The Dealmakers Forum E-Newsletter, April 9, 2014 - American Realty Capital Healthcare Trust Purchased a Relatively New Community, Lancaster Pollard Helped Not-For-Profit Provider Eskaton Refinance a Portfolio, Average Price Paid Per Bed in Nursing Facilty

 

Bringing You Senior Care M&A Deals and News
 

April 9, 2014 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Game Changer For LTACs. New legislation defining patient criteria for LTACs could be a game-changer for companies like Kindred Healthcare.......... Read More

 

Recent Senior Care M&A Deals

Long-Term Care

 

 

Acquirer

Target

Price

National Health Investors, Inc.

4 senior care properties

$42 million

HealthLease Properties REIT

2 nursing and rehab facilities

$37.425 million

Centers for Specialty Care Group

Horace Nye Nursing Home

$4.05 million

Peregrine Senior Living

Emeritus at Decatur

$5.5 million

Capitol Seniors Housing

Arbor Terrace of East Cobb

$21.25 million

Texas owner/operator

Senior Rehabilitation & Skilled Nursing Center

$7.54 million

American Realty Capital Healthcare Trust

The Villas at Saint James

$6.5 million

Group of investors and operators

Friendship Ridge Nursing Home

$37.5 million

American Realty Capital Healthcare Trust

Two assisted living facilities

$11.909 million

 

Deal of the Week

American Realty Capital Healthcare Trust purchased a relatively new community, an 89-unit assisted living (69 units) and memory care (20 units) community located in Lady Lake, Florida. There are plans to expand by 59 units on 3.18 acres that were included in the transaction. And why not, with occupancy at 96%? The price, including $1.0 million for the extra land, was $26.6 million, or $298,900 per unit. There are studios and one-bedrooms with unit sizes ranging from 345 square feet to 619 square feet. Revenues and EBITDA were just shy of $5.0 million and $2.0 million, respectively, resulting in a current cap rate of 7.5%. The sellers were a group of 17 doctors, and Florida-based Concordis Senior Living will stay in as the manager. Bradley Clousing of Senior Living Investment Brokerage handled 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

In the affordable seniors housing market, Jason Dopolous of Lancaster Pollard helped not-for-profit provider Eskaton refinance a portfolio of seven properties in California that needed to be recapitalized for some renovations. The new HUD debt totaling $20.3 million resulted in more than $200,000 in annual debt service savings and provided $4.8 million for repairs. It was also one of the first times a borrower was able to take advantage of a new HUD rule that allows a developer fee of 15% of the total project cost as opposed to just 15% of the repairs, resulting in nearly $2.7 million in developer fees in the transaction............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

One of the major reasons why the average price paid per bed in the skilled nursing facility market last year set a record of $73,300 per bed had to do with the cash flow of those facilities sold. Both the average and the median net operating income (or EBITDA) of the nursing facilities sold increased to records of $8,200 per bed and $7,600 per bed, respectively. The average NOI per bed in 2013 was 8% higher than in 2012, but 26% higher than in 2011 when there was a significant dip in the average price paid per bed. The higher prices and cash flow have been the result of an increase in nursing facilities sold with a higher acuity mix. These stats and many more are in our recently published Senior Care Acquisition Report, 19th Edition........ 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 Bill Kauffman 

In this "Expert Opinion" interview, Bill Kauffman, Managing Director, Oak Grove Capital, discusses HUD, skilled nursing, LIBOR, the senior population, the future, and more......... Watch the video

 

Aging2.0’s inaugural Global Innovation Summit will be held on May 14, 2014 in San Francisco.
This invite-only event will bring together a select group of long-term care leaders, consumer technology executives, investors and top entrepreneurs from around the world to discuss emerging trends and new models to connect, empower and care for older adults around the world. Space is limited. Latest details will be made available at www.aging2.com/summit. Apply now!

 

NEW - The Senior Care Acquisition Report, 19th Edition - Just Published!
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. Order by April 30th and get our Senior Care M&A Market Review and 2014 Outlook webcast for FREE ($147 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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