Nick Cacciabando has sold a 59 bed skilled nursing and 13 bed residential care facility in southwest Kansas. The facility was owned by a local non-profit owner/operator. The Buyer is an owner/operator based in Denver, Colorado, with an existing presence in southwest Kansas. The facility’s census was 74.7% and the operations had been running at a deficit for the past few years. The one story building contains approximately 31,500 square feet and was originally constructed in 1963 with additions in 1988, 1995 and 2001. For additional information please contact Nick Cacciabando at 314/961-0070 or firstname.lastname@example.org
Pat Byrne has sold a CCRC located in a suburb of Kansas City, Missouri. The facility consists of 112 skilled nursing beds, 46 residential care beds (23 units) and 48 independent living units and was built in 1992. This represents the seller’s last senior housing asset. Although the facility’s profit margins had dropped in receent years despite a relatively consistent census, the Buyer looks forward to achieving profit margins experienced as recently as 3 years ago. The Seller had also recently placed attractive, assumable HUD debt on the property. The facility also benefited from a recently funded $6.00 PPD Medicaid rate increase and another rate increase is scheduled for the near future. The Buyer is an Ohio based REIT which will be leasing the property to a Missouri based operator. The purchase price was $13,500,000. For additional information, please contact Patrick Byrne at 314/961-0070 or email@example.com
REITs have been around for 50 years, but have most recently made their splash on the Seniors Housing industry. The headlines have been dominated by the REITs making acquisitions. A billion here, A billion there, a couple hundred million over there. Traditional financing is having trouble competing with the rock bottom cost of capital of the REITs. The REITs have their pick of the litter and have been buying high quality, cash flowing deals anywhere they can get their hands on them. What happens when there aren’t any portfolios left to purchase? I believe we will start to see the REITs acquire high quality, individual assets to throw into the master leases of some of their existing portfolios. We are seeing capitalization rate compression and higher pricing simply from the blockbuster deals that the REITs are completing.
Senior Living Investment Brokerage has completed a number of deals with healthcare REITs. We have relationships and access to all active REITs in Seniors Housing. If you have thought about selling your nursing home, assisted living, independent living or CCRC, please contact me at Ryan Saul
to talk about how we can access all of the REITs and maximize your return.
As we come towards the end of 2012, we begin to reflect on what sales trends we saw emerging in 2012 that may have been different or more pronounced than years prior. As I cover sales of assisted living facilities and skilled nursing facilities throughout the Mid Atlantic and Northeastern states, one thing that came up over and over again this year was the effect of government regulation on both Sellers and Buyers. Besides those looking to retire, the second most common reason individual owners told me they wanted to sell was that they just couldn’t handle the increasing regulation and oversight on their business. In my territory, Sellers in Pennsylvania and Virginia seem to have been especially over-burdened. This is a shame to hear, since the majority of owner/operators we work with have been in the business a long time, and have made a career of compassionate care for seniors.
Regardless of the election outcome, we expect that regulation over senior housing will continue to frustrate some owners to the point of selling, and require more patience on behalf of Buyers. Each State has its own quirks, so if you have thought about buying or selling an assisted living facility or skilled nursing facility, we encourage you to contact Senior Living Investment Brokerage, Inc. to discuss our experience in each state, and the expected time frame and hoops to get from start to finish.
Ryan Saul has sold a 61 unit assisted living/memory care facility in Ohio. Ryan had previosly sold the facility 4 years ago for $6 million. It had been operationg just below breakeven and the Buyer’s plan was to expand in the state. The owner’s plans changed and they made the decision to focus on other states within their portfolio. The new Buyer, based out of Kentucky, plans on increasing occupancy by utilizing the Medicaid waiver which the facility was certified for in July. For additional information please contact Ryan Saul at 630/858-2501.