Sale of CCRC Announced

Nick Cacciabando and Jeff Binder have sold a CCRC in Kansas for a national owner/operator. The campus is comprised of a 140 bed Skilled Nursing Facility, a 37 unit Assisted Living Facility and 82 units of Independent Living. The property was originally developed in 1988 and underwent extensive remodeling/renovation in 2006 and 2007. The impact of these improvements are being realized in the steadily improving financial and census reslts since completion. Census at the time of sale was 95% and the property sold at a 9% cap rate.

The Buyer is a Real Estate Investment Trust (REIT) which owns senior living properties throughout the United States.

Senior Living Sells LTC Facility in Dallas

Jeff Binder, Matthew Alley and Ryan Saul sold a 264 bed SNF/39 unit ILF in Dallas, Texas on September 30, 2009. The 206,000 square foot facility on 22 acres was originally developed in 1960 and has undergone various renovations over the years. The Independent Living is comprised of stand alone cottages on the campus grounds. The facility's census was 87% at the time of the sale and sold for 13.5% capitalization rate. If you have any questions regarding this transaction, please call Jeff, Matt or Ryan.

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.

Senior Living Announces Sale of Skilled Nursing/Independent Living Facility

Nick Cacciabando of Senior Living Investment Brokerage, Inc. sold an 115 bed Skilled Nursing/40 unit Independent Living Facility in Southwestern Kansas. The facility was in receivership due to bond default and the Buyer utilized a 1031 Exchange. Financing was provided by a regional bank.

Grant A. Kief
Senior Living Investment Brokerage, Inc.

Why Hire An Exclusive Broker?

If you are anything like me, you would not consider selling your home without the assistance of a trustworthy real estate professional. In our line of business, however, we often encounter owners of Nursing Homes and/or Assisted Living facilities who are reluctant to engage a professional to effectively market their properties. It is surprising that while most people willingly engage an agent in the sale of their home in order to obtain top dollar for their valued asset, others attempt to sell a multi-million dollar business on their own, running the risk of leaving a significant amount of money on the table.

The exclusive representation provided by Senior Living Investment Brokerage (“Senior Living”) creates a value for property owners that far outweighs the fees associated with entering into such an arrangement.

An exclusive representation agreement with Senior Living consists of two basic principles:

1) The owner agrees to sell the property and to list it only with Senior Living.

2) Senior Living commits its full expertise, experience, and resources to aggressively and confidentially market the property and to loyally represent the owner throughout the entire transaction.

Why Engage Senior Living With An Exclusive Agreement To Sell Your Senior Housing/Long-Term Care Community?

1) Confidentiality. When working with multiple brokers, they may not understand the importance of controlling to whom the information is sent and the intricate nature of facilitating confidentiality throughout the marketing process. We only contact potential buyers directly via an initial telephone conversation. Only upon receipt of an executed Confidentiality Agreement is any specific property information disclosed.

2) Higher price. Professional representation by Senior Living, a specialized company, exposes the property to a much larger market of buyers, thus increasing the price by more than the fees.

3) Sends a Message to the Market. Engaging Senior Living sends a strong message to the marketplace that, not only is the owner committed to selling the property, but that the likelihood of a successful closing is better. Therefore, more investors will devote time to the offering and ultimately bid higher on the property.

4) Establishes Pricing Expectations. This saves the owner time, effort and energy in that he or she will not have to fulfill numerous requests for information only to learn that the prospective purchaser’s price expectations are not in line with the current value of the property.

5) It Saves the Owner Time. In addition to promoting the property, Senior Living will minimize the owner’s time involvement by screening and presenting offers, fulfilling information requests, assisting in arranging financing, coordinating inspections and reviewing escrow documents.

Selling a Long-Term Care facility requires professional representation and Senior Living will achieve the highest price for your property. Our commitment to selling only Long-Term Care & Senior Housing and track record of success demonstrate this.

Feel free to contact me with questions at Michael Brundage.

By Michael L. Brundage,
Senior Vice President

Recent Sales

Jeff Binder and Patrick Byrne sold a 47 unit Independent Living Facility in Southern Illinois on 7/2/09. It was built in three stages beginning in 2002 with the final addition being opened at the closing of the transaction. The facility sold for an 8.5% capitalization rate.

In a first for Senior Living Investment Brokerage, Brad Clousing has sold a fully accredited home health agency in Tampa Bay, FL. The agency received their accreditation in 2008 and had an average case load of 24 residents in 2009. Hopefully this will be the first of many for Brad and Senior Living Investment Brokerage. If you have any questions, please contact Brad at clousing@seniorlivingbrokerag.com

Grant Kief
Senior Living Investment Brokerage, Inc.

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.