The Dealmakers Forum E-Newsletter, April 1, 2015 - The end of a saga

 

Bringing You Senior Care M&A Deals and News
 

April 1, 2015 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Cap Rates And RealityThere appears to be a feeding frenzy on where cap rates should be, and the frenzy is only taking them lower.................... Read More   

 

 

Recent Senior Care M&A Deals
Home Health Care & Hospice    
Acquirer Target Price
PSA Healthcare N/A
Long-Term Care    
Investment group Casa de Rosa Assisted Living Center $5.5 million
Regional owner/operator Ainsley Courte Assisted Living $6.6 million
Southwest LTC/Birchwood
Health Care Properties
3 Oklahoma skilled nursing facilities N/A

 

Deal of the Week 

At long last, the end of a saga. The final Sunwest Management properties of the portfolio purchased by Lone Star, have been sold, and it was somewhat of a unique sale. For reasons that are too detailed to discuss, the properties were the last ones in a private REIT established years ago by the seller, and the sale had to be the purchase of the entity as opposed to the purchase of the outright real estate. SilverStone Health Care Real Estate figured out a way to get it done, and they closed on this portfolio for about $112,000 per unit.

 

The portfolio included a 340-unit IL/AL/MC campus in the Peoria/Sun City area of Arizona and a 148-unit AL/MC community in Yuma, Arizona. The total purchase price was close to $65.0 million with a cap rate of about 6.4% based on current occupancy of 83% portfolio wide. The buyer is keeping Senior Lifestyle Corporation as the manager, which was brought in two years ago. CBRE National Senior Housing Group arranged $48.5 million of three-year floating rate mortgage debt with a unit of GE, of which 24 months is interest only. CBRE arranged the sale of the property as well. An equity partner provided some preferred equity to round out the capital stack.........................................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

After it finished HUD’s FY2014 as the top HUD lender in the country, HHC Finance continued by facilitating HUD refinancing for a portfolio of three skilled nursing facilities in California, closing the three loans simultaneously. The borrower, an owner/operator of SNFs throughout the state of California, locked in 30-year fixed rates in the mid-3%s on each of the facilities, including a $27.5 million loan (for a 139-bed facility) and a $28.8 million loan (180 beds) for two facilities in Northern California. The third loan was $20.1 million for a 163-bed facility in Southern California. Across the facilities, all of which had a five-star rating, average occupancy was in the mid to low 90s.......................................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

In the last year, we have seen more skilled nursing deals valued above $100,000 per bed than ever before. That number of deals in turn drove up the average price per bed for SNF deals to a record high in 2014, to $76,500 per bed. But what was it about these facilities that drove up their valuations to new heights?

 

For one, they were newer. Facilities built in the past 20 years sold for an average price of $111,900 per bed, compared to facilities built between 20 and 40 years ago ($72,400 per bed) and 40 years and older ($75,700), according to the just-published 2015 Senior Care Acquisition Report. We will see how SNFs evolve over time, and what will happen to those 1960s and 1970s facilities....................................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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