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 »Growth spurt
Sabra Health Care REIT announced a pair of acquisitions, totaling almost $85 million. First the REIT purchased four senior living communities, with 214 total units, in the Pacific Northwest for $65 million, or $303,700 per unit. Three of the properties are located in Oregon and one in Washington, with a total of 122 assisted living units, 74 memory care units and 18 independent living units. Built between 1989 and 1995, with various renovations between 2003 and 2011, the portfolio averaged 96.4% occupancy in 2014 and operated at a 33% margin on $13.9 million of revenues, resulting in a 7.1% cap rate. Sabra leased the properties to Radiant Senior Living, with an initial term of 10 years and... Read More »New senior care operator in Texas
A new entrant in the post-acute care market made their first acquisition: a portfolio of four skilled nursing facilities in Texas for an undisclosed price. Formed in June 2015 by Michael Wallace, formerly President of Daybreak Ventures, Shady Shores Communities purchased the four facilities, with 424 beds, from three separate owner/operators. The mostly Medicaid census averaged 70% occupancy across the portfolio. Shady Shores is also in the process of developing three other facilities in Texas. To finance the acquisition, Oxford Finance provided a four-year $7 million senior secured term loan and a $1 million revolving line of credit. Mr. Wallace is wasting no time growing the business,... Read More »Mourning Granger Cobb
We mourn the passing of Granger Cobb, the former CEO of Emeritus and Board member of Brookdale Senior Living. Granger spent almost his entire career serving the needs of the elderly, starting with his first company, Cobbco, Inc. While he lost his fight against cancer, his spirit will live on in the senior living professionals he nurtured over the past 30 years. He is survived by his wife of 31 years and two daughters. A celebration of his life will be on October 24. Read More »The Name Game
In the last couple of days, two big players in the seniors housing industry announced name changes. First, Thomas DeRosa, CEO of Health Care REIT, announced in a letter to employees that the REIT would be renamed Welltower. Despite this change, the company will still trade under its ticker symbol “HCN” on the New York Stock Exchange. And then following this announcement, the Assisted Living Federation of America (ALFA) unveiled its new name, Argentum. Derived from the Latin for “silver,” the new brand will reflect the organization’s expanded focus on “expanding senior living” for the “silver generation.” While Health Care REIT’s announcement seems to have come out of left field, the ALFA... Read More »Agapé Senior Living portfolio sells for $154 million
In one of the largest US seniors housing sales so far in 2015 (sixth-largest, to be exact), a private equity firm bought the independently operated South Carolina Agapé Senior Living portfolio, representing 10 communities with 856 units of seniors housing and three facilities of 294 skilled nursing beds. Agapé grew the portfolio organically through internal growth and acquisitions, with all the properties relatively young and large in size. In fact, the oldest building was built in 1990 (a SNF), and the smallest was a 58-unit AL/MC community. The final purchase price was $153.9 million, or $156,400 per unit for the AL/MC units and $68,000 per bed for the skilled nursing, with a 9.9% cap... Read More »Schedule a demo
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