Bringing You Senior Care M&A Deals and News
January 15, 2014 Issue:
Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
37 Assisted Living Concepts Buildings To Be Re-leased. With the lease expiring at the end of 2014, 37 properties with 1,430 units will be re-leased by LTC Properties. Read More
Recent Senior Care M&A Deals
Long-Term Care
Acquirer
Target
Price
Global Healthcare REIT, Inc.
Warrenton Nursing Home
$3.5 million
Aviv REIT
North Ridge
$40 million
Local doctor
Heather Ridge Commons
$1.8 million
New York investor
2 skilled nursing facilities
$13.85 million
NorthStar Healthcare Income Inc.
Pinebrook Retirement Living
$15.6 million
Capitol Seniors Housing
Towne Club at Peachtree
$33 million
Capital Senior Living Corporation
4 assisted living communities
$64.9 million
Deal of the Week
A Chicago-based investment group and its local operating partner have purchased a 128-bed skilled nursing facility in Indiana for $13.0 million, or $101,500 per bed. The cap rate was 14%, which perhaps reflects the original age of the building but may have more to do with such a high price per bed. That is at the very high end for Indiana SNFs, especially for ones built 40 years ago, as this facility was. But capital was continually invested in the property, and it has paid off in terms of its census. The Medicare and private pay census combined is 80%, which is almost unheard of for nursing facilities that are also Medicaid certified. And the seller’s focus was really on the assisted living side of the business, who only purchased this nursing facility because it came with an adjacent assisted living facility. The buyers may decide they can improve cash flow by increasing the 84% occupancy rate with more Medicaid patients, but there is certainly no pressure to do it. Senior Living Investment Brokerage handled 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
One lucky borrower in Missouri was able to refinance four skilled nursing facilities with 594 beds at an attractive rate through the HUD 232 program. The total loan amount was $22,456,000, or about $37,800 per bed. The interest rate came in below 4.4%, a level that must have been quite helpful for the borrower, which had a mix of conventional and interest-only improvement loans with variable rates, resulting in annual debt service savings of about $335,000. Not only did they refinance debt with a shorter term, but they also were able to reduce the rate significantly. In addition to paying off the outstanding debt, the funds also were used for $123,000 of repairs and the usual funding of replacement reserve accounts for each facility. The Ohio office of Housing & Healthcare Finance underwrote the financing……Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
People on the Move
Effective this week, Jose Lynch will be leaving his job as President, COO and a member of the board of Skilled Healthcare Group. He has been a key member of the management team at the company, and viewed by many of his peers in the industry as a top-notch skilled nursing professional. We have not heard why he left so abruptly, but he could not have been happy about being passed over for the CEO job last November when the company hired another seasoned industry professional, Bob Fish, as the new CEO. Korn/Ferry has been hired to find a successor……..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
For two years in a row, the number of publicly announced health care mergers and acquisitions has surpassed 1,000. Based on our preliminary numbers, there were 1,002 announced deals covering the entire health care spectrum in 2013, down 8% from the 1,091 in 2012. The dollar value, however, jumped 14% to $163.5 billion in 2013. Of these totals, seniors housing and care represented 22% of the announced transactions in 2013, but just 6.7% of the total dollar value, as the average deal size decreased significantly…….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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We offer customized healthcare real estate and medical property financing solutions including first mortgages, interim financing, acquisition financing and sale leasebacks for a wide range of healthcare operators, real estate developers and investors. In fact, during 2013 we helped organizations like yours finance senior housing, skilled nursing facilities and medical properties across the U.S.
Stop just banking. And start building.
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3rd Annual Senior Living 100 Leadership and Strategy Conference, February 22-25, 2014, The Ritz-Carlton, Laguna Niguel, CA (Special Offer for DMF readers – save additional $200!)
Accelerating Disruption: Innovating for Tomorrow
Exclusively for leaders from the nation’s largest AL, IL, CCRC & Memory Care organizations
• Optimize Change – by leveraging the shifting demographics and achievements in finance, operations and technology
• Drive Innovation – through strategic planning and decision-making from content-rich session formats
• Develop Disruptive Approaches – to better attract and serve residents, manage change and improve overall effectiveness
• Fully Implement Leader-to-Leader Learning – from this unparalled environment for high-level knowledge transfer.
For more information and to register: www.seniorliving100.com (Use the code SLDMN to save $200)
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