A Hot Market Meets Westward Expansion
A significant uptick in activity in western states was seen during Q3, with long-term care (LTC) change of ownerships occurring from Colorado to California, and up the Pacific coast into Washington. The trend includes Atlantic operators reaching west and regional operators expanding their presence in familiar states.
Let’s take a look at some notable westward expansions and LTC change of ownerships.
LTC Change of Ownerships Heat Up in the West
In rural colorado, an East Coast operator took ownership of seven skilled nursing facilities for $51.5 million. The purchase of 558 beds in total, whose facilities were still below pre-pandemic occupancy at the time of sale, represents a growing trend of operators expanding in western states despite challenging industry dynamics. Before COVID-19 impacted the skilled nursing industry, these facilities brought in approximately $6.2 million in annual EBITDA.
Western operator Cascadia Healthcare secured $42.3 million in funding to support its ongoing growth. In August, Cascadia purchased a 92-unit SNF in Colville, WA for an undisclosed price, facilitated by Blueprint Healthcare Real Estate Advisors. The purchase expands the operator’s presence in the state and neighboring Idaho.
Senior Living Investment Brokerage negotiated the sale of a 98,700-square-foot community in Moreno Valley, California for an undisclosed price. The facility consists of 94 units licensed for assisted living and memory care services. The undisclosed West Coast buyer is reportedly working to expand their presence in California with this acquisition.
In San Clemente, California, CareTrust REIT put $22.3 million to use in acquiring five facilities in the state. Operators of the facilities have had “long-established relationships with CareTrust,” according to CareTrust president and CEO, Dave Sedgwick. The acquisition includes around 600 skilled nursing beds.
CBRE helped a joint venture secure $145.1 million in financing to build a 250-unit independent living, assisted living, and memory care center on the Vancouver, Washington waterfront. The building will be part of a master-planned development to include office, retail, and residential space on 32 acres north of Portland, Oregon.
An undisclosed owner-operator purchased their first SNF in Nevada, TLC Care Center, for $50 million. The 225-bed facility is reported to have generated $24 million in annual revenue prior to the pandemic with over 90% occupancy. The purchase is part of the ownership group’s push to establish a footprint in the Silver State.
Acquisitions + Underwriting Services for Long-Term Care Lenders and Investors
In the current market, the speed of acquisitions may have you thinking on your feet about expanding your portfolio. Regardless of how good a deal looks, it’s important to have the right people in your corner. At LTC Ally, our Financial Advisory Department delivers lenders and investors peace of mind with expert guidance and accurate projections and valuations.
We use historical seller data and localized analytics to identify risks and opportunities, so you can see the long-term alongside the finest details. For unmatched professionalism and care during your next acquisition, contact one of our financial advisors today.