REIT divests non-core Mass. SNF
The team of Steve Thomes, Tim Cobb and Ben Firestone of Blueprint Healthcare Real Estate Advisors closed the sale of a 107-bed skilled nursing facility in New Bedford, Massachusetts for $3.21 million, or $30,000 per bed. Prompted by the desire of its publicly-traded REIT owner to strategically divest some of its non-core assets, the facility had just marginal EBITDAR on approximately $6.8 million of trailing 12-month revenues. Hoping to capitalize on the low price-per-bed value and expand its footprint in the Northeast, a regional owner/operator was the buyer. Read More »The Senior Care Pricing Disconnect
The public equity market for senior care operating companies and REITs is getting slammed, but the private investment market remains strong. The pricing disconnect continues. Public equity investors continue to slam the senior care operating companies and health care REITs. All one has to do is look at what has happened to Kindred Healthcare and Genesis Health this past week or two, when both companies dropped to new lows and have not yet recovered. Fears of reimbursement pressure, fears of OIG investigations, fears of staffing costs. All have some degree of merit, but it seems like an overreaction to me. Just look at the private market, where both acquisition pricing and demand remain... Read More »High value in Seattle
Capitol Seniors Housing saw potential in a well performing senior living community in Seattle, Washington, shelling out $26 million, or $218,500 per unit, for it. Built in 2006, the four-story, 119-unit building has mostly assisted living, with some independent living, as well as 20 memory care units. Also, with the owner both developing the property and running it himself, occupancy has historically been between 85% and 90%. However, there is room for improvement. Capitol Seniors Housing plans to invest up to $2.5 million on remodeling and upgrades and will hire Milestone Retirement Communities to operate. Plus, the buyer plans to convert the IL units to AL and memory care while also... Read More »Serving our Veterans
As today is Veterans Day, it seems most appropriate to mention there is a new senior living community being developed in Jacksonville, Florida that will serve, among others, the large veteran population surrounding the Mayport Naval Base and Air Station. Developers David Kirkland, Carson McCall and Wayne McCall are leading the effort to build Anthem Lakes and will enlist Perry-McCall Construction and PQH Architects for the project. A majority of the units (83) will be for assisted living, while 34 will be designated for memory care and 20 for independent living. Also, a portion of the memory care wing will be set aside for veterans with mild brain trauma or post-traumatic stress disorder,... Read More »Mainstreet Does Canada….Again
Perhaps one of the most dynamic firms in the senior care market, Mainstreet is at it again with a new publicly traded platform in Canada. Its last Canadian entity was sold to Health Care REIT (now Welltower) last year for a tidy profit. Using its recently announced acquisition of a portfolio of skilled nursing facilities in the Chicago market, Mainstreet has agreed to do a reverse merger with a shell company that is publicly listed in Canada that, when completed, will take the new name of Mainstreet Health Investments (MHI). And guess who will be the CEO of the new entity? None other than Zeke Turner, Mainstreet’s founder and CEO. MHI plans to buy skilled nursing, assisted living and... Read More »New player in transitional care
It may sound odd to talk about a robust development pipeline of transitional care facilities and not focus on Mainstreet, which has dominated the market with plans to invest up to $5 billion in the next five years. Nevertheless, a new entrant to the transitional care market, National Healthcare Realty (NHR), is setting out to build 20 facilities in the next three years as the preferred developer for Welbrook Senior Living (not to be confused with Mainstreet’s “Wellbrooke” brand of facilities). Led by Mark Wimer, formerly of Kindred Healthcare and Sun Healthcare Group, Welbrook currently has six facilities located in California, Nevada and Utah, while also self-developing two more... Read More »Birchwood Health Care Properties expands in Kansas
Nick Cacciabando of Senior Living Investment Brokerage had a busy end to October, representing the seller in three Kansas SNF sales to Birchwood Health Care Properties, which included a couple of turnaround opportunities. First, together with Ryan Saul, Mr. Cacciabando represented a private owner/operator in the sale of their 96-bed skilled nursing facility in Wichita, Kansas for $1.25 million, or $13,000 per bed. Although located in a major MSA in Kansas, this will be a difficult turnaround for the buyer. Built in 1968, the facility was just 67% occupied with a 92% Medicaid census, 6% Medicare and 2% private pay. Plus, it was losing more than $600,000 a year on $3.2 million of revenues.... Read More »Mainstreet Buys Big
Mainstreet just closed a large acquisition of 11 skilled nursing facilities with 2,477 beds in the Chicago, Illinois market for $302.5 million, or $122,100 per bed. It will be leasing them back to the seller, Symphony Post Acute Care, at an initial lease rate of 8.0%. While the purchase price was not disclosed, Chicagoland SNFs can be very expensive, so we assume the price came in above $100,000 per bed, making it one of the largest SNF portfolio sales of the year so far. Heavenrich & Company represented the seller in the transaction. Read More »CCRCs to Become LPCs?
Leading Age announced this week that they are proposing a new name for CCRCs: Life Plan Communities. What is it about all these name changes? First we have Health Care REIT becoming Welltower, followed by ALFA becoming Argentum. Now Leading Age, which already changed its name several years ago, has proposed that the industry adopt a new name for CCRCs, coming up with “Life Plan Communities.” A lot of people have had a desire to get away from the alphabet soup acronyms that are so common (ALFA, ASHA, AHCA, AAHSA), but these acronyms do make it easier at times. Will the new name become LPCs? That sounds a bit clinical to me, but who... Read More »Chartwell expands up North
The Canadian seniors housing REIT, Chartwell Retirement Residences, which owns and manages over 180 senior living properties in Canada, added five retirement communities with 616 units to its portfolio. They were opened between 2008 and 2013 and had an average occupancy of 89.1%. Four of the properties also have an assisted living component, with 93 total units. Chartwell paid USD$192.89 million, or $313,100 per unit, for the properties, which includes a total of $39.7 million in assumed mortgage debt on two of the communities. A portion of the price will be Chartwell issuing to one of the vendors $11.4 million of Exchangeable Class B Units of Chartwell Master Care LP. There were five... Read More »Schedule a demo
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