The Dealmakers Forum E-Newsletter, January 29, 2014 - Another Successful ASHA Meeting, Capital Health Group has Made a Big Move to the West, Seniors Housing and Care M&A Market

 

Bringing You Senior Care M&A Deals and News
 

January 29, 2014 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Another Successful ASHA Meeting. Why I always travel far for the annual ASHA meeting. Read More

 

Recent Senior Care M&A Deals

Home Health Care

 

 

Acquirer

Target

Price

SCL Health System and Univita Health

All Care Home Health LLC

N/A

Long-Term Care

 

 

Not disclosed

The Communities of Solarbron

$12.5 million

 

Deal of the Week

Capital Health Group has made a big move to the West with the acquisition of a portfolio of seven senior living campuses in Utah and one in Nevada with 657 units. About 75% of the portfolio is assisted living and memory care, with the remainder independent living. As part of the deal, a 1.4 acre parcel of land next to the St George, Utah community will be developed with 48 units of memory care in mid-2014. The cost of the acquisition was $96.6 million, or $147,000 per unit. The buyer also plans to add an additional 20 units at another building, plus complete a number of renovation projects. When everything is completed, the total cost should end up close to $125 million, or more than $170,000 per unit. Occupancy currently averages about 90%, but management expects that to increase to at least 95%. The manager will be Compass Pointe Health Care System, which including this portfolio, now manages 25 senior living communities and more than 30 skilled nursing facilities........ Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Financing of the Week

Timing is everything, and opening two retirement communities in 2008 was not good timing. In 2006, Herbert J. Sims financed the construction of two communities in Colorado with a total of 316 units that included a majority of independent living plus assisted living and Alzheimer’s care. Originally, there was $74 million of senior debt and $22.3 million of mezzanine debt and equity. With the obvious fill-up problems caused by the recession, the debt had to be restructured. Sims took control of the project as part of the restructuring, and both communities reached 100% occupancy in 2013. The financing just completed includes $74 million of 10-year Fannie Mae debt with interest only for two years, plus $7 million of mezzanine debt. The mezzanine debt, also with a 10-year term, is expected to be paid off in five years. Yet another sign that things have returned to normal, at least for now........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Stat of the Week

A few records were set in the seniors housing and care M&A market last year, including the largest number of announced transactions (223) and the most active quarter ever (65 deals in the fourth quarter). The volume grew every quarter, from 44 deals in Q:1 to 55 deals in Q:2, followed by 59 and 65 deals to end the year. But in the fourth quarter, 13 different REITs announced acquisitions, which is also a record, and including a mix of the public REITs and the non-traded REITs. Expect more of this to continue in 2014..........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

NEW - The Senior Care Acquisition Report, 19th Edition - Preorder Today and Get Last Year's FREE ($595 Value)!
Deals have been made. The 2014 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make into financial press. Take advantage of our limited 2-for-1 offer - Preorder The 2014 Senior Care Acquisition Report by January 31st and receive The 2013 Senior Care Acquisition Report FREE ($595 value)! Now that’s a deal! Go to http://www.levinassociates.com/landing/scar19order or call 800-248-1668 to preorder today.

 

Upcoming Interactive Webcast:
Continuing Care at Home: A Way To Broaden Your Reach

Thursday, February 13, 2014, 1:00 pm ET

Continuing Care at Home (CCaH), sometimes called LifeCare at Home, can be a powerful addition to a CCRC’s continuum and a revenue generator for the bottom line. Seniors pay a monthly fee for life care without having to give up the comfort of—or investment in—their own home. While this is a rapidly growing and cutting-edge program, there are pricing issues, levels of risk, and best operating practices to consider. Go to http://www.levinassociates.com/conferences/1402-online-conference or call 800-248-1668 to register.

 

 

Around the Web in Senior Care M&A...Click here to see more

Webcast Calendar... Click here to see more

Upcoming Conference Partnerships... Click here to see more