Bringing You Senior Care M&A Deals and News
August 20, 2014 Issue:
Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Genesis HealthCare and Skilled Healthcare To Merge: Already the largest skilled nursing company, Genesis HealthCare will be merged into Skilled Healthcare, retaining the Genesis name and George Hager as CEO, creating a skilled nursing behemoth………… Read More
Weekly Senior Care Deals
Long-Term Care
Acquirer
Target
Price
Health Care REIT, Inc.
HealthLease Properties REIT
$950 million
Health Care REIT, Inc.
11 seniors housing
communities
$257 million
Deal of the Week
MBK Senior Living recently expanded in Arizona. The California-based company purchased a 73-unit independent living community that was built in 2003 in Scottsdale with 47 apartments and 16 villas. The unit sizes range from 635 square feet to 1,287 square feet for the apartments, and between 1,190 square feet and 1,658 square feet for the villas. Occupancy is at an above-average 96%, but we suspect MBK may be able to take it to 100% with a waiting list. The purchase price was $25.5 million, or $349,300 per unit. Revenues were approximately $3.95 million and we have estimated 2013 EBITDA to be just over $1.8 million, representing a 46% margin. The resulting cap rate was 7.1%, which is about right for a full, relatively new building with all IL units and the possibility of revenue growth. Dave Rothschild, Matthew Whitlock and Mary Christian of CBRE Senior Housing Group represented the seller…………. Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
Financing of the Month
Cushman & Wakefield’s Senior Housing Capital Markets Group just closed on an $82.4 million financing package that enabled LCB Senior Living to purchase two high-quality retirement communities in Vermont. Austin, Texas-based Virtus Real Estate Capital provided $25.4 million in joint venture equity and PNC Bank provided $57 million in first mortgage financing. The two properties are located in Shelburne Bay, right outside Burlington, with 191 independent, assisted and memory care units built in 1999 and expanded in 2011, and in Middlebury that was built in 2008, with 131 units across the same spectrum. The total financing comes to about $256,000 per unit. LCB already operates several properties in New England, but this is the company’s first venture into Vermont, and it is doing it with what may be considered two of the state’s best retirement communities that were developed by a local operator/developer. C&W’s Richard Swartz, Jay Wagner, Aaron Rosenzweig and Stuart Kim worked on the financing………….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
Size usually matters when it comes to the sale of skilled nursing facilities, but in 2013 it seemed to matter a bit less. The smallest nursing facilities, those with fewer than 80 beds, sold for an average of $53,800 per bed, while the largest, over 180 beds, sold for an average price of $86,400 per bed. It was in between 80 and 180 beds where there was no real correlation. Those nursing facilities between 80 and 119 beds sold for an average of $81,200 per bed, very close to the largest-size category, while those between 120 and 179 beds sold for an average price of $59,650 per bed, or close to the smallest size. In many years there is a perfect correlation between size and price per bed, but not in 2013…………..Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today
The 2014 Home Health and Hospice Acquisition Report – Preorder Today!
There’s no quicker way to get current on the home health and hospice M&A market or review historic M&A data. Learn all about today’s home health merger and acquisition market, not just what’s covered in major media. Take advantage of our limited time free webcast offer: Order by August 31st and receive an exclusive FREE webcast, “Home Health & Hospice M&A: Consolidation is in the Air”! Go to http://www.levinassociates.com/landing/orderhhh or call 800-248-1668 to order today.
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