Two dually-certified SNFs sell
A pair of skilled nursing facilities with 235 dually-certified beds in Texas changed hands this month, with the help of Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors. The facilities combined for a total purchase price of $10 million, or $42,553 per bed, and they differed slightly in quality. The facility in North Central Texas was built in 1969 and was just 74% occupied, while the other facility, located in East Texas, was built in 1982 and had stronger occupancy, at 91%. Both had a quality mix of around 14%. So there will be some work to improve census and quality mix for the regional owner/operator buyer, which purchased the facilities from a national... Read More »
Values in the Seniors Housing and Care M&A Market Jump
For the four quarters ended September 30, average prices in the independent living market have increased, as have assisted living prices and skilled nursing prices. The seniors housing and care M&A market has seen less activity this year than in recent years, but that doesn’t mean buyers are not paying up for the assets they want. The best example is in the independent living market, where the average price paid in the four quarters ended September 30 was $234,000 per unit, or 21% higher than in calendar year 2015. The average cap rate remained steady at 7.0%. Assisted living prices have risen as well, jumping a smaller 5% for the past four quarters compared with 2015 to an average... Read More »
Double whammy from Cassie and Mahoney
The team of Tony Cassie and Dan Mahoney from Marcus & Millichap recently closed two skilled nursing transactions out West. First up, and the smaller of the two, a regional operator purchased an 88-bed facility in Ogden, Utah, for $7.5 million, or $85,227 per bed, with a 10.7% cap rate. Messrs. Cassie and Mahoney, along with McSean Thompson, represented both the buyer and seller, a Salt Lake City-based operator. That same group handled the sale of a 165-bed skilled nursing facility in Seattle, Washington. An East Coast-based operator bought it from a national not-for-profit organization for $10.15 million, or $61,515 per bed, with a 12.2% cap rate. Both built in the early 1960s, the... Read More »
Going, going, Greystone
A senior living community in Jacksonville, Florida with an unusual set-up traded hands with the help of Greystone. Owned by a publicly traded REIT, the 245-unit community was built 30 years ago on 14 acres, and provides independent living, assisted living and memory care. The Brookdale-operated campus is spread out among 12 residential buildings and one common area building. Despite upgrades made to the resident units, common areas and building exteriors in recent years, the community sold for $21.5 million, or $87,755 per unit, to a private equity firm. Cary Tremper of Greystone arranged the nonrecourse acquisition financing through a regional bank, while Cody Tremper and Mike Garbers... Read More »Doherty does it again
About a month after closing the sale of a healthcare campus in Toledo, Connor Doherty of Blueprint Healthcare Real Estate Advisors headed a bit east to sell a 37-unit assisted living community in Olmsted Falls, Ohio, with support from Jacob Gehl and Brian Payant. The property was developed in 2000 about 10 miles from downtown Cleveland. A well respected Ohio-based owner/operator ended up buying the community, paying $5.8 million, or $156,757 per unit. Read More »
Lining up in Massachusetts
It was just a matter of time when Skyline Healthcare would enter the Massachusetts skilled nursing market. The Wood Ridge, New Jersey-based owner/operator of facilities in New Jersey and Pennsylvania had been leasing a trio of small dually-certified facilities from a family operator for a year, before closing on the real estate this month. Included in the portfolio was a 30-bed facility in North Dighton, a 26-bed facility in Fall River and a larger 73-bed facility in New Bedford. The smaller buildings were well occupied in the 90s, but the larger one was lagging slightly, with occupancy in the mid-80s. Census mix was heavy Medicaid (about 82%), with the remainder split evenly between... Read More »Wait, there’s more
After announcing its seventh fiscal year in a row when it led all other HUD LEAN lenders in terms of total loan amount, Lancaster Pollard showed it was not a one-trick pony, closing two Fannie Mae refinances for clients in California. First, Jason Dopoulos arranged a $19 million loan for a 115-bed assisted living/memory care community in Oregon. The transaction refinanced an existing $10.5 million HUD loan as well as $8.2 million of previously incurred capital expenditures. And second, Grant Goodman closed a $14.5 million Fannie Mae loan for a 110-bed assisted living community in northern California, which refunded $9.6 million in existing debt and $4 million of incurred capex. Doug Harper... Read More »
SunTrust Bank and Seniors Housing
Despite an apparent tightening in the seniors housing financing world (a topic which we will discuss in detail in our webinar at 1PM on October 27), borrowers may soon have a new name to choose from. SunTrust Bank announced it intends to acquire substantially all assets of the operating subsidiaries of Pillar Financial, LLC, along with its multi-family, affordable housing, healthcare property, senior housing, and manufactured housing lending platforms. Pillar’s HUD, Fannie Mae and Freddie Mac licenses also enticed SunTrust, which would be able to offer agency lending options to its clients. In return, Pillar would gain access to a number of expanded products including bridge loans, equity... Read More »
Financing Seniors Housing and Care Today
The M&A market has peaked, but will the lending market soon follow? Find out from the experts. Have you noticed that it is getting just a little bit harder to obtain financing for your acquisition or new development? We have heard that it is getting more difficult to get to the closing table for acquisitions, and we have wondered if the lending market has been one of the reasons. Financing has been abundant and cheap for several years, with many alternatives. But after a six-year bull market, and people talking about a real estate bubble propped up by historically low interest rates, some lenders may be getting a little pickier about who and what they finance, and how they structure... Read More »
And the vote is in…
On October 13, our editor Steve Monroe moderated a webinar called “Skilled Nursing: Buying, Selling & Valuing,” with panelists Ben Atkins, Chairman of Traditions Senior Management, Charles Bissell, Executive Director of Integra Realty Resources, Ben Firestone, Senior Managing Director & Founding Partner of Blueprint Healthcare Real Estate Advisors, and Stephen Graham, SVP/Director of Post-Acute Acquisition & Development of MedEquities Realty Trust. During the 90 minutes, we posed two poll questions to our listeners and got some interesting results. First, in response to “Should high acuity, subacute SNFs sell with a higher or lower cap rate than more traditional SNFs?,” 55% of... Read More »Schedule a demo
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