Senior Star’s Five Star move
The Thomas Twins of Senior Star certainly had the right idea. Remember, they proposed buying all the owned properties of Five Star Senior Living for about $325 million, which we always assumed was an opening offer. Five Star has now agreed to sell just seven of its assisted living communities with 545 units to its REIT big brother, Senior Housing Properties Trust, in a sale/leaseback transaction. The price of $112.4 million comes to $206,200 per unit, and using that value (which we believe is high for the entire owned portfolio) on the remaining 26 owned properties with 2,666 units results in an additional $549 million in value. Five Star’s market cap, even after the nearly 40% jump in its... Read More »
CommuniCare grows
CommuniCare Health Services is growing its portfolio yet again, purchasing nine skilled nursing facilities in Ohio and Maryland, after earlier this year acquiring six Maryland facilities and one in West Virginia. The seller was a publicly traded REIT. To finance the acquisition, Capital One served as sole lead arranger and administrative agent for a $61 million syndicated term loan and a $12 million syndicated revolving credit facility to affiliates of CommuniCare. The company seems to be priming itself to grow in the next year, as it received also in June a $13.7 million loan secured by the cash flow of seven of its skilled nursing facilities (and originated by Craig Casagrande of Capital... Read More »
Garbers of Greystone
With some of the largest units in the region, a 211-unit assisted living/memory care community in Bedford, Ohio sold to Pritok Capital for $6.5 million, or $30,805 per unit. The community was not purpose-built for assisted living, which caused some operational challenges and thus resulted in a lower price. But, the 198 AL units average 564 square feet and the 13 MC units average 664 square feet (on the high side for the region). The community was built in 1988 and sits on 20 acres in the Cleveland area. Mike Garbers of Greystone Real Estate Advisors represented the seller, a public healthcare REIT, in the transaction, for which Joel Gordon of MB Financial served as lender. Read More »
Transaction teamwork
Marcus & Millichap sent a veritable army into Norwood, Ohio to arrange the sale of two skilled nursing facilities. Mark Myers, Joshua Jandris and Charles Hilding, plus Stan Folk, Joel Dumes and Steve Anevski out of M&M’s Cincinnati office and Peyton Stanforth out of the Chicago O’Hare office, represented the seller, a private family investment group, in the transaction. The lease was ending for the tenant operator, which was interested in building new facilities. So, Messrs. Myers, Jandris, Hilding and Stanforth procured the buyer, a real estate investment trust with a large presence in the region that leased the facilities to a new third-party tenant. Built 25 years ago, one of... Read More »Schedule a demo
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