The Dealmakers Forum E-Newsletter, March 5, 2014 - So Who's The Next Acquisition Target, A While for CNL Healthcare Properties to Close its Acquisition

 

Bringing You Senior Care M&A Deals and News
 

March 5, 2014 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
So Who's The Next Acquisition Target? After the Emeritus deal, everyone is looking at Capital Senior Living as the next target, but there may be a reason to wait...... Read More

 

Recent Senior Care M&A Deals

Long-Term Care

 

 

Acquirer

Target

Price

CNL Healthcare Properties

4 WA Senior Housing Communities

$88.3 million

Siskin Hospital

St. Barnabas Healthcare Center

N/A

 

Deal of the Week

Nothing compares with the acquisition of Emeritus in terms of size, but a large two-property sale recently closed in California. It looks like MBK Senior Living has done it again, selling the mini-portfolio for $104.5 million, or $356,650 per unit. Both communities were built in 2001, and the one that is just northeast of San Francisco has five buildings with 64 assisted living units, 24 memory care units and 71 independent living units. The second campus is just outside Los Angeles and has two buildings with 96 assisted living units and 38 memory care units. Both had occupancy above 98% (how does Terry continue to do it?). The operating margin was a very healthy 40%, and the cap rate was close to 6.0%. This will be a nice portfolio for the buyer, American Realty Capital Healthcare Trust, which will retain MBK as the manager. Dave Rothschild, Matthew Whitlock and Mary Christian of CBRE’s National Senior Housing Group represented the seller........ Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Acquisition Financing of the Week

It has taken a while for CNL Healthcare Properties to close its acquisition of 17 senior living properties in Oregon, Washington, Montana, Idaho and Nevada, but it also had a patient lender that allowed the transaction to close in stages, even if it took longer than anticipated. The entire portfolio being purchased by CNL from Bonaventure Senior Living has 21 properties with 2,186 units, and Trace Wilson of Prudential Mortgage Capital has placed $220.6 million of five-year debt on the balance sheet of parent company Prudential Insurance for 17 of the 21 properties. These communities have assisted living, memory care and independent living, and the loan amount from Prudential totals $113,950 per bed. Insurance companies seem to be stepping up their lending in the seniors housing space, which makes sense given the track record of seniors housing, and this is nothing but good news for borrowers........Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Expansion Financing of the Week

In 2007, Ohio-based Sprenger Health Care Systems built a 130-bed health center with 100 skilled nursing beds and 30 assisted living beds, rounding out its existing campus in Avon Lake, Ohio, which already had independent living nits and cottages. The addition filled quickly, and in 2011 Lancaster Pollard refinanced the debt with a $15 million HUD loan. Because the new beds were so successful, very soon after the HUD debt was placed the provider decided to expand the health center further, with an additional 20 skilled beds and 12 assisted living units. But Sprenger wanted to get started as soon as possible, and Lancaster recommended a supplemental loan and helped the borrower get approval from HUD for an early start to construction before the final approvals for the loan. The $3.5 million addition was built in 2012, funded from Sprenger’s balance sheet, and the new beds were 100% filled by the time the HUD supplemental loan was funded. This meant that the borrower was able to achieve a lower interest rate since there was no construction premium, and its construction costs were fully funded. Kass Matt of Lancaster arranged the financing...... 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 Wendy Simpson

In this "Expert Opinion" interview, Wendy Simpson, President and CEO, LTC Properties, discusses growing REITS, memory care, assisted living , leased properties, portfolios, and more......Watch the video

 

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 March 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:
Senior Living: New Construction Heats Up

Thursday, March 13, 2014, 1:00 pm ET
New construction is picking up in some markets after the near standstill caused by the recession, although developers seem more favorable to building needs-driven models of seniors housing—assisted living and memory care facilities—rather than independent living communities. Go to http://www.levinassociates.com/conferences/1403-online-conference or call 800-248-1668 to register.

 

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