Monthly Archives: July 2013

July 30, 2013
Grant Kief

Jeff Binder Handles Michigan Skilled Nursing Transaction

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Jeff Binder has sold 2 Skilled Nursing Communities in Michigan. Both of the communities are located in Eastern Michigan. One of the buildings has 124 beds and was constructed in 1989. The two-story building has approximately 48,000 square feet on 1.89 acres. The other building was constructed in 1966 and renovated in 1985 and has 149 beds. The one-story building has approximately 58,000 square feet on 5.3 acres. Although the overall census for the two communities was only 66% at the time of the sale, Jeff was able to procure multiple offers with a final sales price of $8,000,000. The Seller, a national healthcare and senior living services provider, was seeking to divest these assets to utilize the capital for other corporate purposes. The Buyer is a regional owner/operator seeking to increase their operating presence in Michigan. For additional information, please contact Jeff Binder at 314/961-0070 or binder@slibinc.com

July 18, 2013
Grant Kief

Matt Alley and Jeff Binder Sell Texas Skilled Nursing Facility

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Jeff Binder and Matt Alley have sold an 80 bed Skilled Nursing Facility outside San Antonio. The facility was operated by a regional operator from San Antonio and owned by a trust. The facility has enjoyed a solid census with a favorable payor mix. It is a single story building built in the 1960’s. The Buyer is a publicly traded REIT with other facilities in Texas and the new operator is out of San Antonio. Senior Living Investment Brokerage, Inc. was able to procure multiple, qualified offers for the trust. For additional information, please contact Matt at alley@slibinc.com or Jeff at binder@slibinc.com

July 18, 2013
Admin

Interest Rates and REITs

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When interest rates start hitting the headlines, watch out.  We have seen the largest interest rate increase over the past few months.  We all know the Fed is going to slow down the bond buying efforts as the economy improves.  As interest rates increase, the value and appetite of REITs to aggressively acquire decrease.
Over the past 5-7 years, the REITs have maintained the lowest cost of capital in the low interest rate environment.  This has been a huge source of financing for many owners and buyers of Seniors Housing and long-term care properties.  Billion dollar deals in the headlines for REITs placing capital.  Could the end be near?  Not yet . . . . 
I don’t see rates drastically increasing in a short period of time.  Rather, there will likely be smaller increases over a longer period of time.  What does that mean?  Act NOW.  If you have thought about selling, now would be an ideal time.  Sell in one of the strongest markets in history while you still can.  It is only a matter of time before the increase in interest rates causes a disconnect between seller expectations and what a buyer can pay based on their cost of capital.
Please contact Ryan Saul for a proposal to determine your current market value.