The Dealmakers Forum E-Newsletter, February 5, 2014 - Seniors Housing Dominance,The Carlyle Group Recently Purchased an Assisted Living Community in San Diego, California, Greystone Closed a Bridge Loan for the Acquisition of a Skilled Nursing Facility

 

Bringing You Senior Care M&A Deals and News
 

February 5, 2014 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Seniors Housing Dominance. To win the occupancy game, or any game, you have to dominate the competition.... Read More

 

Recent Senior Care M&A Deals

Long-Term Care

 

 

Acquirer

Target

Price

LCS

Encore Senior Living, LLC

N/A

Regional owner/operator

The Haven in Texas Hill Country

$2.4 million

UHS-Pruitt Corporation

Summit Health & Rehab Center

$5.9 million

Care Property Partners, LLC

Assisted living facility

$2.92 million

 

Deal of the Week

The Carlyle Group recently purchased an assisted living community in San Diego, California. While the price has not been disclosed, we believe it is north of $200,000 per unit, which is high for a converted hotel. But this is southern California. The community has 56 assisted living units and 31 memory care units, and occupancy has been above 90%. We believe Carlyle will keep Integral Senior Living in as the manager, which makes sense since they appear to be doing a good job and generating solid margins. One can only imagine what would happen to the bottom line if occupancy hit that magic 100%. CBRE represented the seller in the transaction.... 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

Greystone closed a $54.5 million bridge loan for the acquisition of a 280-bed skilled nursing facility in Southampton, New York, or $194,600 per bed. The interest-only loan closed in 90 days, facilitating the acquisition by SentosaCare, which had been leasing the property for more than six years. The facility was built around 2000 and has an occupancy rate of 96.8%, which is astounding given they try to have a focus on the Medicare side of the business. Greystone will be refinancing the bridge loan with HUD, and it will be one of the highest per-bed loan values for HUD. But come on, it is the Hamptons after all....Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Stocks of the Week

One would have to say that the entire health care REIT sector would be worthy of the label “stock of the week,” since the entire sector moved up significantly in January. But there were two standouts, including National Health Investors, up 12% in January when the rest of the market did not perform so well, and Sabra Health Care REIT, up 11%. The Big Three were all up 8% to 9%, which is not too shabby, but remember that Sabra had a total return in 2013 of 26.6%. The Big Three had negative returns last year even after factoring in dividends. So will 2014 be kind to the health care REITs? So far so good, but not if interest rates take another 50 to 100 basis point spike later in the year, which is not in the forecast......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

Did you know that the non-traded health care REITs announced 38 acquisitions last year, compared with 34 for the U.S.-listed publicly traded health care REITs? But that is the only category in which they beat out the publicly traded REITs, which had double the dollar value in deals and double the number of units and buildings. But they are definitely catching up.......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 Hedy Rubinger

In this "Expert Opinion" interview, Hedy Rubinger, Partner at Arnall Golden Gregory LLP, discusses state licensure requirements, post-acute providers, regulatory diligence, RIDEA, and more......Watch the video

 

2014 NIC Regional Conference: A Skilled Nursing and Seniors Housing Investment Forum March 16-18, 2014

The 2014 NIC Regional Conference is a must-attend event for the small-to mid-size skilled nursing and seniors housing operators and the capital providers who want to work with them. With almost 20 breakout sessions, you will hear from industry leaders and experts on a range of topics including:
• Today’s Value Drivers for Seniors Housing
• Exploring Growth Strategies for Private Pay Seniors Housing Through Private Equity and REITs
• Large Scale NOI Strategies for Smaller Seniors Housing Operators
• Providing Affordable Housing and Care for Middle Income Seniors
• Building for Tomorrow’s Customer…Today: The Next Phase of Seniors Housing

 

Don't miss the opportunity to develop new business relationships and gain a better insight as to how the industry is evolving and what changes can be implemented today to ensure success for tomorrow.

Click here to download preliminary program
Register now!

 

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 February 28th 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.

 

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