sell memory care – Page 2

Senior Living investment Brokerage Sells Assisted Living Community

September 25, 2015/in assisted living, assisted living community, exclusive listing, Jeff Binder, memory care, prepare to sell assisted living, sell memory care, Senior Living Investment Brokerage, Toby Siefert/by ryanmsaul

Toby Siefert and Jeff Binder sold a 47 Unit Assisted Living and Memory Care Community that included 2 cottages (3 units each) on 6 acres in Virginia. With 84 total beds, the monthly market rates ranged from $4,050-$5,100 per bed/month. It was sold by a private owner who decided to exit the seniors housing business. The Buyer is a private REIT based on the West Coast who partnered with a national operator. Located 75 miles outside Washington D.C., the community offered an affordable alternative and allows for higher acuity due to I-2 construction. The purchase price was $14,300,000 or $270,000 per unit. The census was 91%. For additional information, please contact Toby Siefert at [email protected] or Jeff Binder at [email protected]

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When is the best time to list a seniors housing or nursing home community?

September 17, 2015/in Alzheimer, Alzheimer's, assisted living, assisted living community, assisted living price, assisted living sale, buy assisted living, buy nursing home, cap rate, Capitalization Rate, CCRC, closing costs, confidentiality, development, due diligence, exclusive listing, independent living, independent living facility, Lesley Arlasky, long term care, market, Matthew Alley, new construction, not-for-profit seniors housing, nursing home, nursing home price, operating margin, prepare to sell assisted living, prepare to sell nursing home, private equity, proposal, residential care facility, sales process, sell assisted living, sell CCRC, sell long term care, sell memory care, sell nursing home, sell portfolio, sell retirement community, sell seniors housing, sell skilled nursing, sell to REIT, senior housing, senior housing brokerage, Senior Housing community, senior housing sales, senior living, Senior Living Investment Brokerage, seniors housing, seniors housing brokerage, Skilled Nursing Facility, SLIB, Texas, valuation, what is my assisting living worth, what is my nursing home worth/by ryanmsaul

I’m often asked when is the best time of year to list a seniors housing or nursing home asset? We are all used to residential real estate agents telling us to list in the Spring while the weather is starting to change (at least for us Northerners).

Does it matter for seniors housing communities?

Yes and no. While there is not the seasonality in the seniors housing market as there is in the residential market, there are good and less optimal times for getting buyers’ (even institutional buyers’) attention.

I would argue that we are entering into one of those sweet spots as we get into the middle of September. Typically, Senior Living Investment Brokerage, Inc. has its highest volume of listings in September and early October.

Why is that?

During the Labor Day / beginning of October time frame, Buyers have made it through the Summer and are looking to deploy capital before the end of the year. They are hoping to make one last push to meet their aggressive beginning of the year expansion goals.

With a typical 3-4 month closing period, now is as good of a time as any to consider listing your property with Senior Living Investment Brokerage, Inc. We can help you procure the right Buyer, who can close the transaction prior to year-end. Many Buyers are looking to “get money out the door” by December 31st and this may give you an advantage in coercing those groups into making a more aggressive bid than they would in the middle of the year.

If you have any questions on the topic of this post or would like a confidential valuation of part or all of your seniors housing portfolio, please contact Matthew Alley at 630-858-2501 ext. 225 or [email protected].

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How additional sources of funds are impacting the seniors housing market

June 12, 2015/in Alzheimer, Alzheimer's, assisted living, assisted living community, assisted living price, assisted living sale, buy, buy assisted living, buy nursing home, cap rate, Capitalization Rate, cash flow, CCRC, Dementia, financing, hud, independent living, independent living facility, interest rate, Lesley Arlasky, long term care, market, Matthew Alley, memory care, nursing home, nursing home price, prepare to sell assisted living, prepare to sell nursing home, private equity, proposal, sell, sell assisted living, sell CCRC, sell long term care, sell memory care, sell nursing home, sell portfolio, sell retirement community, sell seniors housing, sell skilled nursing, sell to REIT, senior housing, senior housing brokerage, Senior Housing community, senior housing sales, senior living, Senior Living Investment Brokerage, seniors housing, seniors housing brokerage, Skilled Nursing Facility, SLIB, Texas, valuation, what is my assisting living worth, what is my nursing home worth/by ryanmsaul

Over the past couple of years, we have seen capitalization rates (defined as Net Operating Income divided by Purchase Price) drop steadily to historically low levels, which in turn has led to purchase prices being driven upwards.

Now is the time to take advantage of this market and either exit the business through a sale entirely or divest of a few properties from your portfolio that do not fit with your current strategy.

Why is the market so strong right now? More so than any other factor, the market has been impacted by the increased availability of capital (both debt and equity) and the low cost nature of said capital. Interest rates are still at historically low levels, and while rates may creep up a bit, most analysts expect a measured increase.

During the Great Recession, transactions were mainly financed by three different methods: (1) all cash; (2) HUD financing; or (3) mostly public REIT financing. Community banks were only lending to their best clients on the most conservative of terms, and there were not a great deal of smaller, private REITs or private equity firms willing to support the acquisition of seniors housing facilities.

Over the past couple of years, community banks have become more aggressive as they are sitting on a large reserve of cash that they need to deploy and there has been a growth in the private REIT space. According to investment banking firm , Robert A. Stanger & Co., and reported by Seniors Housing Business, a handful of non-traded REITs devoted to seniors housing have amassed $6.4 billion in equity over the past few years. The availability of these capital sources has had a huge impact on the seniors housing acquisition market in the form of increased pricing.

The most recent example of this was a $30M nursing home portfolio that Senior Living completed in Texas. It was purchased by an independent, regional owner-operator and financed by a community bank out of Louisiana. Until recently, that size of transaction would have been almost certainly REIT financed or purchased by a large, national owner-operator.

If you have any questions on the topic of this post or would like a confidential valuation of part or all of your seniors housing portfolio, please contact Matthew Alley at 630-858-2501 ext. 225 or [email protected].

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Senior Living Sells Memory Care and Assisted Living Facility in Indiana

May 24, 2015/in assisted living, Indiana, Jeff Binder, Ryan Saul, sell assisted living, sell memory care/by ryanmsaul

Jeff Binder and Ryan Saul recently worked together to sell a memory care and assisted living community of 124 units in Indianapolis, IN. The community consists of 82 assisted living units and 42 memory care units. The assisted living wing was constructed in 1999 and renovated in 2009 whereas the memory care wing was constructed in 2007. The community is comprised of 113,000 square feet on 2.5 acres. At the time of sale, the overall census was approximately 80%. The Seller of the memory care and assisted living community was a publicly traded REIT utilizing a regional operator. The Buyer is a private, regional owner that sold their portfolio a few years ago and is seeking to reenter the seniors housing market. The new owner plans to increase occupancy by bringing in a Medicaid Waiver certification and focus on building census. Senior Living Investment Brokerage sold the facility for $17,000,000. For additional informaton, please contact Ryan Saul at [email protected] or Jeff Binder at [email protected]

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Ryan M Saul