The Dealmakers Forum E-Newsletter, August 20, 2014 - MBK Senior Living Expands in Arizona

 

Bringing You Senior Care M&A Deals and News
 

August 20, 2014 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Genesis HealthCare and Skilled Healthcare To Merge: Already the largest skilled nursing company, Genesis HealthCare will be merged into Skilled Healthcare, retaining the Genesis name and George Hager as CEO, creating a skilled nursing behemoth............ Read More   

 

Weekly Senior Care Deals

Long-Term Care

   

Acquirer

Target

Price

Health Care REIT, Inc.

HealthLease Properties REIT

$950 million

Health Care REIT, Inc.

11 seniors housing

communities

$257 million

 

Deal of the Week

MBK Senior Living recently expanded in Arizona. The California-based company purchased a 73-unit independent living community that was built in 2003 in Scottsdale with 47 apartments and 16 villas. The unit sizes range from 635 square feet to 1,287 square feet for the apartments, and between 1,190 square feet and 1,658 square feet for the villas. Occupancy is at an above-average 96%, but we suspect MBK may be able to take it to 100% with a waiting list. The purchase price was $25.5 million, or $349,300 per unit. Revenues were approximately $3.95 million and we have estimated 2013 EBITDA to be just over $1.8 million, representing a 46% margin. The resulting cap rate was 7.1%, which is about right for a full, relatively new building with all IL units and the possibility of revenue growth. Dave Rothschild, Matthew Whitlock and Mary Christian of CBRE 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

 

Financing of the Month

Cushman & Wakefield’s Senior Housing Capital Markets Group just closed on an $82.4 million financing package that enabled LCB Senior Living to purchase two high-quality retirement communities in Vermont. Austin, Texas-based Virtus Real Estate Capital provided $25.4 million in joint venture equity and PNC Bank provided $57 million in first mortgage financing. The two properties are located in Shelburne Bay, right outside Burlington, with 191 independent, assisted and memory care units built in 1999 and expanded in 2011, and in Middlebury that was built in 2008, with 131 units across the same spectrum. The total financing comes to about $256,000 per unit. LCB already operates several properties in New England, but this is the company’s first venture into Vermont, and it is doing it with what may be considered two of the state’s best retirement communities that were developed by a local operator/developer. C&W’s Richard Swartz, Jay Wagner, Aaron Rosenzweig and Stuart Kim worked on the financing.............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

Size usually matters when it comes to the sale of skilled nursing facilities, but in 2013 it seemed to matter a bit less. The smallest nursing facilities, those with fewer than 80 beds, sold for an average of $53,800 per bed, while the largest, over 180 beds, sold for an average price of $86,400 per bed. It was in between 80 and 180 beds where there was no real correlation. Those nursing facilities between 80 and 119 beds sold for an average of $81,200 per bed, very close to the largest-size category, while those between 120 and 179 beds sold for an average price of $59,650 per bed, or close to the smallest size. In many years there is a perfect correlation between size and price per bed, but not in 2013..............Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

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