Monthly Archives: February 2016

February 29, 2016
Grant Kief

Senior Living Handles Skilled Nursing Portfolio Sale

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Diamondback

Matt Alley was hired for a Skilled Nursing Portfolio sale in Texas. The transaction consisted of 3 skilled nursing facilities that included some assisted living units and independent living units. The properties were located in Richardson, Waco and Austin. Waco is 25 Independent Living, 72 Assisted Living units and 90 Skilled Nursing beds on 13 acres of land. Richardson is 62 Assisted Living units and 106 Skilled Nursing beds on 4.75 acres. Austin is comprised of 118 Skilled Nursing beds on 3.75 acres of land. The overall census was 98%, 65% and 85% respectively. There was upside in rate increases on both the Medicare and Medicaid reimbursement structures. The Seller is an independent owner/operator exiting the industry. The Buyer is also an independent owner/operator based out of Louisiana. The portfolio was built between 1986 & 1988 and sold for $30,500,000 at a 9.3% cap rate. For additional information, please contact Matthew Alley at 630/858-2501 or alley@slibinc.com

February 26, 2016
Grant Kief

Ryan Saul Hired to Sell Assisted Living and Memory Care Community

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Ryan Saul was recently engaged to sell assisted living and memory care facility in Goshen, Indiana. The 80 unit community was originally constructed in 2004 (55 units) with a 2007 addition of 26 units (one currently used as an office). The building is comprised of approximately 92,156 square feet on 6.78 acres. At the time of the sale, the overall occupancy was 98%. The sale price of $14,000,000 included approximately $9,800,000 of HUD debt at 2.55% interest which was assumed by the Buyer. The Buyer owns a nursing home on the adjacent parcel giving the new owner a continuum of care campus. For additional information, please contact Ryan Saul at 630/858-2501 or ryansaul@slibinc.com

February 25, 2016
Grant Kief

Senior Living Selected to Sell Assisted Living and Memory Care Facility

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Jeff Binder and Brad Clousing sold an 80 unit assisted Living and memory care community in Oklahoma City, Oklahoma. The 80 unit (133 total beds) building comprised of 68 assisted living units and 12 memory care units. The facility is approximately 53,000 square feet on 3.6 acres. Built in 1999, the community had a census of 42% at the time of sale. The Seller is a healthcare REIT and this was their only asset in Oklahoma. The Buyer is a regional owner/operator based in Oklahoma. For additional information, please contact Jeff Binder at 314/961-0070 or Brad Clousing at 630/858-2501

February 24, 2016
Ryan Saul

Broker nursing homes and assisted living

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Senior Living Investment Brokerage, Inc. is the preferred choice to broker nursing homes and assisted living.  Many in the industry are asking me what I expect to happen in 2016.  At one point, I thought pricing and number of communities sold would be flat or even down compared to years past.  However, January and February were record months for requests for proposals.  Senior Living has completed more proposals for clients in the first two months of 2016 than the first two months of any other year.  Those proposals will likely lead to listings and new inventory to sell.  What does this mean for you?

If you are buying nursing homes or assisted living, expect a wave of opportunities to come in the coming months.   If you are looking to sell a nursing home or assisted living, act now before the market changes.  There is still capital available and buyers looking to acquire communities.

Please contact Ryan Saul (630-858-2501) to learn more about what we have for sale or to discuss a confidential proposal to find out what your nursing home or assisted living community is worth.

February 24, 2016
Grant Kief

Senior Living Sells Assisted Living, Memory Care and Independent Living Community

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Toby Siefert and Bradley Clousing sold a 165 unit assisted living, memory care and independent living community in Chester, Pennsylvania. The unit mix is 59 market rate AL, 21 low income AL, 17 memory care and 69 independent living. The independent living portion of the community was developed using Section 42 low income housing tax credits and residents must meet certain criteria in order to be eligible to live in these units. The asset had significant bond debt and the transaction was executed at the direction of the bond holders. The building is in need of significant capital improvement and re-branding in the local community just west of Philadelphia. Given the current debt structure and the limited cash flow, the Seller was unable to make these improvements. The thirteen story building was constructed in 1998 and had a census of 85%. The Seller was a Pennsylvania based affordable housing developer and the Buyer is a Michigan based private equity group. For additional information, please contact Senior Living Investment Brokerage at 630/858-2501. For information on selling your affordable housing community, please contact Kyle Shoemaker at Affordable Housing Investment Brokerage, Inc. 630/405-6500 or visit: http://www.affordablehousingbrokerage.com/

February 12, 2016
Jason Punzel

What is the best list price for my Seniors Housing Community?

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As a company, Senior Housing Investment Brokerage, Inc. represents many different types of buyers; REITS, Private Equity companies, Regional Operators, Non-Profits and small, privately owned operators.  When it comes time to sell, typically the most, or one of the most important factors is obtain the best price possible.

As brokers, owners rely on us to provide them with an accurate assessment of the value of their Seniors Housing Community and suggest a list price to help them obtain the best terms possible in the market place.  As a company, over 95% of the time the final sales price is within the price range from our original market analysis.  After determining a market value range, the next step is deciding on a list price.   Typically, we suggest a list price of about 10% above the market value range.   Thus, if we expect a property to sell between $9,500,000-$10,000,000, an appropriate list price would be between $10,500,000-$11,000,000.

Often times, sellers believe that by listing the property at a much higher list price, that it will result in a higher final sales price because buyers will “meet them in the middle.”   From our experience, this is rarely the case and a high list price usually results in a much longer process and sometimes even a lower final sales price.

Buyers who have the capital available to purchase a $5, $10, $20+ million property, are very experienced and tend to have tight underwriting guidelines to achieve the returns their investors require.   Buyers are not going to be “tricked” into paying more for a property because of a high list price, pride of ownership, or because it is a nice, new building.

A high list price usually results in many buyers quickly passing over the deal because they don’t think the seller is realistic and they don’t want to pursue a property that they think there is very little chance of buying at a market price.   When there is little activity at first, and sellers reduce their price to a market price, buyers start to wonder if the seller will continue to reduce their price or if the property has something wrong with it.  Both which can cause more delays and decreased interest in the market place.

It is much more effective to have a list price that is realistic and creates a lot of activity from buyers quickly.  This creates competition among buyers by getting several offers at once and has a much greater chance of driving the up the price than having a high list price that slowly gets reduced because of inactivity.

If would you like to get an accurate market price analysis, please contact Jason Punzel at punzel@slibinc.com or 630-858-2501.