The Senior Care Investors Have Spoken
Last week, we hosted a 90-minute webinar called “Seniors Housing M&A: The Numbers, the Deals and the 2017 Forecast” with panelists Arnold Whitman of Formation Capital, Bill Mulligan of Ziegler and Alan Plush of HealthTrust, and Steve Monroe moderating. The panel discussed our 2016 M&A statistics for the skilled nursing, assisted living and independent living M&A markets (to be published in the 22nd Edition of The Senior Care Acquisition Report this March), which saw new record-high prices for SNFs and ALFs. But those high prices contradict a growing sense of caution among investors, and lead us to wonder if we have passed the peak. Our listeners to the webinar certainly thought... Read More »
Another Propero Transaction for Arcadia Communities
Lancaster Pollard’s Propero Fund II was the financing source of choice once again for Arcadia Communities as it continues to grow its portfolio. Founded in 2008, Louisville, Kentucky-based Arcadia owns and/or operates three seniors housing and care communities in Kentucky and Michigan. Six months ago, the company obtained $12.1 million from Lancaster Pollard’s second Propero fund to develop a 79-unit community in Clarksville, Tennessee, which will include independent living, assisted living and memory care services. Now, Arcadia has another project in development, a 79-unit IL/AL/MC community in Bowling Green, Kentucky. Propero, which invests in seniors housing properties as the sole... Read More »
Marcus & Millichap’s County-Owned Specialty
Marcus & Millichap’s newest senior managing director of investments, Joshua Jandris, along with Mark Myers and Charles Hilding, just sold their 30th county-owned skilled nursing facility. Located in Ballston Spa, New York, and owned by Saratoga County, the 277-bed skilled nursing facility was built in 1971 and 1972, with additions in 1978 and 1979. Occupancy was 95%, but we understand operations can be improved. That will be the job of the new private owner and its operating tenant. Read More »Recent Senior Care M&A Deals, Week Ending February 24, 2017
Check out our recent transactions! Long-Term Care AcquirerTargetPrice National Health Investors, Inc.2 assisted living communitiesN/A CNL Healthcare Properties II, Inc.Summer Vista Assisted Living CommunityN/A Not disclosedGolden Living Center of Jesup & Thomaston$16 million NHP Foundation-Urban Atlantic Fund I, LLCErrichetti Senior Portfolio$43... Read More »Genesis Healthcare Disappoints in Fourth Quarter Earnings
The fourth quarter of 2016 was a tough one for Genesis Healthcare, but it appears 2017 will not be any better, according to both management and those in the industry. Metrics were down nearly across the board. Average occupancy fell 40 basis points from the third quarter to 85.1% (that is also 90 basis points down from Q4:15), and the weighted average revenue per day dropped $2 per patient day. The latter was largely caused, according to management, by reduced funding in the state of Texas, particularly in its Upper Payment Limit program. Those factors, among others, resulted in an adjusted fourth quarter EBITDAR of $156.6 million, which was down 2.7% year-over-year and well off consensus... Read More »National Health Investors Partners Ravn Senior Solutions
National Health Investors continues to grow at a steady pace. In the last 10 months, the REIT has publicly announced seven transactions, comprising 43 senior care or seniors housing properties. Just last month, NHI acquired five seniors housing communities operated by Senior Living Management. Now, it is purchasing two assisted living/memory care communities in North Carolina and entering into a new operating relationship at the same time. The adjacent communities are located in the town of Hendersonville (about 20 miles south of Asheville), with one being built in 1999 with 26 AL and 13 MC units, and the second opening in 2002 with 47 AL units. NHI funded the transaction with borrowings... Read More »
KeyBank and Capital Health Group Team For Success
KeyBank Real Estate Capital pulled doubly duty for its client, Capital Health Group (CHG), in arranging an acquisition loan to fund the company’s purchase of three senior living communities in southeastern Pennsylvania, and then turning around to refinance the loan through multiple Fannie Mae financings. This is not the first we have heard of CHG’s most recent acquisition. Announced in January, the sale of the Keystone Villa Portfolio was arranged by Toby Siefert, Brad Clousing and Jeff Binder of Senior Living Investment Brokerage. The three properties, located between Harrisburg and Philadelphia, were developed by the selling entity, a group of local operators in Pennsylvania looking to... Read More »
Seniors Housing Cap Rates On The Rise
For the first time since the Great Recession, average seniors housing cap rates increased year-over-year from 7.6% in 2015 to 8.2% in 2016. While that only approaches the high of the previous bull market (8.3% in 2007) it is a sharp break from this current bull market. But if there are a number of other signs that the market is still strong in 2016, why did average cap rates go up 60 basis points? First, as unprecedented high prices forced a number of buyers out of the market for high-quality “A” properties, investors pounced on more value-add opportunities to get their returns. Those riskier deals obviously featured higher cap rates. Second, the cost of borrowing went up in 2016,... Read More »
Blackstone, now Ventas, Vying for Brookdale Senior Living
With rumors that Blackstone was out of the bidding for Brookdale Senior Living, it was then leaked that Ventas was in discussions. The saga never ends. We are certainly in weird times. Last week, it appeared that Blackstone was out of the bidding for Brookdale Senior Living, or at least a part of it. Then, it was leaked late Thursday that Ventas was in discussions to buy all or part of Brookdale. What happened the next day? Brookdale’s stock dropped 6.5% on volume of more than 19 million shares, or almost five times the average. So, did investors think Ventas would not pay as much as Blackstone would, and were disappointed? Perhaps, but then after the long weekend, Brookdale jumped back up... Read More »Berkadia Serves Up Agency Financings
Berkadia’s Seniors Housing and Healthcare team, led by Chris Honn, has been working at a furious pace since the end of last year, closing $288 million in financings in the past two months. First up on the agency side, Berkadia arranged a $36.7 million Freddie Mac loan, with a 10-year fixed-rate term, for a recently stabilized 131-unit independent living community in Birmingham, Michigan. Through Fannie Mae, the team also closed a $98 million, seven-year loan (with a fixed rate) on behalf of the owners of a 605-unit entrance-fee CCRC in Florida who were looking to cash out their equity. For a portfolio of five skilled nursing facilities, and 222 beds, in Arizona, Colorado and Utah, Berkadia... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
