The Dealmakers Forum E-Newsletter, May 13, 2015 - Busy year for ROC Seniors

 

Bringing You Senior Care M&A Deals and News
 

May 13, 2015 Issue:

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Brookdale Occupancy Declined As ExpectedBrookdale Senior Living was no different from the rest of the market, posting sharp drops in first quarter occupancy....................... Read More  

 

 

Recent Senior Care M&A Deals
Long-Term Care    
Acquirer Target Price
National owner/operator 2 skilled nursing facilities $23 million
Private equity group Residences at Chestnut Ridge $4.51 million
Chartwell Retirement Residences Isabella Retirement Living $22.1 million
Titan SenQuest Management Inc. Brentmoor Retirement Community $13.25 million
Oxton Senior Living, LLC Summer's Landing N/A
14 senior living properties N/A

 

Deal of the Week 

It’s been a busy 2015 for ROC Seniors Housing Fund Manager, which is part of Salt Lake City-based Bridge Investment Group Advisors. So far this year, ROC has acquired 21 senior living communities in nine different states, totaling 2,247 units, coming on the heels of a 14-property, $230 million-deal announced in September 2014. Not all of the 2015 transactions had revealed prices, but the price per units ranged from $77,700 per unit for a 345-unit senior living community in Glendale, Arizona, up to $246,700 per unit for a portfolio of 4 assisted living communities in Texas.

 

The most recent transaction, announced last week, was the purchase of 14 senior living properties (with 1,038 units of independent living, assisted living and memory care) from a joint venture between Iron Point Partners and Meridian Senior Living. In addition, ROC agreed to purchase a 46-unit asset in Ohio that will close at a later date. Meridian will stay on as manager, and HFF represented the seller in the transaction............................................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

Rollins-Nelson, an owner/operator of skilled nursing facilities, assisted living communities and acute-care hospitals in California, sought out Capital One Commercial Bank to refinance two of its facilities: a 342-bed SNF in Glendora and a 361-bed (262 of which are assisted living) facility in Long Beach. Shane Passarelli of Capital One led the way in providing both a $30 million senior secured term loan and a $4 million revolving line of credit, which will give Rollins-Nelson the flexibility to refinance existing debt and fund ongoing operations. The company will have access to additional liquidity during the term based on certain performance objectives..............................................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

With the general rise in the average price per bed, both stabilized (which we define as having an occupancy rate at or above 85%) and non-stabilized skilled nursing facilities saw an increase in their average price per bed. But as with assisted living, it was the non-stabilized group that posted the larger increase, with a 27% in the average price per bed, compared to just a 6% increase for stabilized properties. Non-stabilized facilities on average sold for $63,900 per bed in 2014, while stabilized facilities sold for $94,100 per bed, with the overall average coming out to $76,500 per bed. The faster rise in prices for these struggling facilities shows that buyers in today’s market may not be adequately accounting for the risk that is always associated in skilled nursing..........................................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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