Monthly Archives: June 2011

June 29, 2011
Grant Kief

Sanders, Alley and Saul Handle Iowa SNF Transaction

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Matt Alley, Ryan Saul and Ross Sanders sold a 40 Bed Skilled Nursing Facility in Central Iowa. The facility was owned and operated by a multi-state owner/operator based in Minnesota. The Buyer is a regional owner/operator looking to expand his current operations in Iowa. The new owner seeks to improve on a number of operational inefficiencies. The census was 82% and the facility sold for 1 10% capitalization rate. Senior Living utilized it’s brokerage team to locate an unique buyer for a smaller, rural facility and close quickly. Our individual brokers specialize in long term care facilities in specific markets yet work as a team to find the right buyer. Let us know if you would like to meet with one of our brokers to prepare a confidential proposal for your facility.

June 24, 2011
Admin

The Market has Changed

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How has it changed in the last 12 to 24 months?

With the difficulties in the overall economy 12 – 24 months ago, Sellers didn’t believe there were active buyers in the market. Many thought they would not realize their deserved value and set thoughts of selling aside. This mentality caused a significant shortage of supply. 12 – 24 months ago lending was extremely difficult. http://www.blogger.com/img/blank.gif

Now? All realize that our industry was not impacted as negatively as other sectors and the overall economy. We have seen a steady climb in values. As more properties come on the market and sell, the market continues to improve. Financing is also more available with local (relationship), regional and even national lenders actively back in the market.

All these factors lead to a great time to consider selling an assisted living or skilled nursing facility.

Please contact Ryan Saul for a confidential proposal to determine market value in this ever-changing market.

June 24, 2011
Grant Kief

Ryan Saul Sells Illinois SNF for Record Price

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Ryan Saul has sold an Illinois Skilled Nursing Facility for over $115,000 per operational bed. Ryan was able to generate the highest price per bed in Illinois through a confidential marketing process that generated multiple offers. He was able to structure a transaction with a short due diligence period and no financing contingency. The facility was built in 1975 and had been in the same family for 34 years. The Sellers plan on retiring from the long term care business. The Buyer is a local non-profit hospital group that owns/operates six hospitals and six nursing facilities in the Chicago area. The facility was a strategic acquisition that provides specialized acute medical services. The rehabilitation center within the facility is nationally recognized and provides state-of-the-art therapy programs that are unmatched within the industry. The Buyer will realize substantial efficiencies and will be acquiring in-place programs that they will be able to develop into their other facilities. The facility was licensed for 231 beds and sold at a 9.5% capitalization rate. For additional information, please contact Ryan Saul at 630/858-2501 or saul@seniorlivingbrokerage.com

June 20, 2011
Grant Kief

Patrick Byrne Sells County Facility in Illinois

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Patrick Byrne has sold a 60 Bed Intermediate Care Facility in Southern Illinois owned by a local hospital. The building had negative cash flow due to the employee benefits package and the lack of Medicare certification. In an effort to shield the hospital from further losses, Senior Living worked with the winning bidder to take over operations almost immediately. The new operator was able to obtain Medicare certification and convert the building to a skilled facility prior to close of escrow. The new owner inherits a facility with a strong census a good referal source in the Seller. For additional information, please contact Patrick Byrne at 314/961-0700 or byrne@seniorlivingbrokerage.com

June 15, 2011
Grant Kief

Matthew Alley Sells Another Texas Skilled Nursing Facility

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Matt Alley sold a 154 Bed Skilled Nursing Facility in in West Texas. Even though the facility had negative cash flow, Matt was able to procure multiple offers on the facility and close the transaction with a Buyer from California. The new operator intends to modify the marketing campaign to increase census and focus on expense management to improve the facility’s financial performance. The facility was built in the 1970’s and is in fair condition. For more information please contact Mattat 630/858-2501 or alley@seniorlivingbrokerage.com

June 15, 2011
Admin

Portfolio vs. Single Asset Sale

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It may come as no surprise that selling a portfolio of two or more facilities will garner a higher price per unit than selling facilities on an individual basis. The difference, however, is staggering. In 2010 the average assisted living price per unit was almost $70K higher in portfolio sales vs. single asset sales (The Senior Care Acquisition Report, Sixteenth Edition 2011)

Just because a facility is sold in a portfolio does not make it an A+ asset. However, buyers will often pay a premium to enter a market with force and have the ability to create efficiencies quickly. Portfolio sales also allow brokers to confidentially market facilities to a wider range of potential buyers.

Sellers are often tempted to “try” a broker for one of their facilities to see how they perform. In the long run it proves more advantageous to your wallet to build a strong enough relationship with a broker to trust them with a portfolio. We would be happy to complete a no-cost confidential proposal to determine the market value of your portfolio to begin that relationship. Please contact Toby Siefert at siefert@seniorlivingbrokerage.com or 630-858-2501.

June 8, 2011
Grant Kief

June 8, 2011 Press Release

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Senior Living Investment Brokerage, Inc., the nation’s leading specialist in services for selling skilled nursing centers and seniors housing, announces it has brokered over the course of a one-month period the sale of 17 senior living properties in 13 separate transactions with a total value exceeding $71,500,000.

The seven skilled nursing centers and 10 retirement communities located in 10 states have accommodations for over 1,400 residents.

Grant Kief, President of Senior Living Investment Brokerage, says a number of factors are driving the growing interest among a wide range of investors in senior living properties.

“Buyers 12 to 18 months ago were cautious, because it wasn’t clear where the market was headed and lending sources were on the sidelines. We’ve seen a lot more acquisition activity during the last several months, due mainly to favorable interest rates, a lack of new construction, the impending impact of demographics, and the fact that senior living held up so well compared to other real estate sectors during the recession,” he reported.

June 8, 2011
Admin

The Heat is on….

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I don’t just mean for the Miami Heat. As a Bulls fan, I would love to see Dallas beat Miami.

Even though Chicago reached 100 degrees yesterday, it’s not the only thing hot right now. The M&A market has picked up at a blistering pace. Not only are transactions closing at a record rate, but values are headed in a positive direction. Everything that we list is selling. There is demand to purchase both skilled nursing and assisted living facilities right now.

What does this mean for you? If you have thought about selling, now would be an ideal time to take advantage of current market conditions. At the very least, let me put together a confidential analysis to determine market value to see if now is the right time. Please contact Ryan Saul at saul@seniorlivingbrokerage.com or 630-858-2501.