The Dealmakers Forum E-Newsletter, March 27, 2013 - What matters at a CCRC, More from LCB Senior Living, Small REITs Doing Deals

 

Bringing You Senior Care M&A Deals and News
 

March 27, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
What matters at a CCRC. Spending time in a CCRC provides a window into resident thinking.... Read More

 

Recent Senior Care M&A Deals

LONG-TERM CARE

Acquirer

Target

Price

LCB Senior Living

The Arbors of Bedford (Bedford, NH)

$35.0 million

 

Deal of the Week: More from LCB Senior Living

Newly formed LCB Senior Living has purchased a 50-unit assisted living community in New Hampshire that specializes in Alzheimer’s and dementia care. Built 15 years ago, the community has most of its 83 licensed beds full. The purchase price was $35 million, which comes in at a record $700,000 per unit for assisted living deals, and $422,000 per bed. Apparently, there is some extra space in the building where an additional seven beds can be added, which will bring the numbers down a bit, and the deal came with an extra four acres that can be developed for more units, perhaps traditional assisted living. But to justify that price, per-bed rates at 97% occupancy (81 residents) would have to be $6,500 per month with a 35% EBITDA margin, and that assumes a 6.5% cap rate. Equity was provided by Grosvenor Fund Management and debt came from Bank of America........ Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Stock of the Week: Omega Healthcare Investors

Omega Healthcare Investors, which was in the middle of the health care REIT pack in 2012 in terms of total return for the year, is one of the best performing health care REIT stocks this year. And its performance has been well above average despite having a portfolio dominated by skilled nursing facilities, a sector which always has a reimbursement overhang. Omega’s 12-month return now stands at just under 50%, and it is up more than 23% so far this year and 5% in March alone. One thing that keeps driving investors to the stock is the dividend yield, which is still above 6.0% despite the share price increases and a recent increase in the payout in January. Most of the other health care REITs are in the 4% to 5% range, so Omega is providing a nice yield premium which may be higher than the current risk merits....Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Expert Opinion: A Conversation with Laverne Joseph

In this "Expert Opinion" interview, Dr. Laverne Joseph, President and CEO, Retirement Housing Foundation, discusses affordable senior apartments, constraints on growth, service coordinators, Washington, and more..... Watch Video

 

Small REITs Doing Deals

HealthLease Properties REIT announced it will acquire a total of 13 properties, which include eight assisted living/Alzheimer’s facilities, one standalone Alzheimer’s facility and four skilled nursing facilities. They are located in North Carolina, Pennsylvania and Virginia. Six of the properties will be leased to North Carolina-based Meridian Senior Living and seven will be leased to Ohio-based Saber Healthcare Group. The purchase price is $141.7 million, or $144,900 per unit/bed. When completed, this acquisition will nearly double the size of HealthLease, which is traded on the Toronto Stock Exchange and is affiliated with Mainstreet Property Group. The REIT will draw down $83.8 million from a new $110 million line of credit to help finance the deal. Meanwhile, Aviv REIT priced its 13.2 million share IPO at $20 per share and just sold an additional 1.98 million shares. The funds will provide new liquidity for acquisitions, and the share price is already up 15%....Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

For Sale - 65 Bed ALF + 18 Bed Approved Expansion
For Sale - 65 Bed ALF + 18 Bed Approved Expansion in the growing Baltimore/Annapolis corridor. Facility has strong demographics. Great rental history. Facility has an Alzheimer’s unit. Very well maintained. No deferred maintenance. Near major hospitals and enjoys a stellar reputation. Prestige Group’s Senior Housing Division - The premier brokerage firm for Senior Housing and Healthcare facilities sales. We have an unparalleled reputation for providing our clients with superior service by way of our in depth industry knowledge, local, regional and national relationships. Our goal is to have an understanding of our clients’ specific needs. Our Proven Marketing System provides our clients with individualized attention. Prestige Group’s immersion in each transaction and dedication to the Senior Housing Market enables us to deliver successful results to our clients. Call Ron Krieger, EVP, for information about the 65 bed ALF for sale and for a confidential conversation about your needs. 800.866.5876 x102......more about Prestige Group

 

NEW - JUST PUBLISHED -The Senior Care Acquisition Report, 18th Edition
Deals have been made. The 2013 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make it into the financial press. FINAL WEEK: Take advantage of our limited 2-for-1 offer - order The 2013 Senior Care Acquisition Report by March 31st and receive The 2012 Senior Care Acquisition Report  FREE ($595 value)! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/landing/scar18order or call 800-248-1668 to preorder today!

 

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