Seniors Housing Weekly Update - CareOne On The Market For $2.0 billion

July 1, 2014

 

July 1, 2014. 60 Seconds with Steve Monroe. CareOne Management is reported to be looking for $2.0 billion for the real estate of its 68 properties....

CareOne On The Market For $2.0 billion

In this month’s issue of The SeniorCare Investor, we talk about the looming market bubble in seniors housing. Just as we went to print, we learned that Jefferies Group was testing the market with a portfolio of about 68 properties, which may include two LTACS, and 29 are in New Jersey, which is a state known for very high values. The portfolio is owned by Dan Straus, under the name CareOne Management. The last time he completed a major sale was in 1997, when he sold The Multicare Companies for $1.4 billion, which by the summer of 2000 had filed for bankruptcy protection. He sold just before that market peak, and if there is anything we have learned over the years, it is that Mr. Straus knows when to buy and when it is time to sell. The rumored price tag is close to $2.0 billion for the real estate, and that means a handful of REITs plus a few private equity firms will be the only bidders. The portfolio includes skilled nursing and assisted living, which could complicate things. But Mr. Straus is not known for leaving anything on the table, so we have to guess he is seeing the same writing on the wall we are. It is a great time to sell.   

 

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I have to agree with you 100%

I have to agree with you 100% Steve. The MultiCare deal single handily drove an otherwise solid company at the time into BK. I have to wonder who if anyone will take the bait.

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