timeframe even more impressive is that a planned change in management from third-party to in-house occurred during the underwriting process. BPM was also able to extract significant equity from the transaction, which comes 12 years after its original purchase of the community. Built in 1979 as a 79-unit independent living community, BPM purchased the community... Read More »The Stratification of the Skilled Nursing Facility Market
We have talked a lot of skilled nursing prices reaching an unprecedented peak in 2016, at $99,200 per bed, per our just-released 2017 Senior Care Acquisition Report. But even though the average price per bed has risen to extremely high levels, there remains a large difference between those newly built skilled nursing facilities, as well as those with a very strong Medicare census, compared with lower-quality and older properties. In 2015, the upper quartile for skilled nursing pricing was $123,000 per bed, meaning that 25% of the skilled nursing properties sold were transacted above this price level. The upper quartile jumped again in 2016, this time by 15% to $143,300 per bed. Just five... Read More »
Senior Care And Labor
No talking about deals, values, stock prices and cap rates, not even Brookdale Senior Living. It’s time to talk labor. I know you usually hear me talking about deals, values, stock prices and cap rates, and let’s not forget Brookdale Senior Living. But I am going to digress a bit from the usual. The entire seniors housing and care business seems to be avoiding what I really believe is going to be a labor meltdown. Cost is one thing, and it is already impacting the bottom line of many providers. But the quality, the training, or lack of, is just something that I think is still missing, and it will begin to poke holes into the marketing pitch for seniors housing and care. For all of... Read More »
Cushman & Wakefield’s Deal Double
Showing off its range of services, Cushman & Wakefield closed a couple of transactions for clients in both Minnesota and Arizona. First up, David Rothschild and Mary Christian sold a high-quality senior living community in Woodbury, Minnesota for $22 million, or $285,714 per unit. Welltower bought the community, which opened in June 2015 with 39 independent/assisted living units, 32 memory care units and six care suites. Oppidan Investment Co. developed the community and had brought in Ebenezer to manage it. However, the buyer will put in place new management, which we believe will be New Perspective Senior Living. Occupancy was heading above 80% at the time of sale. For more... Read More »
Mainstreet Health Investments’ Growing and Shrinking Relationship with Ensign
Based in Toronto, Ontario with a concentration of properties in Chicagoland and Texas, Mainstreet Health Investments Inc. (MHI) is entering the California and Arizona markets with an acquisition from The Ensign Group. Featuring 381 units/beds, the portfolio includes two post-acute/skilled nursing facilities and a senior living community in the Los Angeles and Phoenix markets. Ensign, which we typically see as a buyer, will continue to operate the properties, now under an absolute net master lease with an initial 20-year term and CPI-based annual escalators. In the past year, Ensign has expressed a desire to own the real estate of more properties of its portfolio, however this transaction... Read More »Love Funding Fuels Senior Living Construction Project
James Vanar of Love Funding arranged a $6.8 million bridge loan for a new assisted living/memory care development in South Jordan, Utah. Giza Development leads the team, including Stout Construction and Primera Group, developing the 62-bed community, which will be operated by SAL Management Group. Midland States Bank, the parent company of Love, provided what is now the second loan for Giza (the first was for a development in Ogden, Utah in 2016). Since its launch in May 2015, Love Funding’s bridge lending platform has financed more than $153 million in closings and has another $220 million in loans in the pipeline. That should make for a busy 2017. Read More »Recent Senior Care M&A Deals, Week Ending March 10, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice VentasKoelsch senior living portfolio$137 million Chicago-based partnershipBrentwood Sub-Acute Healthcare Center$7.25 million Allied Services Integrated Health SystemMercy Skilled Nursing and Transitional Care UnitN/A Welltower Inc.Red Rock Senior Living$22 million ... Read More »
Buying in Burbank
It may have seen better days, but a skilled nursing facility in Burbank, Illinois sold to a pair of Chicago-based companies for $7.25 million, or $44,500 per bed. The 163-bed facility was sold by a New York-based owner of more than 180 skilled nursing facilities located across the country. In-place cash flow was negative at the time of the sale and occupancy had declined over the past few years. But that hasn’t always been the case, with local operators noting the well-maintained facility’s strong operations in the past, including back-to-back years of total revenue and EBTIDAR exceeding $10 million and $1 million, respectively. A partnership between a national real estate investor and an... Read More »Schedule a demo
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