Big bucks back for SNFs
After a month during which we saw no publicly announced skilled nursing acquisition valued higher than $63,000 per bed (well below the average price of $79,900 per bed in the 12 months ending September 30, 2015), here comes two announced in quick succession early this month valued over $100,000 per bed. First, California-based REIT, LTC Properties, acquired a 126-bed facility in the Fort Worth-Dallas area for $16 million, or $126,984 per bed. What attributed to the high price? The facility was brand new, opening in mid-2015. LTC added the property to an existing master lease with an affiliate of Fundamental Administrative Services LLC at an incremental initial cash yield of 8.5% and annual... Read More »
American Realty Capital still in the big leagues
We wrote a few months ago that American Realty Capital Healthcare Trust appeared to be going strategic in their deal making, meaning they were purchasing smaller one-off communities rather than the larger portfolio sales they were known for. In fact, in all of their deals before 2015 (going back to their first transaction in 2012), ARC averaged $52 million per transaction, but in the first 10 months of 2015, they averaged $13 million each. That is not to say the quality of the deals changed (they didn’t), just the size. However, ARC finished 2015 by announcing three transactions averaging $67.7 million per deal. First, ARC-II purchased a portfolio of three assisted living/memory care... Read More »High-priced transaction in Minnesota
A non-traded REIT recently bought a 105-unit senior living community in Maplewood, Minnesota for $30 million, or $285,700 per unit, with a 6.3% cap rate. Located in the Twin Cities area, the community features 22 independent living units, 51 assisted living units and 32 memory care units. It is relatively new (built in 2011 by developers experienced in seniors housing) and operates at a 37% margin on $5.15 million of revenues, based on the estimated 2015 budget. Not only that, the community has improved dramatically since the beginning of 2014, raising occupancy from around 69% to 92% by earlier this year, and EBITDA from just under $200,000 in 2014 to $1.9 million in the estimated 2015... Read More »REIT divests non-core Mass. SNF
The team of Steve Thomes, Tim Cobb and Ben Firestone of Blueprint Healthcare Real Estate Advisors closed the sale of a 107-bed skilled nursing facility in New Bedford, Massachusetts for $3.21 million, or $30,000 per bed. Prompted by the desire of its publicly-traded REIT owner to strategically divest some of its non-core assets, the facility had just marginal EBITDAR on approximately $6.8 million of trailing 12-month revenues. Hoping to capitalize on the low price-per-bed value and expand its footprint in the Northeast, a regional owner/operator was the buyer. Read More »Schedule a demo
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