Cascade’s building blocks
New entrant Cascade Capital Group recently acquired three skilled nursing facilities in Colorado and Utah, as reported in the February issue of The SeniorCare Investor, and turned to Oxford Finance to fund it. Formed in January 2016 by the leadership team that built Illinois-based Legacy Healthcare, Cascade is a private equity firm that invests in long-term care facilities, with Legacy managing. The three acquired facilities were relatively new, being built between 1999 and 2013, but operated at a 12% margin and were just 58% occupied overall. Cascade paid approximately $31.8 million in total for the two Utah facilities and the one Colorado facility, or about $70,000 per bed. Ryan Saul and... Read More »
Diamond in the rough
A not-for-profit health system in Alabama, the East Alabama Medical Center, recently exited the assisted living market, selling their three assisted living/memory care communities all located in Auburn. Featuring the only memory care beds (with 84) in the county, licensed as “Specialty Care Assisted Living,” these facilities were built between 1996 and 1999. Under the hospital’s ownership, expenses and staffing ran high, and census suffered party due to insufficient marketing efforts. There was still about $700,000 of EBITDA on $5.9 million of revenues, with 85% occupancy based on units, but those could both be improved under new ownership. The buyer was a partnership between private... Read More »
Father/son tag team steps down
A father and son team is selling their only senior care asset, a 48-unit assisted living/memory care community in North Carolina, for $3.65 million, or $76,042 per unit. Built in 1984, the community features all double-occupancy rooms, with 64 adult care home beds and 32 special care beds. There is certainly room for improvement in operations. Occupancy was just 74% based on beds, with a 50% private pay census. Plus, due to several changes to Medicaid reimbursement (which actually prompted the sale), cash flow suffered, with the community pulling in just $106,000 on approximately $2 million of revenues. The buyer, a national operator with a strong presence in North Carolina, plans to... Read More »From good to great
National Health Investors (NYSE: NHI) added a well-run independent living community in Chehalis, Washington (40 miles south of Olympia) to its portfolio for a purchase price of $9.25 million, or $96,400 per unit, with an 8.7% cap rate. Built in phases from 1986 to the early 2000s, the community features a mix of apartment-style units and cottages, and is 95% occupied. It operates at a 35% margin on approximately $2.3 million of revenues, which can improve. Plus, sitting on 24 acres next to a medical center, there is also room to expand for NHI, which leased the community to a partnership between Marathon Development and Village Concepts Retirement Communities for a period of 15 years and... Read More »Schedule a demo
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