HFF’s Sizzling Skilled Nursing Month
HFF showed its strength in the skilled nursing M&A market, closing three transactions at the end of last month. Dave Fasano sold four Florida SNFs currently in receivership to New York-based TL Management for $24 million, or $66,850 per bed. Built between 1965 and 1996, the facilities averaged 87% occupancy but operated at just a 5.7% margin on about $26 million of combined revenues. However, TL Management believes EBITDA could be increased to $3.5 million, which if true would yield a very conservative cap rate of 14.6% on the purchase price. TL, with its over-100 SNF portfolio across 10 states, will have to use all of its experience to get the job done. Mr. Fasano then teamed up... Read More »
HFF Funds Independent Living Acquisition
Less than a year after opening its luxury independent living community in Colorado Springs, Colorado, The Wolff Company turned to Nicole Brickhouse and Leon McBroom of HFF to refinance its existing construction debt with a $31 million floating-rate bridge loan. This 160-unit community, operated by Clearwater Living, is part of Wolff’s major investment in the industry, which reportedly will top $300 million annually to develop new high-end communities mainly in the western United States. Read More »
Capitol Seniors Housing’s Premium Sale
Only three years after buying a senior living community in Park Ridge, Illinois (Chicago MSA), Capitol Seniors Housing (CSH) is selling at a premium. Originally built as a hotel in 1962 but converted to senior living in 1986, this property includes 154 units of independent living, assisted living and memory care. CSH had purchased it in September 2015 from a local family for a price of $32 million, or about $220,700 per unit, at a cap rate of 7.2%. Occupancy was in the mid-90s at the time, and the community operated at a 25% margin on $9.2 million of revenues. CSH planned to invest up to $5.5 million in renovations and complete a memory care conversion previously started by the seller.... Read More »
Record Sale Price
Brookdale Senior Living has agreed to sell its trophy community in New York City at a record price to Ventas, but will keep the management. Anyone who heard former Brookdale Senior Living CEO Mark Schulte address the ASHA annual meeting in the aftermath of 9/11 will never forget it. He talked about their newest project in lower Manhattan. There was nary a dry eye in the room. The community, called The Hallmark at Battery Park at the time, was still in fill-up, covered in inches of dust and debris, and had to be evacuated. The industry at other communities pulled together, took in as many Brookdale residents as possible, not knowing how long they would stay, not knowing how they would get... Read More »Schedule a demo
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