KeyBank Arranges Over $700 Million for Blackstone’s Big Brookdale Acquisition
Blackstone and Brookdale Senior Living are in the news again. Working with KeyBank Real Estate Capital’s healthcare business, the joint venture received about $703 million in financing to fund Blackstone’s acquisition of 64 Brookdale-operated communities from HCP, Inc. A Fannie Mae credit facility makes up most the financing, which was arranged by Charlie Shoop of KeyBank and provides long-term, non-recourse, flexible financing. Meanwhile, KeyBank provided the balance from its balance sheet, in a transaction led by Peter Trazzera. The total financing represents about 62% of the $1.125 billion purchase price, which came out to approximately $188,500 per unit. That was for 100% of the... Read More »
Senior Care And Labor
No talking about deals, values, stock prices and cap rates, not even Brookdale Senior Living. It’s time to talk labor. I know you usually hear me talking about deals, values, stock prices and cap rates, and let’s not forget Brookdale Senior Living. But I am going to digress a bit from the usual. The entire seniors housing and care business seems to be avoiding what I really believe is going to be a labor meltdown. Cost is one thing, and it is already impacting the bottom line of many providers. But the quality, the training, or lack of, is just something that I think is still missing, and it will begin to poke holes into the marketing pitch for seniors housing and care. For all of... Read More »
Ventas Not interested in Brookdale, but Diversicare Soars
We may never know if Ventas was really interested in buying Brookdale Senior Living, but it made little sense. We may never know if Ventas was really interested in buying Brookdale Senior Living, but it was just something we did not think made any sense, so we are glad they publicly said they are not pursuing it. The only thing that made possible sense was to buy a 100 or so properties. But again, would it really be worth it? I still think there are suitors sniffing around, but not at prices that will get shareholders excited. Unless a Chinese investor really wants a large toehold in the U.S. Moving on, have you noticed what has been happening with Diversicare Health Services? Late last... Read More »Brookdale Senior Living Buy-Out in Limbo
It has been far too quiet on the Brookdale Senior Living buy-out front, other than its share price continues to slide as some investors may be giving up on a major capital event or sale of the company at a price point that interests them. The shares are trading at their lowest levels since early January, which, counterintuitively, may make it easier to get a deal done, if that is what the Board wants. We are still sticking with our opinion that only “stupid money” would pay the $20 to $25 per share for the company that several analysts have been saying is the true sum-of-the-parts value, which is why the price needs to come down so that a buyer would be able to offer some sort of premium,... Read More »Schedule a demo
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