Health Care Deal News: Spotlight on Long-Term Care- January 2013

When the end of a fiscal quarter coincides with the end of a calendar year, big things happen in the long-term care market. One of the biggest in December was the sale of six Juniper Communities LLC properties for $94 million in a sale-leaseback transaction with LTC Properties Inc. (NYSE: LTC). The portfolio includes three assisted living properties with a total of 202 units and three memory care communities with 136 units, located in New Jersey, Colorado and Pennsylvania. Their combined average age is 12 years, with an occupancy rate of 97.2%. LTC financed the acquisition with its unsecured revolving credit line and assumption of approximately $6.8 million of HUD debt bearing a 3.75% interest rate and maturing in 2051.
Another large deal involved a nine-community portfolio of properties located throughout Michigan, purchased for $49 million in cash by Sabra Health Care REIT, Inc. (NASDAQ: SBRA). Retirement Living Management had been the owner and manager. Concurrently with the purchase, Sabra entered into a triple-net master lease agreement with affiliates of Retirement Living Management. Evans Senior Investments represented the seller in that deal. In a separate deal announced earlier in the month, Sabra acquired four senior care properties in the Dallas/Fort Worth, Texas area for $33 million in cash from Meridian Senior Properties Fund I, LP.

Some buyers openly admitted they were trying to beat the fiscal cliff on January 1. One deal in that category was for six skilled nursing facilities located throughout Illinois for $48.5 million by an unidentified Illinois-based owner/operator. Overall occupancy rate is 74%. Private Bank provided mortgage financing to the buyer. Senior Living Investment Brokerage handled the transaction, which closed on December 31..........Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today