The Dealmakers Forum E-Newsletter, May 7, 2014 - Property Transactions, Sarasota, Florida Will Be Getting a New Assisted Living Community

 

Bringing You Senior Care M&A Deals and News
 

May 7, 2014 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Kindred Healthcare Invests In An ACO. Kindred Healthcare has agreed to partner with and invest in an Accountable Care Organization in Nevada............ Read More   

 

Recent Senior Care M&A Deals

Long-Term Care

 

 

Acquirer

Target

Price

Publicly Traded REIT

Somerby of Alpharetta

$83.5 million

BVM Management Company Inc.

University Village

$23 million

Sabra Health Care REIT, Inc.

Park Place

$23.8 million

 

Deal of the Week

Even though sales volume has diminished since the first quarter, there are still some high-end property transactions taking place. Somerby Senior Living and its equity partner in the community, sold their 282-unit property in Alpharetta, Georgia for $83.5 million, or $296,100 per unit. The community has 16 villas, 187 independent living units, 56 assisted living units and 23 memory care units. This is a great story, as the community opened in December 2007, which was horrible timing. But within 12 months, occupancy had hit the 50% mark (remember, it is a big campus), and then 70% by December 2009 and 93% a year later. By late 2011 it was at 97% and it has remained in that area since. A publicly traded REIT was the buyer and will bring in their own manager, and while financial data has not been disclosed, we have estimated revenues to be between $14 and $15 million. Allen McMurtry and his team at Cassidy Turley represented the seller........... 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

Walker & Dunlop (W&D) recently closed on a $14.5 million bridge loan to refinance a 120-unit assisted living and memory community located in Monroe Township, New Jersey. The property was purchased in February 2013 for $7.1 million by a joint venture consisting of Focus Healthcare Partners, Artemis Real Estate Partners and Chelsea Senior Living, which took over the operations. At the time of the purchase, there were just 72 residents and the debt on the building was in default. Well, things have changed dramatically in 14 months. Occupancy is now at 85% with 120 residents (there is some double occupancy), and the cash flow has grown significantly. They invested about $1.0 million in capex, so the change has really come from operations. Doubling your purchase price in 14 months is unusual, even in this market, and our estimate is that the property is now worth between $18 million and $20 million depending on your cap rate assumptions. The W&D loan is nonrecourse, floating rate and interest only for the three-year term...............Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Development of the Week

Sarasota, Florida will be getting a new assisted living community with 98 units, or which 38 units will be memory care (with 48 beds). Alan Plush of HealthTrust appraisal fame is the developer of this property, which will have two attached single story neighborhoods. The $23.5 million project is expected to take 14 months to build and encompass about 90,000 gross square feet. PNC Bank is providing the construction debt, and the equity was split between the developer and a high net worth individual. Brad Haber of Platinum Capital helped arranged the financing, Proctor Construction is the contractor and Harbor Retirement will be the operator. At $240,000 per unit, it should be quite a nice property...........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 Paul Dendy 

In this "Expert Opinion" interview, Paul Dendy, Founder and CEO, Milestone Retirement Communities, discusses prototypes, REITs, assisted living, memory care, and more.......Watch the video

 

ICAA Conference 2014: Moving beyond the status quo
November 13-15, 2014 at the 2014 ICAA Conference meet professionals seeking to enhance the wellness and quality of life for adults 50 and older. Highlights include full-day workshops by expert presenters as well as additional programming options that offer education and practical information to take back to your organization. Check out full-day workshops on balance, aquatics, cognitive health, and pole walking, presented by some of ICAA’s most popular presenters.
For more information, visit: www.icaa.cc/conferenceandevents/overview.htm

 

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 it into the financial press. Order by May 31st and get our FREE report "The Entrepreneurial Spirit of Seniors Housing - Edition 1: Thoughts, Stories and Lessons on Leadership". PLUS, you will recieve a complimentary $150 worth of deals in our online senior care m&a databse. Now that’s a deal! Go to http://www.levinassociates.com/landing/scar19order or call 800-248-1668 to order today.

 

 

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