The Dealmakers Forum E-Newsletter, March 11, 2015 - Florida skilled nursing provider expanding into Ohio
Bringing You Senior Care M&A Deals and News
March 11, 2015 Issue:
Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Looking for Yield in Health Care REITs: Even with the threat of rising interest rates, there are long-term benefits to investing in health care REITs................... Read More
|Recent Senior Care M&A Deals|
|Texas operator||2 skilled nursing facilities||$2.8 million|
|CPF Living Communities||The Highlands of Topsham||N/A|
Deal of the Week
Seeking to consolidate its presence in Ohio, Greystone Healthcare Management Corp. recently announced that it acquired Autumn Health Care, an owner/operator of 10 skilled nursing/rehabilitation facilities with 614 beds across the state. This acquisition comes on the heels of a slew of felony charges launched against Autumn Health Care’s owner and his facility in Zanesville, including forging documents to cover up the poor treatment and engaging in Medicaid fraud in addition to providing substandard care to residents.
Greystone has always been an owner/operator in Florida, operating in 19 cities in the Sunshine State, but is looking to make a big splash in Ohio. Before this acquisition, it previously operated just one skilled nursing facility in the state, a 112-bed facility in Columbus that it bought from a local family in 2010 for approximately $4.8 million, or $42,900 per bed. Plus, in the last year, Greystone has purchased two home health care businesses in Columbus as it expands its footprint in the state. The current acquisition also included existing rehab therapy provider TheraTrust, Inc. and Autumn’s corporate office in Newark, Ohio, which Greystone will use as a regional headquarters......................................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
There must be something in the water in Houston, because Aron Will of CBRE’s National Senior Housing Group is seemingly announcing a new transaction every week. He has already closed a significant amount of business so far this year. This week, he announced two very similar transactions. First, Mr. Will arranged an $18.5 million floating rate bridge loan with an “all-in” interest rate today of 2.9% for an 87-unit assisted living/memory care community in San Diego, California. Next, he facilitated a $19 million floating rate bridge loan with an “all-in” interest rate today of approximately 2.35% for a 121-unit assisted living/memory care community in Houston, Texas. Both loans came from a regional bank with a five-year term including 24 months of interest only. Plus, both are managed by large national operators, Integral Senior Living at the San Diego community and Brookdale Senior Living at the Houston community. There have been other five-year floating rate bridge loans with two to three years of interest only announced by Mr. Will this year. That seems to be the sweet spot....................................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
Last week for our Stat of the Week, we discussed the average price per unit for independent living communities (from our 2015 Senior Care Acquisition Report, coming out later this month) growing by over $40,000 for the second year in the row to $246,800 per unit in 2014. Assisted living communities were also valued at a new record-high in 2014, averaging $188,700 per unit, a 25% increase. However, instead of this growth being consistent with previous years, the average price per unit for assisted living remained stagnant at around $155,000 per unit, even dropping 8% from 2012 to 2013. But, in this strong market with higher investor demand, abundant, cheap capital and higher-quality properties being sold, valuations are reaching new heights.
In the 2015 Senior Care Acquisition Report we discuss over 70 statistics and give a comprehensive analysis of the seniors housing and skilled nursing acquisition market..................................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today