Preparing to Sell or Buy in 2011

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

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

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

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

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

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

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.