Trilogy Health Services Fetches $1.1 Billion
Privately held Trilogy Health Services, the Louisville, Kentucky-based owner and operator of 96 long-term care facilities, was sold to a couple of REITs, Griffin-American Healthcare REIT III and NorthStar Healthcare Income Inc. for $1.1 billion. The joint venture between Griffin-American (which will own 70% of the JV) and NorthStar (30%) will effectively own 96.4% of Trilogy. The remaining 3.6%, or $24 million, will be owned by Trilogy management. The price includes the assumption of $205.1 million of debt. Trilogy operates 96 properties with more than 10,000 beds across four states (Indiana, Kentucky, Michigan and Ohio).Trilogy owns 53 of the facilities and the remainder are leased, some... Read More »Long-Term Care Deals Still Flourishing
The number of long-term care deals set a new record in 2014, with a total of 297 transactions announced. Through September 18th, the sector has logged 215 transactions, which could put 2015 in contention to surpass last year’s record. Or not. This is the year of the small(er) senior housing and care transaction, with deal value now standing at $9.65 billion, compared with last year’s blowout total of $29.3 billion. There were five billion-dollar-plus deals announced in 2014, compared with only one thus far in 2015. Here are the year’s biggest deals, to date. AcquirerTargetPrice Joint ventureTrilogy Health Services$1.12 billion NorthStar Realty Finance32 independent living communities$875... Read More »Deal Volume Rose in July
July’s combined transaction total hit 127 deals, up 2% compared with the bang-up month of July 2014, which had 124 transactions. The Services sector had a strong performance, accounting for 60% of deal volume. Long-Term Care made up 27% of the volume overall with 34 announced transactions. That equalled the record set last July for the sector, and will probably break it as more deals come to light. The Managed Care sector posted some extra activity, although seven deals versus two deals the month prior and a year ago isn’t moving the needle very high. July 2015 DealsShare of Total Services Behavioral Health Care32% Home Health & Hospice23% Hospitals76% Labs, MRI & Dialysis43%... Read More »Long-Term Care Deals Still Piling Up
Last week, eight more acquisitions were announced in the Long-Term Care sector, bringing the total to 22 transactions for July, so far. That’s a stronger pace than we’ve seen in recent months. The deal total for the seven deals that disclosed prices was just $220 million, about one-half of the $456 million spent on LTC acquisitions in July. In the second quarter of 2015, there were 64 publicly announced acquisitions in the seniors housing and care market, compared with 62 transactions in the year-ago quarter and 70 transactions in the first quarter of 2015. For second quarter activity, the 64 deals represent a record and implies we may be in for another strong second half of the year, much... Read More »Joint Venture Buys Regal Lifestyle Communities
Another good REIT story was made in the long-term care sector. Last week Health Care REIT, Inc. (NYSE: HCN) one of the largest diversified healthcare REITS in the country, agreed to pay $623 million for Regal Lifestyle Communities Inc. (TSX: RLC). Regal operates 23 independent living communities with more than 3,600 units—13 in Ontario, seven in Quebec, and one each in British Columbia, Saskatchewan and Newfoundland. Far-flung as that sounds, about 83% of the NOI is derived from four large metro markets. HCN will be buying this portfolio in an existing RIDEA joint venture with Revera, Inc., with HCN owning 75% and Revera 25%. Read More »Schedule a demo
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