Senior Living Investment Brokerage

Nick Cacciabando, MAtthew Alley and Jeff Binder Sell an Oklahoma Skilled Nursing Facility

2012-01-31T08:09:00.001-08:00

Jeff Binder, Matt Alley and Nick Cacciabando teamed up to sell a Skilled Nursing Facility in Oklahoma. The facility was owned and operated by a local family. The facility was built in 1964 and 1969 and was at 93% occupancy at the time of the sale. The Buyer is a regional owner/operator based in Texas who will be expanding its current operations into Oklahoma. For additional information, please contct Nick or Jeff at 314/961-0070 or Matt at 630/858-2501.

Senior Living Sells Phoenix, Arizona Assisted Living Facility

2012-01-25T08:31:00.001-08:00

Nick Cacciabando, Ryan Saul and Jeff Binder sold a 92 Bed/82 Unit Assisted Living and Memory Care Facility in Phoenix, Arizona. The Seller, a Detroit based bank, acquired ownership of the property through foreclosure in June 2011. The 45,422 square foot building was approximately 61% occupied at the time Senior Living commenced marketing of the facility. The main payor source is Medicaid which totaled over 80% of revenue.Senior Living was able to generate multiple offers. The ultimate Buyer was selected in part because the offer had no financing contingency and they were able to close quickly. The Buyer is a national owner/operator with an existing presence in the market. The facility was built in 1974 and had a negative EBITDA of ($158,605). The sales price was $3,225,000 ($39,329/unit). For additional information please contact Jeff Binder or Nick Cacciabando at 314/961-0070 or Ryan Saul at 630/858-2501.

Bradley Clousing and Ryan Saul Sell Alabama SNF and Medical Office Building

2012-01-13T14:42:00.000-08:00

Ryan Saul and Brad Clousing sold a 117 Bed Skilled Nursing/25 Bed Inpatient Rehab Facility in Alabama. Also included in the transaction was a free standing administrative/medical office building. Both buildings were located on the same 12 acre parcel of land. The SNF just received Medicaid certification in 2010 helping with the recent surge in census. The Seller is a local non-profit which will maintain offices in the administaration building to focus on their PACE, Home Health and Hospice businesses. The Buyer is an operator of a large portfolio of facilities across the U.S. although this is their first asset in Alabama. For additional information, please contact Brad Clousing or Ryan Saul at 630/858-2501.

Patrick Byrne, Bradley Clousing and Jeff Binder Work Together to Sell Two Arkansas Facilities

2012-01-11T10:21:00.000-08:00

Jeff Binder, Brad Clousing and Pat Byrne sold a skilled nursing facility and a residential care facility in Stone County, Arkansas. The skilled nursing facilityis 97 beds and was built in the 1960's with several renovations. It is one-story building comprised of approximately 30,000 square feet on 3.4 acres. The residential care facility is a 32 bed/20 unit facility built in 1995. It is one-story building comprised of approximately 12,000 square feet on 1.12 acres. The combined census at the time of the sale was near 92%. The Seller is a local health system and divested of the assets to focus on its core businesses. The Buyer is using this transaction to bolster its growing presence in the State of Arkansas. The combined transaction sold at a 7.7% capitalization rate/.875 GIM. For additional information, please contact Brad, Jeff or Pat.

Congratulations To Our Top Brokers Of 2011

2012-01-09T09:10:00.000-08:00

Congratulations to Jeff Binder, Ryan Saul, Matt Alley, Brad Clousing, Patrick Byrne, Patrick Burke and Nick Cacciabando. Our top brokers all worked to propel Senior Living Investment Brokerage, Inc. to a record year and once again, for the 4th year in a row, handling more Seniors Housing transactions than any other brokerage firm in the country. We would like to thank all of our clients that put their trust in us to handle their Seniors Housing sales and acquisitions.

Make 2012 Great

2012-01-05T10:14:00.000-08:00

Happy New Year from Senior Living Investment Brokerage, Inc.

As Yogi Berra said, "I knew the record would stand until it was broken."

Our firm had another record year, and I want to thank all of those who helped make that happen. I am really looking forward to working with you in 2012. Please let me know if you are looking to buy or sell Seniors Housing or long-term care facilities. Email ryansaul@slibinc.com or call 630/858-2501.

We will also be attending the ASHA Conference January 15th - January 17th. Check back for updates on the market after that conference.

Patrick Burke and Ryan Saul Sell a Wisconsin ILF/ALF

2011-12-20T12:42:00.000-08:00

Ryan Saul and Patrick Burke sold a 59 unit Independent Living and Assisted Living Facility located in Green Bay, Wisconsin. Originally built in 2004, the facility underperformed due to low rents and historical census aroound 65%. In 2006, the owner defaulted on their loan with a regional bank. In 2007, a court appointed receiver was assigned which hired an experienced seniors housing operator that began offering additional services, increased census and raised rents. Through a well implemented marketing plan, Senior Living Investment Brokerage was able to field multiple, qualified offers on the facility. The facility ultimately sold for $2,600,000 which translates into a 1.5% capitalization rate/4.8 GIM (no, the numbers are not transposed). Senior Living specializes in assisting owners/sellers in the sale of distressed assets. For additional information, please contact Patrick or Ryan at 630/858-2501.

Slow time of year? I think not.

2011-12-20T07:52:00.000-08:00

I was hoping to slow down, catch up on paperwork and read a good business book this holiday season. That isn't happening. A lot of clients wisely use this time to have a confidential proposal done. That is just fine with me. With all this activity, that means 2012 should be another record year. We are working on a number of closings over the next two weeks and our proposals have increased dramatically. If you were frustrated by the lack of deals out there to purchase over 2011, hold on, I think 2012 will be the year of opportunities. If you have thought about selling, now is a great time to have me do a confidential proposal to see what your property is worth.

Please call me at 630-858-2501 or Email Ryan Saul at ryansaul@slibinc.com to discuss.

Merry Christmas from the IRS

2011-12-16T12:48:00.000-08:00

Based on a recently released IRS Memorandum, buildings that provide housing to seniors in communities that offer a variety of services are now classified as residential rental property. This includes facilities offering independent living, assisted living, and nursing care. There is no requirement stating a kitchen must be present in each unit in order to be eligible for the classification.

The benefit of the residential rental property classification is that a senior living building can be depreciated over a 27.5 year period instead of the 39-year period that applies to nonresidential rental property. Most owners do not hold a building long enough to full depreciate an asset. Therefore this increased basis will allow for additional tax shelter for owners.

In fact, even if your building is already being depreciated at the 39-year period you can reduce the depreciable life to 27.5 years. A Form 3115-Change in Accounting Method can be filed in order to make the correction. This change could translate into large tax savings and/or deferrals in the current year and on a go forward basis.

Please contact Bradley Clousing at (630) 858-2501 or clousing@slibinc.com for additional information or for a referral to a senior housing specific accounting firm.

Patrick Byrne and Jeff Binder Sell Missouri Assisted Living Facility

2011-12-14T08:45:00.000-08:00

Patrick Byrne and Jeff Binder sold a 40 Bed/28 Unit Assisted Living Facility located in Saint Louis County. Originally constructed a short-term rehabilitation facility, it was purchased and renovated into an assisted living facility by a non-profit organization affiliated with a Catholic based organization. In recent years, the funding for the facility had diminished and a decision was made to close the facility in June, 2011. Senior Living was tasked with repositioning and marketing a vacant building which had lost value upon closure. After only 3 weeks of marketing, Senior Living identified 3 bidders on the property. The Buyer intends on reopening the facility after some minor physical plant changes and redecorating. The Buyer will focus on the private pay market. Built in 1984 and located in a working class community, the 17,864 square foot facility sold for $1,200,000 or $30,000/bed. For additional information, please contact Pat or Jeff at 314/961-0070.

Matthew Alley Sells Another Pair of Texas SNF's

2011-12-08T10:21:00.000-08:00

Matt Alley has sold two Texas Skilled Nursing Facilities located in Abilene and Waco. They are both 120 beds and specialize in dementia care. The facilities were owned by a non-profit organization based in Austin. The Seller specializes in Continuing Care Retirement Communities and these were there only stand alone skilled nursing facilities. Built in 1994 and 2004, these high quality facilities were profitable with an average 85% census, but should enjoy the benefits of being part of a large regional operator. The Buyer is a publicly traded REIT specializing in healthcare. The REIT will be leasing the facilities to an operator headquartered in Maryland that operates several SNF's in Texas. The facilities sold for over $59,000/bed at a 10.4% capitalization rate. For additional information, contact Matthew Alley at 630/858-2501 or alley@slibinc.com

Demand Demand Demand Demand - Oh, and Supply

2011-12-01T11:09:00.000-08:00

Did you know that here in the US one baby boomer is turning 65 every eight seconds?? That is a shocking statistic. That rate is going to continue for the next 20 years!

With the lack of construction financing over the last several years my guess is that there is going to be a significant shortage of Seniors Housing and long-term care facilities across the country. What does that mean for you?

Current facilities, especially those with land to expand, are going to be extremely valuable. Now would be an ideal time to look into selling your seniors housing or long-term care facility. You might be tempted to wait and time the top of the market. However, what happens if/when interest rates skyrocket? Waiting could result in that appreciation being wiped out with interest rate increases that erode buying power. We know the market is strong today and there is very little product available. With the low cost of capital and the current demand, now is also an ideal time to purchase. Call Ryan Saul(630-858-2501) or Email me to discuss the value of your facility.

Ryan Saul and Brad Clousing Sell Ohio CON

2011-11-29T07:55:00.000-08:00

Brad Clousing and Ryan Saul have sold an Ohio Certificate of Need. The Seller had purchased a portfolio of facilities and elected to close one of the facilities located in Toledo due to poor census. The decision was made to sell the 100 Bed CON and the facility separately. The Buyer plans on developing a new campus at another nearby location that would include both skilled nursing and assisted living on the same campus. For additional information, please contact Ryan or Brad at 630/858-2501.

Brad Clousing Brokers Florida Skilled Nursing Facility

2011-11-21T09:18:00.000-08:00

Brad Clousing has sold a 101 Bed Sarasota, Florida, Skilled Nursing Facility. This was the only skilled nursing facility owned by the Seller, a local non-profit organization. The Seller will continue to own and operate the adjacent assisted living facility and age-restricted apartments. Although occupancy has been an issue recently(61%), the facility was still profitable. The facility is in good physical condition and is competitive in the local market. The Buyer is a regional owner/operator of 6 other SNF's and plans to increase census and improve operating efficiencies. With the quality physical plant coupled with the favorable Sarasota market, the Buyer should be able to generate strong returns. The 44,651 sq. ft facility was built in 1967 with an addition in 1990. Brad was able to generate multiple offers by actively marketing the facility to qualified Buyers. Thje final sales price was $4,975,000 ($49,257/bed) which translated into a cap rate of 6.8% and a GIM of .9x. For additional information, please contact Brad Clousing at 630/858-2501 or clousing@slibinc.com

Seller Motivation

2011-11-16T14:59:00.000-08:00

On every offering we bring to market, potential buyers are curious to know why the owners have decided to sell. As we reflect on the 40+ facilities we have sold so far this year, and the current active inventory, we find four common motivations for a sale. First, and probably most common, the subject property was not part of the owner’s core business niche. They acquired an assisted living facility when they actually specialize in skilled nursing, or vice versa. Other common reasons are when a small operator wishes to retire from the business altogether, or an operator who got into the business primarily as an investment vehicle, realizes that demand (and prices) is high and capital gains taxes are historically low. Lastly, for the larger multi-facility owners, it’s a good time to sell one or a few “outlier” assets in order to reinvest and strengthen their presence in their core geographic markets.

If you find yourself identifying with one of these categories, we have the experience to confidentially attain your investment objectives. Please contact Toby Siefert at siefert@slibinc.com or 630-858-2501 to have a confidential discussion of the market and its impact on your senior housing community.

Private Equity not so Private anymore

2011-11-14T12:08:00.000-08:00

The Seniors Housing market is as strong as ever. Many private equity groups have been hunting for places to put money to work. While the debt crisis in Europe and lackluster economy has chilled private equity's interest in commercial real estate, Senior Housing continues to be a lucrative, safe bet. Capitalization Rates have remained stable despite volatility in other sectors/markets.

The biggest problem is that private equity looks for portfolio transactions versus smaller, one-off deals. The bigger the deal, the bigger the return. There is a shortage of those deals, if any out there.

I predict that smaller private equity funds are going to look for individual assets to purchase. They can buy individual properties at an attractive price, assemble a sizable portfolio one property at a time, then sell for a portfolio premium.

If you are an owner of nursing homes or assisted living facilities, now would be an ideal time to look into selling. Since private equity groups don't operate, a sale-lease back or sale-manage back transaction might be a good option. For those looking to sell and get out of the business, many private equity groups are already aligned with operators.

Please contact Ryan Saul at 630-858-2501 to discuss if now is a good time to sell.

Ryan Saul Announces Sale of Connecticut Skilled Nursing Facility

2011-11-09T09:28:00.000-08:00

Ryan Saul has sold a 150 bed Skilled Nursing Facility for a not-for-profit hospital organization. Ryan was able to secure a Buyer that not only met the mission and operational values of the Seller, but was also financially qualified to complete the transaction. This was the only long-term care facility the hospital system owned. Although the census was strong, the facility's heavy expenses more closely resembled a hospital resulting in a large operating loss. The Buyer is a regional owner/operator which utilized Sabra REIT for the acquisition. The Buyer is an experienced Connecticut operator and specializes in turn-around opportunities. The census at sale was 90% with a 37% quality mix. For additional information, please contact Ryan Saul at 630/858-2501 or ryansaul@slibinc.com

Patrick Burke Sells Two Tennessee Facilities

2011-10-28T08:36:00.000-07:00

Patrick Burke sold a 196 unit Independent Living Facility and a 52 unit Assisted Living Facility with Memory Care. The facilities were in receivership and sold through the U.S. Bankruptcy Court. The previous owner had struggled with occupancy and had not been able to reinvest capital into the buildings for several years. The buildings were adjacent to each other and shared a kitchen, maintenance crew as well as other expense items. There were numerous deferred maintenance issues at the facilities and the new owner was able to secure a line of credit to renovate the facilities. The Buyer, a regional operator out of the Southeast, plans on renovating both facilities and utilizing their marketing experience to improve census. Deespite their negative cash flow, Senior Living Investment Brokerage, Inc. contacted over 50 potential buyers and fielded multiple qualified offers. For additional information, please contact Patrick Burke at 630/858-2501 or burke@seniorlivingbrokerage.com

Sanders, Binder and Byrne Sell Two Iowa Facilities

2011-10-25T12:50:00.000-07:00

Ross Sanders, Jeff Binder and Patrick Byrne sold two seniors housing facilities in the Des Moines, Iowa area- Genesis Senior Living Center and Regency Care Center and Assisted Living. Genesis Senior Living Center is an 80 bed Skilled Nursing Facility located in southern Des Moines. The facility was constructed in phases; 1962, 1975 and 2006. Regency Care Center and Assisted Living is located in Norwalk and consists of two separate buidings on the same campus; a 101 bed Skilled Nursing Facility and a 30 unit Assisted Living Facility. The SNF was built in 1976 with an addition in 1983 while the ALF was built in 2007. At the time of sale, the overall census for the entire portfolio was 83.3%. The sale price of $12,650,000 or $59,953/bed/unit translated to a 12.4% capitalization rate/1.22 GIM. The Seller was a regional owner. The Buyer intends on investing capital while improving operations and increase overall census. Senior Living Investment Brokerage was able to work with the Seller to implement a national marketing plan and field multiple qualified offers on the portfolio. For additional information, please contact Patrick Byrne, Jeff Binder or Ross Sanders at 314/961-0070.

Patrick Byrne and Nick Cacciabando Sell SNF Portfolio in Arkansas and Missouri

2011-10-18T12:43:00.000-07:00

Nick Cacciabando and Patrick Byrne sold the 506 bed, 5 facility Pinnacle Healthcare portfolio. The transaction also included Pinnacle Healthcare's home office located in Arkansas. Four of the facilities are located in Arkansas and one is located in Missouri. The facilities were built between 1971 and 1988 and all have sound physical plants. The entire portfolio had struggled as recently as a few years ago but new management had improved the operations despite being relatively new to the seniors housing industry. This is the first purchase in Arkansas for the Buyer, Adcare Health Systems. They plan on using the home office to service current and future facilities in the region. The portfolio sold for $20,000,000 at a 12.1% capitalization rate. Adcare anticipates improved operations due to their management experience. Senior Living Investment Brokerage, Inc. was able to work with the sellers to implement and execute a marketing plan which in turn generated multiple offers on the portfolio. For additional information, please contact Pat Byrne or Nick Cacciabando at 314/961-0070.

Ross Sanders and Jeff Binder Sell 100 Bed Iowa SNF

2011-10-12T09:49:00.000-07:00

Jeff Binder and Ross Sanders sold a 100 Bed Skilled Nursing Facility in northwest Iowa in a town of over 10,000 residents. At the time of the sale, the facility was underperforming and had a census of 35%. The Seller is a regional owner/operator who was one of the original investors in the facility. The Buyer will invest capital into the facility and work to increase the overall census. Constructed in 1970, the one story facility is comprised of approximately 27,781 square feet on 2.3 acres. The building is only partially sprinklered. For additional information, please contact Ross Sanders or Jeff Binder at 314/961-0070.

Industry Expert Steve Monroe - Good Time to Sell

2011-10-05T07:05:00.000-07:00

Steve Monroe with Irving Levin Associates Inc., a recognized Seniors Housing expert, says all signs point to now being a good time to sell. Listen by clicking here:

Seniors Housing Update: 60 Seconds with Steve Monroe

Call Senior Living Investment Brokerage, Inc. to assist you with your selling needs.

www.seniorlivingbrokerage.com

George Pappas Sells 4 Facilities in South Dakota

2011-10-04T15:25:00.000-07:00

George Pappas has sold a portfolio of four Assisted Living Facilities in South Dakota. Built between 1999 and 2003, the four facilities total 104 units/130 beds. At the time of sale, the overall occupancy was 85%. The Seller is looking to exit the seniors housing market. The Buyer is a regional operator looking for immediate savings with many of the larger cost centers. For additional information, please contact George at 630/858-2501 or pappas@seniorlivingbrokerage.com

Matthew Alley Sells 198 Bed SNF in Texas

2011-09-27T09:26:00.000-07:00

Matt Alley has sold another Texas Skilled Nursing Facility outside of Houston. The four-story, 124,000 square foot facility was originally an acute care hospital from 1965 to 1996. The facility was converted to seniors housing in 1998. The 198 Bed facility was ownd by an independent owner from Texas and purchased by an owner/operator from New York. Senior Living is able to connect sellers and buyers from across the country. The purchase price was $7,800,000. For additional information please contact Matthew Alley at 630/858-2501 or alley@seniorlivingbrokerage.com

Sprint to the finish

2011-09-15T08:17:00.000-07:00

As we head into the end of the year everyone seems to be talking about Medicare cuts and sluggish occupancy. However, the M&A market is as strong as ever. After a record number of closing in the first half of 2011, we experienced a wave of new inventory recently. The market continues to be strong. Debt and equity are looking for quality opportunities.

There is still a huge shortage of quality opportunities on the market.

I hear all the time, "Everything is for sale for the right price!" How do you know what your property is worth? I think you would be surprised. This might be the market to get your "right price."

If you have thought about selling, now is an ideal time to have us put together a confidential proposal to determine market value. Click this link Ryan Saul or call me at 630-858-2501 to discuss the current market.

The Stars Align (Once Again) for Senior Housing Sellers

2011-09-15T07:46:00.000-07:00

We might not be back to the days of 2006 and 2007, but given the current market environment, there are a number of compelling reasons for senior housing owners to dust off their exit strategy playbook. The following is a summary of points to consider:

1. Capitalization Rate Compression – We have seen a continual compression of capitalization rates over the past 12 months. This has been fueled in part by three factors. First, the record low interest rates and return of lending to the acquisition market has compressed the cost of debt. Second, senior housing has been one of the least affected asset classes from the recession and therefore has been attractive from both a private and an institutional capital standpoint. This in turn, has created lower return requirements (REIT lease rates, equity return, etc.) lowering the cost of equity. Lastly, the shortage of quality inventory has created strong competition which has further compressed capitalization rates and increased prices for potential Sellers.

2. Favorable Tax Environment - In 2003, the long-term capital gains rate (top bracket) was reduced to 15% by President Bush and was extended through 2010 by the Tax Reconciliation Act. This rate was further extended through 2012 by Congress and President Obama on December 17, 2010. However, after 2012 that top rate will increase to 20%. In addition, if left unchanged, the new healthcare law will also impose a 3.8% payroll tax on the taxable income from a sale. This would bring the effective rate from 15% to 23.8%. If the property has been owned for a long period of time, it could provide an increasing incentive to make sure a sale is consummated prior to the end of 2012. With the nuances and timing of a senior housing transaction, it can take up to 8 or 9 months to reach the closing table. Much of this depends on the change of ownership process. Some states are as quick as 2 or 3 weeks, while some states can require time in excess of 120 days. It is important to plan ahead so that you, as a Seller, can take advantage of the tax environment.

3. Lack of New Construction – The lack of lending for new construction projects has created an increased demand for existing facilities. On the assisted living side of the business, a private pay, well-located facility, as small as 50 or 60 units will receive national attention given the lack of quality inventory available. On the skilled nursing side of the business, so long as the facility is priced accurately and is not located in an area with declining population, there is typically a very strong demand for the asset. Demand can vary from state to state. Aside from a few difficult states, if the facility is priced correctly we are typically seeing between 5 and 10 competitive offers on every skilled facility we have taken to market. The same can be said about private pay, well-located and well- run assisted living facilities.

In short, it is difficult to assess the best time to consider a sale. However, my opinion is that there are very compelling reasons for a Seller to consider coming off the sidelines.

Please contact me to discuss this topic in more detail. I would enjoy hearing your thoughts and would be more than happy to create a confidential proposal for you. You can contact

Brad Clousing at 630-858-2501 x 231 or via email at clousing@seniorlivingbrokerage.com.

Ross Sanders and Ryan Saul Handle Iowa SNF Sale

2011-09-14T11:48:00.000-07:00

Ryan Saul and Ross Sanders of Senior Living Investment Brokerage, Inc. sold a 75 bed Skilled Nursing Facility in Grinell, IA. Constructed in 1965 and having gone through a number of renovations and additions over the years, the facility was in overall good condition. At the time of the sale, occupancy was approximately 44% with a Private Pay mix at 30%. No capitalization rate was applicable due to negative income at the facility. The Seller was a regional owner/operator based in South Dakota looking to divest of this underperforming asset. The Buyer is also a regional owner/operator with plans to invest additional capital into the facility, increase overall census and improve profitability through economies of scale. For additional information please contact Ross at 314/961-0070 or Ryan at 630/858-2501.

Senior Living Investment Brokerage to Sponsor NIC Conference

2011-09-14T11:45:00.000-07:00

Senior Living Investment Brokerage, Inc. will again be sponsoring the National Investment Center's 21st Annual NIC Conference in Washington D.C. September 21-23, 2011. To schedule a meeting with one of our representatives while in D.C. please contact Grant Kief at 630/858-2501 or stop by our table Thursday evening at the reception. We look forward to seeing you there.

Brad Clousing Closes on Another Florida Assisted Living Sale

2011-08-12T14:59:00.000-07:00

Brad Clousing has sold a 120 Unit Assisted Living Facility for a UK based owner/operator. This was the only Seniors Housing property they owned and were looking to exit the market in the United States. The facility consisted of 114 studio units and 6 one bedroom units. The facility, built in 2008, boasted over 63,000 square feet and has been very well maintained. The census at the time of sale was 69% The Buyer looks to improve census and rates-the current resident mix is primarily private pay. The Buyer is a regional owner/operator who completed the transaction with bank financing through a regional lender. Brad was able to exceed the Seller's expectations with a well implemnted marketing plan. For additional information, please contact BradClousing at 630/858-2501 or clousing@seniorlivingbrokerage.com

The Sky is Falling? Is it?

2011-08-02T14:15:00.000-07:00

The stock market has 8 consecutive losing sessions. Could that continue? Sure.
Consumer spending is down.
CMS cut Medicare 11.1%.

All concerning, but just hold on for the ride. We all know what the Government giveth, the Government taketh away. It is only a matter of time before things swing to the positive. Deals are still closing and this is a great opportunity to look for opportunities to buy. When there is fear and concern in the market, it often means opportunity to purchase opportunistic deals.

With the market constantly changing, it is a good idea to have me put together a confidential proposal to determine the current market value for your facility. If you are sick of the constant ups and downs with this business and are considering selling your skilled nursing, assisted living or independent living facility, please contact Ryan Saul at saul@seniorlivingbrokerage.com or 630-858-2501.

Brad Clousing and Ryan Saul Sell 2 South Carolina Assisted living Facilities

2011-07-26T14:17:00.000-07:00

Ryan Saul and Brad Clousing sold two Assisted Living facilities within 75 miles of each other in South Carolina. One facility had 48 units/62 beds and the other had 47 ALF units and 22 Independent Living villas for a total of 117 units. Overall census at the time of sale was 90%. The Seller is primarily a skilled nursing operator. The Buyer is a regional owner operator of assisted living facilites based out of Pennsylvania. The facilities sold at a 8.75% capitalization rate. The Buyer is utilizing conventional financing arranged through a regional bank. For additional information please contact Ryan or Brad at 630/858-2501.

Guest Blog - M&A of Long-Term Care Facilities in Texas

2011-07-20T09:26:00.000-07:00

Mergers and Acquisitions of Long-Term Care Facilities in Texas – the Consummate Catch 22

By Cory Macdonald

Just as surely as death is inevitable, so too apparently is the trend toward consolidation in the long-term care properties industry.

Publicly traded companies and real estate investment trusts are rushing headlong into the marketplace to acquire privately held senior care chains and independent facilities. While most of these targets are being effectively managed and operated, their suitors recognize an opportunity to benefit from economies of scale. What’s more, long-term care facilities and the land they are built on can retain their value and actually appreciate in what is a very challenging real estate environment. Senior living and care facilities are an especially attractive growth market as more of the Baby Boomer generation approach retirement age. Baby Boomers moving into these care facilities is not a trend, it is the new normal.

So where are these companies shopping?

Florida and California, with their favorable demographics, have been popular states in the past. These days, whether because of market saturation or high real estate prices in other states, more and more companies are looking at Texas. If not the next frontier, Texas is a frontier for opportunity. In fact, over the last 12 months, dozens of companies have looked at Texas and some have actually started filling their cart.

Once at the checkout line, however, they have learned that closing such deals can be fraught with red tape. The primary challenge in Texas is that the application for licensure requires a level of disclosure that is higher than almost every other state in the country.

In particular, Texas requires the disclosure of all “owners” in a company, even owners of 5 percent or less – all the way up the ownership chain. Other ‘controlling persons’ must also be disclosed, but the state’s definition of what is a ‘controlling person’ is ambiguous. In the past, companies have come to us right before a deal is finalized, with the hope that transferring the licenses will be a short, final step. Unfortunately, we have to tell them that transferring the licenses is not an easy process.

Our first step in representing such a client is to contact the appropriate people at the state level and answer as many questions on the front end as possible. We then work with both the state and the federal government, through its Medicare agent in Texas, called “Trailblazer,” to get applications filed.

After the paperwork is filed, the state and Trailblazer will have questions. Outside legal counsel must know how to respond to questions about complex transactions that do not fit neatly into state and federal change of ownership forms. This means serving as translators, bridging the terminology gap between national deal-makers and local regulators.

The licensure and change of ownership process in Texas is complicated as it is, but it is also continually evolving to try to accommodate new ownership structures. For example, last summer the state changed the rules to clarify that when it comes to publicly traded corporations, shareholders and lenders aren't controlling persons’ for purposes of disclosure. If a new owner or a buyer did not know this ahead of time, they could have wasted a lot of time trying to figure out whether to disclose certain information about these groups.

This predicament for national companies is really a catch 22. On one hand, these challenges are not going to go away any time soon. On the other, neither is the value inherent in these properties.

It places a premium on finding outside counsel with experience and familiarity in working with these specific state entities, streamlining the acquisition process and allowing the company to move forward with what it does best – whether it is purchasing, managing or operating long-term care facilities.

Cory D. Macdonald is the lead attorney of the long-term care and retirement housing practice group at Davis & Wilkerson. He represents continuing care retirement communities, hospitals, skilled nursing facilities, physicians and other providers in a variety of issues including business formation, state licensure, Medicare/Medicaid certification, regulatory compliance, risk management, and the sale and acquisition of health care facilities.

8 seconds to sell

2011-07-15T09:47:00.000-07:00

The importance of making a great first impression cannot be overstated, especially when it comes to presenting a product to buyers.

A VP of marketing for retail giant The Limited, Inc. has been quoted saying “In some malls we have seventy foot lease fronts. The customer, within eight-point-five seconds, is going to decide whether to walk into that store or just go past it.”

In my experience as a residential Realtor, I also found it true that clients would comment “this is the one,” within eight seconds of entering a home. The rest was just details.

How does this relate to senior housing? If owners are thinking about selling a facility, they need to know what buyers are expecting to see when they look at price per bed/unit, EBITDA, census, and payor mix. We want to counsel you ahead of time to make sure our offering package catches the attention of buyers within the “8 second” decision window.

Please contact Toby Siefert at siefert@seniorlivingbrokerage.com or 630-858-2501 to discuss what you should be working towards now to make the best first impressions later.

Brad Clousing and Ryan Saul Sell Louisiana Assisted Living Facility

2011-07-14T14:54:00.000-07:00

Ryan Saul and Brad Clousing have sold a 77 unit Assisted Living Facility north of New Orleans. Senior Living Investment Brokerage, Inc. fielded multiple offers and created a confidential, competitive market to achieve a top-of-the-market price. Constructed in 2009, the facility reached stabilization in 2010 and maintains a strong census. the 77 unit facility consists of 27 studio units and 50 one bedroom units. The Seller is a local real estate owner and this was his only Seniors Housing asset. The Seller made a strategic divestiture to take advantage of the strong market after following a number of completed transactions by Senior Living Investment Brokerage, Inc. The Buyer is an investor in Seniors Housing based in Kentucky with operations in Michigan. Through their marketing efforts, Ryan and Brad were able to negotiate a purchase price of $11,000,000 ($142,857/unit) at a 7.36% capitalization rate. For additional information, please contact Brad or Ryan at 630/858-2501.

Jeff Binder, Brad Clousing and Ryan Saul Close Las Vegas Transaction

2011-07-07T10:07:00.000-07:00

Ryan Saul, Brad Clousing and Jeff Binder have sold a 152 Unit Independent and Assisted Living Community in Las Vegas, Nevada. Constructed in 1986, the three story facility consists of 83 independent living units and 69 assisted living units. At the time of sale, census was near 88% but the facility was underperforming. Senior Living Investment Brokerage, Inc. was able to procure multiple offers from local, regional and national Buyers. The Seller is a national owner/operatorwho was making a strategic divestiture of a non-core asset. The Buyer is a national provider of senior housing services based in California. The Buyer will look to boost operational and financial performance through local economies of scale and referaal relationships. For additional information on this transaction or to request a confidential proposal, please contact Brad, Jeff or Ryan.

Sanders, Alley and Saul Handle Iowa SNF Transaction

2011-06-29T14:52:00.000-07:00

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.

The Market has Changed

2011-06-24T10:11:00.000-07:00

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.

Ryan Saul Sells Illinois SNF for Record Price

2011-06-24T08:44:00.000-07:00

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

Patrick Byrne Sells County Facility in Illinois

2011-06-20T08:57:00.000-07:00

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

Matthew Alley Sells Another Texas Skilled Nursing Facility

2011-06-15T08:45:00.000-07:00

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

Portfolio vs. Single Asset Sale

2011-06-15T07:34:00.000-07:00

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 Press Release

2011-06-08T11:59:00.000-07:00

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.

The Heat is on....

2011-06-08T11:01:00.000-07:00

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.

Jeff Binder and Nick Cacciabando Facilitate Kansas Seniors Housing Sale

2011-05-27T08:27:00.000-07:00

Nick Cacciabando and Jeff Binder sold a 55 bed Skilled Nursing/19 bed Residential Care Facility in Central Kansas. The Seller is a regional owner/operator who was making a strategic divestiture to deploy capital and resources to other investment opportunities. The Buyer is a regional long-term care provider with a strong presence in Kansas. Their core business has centered on smaller, rural, skilled nursing facilities. With a successful history of increasing profit margins, this facility fits in well with their portfolio. The Buyer completed a simultaneous sale-leaseback with a private REIT. The facility was built in 1963 with numerous additions and renovations over the years. The facility census was 65% and sold at a 13.9% cap rate. For additional information, please contact Nick or Jeff at 314/961-0070.

What's up with Capitalization Rates?

2011-05-18T11:58:00.000-07:00

There are a number of variables that impact capitalization rates. Sellers always ask, "What capitalization rates are you seeing out there?" There is no easy answer.

Some of the blockbuster, portfolio deals that have been announced for 6% - 8% capitalization rates don't tell the whole story. Was occupancy at 85% - 88% with a real, stabilized capitalization rate closer to 9%? Did the operator use a REIT and put some equity into the deal above and beyond the reported price the REIT paid, resulting in an overall higher capitalization rate?

It is dangerous to apply publicly announced capitalization rates to your operation as a means to determine value. To determine value, you need to consider age, location, condition, occupancy, payor type/rates, demographics, future upside, etc.

Allow me to put together a confidential analysis of your facility or portfolio. Senior Living Investment Brokerage, Inc. represented more transactions than any other firm over the last three years. We are able to draw from national data, as well as the large number of transactions we represented. Let us determine an accurate capitalization rate for your skilled nursing or assisted living facility in this ever-changing market.

Please contact Ryan Saul at the following link for a confidential analysis. Email Ryan Saul.

Binder Featured in McKnight’s

2011-05-17T08:15:00.000-07:00

In the May issue of McKnight's Long-term Care News, Jeff Binder is featured in the Business & Marketing article, "How to do it......Finance". For example, one excerpt from Jeff states, "Confidence in the deal, and the relationship, can be negatively impacted if (a negative) issue is not reported quickly or if the lender finds out from another source." Read the full article in McKnight's May issue at www.mcknights.com/how-to-do-it-finance/article/201266.

Nick Cacciabando, Ross Sanders and Matt Alley Team to Sell Kansas CCRC

2011-05-11T13:02:00.000-07:00

Senior Living Investment Brokerage, Inc. has sold an 114 bed/unit CCRC in a suburb of Wichita. The 64 bed nursing facility was built in 1969, the 32 Assisted Living units, 14 Alzheimer's units and 2 Independent Living duplexes were constructed in 1999. The Nursing Facility is located a few blocks from the ALF/ILF campus. The census at the time of sale was 93% SNF and 78% for the ALF/ILF. Despite the overall census, the facility was not profitable. The Seller was a not-for-profit community board. After a very competitive bidding process, the successful buyer was an owner/operator headquartered in the Dallas-Fort Worth area. With an existing presence in Kansas, the Buyer anticipates improving the operating efficiencies.

Jeff Binder and Patrick Byrne Sell Missouri SNF

2011-05-04T09:38:00.000-07:00

Patrick Byrne and Jeff Binder have teamed up to sell a 96 bed Skilled Nursing Facility in Missouri. Located in the north-central region of the state 130 miles from St. Louis, the facility was built in 1987 with an addition in 1992. The one story facility is approximately 27,922 square feet on 4 acres. At the time of sale, the census was 90% with a 26% quality mix. The Seller was a regional owner/operator who is retiring from the long-term care business. The Buyer is a regional provider of seniors housing services based in the St. Louis MSA. The Buyer will look to boost operational and financial performance through local economies of scale and referral relationships. The facility sold for $5,470,000 at a 12.5% capitalization rate. Senior Living Investment Brokerage was able to procure numerous, pre-qualified offers on the Seller's behalf. For additional information contact Pat or Jeff at 314/961-0070.

Senior Living Announces Sale of Oregon Memory Care Community

2011-04-25T11:56:00.000-07:00

Jeff Binder, Ryan Saul and Matt Alley sold an Oregon Memory Care Community for over $240,000 per unit. Constructed in 2000, the 49 unit/75 bed campus consists of five residential buildings and one admistrative building. At the time of sale, the census was 100% and the cap rate was 10.8%. The Seller is a national owner/operator and the Buyer is a regional provider of Seniors Housing. For additional information or to request a confidential proposal to learn the value of your facility, please contact Ryan, Matt or Jeff.

Where is most activity lately?

2011-04-19T11:04:00.001-07:00

Many clients ask where I am seeing the most M&A activity. The short answer is anywhere that SLIB is actively working.

We can't point to any specific type of care (assisted, skilled, memory care, independent living) that is selling more transactions than the others. There is demand for assisted and memory care due to the lack of development over the last two years. Based on the aging population and lack of new units coming on line, many anticipate a shortage of available units to meet the demand for care. Because skilled nursing relies on higher acuity and those that require care, demand for these services is higher than ever. Pressure on Medicaid rates has led to buyers looking for strategic acquisitions. Medicare and Private Pay census remains strong.

We see activity all across the country. There isn't specific geographic regions that are seeing more activity than others. Instead, some buyers are actively looking for stable, cash flowing opportunities while others are looking for value-add, turnaround acquisitions. It doesn't matter where the deal is, as long as it is the right deal.

Please contact Ryan Saul at saul@seniorlivingbrokerage.com for up-to-date market conditions. I would be happy to prepare a confidential proposal to determine market value for your facility.

Ryan Saul Sells Indiana Not-For-Profit SNF

2011-04-14T09:22:00.000-07:00

Ryan Saul has sold another Indiana Skilled Nursing Facility. This is the fourth skilled nursing facility Senior Living Investment Brokerage sold for the regional not-for-profit owner/operator. The Seller focuses on hospitals and operates seniors housing when it compliments it's existing hospital campuses. Senior Living was able to procure a Buyer that not only met the mission and operational values of the Seller, but was also financially qualified to complete the transaction. The facility is an 177 bed SNF in Northern Indiana and was operating at a loss. The Buyer purchased the facility and immediately leased it to an operator that runs 59 facilities in Indiana. For additional information, contact Ryan at 630/858-2501 or at saul@seniorlivingbrokerage.com

Jeff Binder and Ryan Saul Team Up to Sell Kentucky SNF

2011-04-08T08:52:00.000-07:00

Ryan Saul and Jeff Binder sold an 118 bed Skilled Nursing Facility in Kentucky. Built in 1976, the one story facility is comprised of approximately 36,660 square feet on 2.57 acres. At the time of the sale, the census was 79%. The property had recently been removed from the Special Focus list and the performance had steadily improved through 2010. The Seller, a regional company, sold to focus on their assisted living assets. The Buyer had previously owned/operated in Kentucky but had exited the market in 2006. A local community bank provided the financing. The sales price was $7,800,000 ($66,102/bed). Senior Living Investment Brokerage, Inc. was able to confidentially procure multiple offers from operators throughout the country. For additional information contact Jeff at 314/961-0070 or Ryan at 630/858-2501.

Payor Mix is the Key!

2011-04-05T14:27:00.000-07:00

The recession has caused state tax receipts to decline dramatically, which has forced many states to face large budget gaps. Medicaid has become the largest line-item on many states' budgets. This has caused many states to look towards Medicaid reimbursement as an area for cuts to close that gap.

What does this mean to the senior housing industry? As states contemplate cuts large and small (up to 34% has been rumored in certain states), we believe that there will be a flood of capital into Skilled Nursing Facilities that rely largely on Medicare and Private Pay residents. We also believe that there will be more of an interest in Private Pay Assisted Living Facilities as these Medicaid cuts are finalized.

How is the Senior Housing M&A market currently? We believe that there is more equity and debt financing available in this market than there has been for the past couple years. Public and private REIT's have been sitting on a great deal of capital during the recession and are now looking to deploy that cash into senior housing facilities. Additionally, there are more lending options (i.e. bridge financing, more aggressive conventional lending) for acquirers to take advantage of than there were over the past 24 months.

What should I do to set my facility up for a successful sale at maximum value? The current acquisition market is still very "cap rate driven". It is important to maximize profitability, while maintaining a strong payor mix. Given the current environment, capital is flowing much more aggressively into properties that have a high Private Pay and Medicare census.

How does this impact the potential sale of my facility? If you have an Assisted Living, Independent Living, or Skilled Nursing Facility with a strong payor mix, it is a great time to explore selling your senior housing facility.

Senior Living Investment Brokerage, Inc. sold approximately $300 million in transaction volume in 2010 and $90 million in the first quarter of 2011.

SLIBCO provides non-binding marketing proposals, whether you’re interested in selling soon or are just curious of your facility’s value.

Contact me via email at alley@seniorlivingbrokerage.com

Matthew Alley
Senior Vice President

Ross Sanders and Jeff Binder Close on Iowa SNF

2011-04-05T08:59:00.000-07:00

Jeff Binder and Ross Sanders have sold a 49 Bed Skilled Nursing Facility in Southwest Iowa. Senior Living was able to procur three full price offers on the facility and close the transaction within 47 days of the execution of the LOI. Through diligent marketing efforts, Senior Living was able to find and close the transaction with a Buyer that was new to the industry. The Seller is a local for profit board; this was the only facility they owned. For additional information, please contact Ross or Jeff at 314/961-0070.

M & A Frenzy

2011-03-28T11:41:00.000-07:00

We can't keep inventory on our books. There is very little product available to purchase and a flurry of blockbuster deals announced monthly.

What is driving the surge in M & A activity?

1) Low interest rates
2) Sellers taking advantage of current capital gains tax rates
3) Real Estate is a prudent hedge against inflation
4) Large companies need to make more acquisitions to gain market share
5) Seniors Housing REIT stocks outperforming the market and are high yield

What's next? What are your predictions?

If you have thought about selling, please contact me for a confidential proposal to determine value in this ever-changing market.

Ryan Saul
Managing Director
630-858-2501
Email: Ryan Saul

Toby Siefert Joins Senior Living Investment Brokerage

2011-03-23T10:02:00.000-07:00

Toby Siefert has joined Senior Living Investment Brokerage and will focus on the Northeastern region. Prior to joining Senior Living, Toby began his career at a custom home building company and worked his way up to part-owner/vice preseident, managing the acquisition, development, and sale of various residential and commercial projects. Toby has also spent two years in real estate sales and commercial property management. He earned his BA in Business Administration with honors from Taylor University in Indiana. Please welcome Toby and he can be reached at 630/858-2501 or siefert@seniorlivingbrokerage.com

What is my property worth?

2011-03-21T09:51:00.001-07:00

A question clients often ask me.

Whether you are thinking about selling, estate planning, trying to determine current value or comparing your value to other buying opportunities in the market, it is prudent to figure out what your property is worth.

Cheap and available capital has changed the market. Also, there continues to be a shortage of quality opportunities available. The market has changed once again.

Allow me to prepare a confidential proposal to determine current market value of your skilled nursing facility, assisted living facility or portfolio. Please contact Ryan Saul at 630-858-2501 or Email me at (Ryan Saul).

South Carolina SNF sold by Ryan Saul and Brad Clousing

2011-03-21T07:45:00.000-07:00

Brad Clousing and Ryan Saul sold a 96 Bed Skilled Nursing Facility in South Carolina. The 39,000 square foot facility was sold by a regional operator based in Georgia. The owner elected to divest the facility to focus on their other facilities. This was their last facility in South Carolina.
With stable cash flow and a limited nmber of skilled nursing facilities that become available on the market in South Carolina, SLIB was able to procure multiple offers. The Buyer, headquartered in the Southeast, owns a portfolio in the Carolinas and will be working with a local operator. The facility sold for a 10.8% capitalization rate. For additional information please contact Ryan or Brad at 630/858-2501.

Jeff Binder Handles Illinois SNF Sale

2011-03-10T14:44:00.000-08:00

Jeff Binder has sold a 97 Bed Skilled Nursing Facility in Illinois. The facility was built in 1989 and is located approximately 55 miles northwest of Chicago. The Seller was a national operator/joint venture partnership and the Buyer is a regional provider of long-term care services based in the Chicago MSA. At the time of the sale, census was 75% with relatively high cost centers compared to other Chicago MSA (high quality mix) facilities. The sales price was $6,500,000 ($67,010/bed). For additional information, please contact Jeff Binder at 314/961-0070 or binder@seniorlivingbrokerage.com

Ryan Saul and Brad Clousing Announce Utah CCRC Sale

2011-03-03T09:44:00.000-08:00

Brad Clousing and Ryan Saul recently sold a 327 Unit/Bed CCRC in Salt Lake City. The Seller is a not-for-profit health care system headquartered outside Utah. This was their only asset in Utah. The Buyer is a national owner/operator out of California. Brad and Ryan were able to procure 10 offers on the facility. Due to confidentiality, please contact Ryan or Brad at 630/858-2501 for additional information.

BILLIONS - Yes, Billions of dollars flooding into Seniors Housing market

2011-03-02T07:04:00.000-08:00

Hold on to your seats. In just the last six months, the Health care REITs (Ventas, NHP, Health Care REIT, HCP) announced over $20,000,000,000 in Seniors Housing investments. Count the zeros. This does not include investments made from the established private REITs and private equity groups. Again, hold on. From those we talk to in the industry, they want more and are looking for additional opportunities.

What does this mean for you? There is great demand for your facility or portfolio. If you have thought about selling, now is an ideal time to have us prepare a proposal to determine market value. We can access not only the public REITs, but also the private REITs and generate competition to maximize your investment objectives.

Please contact Ryan Saul by clicking the link or call 630-858-2501.

Matthew Alley and Jeff Binder Sell Texas CCRC

2011-02-28T09:02:00.000-08:00

Jeff Binder and Matthew Alley sold a 142 Unit/178 Bed Continuing Care Retirement Community in Southeast Texas. Constructed in 2001, the community consists of 40 Independent Living Units, 78 Assisted Living and Adult Day Care Beds and 60 Comprehensive Nursing Beds. The 132,487 square foot facility is on 12 acres and census at the time of sale was 94%. The Seller was a local regional medical center and the Buyer is a publicly traded REIT and will be operated by a local regional operator. Senior Living fielded 8 bona fide offers from owner/operators across the country. For additional information please contact Matt or Jeff.

NIC Regional Symposium

2011-02-22T08:14:00.000-08:00

Please join Senior Living Investment Brokerage, Inc. at the 2011 Regional Symposium the week of March 7th in Los Angeles, CA. The theme of this year's conference is New Opportunities, New Realities: What's in your playbook?

SLIB represented a majority of the transactions across the country last year. Consult Senior Living for new opportunities available, new realities in valuation and allow us to help complete your playbook for growth and divesting.

We are available to discuss our confidential proposal process to determine market value for any facilities you consider selling. Take advantage of the lack of quality opportunities on the market.

Please contact me at Ryan Saul via Email or 630-858-2501 to discuss how we can help.

Who Has Your Back?

2011-02-16T09:16:00.000-08:00

Over the next few months, as state budgets are proposed and discussed, it is likely that many states will unfortunately be forced to look to Medicaid for help in balancing these budgets. Wrong or right, Medicaid is a sizable target and its continued expansion puts significant pressure on every state's fiscal health. This is exacerbated by the retirement of the enhanced FMAP funding on June 3oth. Less acute remedies, such as eliminating dental programs or slightly tweaking enrollment requirements, were implemented in FY 2011, but 2012 could bring more painful cuts. I would strongly urge industry participants to remain in contact with both state and national health care associations for updates and guidance. Through their PAC programs, these organizations work diligently with lobbyists, Representatives and Senators, to fight for the industry's best interests. Few can argue the need for a unified front to ensure the voice of the sector is heard in Washington and state capitals across the country. If you have questions on how this may impact you and/or your facility, please contact Jeff Binder at 314-961-0070 or binder@seniorlivingbrokerage.com.

Patrick Byrne and Jeff Binder Facilitate Missouri Sale

2011-02-15T13:47:00.000-08:00

Jeff Binder and Patrick Byrne sold a 120 bed Skilled Nursing/99 bed Residential Care facility in Springfield, Missouri. The facility was constructed in three phases in 1961, 1986 and 2008 and comprises approximately 68,614 square feet on 6.41 acres. The facility encountered some regulatory issues during the sales process which led to numeroous delays. The Buyer is a regional owner based out of Missouri. The sales price was $11,500,000. For additional information please contact Patrick Byrne or Jeff Binder at 314/961-0070.

Building? Where?

2011-02-15T08:25:00.000-08:00

We receive calls weekly about land that is prime for Seniors Housing development. Plans in place, feasibility study off the charts, permits granted, and shovels in hand. PROBLEM: Still little or no construction financing available. Currently, development is still not a viable option.

A couple of observations:

1) There has been very little new construction over the past 3 years due to lack of construction financing. I believe there is pent up demand for new product.
2) If you have access to funds to get a building out of the ground, you will have a competitive advantage. You will be able to capture the first boomers demanding new, state-of-the-art facilities.
3) It is a good time to look into selling with little supply and high demand in the market.

Please contact me at 630-858-2501 or Email Ryan Saul by clicking on my name for a confidential proposal to determine the market value for your facility.

Matthew Alley Sells Texas Portfolio

2011-02-08T11:20:00.000-08:00

Matthew Alley sold six skilled nursing facilities in Texas for $68,500,000. The portfolio consisted of 894 skilled beds with 54 assisted living units and 17 independent living units at one of the locations ($76,620/bed/unit). The facilities were at 80% census. The facilities, built between 1986 and 2009, were the last six owned by a regional owner/operator. Matthew had been hired to sell six facilities for this group previously. Because of his success and the relationship, he was hired to sell the remaining properties in the portfolio. For additional information, please contact Matthew at 630/858-2501 or alley@seniorlivingbrokerage.com

Ryan Saul and Brad Clousing Close on Florida Portfolio

2011-02-01T11:57:00.000-08:00

Brad Clousing and Ryan Saul sold a portfolio of four assisted living facilities in the Florida panhandle. Each facility is 39 units and were constructed in 1999. There is available land with each site and the buildings were each designed for expansion of 12 to 14 additional units. The properties were well maintained and offered both assisted living and memory care. The facilities sold for $109,000/unit at a 10.1% capitalization rate. For additional information, please contact Ryan or Brad at 630/858-2501.

Pappas, Clousing and Binder Sell Iowa CCRC

2011-01-25T08:19:00.000-08:00

Senior Living Investment Brokerage, Inc. has sold an Iowa CCRC for $11,250,000. The facility consisted of 10 Independent Living units, 41 Assisted Living units, 34 Memory Care units and 54 Skilled Nursing beds. The Seller is one of the larger owner/operators in the country and had purchased this asset as a multi-facility/multi-state transaction. They do not have a strong presence in Iowa. The Buyer is out of California but was originally from Iowa. Originally built in 1968 and renovated/expanded in 1998. Financing was provided by a regional lender. For additional information please contact Jeff Binder, Brad Clousing or George Pappas.

2011 expected to be a banner year

2011-01-20T06:19:00.000-08:00

While attending the ASHA conference in Phoenix, Arizona, the outlook for 2011 was encouraging.

A few key factors to consider.

1) REITs have been leading the charge with new capital pouring into the market.
2) 2011 will be a defining year for debt. The local, regional and national lenders will deploy capital into the market like REITs did in 4Q and plan to do throughout 2011.
3) Seniors Housing and long-term care loans have out performed every other sector.
4) There is greater demand than supply of properties available to purchase. If you have thought about selling, now would be an ideal time.

Interest rates remain at historic lows and there is very little supply in the market. Take advantage of increasing values and high demand for your facility. Please contact me at saul@seniorlivingbrokerage.com for a confidential proposal to determine market value.

Senior Living Sells Ohio Assisted Living/Alzheimer's Care Facility

2011-01-14T12:27:00.000-08:00

Jeff Binder, Ryan Saul and Brad Clousing have sold a 102 unit Assisted Living and Alzheimer's Care Facility in Ohio for $17,500,000. Constructed in 1998, the facility is 69,184 square feet on 4.5 acres. The Seller is a national owner/operator and the Buyer is a Florida based real estate investment company who intends on keeping the current management in place. The facility sold for a 8.5% cap rate and a 2.9 GIM.

Brad Clousing Handles Georgia Skilled Nursing Sale

2011-01-10T07:07:00.000-08:00

Brad Clousing has sold a 144 bed skilled nursing facility in an Atlanta suburb. The seller was a local owner/operator and the buyer is a large regional operator. The facility sold for over $83,000/bed at an 11.6% capitalization rate. The 45,347 foot facility was built in 1992 with an addition in 1998. For additional information please contact Brad at clousing@seniorlivingbrokerage.com or at 630/858-2501.

2010 Record Year for Senior Living Investment Brokerage

2011-01-04T14:50:00.000-08:00

Senior Living had 7 transactions totaling 15 facilities in December ($140,000,000 in sales) to cap a record year. Sales for 2010 exceeded $300,000,000. We look forward to another successful year in 2011 and continued support of the senior housing industry.

Preparing to Sell or Buy in 2011

2010-12-29T11:04:00.000-08:00

A number of clients take time off this time of year for some much needed rest and relaxation. That is probably a good idea. I believe 2011 is going to be another record year for transaction volume. Debt and equity are more available with each day that passes.

Things Sellers can do this time of year to get ready for a possible sale:

1) Organize your records. Today, everyone should be moving to go paper free. Scan financial statements, rent rolls, old appraisal, tax records, payroll reports, staffing schedules, etc. If you have this information electronic, it makes life so much easier.
2) Spruce things up. Make a 2011 resolution to fix those annoying repairs you have been putting off. The first thing people see when they come to your facility is the parking lot. A wise owl once told me you can tell how someone takes care of people and the rest of the building structure by looking at the condition of their parking lot.
3) Professionals. Have your accountant and attorney on speed dial. Take those professionals out to lunch. They can be vital when you need information fast.
4) Broker. Call Ryan Saul at Senior Living Investment Brokerage, Inc. for a confidential proposal to determine your market value.

Buyers should update financial and bio information so they are available upon request. Update your goals and business plan so you are ready to tackle 2011.

Let us help you achieve your investment objectives in 2011. Email me at Ryan Saul or call 630-858-2501 for more information

Buyers - Think before you write

2010-12-13T08:30:00.001-08:00

Buyers and investors need to think about their reputation before they write an offer. More importantly, before you sign an agreement with a Seller to purchase, be certain you are going to perform. Everyone understands that material items related to physical plant or the overall market can come up during due diligence. However, Buyers putting forth offers in which they do not intent to perform will not only hurt the deal at hand, but will jeopardize the likelihood that they will be selected as a buyer in the future.

Reputation is key in the M&A arena. If your goal is to acquire facilities, stand behind your offer and deliver on promises. Buyers with a reputation for not delivering on the terms of an agreed upon offer will quickly gain that reputation and might just do their last deal. Work with Sellers and brokers to be sure everyone is satisfied with the outcome of a transaction. If you are a person of your word and a handshake is as valid as binding agreement, you will successfully acquire properties for years to come.

If you are thinking about selling and want to secure a buyer with a strong reputation, please contact Ryan Saul at 630-858-2501 or Email by clicking the link on my name.

Matthew Alley Closes Another Texas Transaction

2010-12-09T09:28:00.000-08:00

Matthew Alley has sold a 118 Bed Skilled Nursing Facility in Texas. The single story, 44,000 square foot facility was built in 2004. The purchase price was $7,250,000 ($61,440/bed) which was a 13.8% capitalization rate. The census at the time of sale was 75%. The Buyer is a regional owner/operator with several facilities in Texas. Conventional financing for the acquisition was provided by a regional bank. For additional information please contact Matt at 630/858-2501.

Ryan Saul Sells Another Indiana Facility

2010-11-22T12:08:00.000-08:00

Ryan Saul has sold another seniors housing facility in Indiana. The 41 unit Assisted Living Facility is located in Batesville, Indiana. Built in 2003, the 31,551 square foot facility sold for $2,850,000. Over the past ten years, Ryan has sold more seniors housing facilities in Indiana than any other broker or brokerage team. For additional information on this transaction or any other Indiana transaction or facility, please contact Ryan at 630/858-2501 or saul@seniorlivingbrokerage.com

SNF / ALF...You Decide

2010-11-16T08:58:00.000-08:00

Do you own a portfolio that is mainly skilled nursing with an outlier assisted living property or two? Does your portfolio of assisted living include a one-off skilled nursing facility?

Many of my clients have been divesting non-core assets. I repeatedly hear, "stick with what you know." If you have a property that does not fit within your core business, now is an ideal time to explore selling. Their is great demand for both Assisted Living and Skilled Nursing facilities.

It is a natural sell to the market when representing non-core assets to highlight the fact that we are selling an assisted living facility for a skilled nursing owner/operator. These opportunities tend to have the most upside potential yielding top-of-the-market pricing.

Please contact me at Ryan Saul to prepare a confidential proposal for your non-core assets.

Jeff Binder and Nick Cacciabando Facilitate Kansas ALF Sale

2010-11-10T10:11:00.000-08:00

Nick Cacciabando and Jeff Binder have sold a 45 unit Assisted Living Facility in Kansas for $2,500,000 or $55,555/unit. Constructed in 1970 with a 17 unit addition in 2004, the facility sold at a 10.1% capitalization rate. The one story building is 25,000 square feet on almost 2.5 acres. The facility is in good condition and was 100% occuppied at the time of sale. for additional information, please contact Jeff or Nick in the St. Louis office at 314/961-0070.

Senior Living Announces Mississippi Senior Housing Sale

2010-11-02T08:02:00.000-07:00

Ross Sanders, Nick Cacciabando and Jeff Binder have sold a Seniors Housing Community in Brandon, Mississippi. The two story building consists of 75 Assisted Living units and 25 Memory Care units. Constructed in 1999, the facility is comprised of 85,000 square feet and sits on 5.4 acres. The occupancy at the time of sale was 98% and sold for $10,600,000 ($106,000/unit) at a 9% capitalization rate. For additional information please call the St. Louis office at 314/961-0070.

Ryan Saul Sells Two Illinois Skilled Nursing Facilities

2010-10-29T07:48:00.000-07:00

Ryan Saul has sold two skilled nursing facilities in the Chicago suburbs for a local owner/operator. The first facility, located in the western suburbs, is 180 beds and was built in 1976. The second facility is in the south suburbs and was built in 1964/1999. It is 80 beds. The total purchase price exceeded $65,000/bed. Financing was provided by Private Bank. For additional information, please contact Ryan Saul.

2013 - 3.8% Tax when you sell your facility

2010-10-18T19:14:00.000-07:00

3.8% No reason tax. Thanks a bunch Health Care reform!

The new health care reform includes a number of disturbing items. If you are thinking of selling your long-term care or seniors housing facility, I would seriously look into doing so between now and the end of 2012. As it stands today, in 2013, there will be an additional 3.8% tax on gains from the sale of investment property. Consult your tax advisor, but if you are planning on selling in the near future, now would be an ideal time to determine market value before the new tax goes into effect.

What will the new tax mean for capitalization rates, return on equity and overall value. I don't want to wait to find out. With lending back in the market, limited supply and stabilized value, please contact me at Ryan Saul for a confidential analysis.

If you are in the market to purchase, give me a call at 630-858-2501 to see what we currently have available to purchase.

PS - Let's make a change....get out and vote on November 2!

Jeff Binder and Brad Clousing Facilitate Sale of Senior Housing Community

2010-09-28T07:48:00.000-07:00

Brad Clousing and Jeff Binder have sold a Senior Housing Community in Chattanooga, Tennessee. The five story building consists of 42 Independent Living units, 59 Assisted Living units and 15 Memory Care units. Constructed in 1985 and renovated in 2004, the facility is 109,463 squre feet on 12.36 acres. At the time of the sale, the facility's census was 97%. The Seller is a national owner/operator of seniors housing and the Buyer is a Florida based real estate investmant company. For additional information,please contact Brad or Jeff.

World Alzheimer's Day 2010 Today - Sept 21

2010-09-21T11:47:00.001-07:00

Senior Living Investment Brokerage, Inc. would like to recognize World Alzheimer's Day today, September 21. I lost a good family friend to Alzheimer's two weeks ago and would like to increase awareness.

www.alz.org

Economy Improving...Recession Over!

2010-09-21T07:22:00.000-07:00

Recent news that the recession officially ended in June/July 2009 brings welcomed positive news to the economy. The Seniors Housing industry has done well despite the recession. Slow and steady improvement in the overall economy can only translate positively to the Seniors Housing industry. A few transactions north of $1B is a clear indicator that the M&A market is picking up. Look for more assisted living and nursing homes to be sold moving forward. Bring on the lenders!

We are excited for the 20th annual NIC Conference this week and will report back on developments and the outlook for the rest of 2010 and 2011.

Please contact Ryan Saul to discuss the market, selling your facility or properties available to purchase.

Michael Brundage Completes Assisted Living Sale in Michigan

2010-09-20T08:13:00.000-07:00

Michael Brundage has sold an assisted living facility in Michigan. The 21 unit facility has been run very well from a resident care standpoint, enjoys a strong reputation within the local community and has historically been 100% occupied. The Seller, a local hospital, had struggled to control expenses and had been operating the facility in the red. The Buyer plans on increasing resident rates, control expenses and expand the facility. Senior Living has sold more Seniors Housing in Michigan than any other firm. For additional information, please contact Michael Brundage at 630/858-2501.

Brad Clousing Closes $15,100,000 Florida Portfolio

2010-09-17T08:07:00.000-07:00

Brad Clousing has completed a sale-leaseback of three assisted living facilities in Central Florida for $15,100,000. The transaction comprised of a 43 unit facility built in 2005, a 42 unit facility built in 1997 and a 42 unit facility built in 1988-expanded and renovated in 2005. This transaction allowed the Seller to retire the existing debt, free up liquidity and maintain operation of the facilities. The Seller operates other facilities in the area and has several properties under development. For additional information, contact Brad Clousing at 630/858-2501.

Ryan Saul Sells Facility for Third Time

2010-09-08T07:36:00.000-07:00

Magnolia Health Systems has purchased a 77-unit assisted living facility for $8.0 million that Sunwest had purchased in 2007 for $7.35 million. The property was developed in 2001 for $5.5 million but was only open for a few months before closing its doors for three years. Senior Living Investment Brokerage sold the vacant building in 2004 for $3.8 million. The Buyer then completed extensive renovations before selling it to Sunwest at a much higher price via Senior Living Investment Brokerage. Ryan Saul of SLIB has sold it once again. At the time of the current sale, occupancy was just under 80%. Current rents range from $2,000 to $3,195 per month with an average of $2,400. The new owner should be able to raise rates and occupancy. . Magnolia operates 26 facilities in Indiana, mostly skilled nursing plus a handful of assisted living facilities.

Ryan Saul Brokers Sale of Las Vegas Memory Care Community

2010-09-07T08:25:00.001-07:00

Ryan Saul handled the sale of a Class "A" Memory Care Facility in Las Vegas. The 46 unit (52 beds) facility sold for $2,850,000. Overall occupancy was 90% and the financial performance was close to break even due to 37% Medicaid residents paying below market rent of $2,400/month. The 31,727 square foot building was built in 1999. For additional information please contact Ryan Saul at 630/858-2501.

Patrick Byrne and Jeff Binder Sell Iowa CCRC

2010-08-27T07:29:00.000-07:00

Jeff Binder and Patrick Byrne have sold a Continuing Care Retirement Community in Iowa for $10,000,000. The facility consists of 84 Skilled Nursing beds, 20 Alzheimer units, 34 Assisted Living units and 19 Independent Living cottages. Constructed in 1999, the community has approximately 72,276 square feet on 100 acres. For additional information, please contact Pat or Jeff at 314/961-0700.

Senior Living Announces Iowa SNF Sale

2010-08-23T10:19:00.000-07:00

Jeff Binder, Ryan Saul and Ross Sanders sold a 102 Bed Skilled Nursing Facility in one of the largest cities in Iowa. Constructed in 1976, the facility is in good condition and is comprised of approximately 29,000 square feet on 2.83 acres. Census was 66% at the time of sale.
The Seller is a for-profit group of investors and they were the original owners of the facility. This was their only long-term care facility.
The West Coast based Buyer owns/operates a number of skilled nursing facilities in both the Midwest and West Coast. The new owners seek to significantly enhance the Medicare census by offering a number of new therapy programs at the facility. The Buyer looks forward to taking advantage of the new Quality Assurance Program/Provider Tax which the State of Iowa implemented in April 2010. Please contact Ross, Ryan or Jeff for additional information.

Looking to buy?

2010-08-16T06:35:00.000-07:00

The question I was repeatedly asked in 2009 was, where is all the inventory? It seemed with constricted lending and the economic downturn, potential Sellers thought buyers couldn't obtain financing. In addition, Sellers didn't think they could achieve their desired value with a sale. We had a record year in 2009, and a number of our potential Sellers took us up on our offer to complete a confidential proposal to determine market value in 2010. What they found is we are getting deals done at the value we propose. This caused a flurry of new inventory which is a good sign. The sales process and due diligence is taking longer, but deals are getting done. Sellers just need to realize that buyers and lenders can't pay for future upside and need to determine pricing on a trailing 12.

If you are in the market looking for nursing homes, assisted living or independent living facilities to buy, please contact me to be sure you are seeing our latest inventory. You can click on this Email link for more information. Ryan Saul.

Ross Sanders Closes Independent Living Facility Transaction in Iowa

2010-08-12T14:08:00.000-07:00

Ross Sanders of Senior Living's St. Louis office has sold a 16 unit Independent Living Facility in Iowa. The facility is located in one of the largest cities in Southeast Iowa and was constructed in 2000. The Seller was a Texas based investment group that purchased the asset out of foreclosure in 2006. The Buyer is a local seniors housing owner/operator who hopes to increase census and cut operating costs. The new owner will also have the opportunity to almost double the size of the existing facility on the vacant 3 acres included in the purchase. For additional information please contact Ross at 314/961-0070.

Cacciabando and Binder Sell Four Nebraska Skilled Nursing Facilities

2010-08-09T07:06:00.000-07:00

Jeff Binder and Nick Cacciabando represented a national provider in the sale of four underperforming skilled nursing facilities in Nebraska. Originally built in the 1970's, this 214 bed portfolio had been upgraded since the mid-1990's and are in above average condition. This package was a strategic disposition as the facilities did not fit into the long-term investment vision of the seller.

The Buyer is a regional long-term care provider with a strong presence in the Midwest. Their core business has centered on returning distressed, smaller, rural SNF facilities to profitability. With a successful track record of turning around similar underperforming/distressed facilities, this package will fit in well with their portfolio.

For additional information, please contact Nick or Jeff at 314/961-0070.

Brad Clousing Sells Seniors Housing Conversion in Florida

2010-07-28T13:00:00.000-07:00

Brad Clousing sold a luxury boutique hotel in Melbourne, Florida, for a Chicago based lender. The hotel was originally built in 1973 and had significant hurricane damage in 2006, renovated and reopened in 2008.
Given the large room sizes, attached restaurant (currently vacant) with commercial grade kitchen and excellent location, the property was very appealing as an assisted living conversion. The building overlooks the intercoastal waterway with unobstructed water views less than one mile from Holmes Medical Center.
The Buyers have projected approximately $1,75 million will be spent to complete the conversion to assisted living. The purchase price was $4.5 million for what will become a 129 unit ALF. For additional information contact Brad Clousing at 630/858-2501.

Lending,...Where are you?

2010-07-23T07:18:00.000-07:00

Deals are getting done and there IS lending in the market. However, we are finding that relationship banks are the main sources providing financing for our acquisitions. You must have a long-term, existing relationship with a proven track record in order to obtain financing in today's market.

If you have access to those types of lending relationships, make sure you take care of them. Be proactive in keeping in touch with your lender and remind them how well you are doing.

If you are looking for that next lending relationship, be on the look out for opportunities. Maybe a lender needs some help/advice with a troubled long-term care or Seniors Housing asset? Network with other successful operators and try to get referred to who they use for financing.

As the economy improves, our hope is that lending will continue to improve. More liquidity will be good for everyone and will improve the overall market.

Please Email Ryan Saul by clicking on the following link to learn more about the current market. Email

Pappas and Clousing Sell Washington Independent Living Facility

2010-07-09T12:16:00.000-07:00

George Pappas and Bradley Clousing sold a 40 unit Independent Living Facility in Washington. Built in 1983, all of the units are one bedroom and are subsidized through HUD with a HAP contract that guaranteed all the rents. The facility is age-restricted to reseidents 55 and older. The Seller was the original developer and is exiting the seniors housing market. The Buyer, a regional non-profit, plans on renovating the building and utilized state and public funding to finance the acquisition and renovation. The facility sold for a 9.25% capitalization rate. For additional information, contact George or Brad at 630/858-2501.

Upside? What Upside?

2010-07-06T09:15:00.000-07:00

The number of potential Sellers exploring the option of divesting has doubled in the last year. So why the lack of quality inventory on the market? The answer, no upside value.

Sellers realize that the lenders and buyers are back in the market aggressively looking for acquisitions. However, the market is not paying for upside. Lenders, appraisers, and buyers are only paying for what your property is worth today. In order for Sellers to maximize their value, my advice is to increase the census, improve cost centers and/or build that valuable program. A buyer won't pay you for the work they will have to do to see that value. If you want the value, improve the cash flow and you will be rewarded accordingly.

Please contact at Ryan Saul for a confidential proposal to determine the market value of your property.

Ryan Saul and Jeff Binder Sell Indiana Independent Living Facility

2010-06-22T09:27:00.000-07:00

Jeff Binder and Ryan Saul have announced the sale of a 54 unit Independent Living Facility in Indiana. Originally developed in 2000 by a local hospital, the facility has been operated by a local nonprofit board since 2007. The management team was able to improve operations over the past 3 years and hired Senior Living Investment Brokerage, Inc. to sell the facility. At closing, the census was 100% with a waiting list. The Buyers plan on applying to license the facility for Assisted Living and also expand the facility to provide Skilled Nursing.
For additional information, please contact Ryan Saul or Jeff Binder.

Matthew Alley Closes on Texas Nursing Home

2010-06-16T08:30:00.000-07:00

Matt Alley sold a 70 bed Skilled Nursing Facility June 2, 2010. The facility was owned and operated by a local family. All 70 beds are dually certified for Medicaid and Medicare residents. The facility had negative cash flow and the new owner expects to take advantage of the positive revenue base through cutting expenses and increasing census. The Buyer is a promineent real estate owner from California that owns several facilities in Texas. The new owner intends to lease the facility to a regional operator out of Houston.
For additional information, please contact Matt at 630/858-2501 or alley@seniorlivingbrokerage.com