Jeff Binder and Ryan Saul Team Up to Sell Kentucky SNF

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.

Ryan Saul Sells Two Illinois Skilled Nursing Facilities

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.

Sell or refinance...that is the question

Many of our clients are experiencing loans that are maturing. Rather than focus only on refinancing, doesn't it make sense to explore selling? Even though lenders are getting back in the market and making loans, they are requiring significant equity. Our clients are often faced with having to come up with additional cash/equity in order to refinance. Gone are the days of pulling out cash/equity when you refinance in the current environment.

Thankfully Senior Living is off to a great start in 2010. Based on the number of transactions we are closing, we see acquisition lending improving across the board. Buyers that have been on the sidelines for the last two years are looking for opportunities to grow their portfolio.

So, please give me the opportunity to put together a confidential market analysis of what your property is worth before you automatically refinance your facility. Please Email me at saul@seniorlivingbrokerage.com for more information.

Clousing and Binder Sell East Coast Florida Assisted Living Facility

Jeff Binder and Brad Clousing have sold a 44 unit assisted living facility on A1A in Florida. The 44 unit facility is 32,000 square feet and was built in 1996. Census at closing was 60%. The Seller is one of the larger owner/operators in the U.S. and had purchased the facility as part pf a multi-state/multi-facility transaction in 2006. The Buyer is a regional operator out of Florida.
The Seller assisted the Buyer by providing Seller financing in the form of a second mortgage. The primary financing is being provided in the form of conventional financing by a regional lender out of Central Florida.
Please contact Brad or Jeff for additional information.

Brad Clousing Sells Hollywood, Florida Assisted Living Facility

Brad Clousing has sold a 78 unit assisted living facility in Hollywood, FL, April 1, 2010. All the units are studios and there is approximately 3,000 square feet of medical office space in the building. The owners were looking to exit the senior housing market and were the owners since it's original construction in 1999. The Buyer, TJM Properties out of Clearwater, assumed the existing HUD loan but simultaneously executed an A& to reset the rate and leverage. The facility sold for over $100,000/unit at a 7.1% capitalization rate. For additional information on this transaction, please contact Brad Clousing at 630/858-2501.

Ryan Saul and Brad Clousing Sell ALF/SNF in Alabama

Brad Clousing and Ryan Saul sold a 50 unit Assisted Living/20 bed Skilled Nursing Facility for a large non-profit corporation based in Alabama. The 46,000 square foot home was built in 1994. The 20 bed SNF is housed in a separate wing, has all private rooms and is only certified for Medicare, not Medicaid and is typically full. The assisted living wing averages occupancy of 65% and has a unit mix of 32 studios, 8 suites and 10 one bedrooms. The Buyer is a regional operator out of Alabama and utilized conventional financing through a local bank.

Matthew Alley Announces Sale in Texas

Matthew Alley sold a 112 bed Skilled Nursing Facility in Texas. Originally built in 1975 with numerous renovations (the most recent completed in 2009), the facility is a single story, brick exterior, 34,150 square foot building. This is the only LTC facility the Seller had and it was sold to an owner/operator purchasing their first facility in Texas. Financing was provided by a local lender. Please call Matthew at 630/858-2501 if you have any questions.

Senior Living Announces Two Sales

Jeff Binder and Nick Cacciabando sold a 39 bed Assisted Living Facility in the Oklahoma metropolitan area. The facility sold for over $105,000/unit and at a 9.9% capitalization rate. The Seller was a regional owner/operator and the buyer is a local owner operator with three other senior housing facilities. Financing was provided by a regional bank out of Kansas City.

Ryan Saul sold a facility in Dayton, OH, with 331 licensed skilled beds and 57 independent living units. The 445,000 square foot facility on 25+ acres was built in 1930 and sold by one of the largest Catholic health systems in the country. At the time of sale, the facility had negative cash flow. Financing was provided by a national bank out of Chicago.

Seller Financing - Helping the Deal

Seller financing might just be the magic bullet to help some deals get to the finish line.

Gone are the days of Sellers cashing in their lotto ticket when debt and equity was abundant. Buyers and liquidity were driving prices through the roof. Senior Living Investment Brokerage continues to sell Seniors Housing and Long-Term Care despite the challenges in the credit markets. In order for Sellers to maximize their value and increase the probability of getting transactions closed, Sellers should consider carrying paper and/or providing a second mortgage. When structured properly, Seller financing is an attractive option for both Buyer and Seller.

Buyers are able to structure a financing package that reduces the amount of equity by bridging the gap with a Seller note. Sellers will achieve a higher interest rate on their money compared to alternatives in the market. Personal guarantees and the right terms on the second mortgage provide added security for Sellers. By the time the note balloons in three to five years, the debt markets should have more options. Sellers will be taken out in an environment with more lucrative interest rate options. So, consider all of your options when attempting to achieve your investment objectives.

Contact me via Email at Ryan Saul for a confidential analysis.

Ryan Saul
Managing Director
Senior Living Investment Brokerage, Inc.

More Financing Options for Buyers

A recent Seniors Housing audio conference presented by Irving Levin revealed that HUD Lean Section 232 financing is becoming one of the few options available in this difficult lending market. Buyers looking to acquire long-term care facilities are encouraged by the non-recourse, 35 year terms. So far, Seniors Housing has been insulated from the major turmoil in the Real Estate market. Many lenders are actively looking for quality opportunities to place bridge money that can be taken out quickly. The "new" HUD Lean Section 232 program meets that demand and has achieved funding 82 days from application of average. Senior Living Investment Brokerage, Inc. can put Buyers in touch with lenders that specialize in the HUD financing. Our value added service is helping Sellers achieve their investment objectives in today's market. Contact me via Email at Ryan Saul for more information.


Ryan Saul
Managing Director
Senior Living Investment Brokerage, Inc.