Record Skilled Nursing Prices Have Peaked
After setting record prices for four straight years, the 2016 record price may have some staying power. As you know, the average price per bed for skilled nursing facilities hit a record in 2016 for the fourth year in a row. The number of properties selling for more than $100,000 per bed, which used to be reserved for only the very best facilities, also hit a record. I hate to be the bearer of bad news, but I believe last year’s record average price may have some staying power. As I said last week, I have been accused of being Mr. Doom and Gloom, but realistically, when looking at the landscape, there is little positive that would push prices higher. Medicare Advantage is pushing down... Read More »Investor Sentiment at the NIC Conference
Last week’s 60 Seconds with Steve video greeted everyone attending the NIC Conference in San Diego and asked what the sentiment might be during the conference. In years past, you could tell we were in a bull market with all the deal making going on in public, the exuberance of the crowds and the general noise level. Although the stated attendance was approximately 1,500, it did seem a little smaller than that, without the usual crowds in the lobby bar for one last nightcap and another round of industry gossip. The overall sentiment was one of caution, and this was especially true in the skilled nursing side of the business (see today’s 60 Seconds video). As we all know, the American Health... Read More »Capital Funding’s Trio of Financings
Showing off its prowess at HUD refinances, Capital Funding Group closed three of them for clients in the Southeast. First, in Washington D.C., Patrick McGovern provided a $10.5 million HUD loan to a 183-bed skilled nursing facility. This transaction comes full circle for Mr. McGovern, who arranged the original bridge acquisition loan (being taken out by the current HUD refinance) in addition to a $2 million working capital line to finance operations. Then, Gary Sever of Capital Funding Group closed two other transactions, including a $2.57 million HUD loan for an assisted living community in North Carolina and an $18.9 million HUD refinance of an assisted living community in Crozet,... Read More »HJ Sims Helps Volunteers of America
Volunteers of America partnered with HJ Sims to issue $39.73 million in tax-exempt bonds to refinance its 268-unit/bed CCRC in Anoka, Minnesota. Originally built in 2012 with 120 skilled nursing beds and 59 assisted/independent living units, this community added 65 IL units and 24 memory care units to the campus, in addition to converting the 59 AL/IL units to all-assisted living. The borrower is an affiliate of Volunteers of America, an interdenominational church and Christian human services organization that has been in operation since 1896. Series 2011 and Series 2014 bonds financed the development of both phases of the community, and the Series 2017 bonds will advance refund only the... Read More »Recent Senior Care M&A Deals, Week Ending March 24, 2017
Check out our recent senior care M&A transactions! Long-Term Care AcquirerTargetPrice Carefield Senior LivingPark Visalia Assisted Living$7.65 million The Ensign Group, Inc. Desert View Senior LivingN/A Tryko Partners, LLC Spaulding Nursing and Therapy CenterN/A Institutional investor The Waters of... Read More »Booming Blueprint
Following Blueprint Healthcare Real Estate Advisors’ announced acquisition of Pyms Capital Resources, the brokerage firm highlighted its growing strength with two more deal closings in the middle of the country. First up, Christopher Hyldahl and Giancarlo Riso arranged the sale of a six-facility skilled nursing portfolio in Iowa on behalf of the local owner/operator seller. The portfolio, which includes 273 total dually-certified beds, offers a huge opportunity for improvement to the buyer, a New York-based owner/operator interested in expanding in Iowa. Built over the last 20 years by the seller, the portfolio was just 52% occupied at the time of the sale, but had a quality mix of... Read More »Berkadia’s Banner Year Continues
Berkadia is already having a banner year for its Seniors Housing and Healthcare team, led by Chris Honn. So far in 2017, the firm has closed over $300 million in financings, the largest being a $98 million seven-year Fannie Mae loan for a 605-unit entrance-fee CCRC in Florida. Berkadia just announced its latest transaction, also with Fannie Mae. On behalf of a new client, Heidi Brunet of Berkadia arranged a $19.5 million, seven-year loan to pay off existing construction debt. The recently leased up property in question is located in Washington State and features 120 units of independent living, assisted living and memory care. This financing will also help the new client fund upcoming... Read More »Occupancy’s Impact on Skilled Nursing Facility Prices
The skilled nursing industry has experienced consistent declines in average occupancy over the past few years, sinking to a new low of 81.8% in the fourth quarter of 2016, according to NIC’s latest Skilled Nursing Data Report. It should be said that the actual level of occupancy has become less important for skilled nursing facilities because the focus has been centered on short-term-stay patients. Almost by definition, because of the high level of turnover with these patients, and the inability to consistently and constantly fill those beds on discharge, overall occupancy tends to suffer. But since these patients are more profitable than longer stay patients, providers have not worried as... Read More »A New Institutional Buyer Lands in Plymouth, Minnesota
A joint venture between The Waters Senior Living and an institutional partner has acquired a recently built assisted living/memory care community in Plymouth, Minnesota, with the help of financing arranged by Aron Will of CBRE. The Waters originally developed and has operated the property in Plymouth, a high-income suburb of Minneapolis. With 61 assisted living and 28 memory care units, the community will still be managed by The Waters. To fund the deal, CBRE secured a $16.25 million floating rate loan from a national bank, with a three-year term that is interest only. That structure seems to be the sweet spot for the prolific Mr. Will. Read More »
Seniors Housing Sentiment on Eve of NIC Conference
As we ready ourselves for attending the NIC Conference, it should be interesting from a sentiment perspective. Good morning San Diego! For those of you attending the NIC Conference I hope to be able to chat a little with you, maybe later tonight or Thursday night. You know where to find me. This will be an interesting conference from a sentiment perspective. Are people still on a high from some of the record pricing in the acquisition market of the past few years? Or will we be seeing continued caution from those worried about occupancy, labor, rising interest rates and the new community openings this year? The party is definitely not over, but if you were to balance out the positives with... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
