LTC M&A Sector Reaches New Transaction Volume Record
The most active dealmaking year was 2022, in which 559 transactions were announced, according to LevinPro LTC. As of Friday October 18, 2024, the senior care sector has hit a new record in terms of transaction volume. We are currently at 560 transactions, and still have some of October plus all of November and December to go. Overall, the deals announced this year have been smaller and more distressed than in previous years, while many portfolios were broken up into numerous smaller deals because of the lack of financing available for big deals. But we also hear from dealmakers that the process for closing deals is still long and difficult, making the record-high volume even more... Read More »
Do Elections Matter?
In less than three weeks we will be having an election that could set the stage for what happens in the country for many years to come. Or not. There is always a lot of fearmongering over what one candidate will do compared with the other. Usually, change comes slowly, or not at all. As is usually the case in presidential elections, there is little talk about senior care, other than the growing costs of entitlements, with no reasonable solutions coming from either side. It is a topic that is easily avoided, and we are tired of the lip service. But in Washington State, there are several initiatives on the ballot, one of which involves taxes and LTC insurance. You will remember that... Read More »
Invesque’s Recent Activity
Invesque recently announced several transaction and refinancing updates. First, in September, the company sold an Illinois skilled nursing facility for $16.5 million, with proceeds from the sale going towards reducing borrowings under the KeyBank credit facility. Invesque now only owns two SNFs. Next, in October, Invesque sold seven seniors housing assets in Maryland (three), Virginia (three) and Tennessee. They comprise 355 units and were previously managed by Commonwealth Senior Living. Invesque originally acquired a 17-property (and later 20-property) Commonwealth portfolio in 2019 for approximately $285.4 million, or $236,800 per unit. The 2024 sale price for the seven assets was $65.4... Read More »
National Owner Acquires Louisiana SNF
After acquiring and turning around a skilled nursing facility in Alexandria, Louisiana, a mom & pop operator is selling the asset and entering into a well deserved retirement. Built in 1990 with a renovation in 2017, Regency House Alexandria features 60 skilled nursing beds and 10 assisted living beds. It only accepted Medicare and private pay residents and generated more than $1.5 million of EBITDAR at closing. There was also an assumable HUD loan on the property with an attractive interest rate, and even some upside with an increase to the facility’s Medicare census. Blueprint procured multiple offers before a national owner/operator was ultimately selected by the seller. The... Read More »
Tutera Acquires Iowa Senior Care Campus
A not-for-profit senior care campus in Asbury, Iowa, found a new owner with the help of Jeff Binder, Jason Punzel and Jake Anderson of Senior Living Investment Brokerage. Dubuque, Iowa-based Luther Manor Communities had previously owned the campus, plus one location in its home town of Dubuque, before failing to pay back over $15.7 million in loans and having the locations fall into receivership in August 2023. Since then, they have been operated by Walnut Creek Managing Co. (an LLC affiliated with Tutera Senior Living, which operates in the region), and Kansas City-based attorney (and serial senior care receiver) Michael Flanagan was appointed as the receiver. The Asbury campus... Read More »
Live Oak Bank Closes Loan Trifecta
For anyone who has wondered which banks are actively lending in this capital markets environment, Live Oak Bank has been on a tear in the last few weeks, closing more than six transactions recently. The latest three were bridge loans closed on behalf of seniors housing owners in three states in the Southeast. First was an $8.5 million bridge loan for a joint venture between Manor Lake Development and Buligo Capital Partners. The loan features a three-year initial term and 24 months of interest-only payments before the borrowers expect to refinance with an agency. Loan proceeds were used to recapitalize partnership notes for an 82-unit assisted living/memory care community in the Atlanta,... Read More »
Helios Arranges Country Place Corporate Credit Facility
Helios Healthcare Advisors helped arrange a corporate credit facility secured by a portfolio of assisted living/memory care communities across four locations in Alabama on behalf of Country Place Senior Living, a portfolio company of a Hong Kong-based alternative investment manager. Helios secured the facility through a regional lender based in Atlanta, Georgia, for general corporate purposes and to complete renovations on a portfolio of five assisted living and memory care communities that Country Place acquired in Texas this year. The facility was secured on the four Alabama assets, which were stabilized and had no property-level debt, thereby helping Country Place to access the... Read More »
The People’s Republic of New York At It Again
The saga of The Harborside on New York’s Long Island has been more than a decade in the making. Opened in 2010 and originally known as Amsterdam of Harborside, a not-for-profit entity, it has now filed for bankruptcy protection three times (2014, 2021 and 2023). Nothing like a little financial uncertainty to drive census, which is at about 50%. There are about 330 IL and AL units. Nearly 10 months ago, the bankruptcy court approved the sale to Iowa-based Life Care Services (LCS), partly because they agreed to keep it open, pay down the entrance fees to people who had moved or to their estates, and invest some capital. From media reports, it appears the residents wanted LCS to buy it, as... Read More »
Jaybird Senior Living Enters Texas
Evans Senior Investments arranged the sale of a seniors housing community in the Dallas-Fort Worth, Texas MSA. Built in 2013, Sonoma House Assisted Living comprises 33 assisted living units and 63 memory care units across seven cottages in Carrollton, Texas. At the start of marketing, the community was 82% occupied and generating positive net operating income. ESI identified multiple value-add opportunities, such as an opportunity to increase rental rates and reduce operational costs with a regional or national owner, as well as the potential to expand the community by adding 16 additional units through future development. The result was six competitive bids, with the ultimate buyer being... Read More »
Acquirer Expands Through Lease-to-Purchase in Ohio
Blueprint was engaged by an established owner seeking a desire to divest its skilled nursing facility in Ohio. Originally constructed in 1920 as the original site of McKinley High School, the facility was converted to skilled nursing in 1984. The facility suffered from low Medicaid reimbursement rates, and it was struggling from an occupancy standpoint. Connor Doherty and Ryan Kelly handled this transaction, structuring an off-market lease with a purchase option with an acquirer seeking to expand its presence in northeast Ohio. The structure protected ownership’s downside while granting the incoming operator, and eventual purchaser, operational runway to access debt by stabilizing... Read More »Schedule a demo
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