Bensalem Blues
There is some work to be done for the new owner of an entrance-fee CCRC in Bensalem, Pennsylvania. Juniper Communities (headed by CEO Lynne Katzmann) purchased the community for $13.65 million, or $38,343 per unit, which is well off its 2005 (yes, 2005) price of $17.35 million, or $48,464 per unit. Back then, the unit breakdown was very similar to today’s, which is currently 279 independent living units, 60 assisted living units and 17 skilled nursing beds. Plus it was operating at a 16% margin with a 95% occupancy rate. While the community’s current operations were not disclosed, we have to assume they have fallen off some given the 21% decline in price. Built in 1981 with expansions in... Read More »
HHS and CMS Appointments
It could be a turbulent year for SNF valuations in 2017. After the election….that one….we thought we might be in for a wild ride with the unpredictable Donald Trump taking over. Healthcare M&A, which had slowed down a bit this year, seemed to be picking up, and interest in our products spiked after the election, which is always a telltale sign. But with yesterday’s announcements of the new heads of HHS and CMS, the ride could get a little wilder. By naming Tom Price to run Health and Human Services, one of the more anti-ObamaCare members of Congress and a physician to boot, you know what is going to happen. And apparently, he has been opposed to the rush to value-based Medicare... Read More »
A Premier Purchase
Premier Senior Living Group added a 23rd seniors housing community to its portfolio, and entered the Pennsylvania market at the same time. Founded by industry veterans Wayne Kaplan and Robert Borsody, the New York City-based Premier Senior Living already had operations in Michigan (9), New York (6), Ohio (3), North Carolina (2) and Florida (2). This new addition in Pennsylvania is located near Scranton in the town of Moosic. The stand-alone 35-unit (58 beds) memory care community was built in 1996 and is well occupied in the mid- to high-90s. Premier used its own equity to fund the $8.5 million, or $242,857 per unit, purchase price. Read More »
Divest in the Southwest
A joint venture between Westport Capital Partners and Integro Healthcare Consulting is swapping two seniors housing assets located in the Southwest. First, in Santa Fe, New Mexico, the JV is selling a 99-unit independent living/assisted living community with a checkered past to Sabra Health Care REIT for $22 million, or about $220,000 per unit. In addition, there are 46 individually-owned condos. Originally conceived as an IL for-sale condominium complex geared towards those in the LGBT community, the property opened in 2008 during the Great Recession, and had a difficult time leasing up under inexperienced ownership. The joint venture between Westport Capital Partners and Integro... Read More »Recap and refinance
Teaming up with two banks, Lancaster Pollard recently closed a $72 million recapitalization for a portfolio of six skilled nursing facilities in Texas and Oklahoma. The owner of the facilities is a regional provider based in Texas, which will be able to refinance its existing indebtedness, complete the buy-out of a partner and fund future growth initiatives with this transaction. Kyle Hemminger, Chris Mauger and Patrick Hackett led the way for Lancaster Pollard on the financing. Read More »
Being Thankful For What I Do
Happy Thanksgiving to all! So here we are, on Thanksgiving Eve. And what do I have to be thankful for? Besides my family, friends and co-workers, I am very thankful that I made the decision 30 years ago to get involved in the seniors housing and care business. It has been quite the ride, and for those of you who have been around a long time and remember, I am glad I took my last skilled nursing facility listing more than 22 years ago. I never sold it, but Mark Davis of Healthcare Transactions Group took over the sale for us when we exited the brokerage business in the early 1990s, and got the deal done. Since then, I have really enjoyed what I do, writing about what is happening with... Read More »
Brad brokers in Birmingham
When faced with the option of expanding its 45-unit assisted living community in Trussville, Alabama (Birmingham MSA), or exiting the industry altogether, a local owner/operator chose the latter, at a price of $4.5 million, or $100,000 per unit, with a 7.4% cap rate. Indeed, the owner had already completed initial planning for a Phase II expansion on the 4.5-acre campus. But the community, which was built in 2009, experienced a dip in census to 82%, although this was trending up at close of escrow. Operating margin was solid at approximately 22% on a trailing-12 month basis. Birmingham, Alabama-based Atlas Senior Living was the buyer, which is planning minor renovations to the common... Read More »The Art of Funding the Deal
Eli Kutner of Harborview Capital Partners has been busy of late, closing five acquisition loans that ranged from $3.19 million up to $34.89 million. That largest deal funded the purchase of two skilled nursing facilities (totaling 496 beds) in the towns of Gallatin and Lebanon, Tennessee (Nashville MSA). The loan featured an interest rate of LIBOR+2.85, a 25-year amortization and a three-year term. Staying in the Southeast, the smallest transaction, a $3.19 million loan with an interest rate of LIBOR+3.25, 20-year amortization and three-year term, financed the acquisition of a 135-bed skilled nursing facility in Tampa, Florida. Harborview stayed in the Northeast for the three remaining... Read More »
Canterbury Tales
Ziegler is helping a not-for-profit CCRC that has been operating for about 25 years in Waterford, Michigan (about 40 miles from Detroit) both refund existing debt and fund an extensive repositioning project. Already with 255 rental units, including 75 independent living units, 40 assisted living units and 140 skilled nursing beds, the community is owned by Canterbury Heath Care, Inc. and operated by LCS, which has been managing it since 1995. Times have changed though, and ownership is partnering with Greenbrier Development to build a new 32-bed memory care building (connected by a to-be-built two-story structure) and renovate the existing skilled nursing building to convert 24... Read More »
Public REITs can sell seniors housing assets too
We’ve read a lot about public REITs shedding their skilled nursing assets, but that’s not all they’re selling. A publicly traded REIT sold a pair of West Coast assisted living communities for $23 million, or $365,079 per unit. There is a 48-bed/24-unit assisted living/memory care community in Corvallis, Oregon, and a 78-bed/39-unit AL community in Citrus Heights, California. Over 93% occupied, the communities earned around $6.5 million in annualized revenues. The buyer, Summit Healthcare REIT, triple-net leased the properties for a term of 10 years to an affiliate of Compass Senior Living. Acquisition financing was arranged by Capital One, and Tim Cobb of Blueprint Healthcare Real Estate... Read More »Schedule a demo
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