NHI’s new CEO
National Health Investors (NHI) has found its new CEO following the much publicized departure of its former chief executive, Justin Hutchens, who took over the CIO job at HCP (and dare we say the top job in a few years?). Effective October 5, Eric Mendelsohn was tapped as NHI’s CEO after already serving as interim CEO since the beginning of August. Before joining NHI as Executive Vice President of Corporate Finance in January 2015, Mr. Mendelsohn was previously at Emeritus, where, as SVP of Corporate Development, he led the way in such large transactions as the $3 billion joint venture with Blackstone and the $278 million Summerville merger. Our congratulations to Eric, well... Read More »The Buzz at NIC
With record attendance (again), the buzz continued to be positive, despite some looming concerns. Well, what can I say after my 25th annual NIC conference? I could talk about the record number of attendees, the building, buying, investing and financing buzz. But did anyone notice, just one block from the hotel, the vacant lot for sale with banners waving in the wind, proclaiming “Senior Living Site Available.” I’m not kidding. People were there to do deals, make new contacts and expand existing ones, and for the newbies, to try to get a better understanding of the seniors housing and care sector. But the NIC organizers had a new program, called NIC Talks, and for this conference the theme... Read More »Third quarter posts record M&A results
There has never been a busier third quarter for mergers and acquisitions in the history of the seniors housing and care market. In Q3:15, there were a total of 87 publicly announced transactions (including both U.S. deals and a few Canadian deals), a 23% increase over the Q2:15 and a 2% increase over Q3:14. Keep in mind that the NIC Conference began at the end of the third quarter, so we have to assume that press releases on September 30 closings were delayed. The catch is that while the number of transactions has increased, the Q3:15 dollar volume of $4.1 billion is significantly down from last year’s third quarter total of $9.7 billion, a 58% drop. For more details on the third quarter... Read More »Pay up in Richmond
So far this year, there have been six announced seniors housing transactions valued higher than $300,000 per unit, compared with 16 in 2014. And of the top six deals this year, Griffin-American Healthcare REIT-III was the acquirer in two. First was the company’s acquisition of two senior living communities in Nebraska for $66 million, or $300,000 per unit, announced back in June. But more recently (and at a higher cost), Griffin-American purchased a 186-unit senior living community in Richmond, Virginia, for $64 million, or $344,000 per unit. Built 16 years ago, the community provides 108 units of IL, 60 AL units and 18 memory care apartments, and boasts a greater-than-96% occupancy. The... Read More »Historic deal in Washington State
The state of Washington saw its most expensive (on a per-unit basis) seniors housing transaction ever (according to our data going back to 1991), when a portfolio of three assisted living/memory care communities with 161 units sold for $58.5 million, or $363,000 per unit. The next closest deal value we have seen in Washington was the $298,600 per unit price for a portfolio of four assisted living communities bought by American Realty Capital Healthcare Trust back in June 2014. The Seattle properties were 84% occupied, and have the potential to expand their memory care programs. That is what the publicly traded REIT buyer plans to do at least, with the help of a national seniors housing... Read More »HHC and HUD
Housing and Healthcare Finance (HHC) recently closed three HUD loans for a publicly traded REIT, to refinance three of its skilled nursing facilities in New England. A 105-bed facility received a $5.45 million loan, a 104-bed facility refinanced with a $10.65 million loan and a 95-bed facilities got a $12.64 million loan. All of the loans featured interest rates in the mid-threes. Read More »WESTLiving adds ninth property
Through its wholly owned subsidiary, WL Bellattini, LLC, WESTLiving acquired a majority ownership interest (approximately 95%) in a 145-unit IL/AL community in Bellevue, Washington. The community, which features 50 units licensed for assisted living, maintained a strong overall occupancy better than 98%. WESTLiving’s management company, aptly named WESTLiving Management, assumed full operational oversight at the community, the ninth in the company’s portfolio. Read More »CareTrust’s Ohio SNF portfolio deal closes
We reported on CareTrust REIT’s acquisition of a particularly large (for them) SNF portfolio in Ohio that included 16 skilled nursing facilities, of which 14 would be owned and two would be leased, for $175 million. With the deal closing, that number has dropped to 15 SNFs (14 owned and one leased), which are selling for $173 million, or about $144,200 per bed, with a 13.3% cap rate. Occupancy across the portfolio averaged 83%, with an 18% quality mix. Dan Baker of CBRE brokered the transaction, which is the fifth largest skilled nursing deal, by price, seen so far in 2015. Read More »Decker joins Board of Directors
Brookdale Senior Living announced that its Board of Directors appointed Daniel Decker as a Class I director and as the Non-Executive Chairman of the Board, effective October 1. Mr. Decker previously served on the boards of several REITs and other seniors housing companies, including Omega Healthcare Investors, Sentio Healthcare Properties, Health Care REIT (now Welltower) and Forum Group. Recently, he joined with KKR and Beecken Petty O’Keefe & Company to acquire the operations of Sunrise Senior Living in 2013. Mr. Decker will succeed Jeffrey Leeds in his position as Non-Executive Chairman of the Board. Read More »Riding Into NIC With A Market Disconnect
With the 25th annual NIC Conference upon us, the public markets seem to be crashing, and Brookdale Senior Living will be topic number 1. If you can believe it, this will be my 25th straight NIC annual conference. Yes, every one of them since the first one in Washington, D.C. when there were maybe 500 attendees. I happened to be one of the plenary speakers, giving the state of the skilled nursing market report. The funny thing was, the NIC organizers had to send someone to “check me out” to see if I was legit. Well, I hope over the last 25 years I have been successful in establishing my legitimacy. But you never know. As we all arrive today in Washington, perhaps the biggest topic will be... Read More »Schedule a demo
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