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 »
Lancaster Pollard’s Transaction Triple
The team at Lancaster Pollard posted a trifecta of Fannie Mae/HUD transactions across the middle of the country. The largest of the three, an $11 million Fannie Mae loan with a 10-year fixed-rate term, was arranged for an assisted living/memory care community in Omaha, Nebraska. The community had existing Fannie Mae debt, at a higher interest rate, but was in need of repairs and renovations. Quintin Harris arranged the transaction, which provided $3 million in new money for the renovation project. Then Kyle Hemminger closed a Fannie Mae loan for a three-year old, 48-bed memory care community in the Houston area that is owned by a Texas-based operator. That was the second Fannie Mae closing... Read More »
Caddis Recapitalizes Five “Heartis” Seniors Housing Communities
Caddis just recapitalized five of its brand-new seniors housing communities in Texas. We’ve written about the “Heartis” brand (and Caddis-developed) before, which continues to grow in a number of Texas markets. The five properties just recapitalized are located in Amarillo, Cleburne (Fort Worth MSA), Conroe (Houston MSA), Cypress (Houston), and Fort Worth, a number of markets we have been keeping our eye on for overdevelopment. Nevertheless, this 352-unit portfolio must be performing well under the management of Frontier Management. Grant Saunders and Jay Jordan of KeyBank Real Estate Capital originated and underwrote the $62 million term loan. Read More »
Autumn Senior Living Springs Forward With Three New Projects
Autumn Senior Living is investing around $100 million in the Tampa Bay MSA to build three more senior living communities, two of which will feature its “I-Lite” product. A form of aging-in-place, I-Lite was created to provide assisted living services to residents as their care levels progress, without moving them. Including this service will be Atrium at Autumn, an I-Lite expansion of the company’s current stand-alone memory care community in Sarasota that was designed in cooperation with the USF Health Byrd Alzheimer’s Institute, a leader in dementia research. The community, which will cost approximately $38 million to develop, will offer four different floor plans to residents: a... Read More »Schedule a demo
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