April deal drought
The end of April saw a dearth of deals, until this transaction was announced (no price was revealed, but we’ll take it). Looking to expand its presence in the Iowa market, a Northeast-based owner/operator purchased two skilled nursing facilities in the state for $7.2 million, or $37,895 per bed, with an expected first-year cap rate of 13%. The 90-bed facility in the town of Washington was built in the 1970s, but had some renovations 15 to 20 years ago. The Muscatine facility has 100 beds and was also built in the 1970s, with renovations in the late 1990s and early 2000s. Occupancy was 80%, and both facilities had experienced regulatory issues. Despite that, the facilities operated at a... Read More »Griffin-American starts small
After a busy year during which it made over $1.55 billion in healthcare acquisitions, Griffin-American Healthcare REIT-III recently made a relatively small deal in central Pennsylvania, acquiring a 120-unit independent/assisted living community in Palmyra for an undisclosed price. Built in 2007, this community was owned by AMC Delancey Group, Inc. and Heritage Senior Living, which will continue to operate under Griffin-American. Occupancy stood at 93% at the time of the sale. Joshua Jandris, Mark Myers, Charles Hilding and Andrew Hilding of Marcus & Millichap handled the transaction. Read More »
Turn around…again
When Platinum Healthcare purchased a 197-unit CCRC in Cincinnati, Ohio in September 2014 for $3 million, the community had already posted a $1.5 million loss on $5.9 million of revenues in 2013. This was even after the previous owner, Deaconess Long-Term Care, invested $918,000 in capital improvements in the last two years of owning it. The CCRC was over 63% occupied (its skilled nursing was 87% occupied, while assisted and independent living were just under 50% occupied, both with high Medicaid censuses). Now, Platinum is selling the community, which still is just 62% occupied overall and losing over $1 million on approximately $6.1 million of 2014 revenues. The purchase price this time... Read More »
Knapp hits a double
Jim Knapp of Marcus & Millichap has been busy in the state of Michigan lately, closing two transactions in the last few weeks, totaling over $12 million. Starting in the town of Flushing (located just upriver from Flint), Mr. Knapp sold a 52-unit assisted living community that included two buildings with 40 assisted living/memory care beds and a separate 20-bed advanced memory care community located about a mile away. This was the last owned seniors housing property by the seller, a local partnership that still currently operates a small memory care community within a hospital. Built in 2001, the two AL/MC buildings were well occupied at 90%, but experienced higher than normal... Read More »Schedule a demo
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