The Dealmakers Forum E-Newsletter, May 6, 2015 - Not your average assisted living community

 

Bringing You Senior Care M&A Deals and News
 

May 6, 2015 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
REIT Shares Under Pressure AgainRising interest rates are sending health care REIT shares dow, but will it last?...................... Read More  

 

 

 

Recent Senior Care M&A Deals
Long-Term Care    
Acquirer Target Price
The Ensign Group, Inc. N/A
The Ensign Group, Inc. 2 skilled nursing facilities N/A
Texas-based owner/operator Maggie Johnson Nursing Center $1.2 million

 

 

Deal of the Week 

How do you sell a 24-unit assisted living community for over $370,800 per unit? Just throw in a nine-hole golf course and a clubhouse! That is just what David Rothschild and Mary Christian of CBRE did in selling a property for Icahn Enterprises in Vero Beach, Florida. The sale included a 42,000 square foot clubhouse, a nine-hole golf course and a 24-unit assisted living building (24,000 square feet) that can be expanded to 48 units.

 

In addition, there is extra land for development, and everything is located within an age-restricted community that itself is located within a 1,000-acre master-planned community. The existing campus that was sold was producing about $7.45 million in revenues and about $800,000 in EBITDA, but the EBITDA would increase sharply with an expansion of the assisted living plus an addition for memory care. The purchase price was just over $8.9 million, and the buyer was Dylan Investments...........................................Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

 

Financings of the Week

HHC Finance closed about $133 million in HUD loan modifications in March and another $80 million in April across 26 separate transactions, which resulted in significant overall interest rate reductions on the loans, all for skilled nursing facilities. With interest rates set to increase, some of the modifications would not have been feasible, but HHC was prepared and was able to close them. Since introducing the program just in January, that is a lot of business.............................................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

You know we are in a strong seller’s market when even the non-stabilized properties are worth on average 68% more in 2014 than in 2013. After hovering around $85,000 per unit in 2012 and 2013, the average price paid for non-stabilized assisted living communities (which we define as having an occupancy lower than 85%) in 2014 was about $139,000 per unit, showing that buyers are worrying less about the potential of filling empty rooms. Maybe all this talk about demographics has convinced many buyers that seniors will be knocking on their door in just a matter of time.........................................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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