sell assisted living – Page 6

How to Sell Assisted Living Facilities Faster (part 2 of 2)

August 3, 2015/in assisted living, assisted living community, Capitalization Rate, due diligence, independent living, independent living facility, Jason Punzel, prepare to sell assisted living, prepare to sell nursing home, sell assisted living, sell nursing home, senior housing brokerage, Survey, Title Report, what is my property worth/by ryanmsaul

Deciding when to sell your assisted living facility (Independent Living Community or skilled nursing facility) can be a daunting task and there are many factors to consider. However, once an owner decides to sell, typically they want to close as quick as possible. As a company, Senior Living Investment Brokerage, Inc has sold more senior living and skilled nursing facilities than any other brokerage company over the past seven years. Over the years, we have found a number of things an owner can do to help sell their senior housing community faster, below is the second half of our top six things to do to sell your facility faster:

4. Have your attorney get a preliminary title report when you list the property – After an offer has been accepted and the buyer is going through their due diligence period, title issues can often cause delays in closing. If a property has been owned for a long time, and no recent debt has been placed on the property, the title probably has not been reviewed by an attorney for years. Old liens, mortgages, improper zoning are just a few issues that could come up. By having an attorney review a title policy early on in the process, many of these issues can be resolved prior to the buyer’s attorney examining the title policy.

5. Have an ALTA survey completed ahead of time – An Alta survey, in conjunction with an attorney review of the title policy can help reduce possible delays in closing. A survey can reveal encroachments, easements and other issues on the site that a buyer may or may not have an issue with. Having a survey that is already completed that a seller can show to a potential buyer will save time and make the closing process go smoother.

6. Fix any major capital items – All buyer’s will perform some type of building inspection and expect that the roof, foundation, mechanicals, etc are in good working order. As a seller, if you know there is something that needs to be fixed, it makes sense to do it ahead of time and not wait and hope a buyer won’t find it.

Many of the above suggestions will cost the seller both time and money ahead of time. The seller must weigh the risk of spending their time and money with helping the closing go quicker. Ultimately, if the seller is committed to selling, these expenses will be a good investment to ensure the smoothest closing possible.

For more information on selling your seniors housing property, please contact Jason Punzel at 630-858-2501 x 233 or [email protected].

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Is now the right time to sell assisted living and nursing home assets?

July 23, 2015/in Ryan Saul, sell assisted living, sell nursing home, Senior Living Investment Brokerage/by ryanmsaul

Senior Living Investment Brokerage, Inc. is frequently asked if now is the right time to sell assisted living and nursing home assets. Most owners are aware the market is favorable for Sellers, but few actually know their current value. Senior Living Investment Brokerage’s biggest challenge is not convincing owners that the time is right to sell, rather it is getting an audience with them to put together a confidential proposal that determines the value of their assisted living community or nursing home . The M&A market and market indicators make a strong case.

The assisted living market is very aggressive right now. Pricing and deal volume is at an all-time high. Early indication is that July could be another record month. When looking at Seniors Housing, characterized as assisted living/memory care and independent living, pricing has increased significantly over the past few years. According to the Senior Care Acquisition Report, 20th Edition, published by Irving Levin Associates, the average price per unit increased from just over $100,000 per unit to around $200,000 per unit in the last five years. Low cost of capital and significant demand for Seniors Housing, in addition to aging demographics, has caused pricing to skyrocket in a short period of time. Institutional capital is turning to Seniors Housing as a resilient segment to put their money to work. In addition, many regional companies are well capitalized with multiple debt and equity sources to make strategic acquisitions.

How long will it last? Will overbuilding hurt occupancy and the market/values? Will an increase in interest rates hurt values and activity? Please contact Ryan Saul to discuss the current market and how Senior Living Investment Brokerage, Inc. can help.

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How additional sources of funds are impacting the seniors housing market

June 12, 2015/in Alzheimer, Alzheimer's, assisted living, assisted living community, assisted living price, assisted living sale, buy, buy assisted living, buy nursing home, cap rate, Capitalization Rate, cash flow, CCRC, Dementia, financing, hud, independent living, independent living facility, interest rate, Lesley Arlasky, long term care, market, Matthew Alley, memory care, nursing home, nursing home price, prepare to sell assisted living, prepare to sell nursing home, private equity, proposal, sell, sell assisted living, sell CCRC, sell long term care, sell memory care, sell nursing home, sell portfolio, sell retirement community, sell seniors housing, sell skilled nursing, sell to REIT, senior housing, senior housing brokerage, Senior Housing community, senior housing sales, senior living, Senior Living Investment Brokerage, seniors housing, seniors housing brokerage, Skilled Nursing Facility, SLIB, Texas, valuation, what is my assisting living worth, what is my nursing home worth/by ryanmsaul

Over the past couple of years, we have seen capitalization rates (defined as Net Operating Income divided by Purchase Price) drop steadily to historically low levels, which in turn has led to purchase prices being driven upwards.

Now is the time to take advantage of this market and either exit the business through a sale entirely or divest of a few properties from your portfolio that do not fit with your current strategy.

Why is the market so strong right now? More so than any other factor, the market has been impacted by the increased availability of capital (both debt and equity) and the low cost nature of said capital. Interest rates are still at historically low levels, and while rates may creep up a bit, most analysts expect a measured increase.

During the Great Recession, transactions were mainly financed by three different methods: (1) all cash; (2) HUD financing; or (3) mostly public REIT financing. Community banks were only lending to their best clients on the most conservative of terms, and there were not a great deal of smaller, private REITs or private equity firms willing to support the acquisition of seniors housing facilities.

Over the past couple of years, community banks have become more aggressive as they are sitting on a large reserve of cash that they need to deploy and there has been a growth in the private REIT space. According to investment banking firm , Robert A. Stanger & Co., and reported by Seniors Housing Business, a handful of non-traded REITs devoted to seniors housing have amassed $6.4 billion in equity over the past few years. The availability of these capital sources has had a huge impact on the seniors housing acquisition market in the form of increased pricing.

The most recent example of this was a $30M nursing home portfolio that Senior Living completed in Texas. It was purchased by an independent, regional owner-operator and financed by a community bank out of Louisiana. Until recently, that size of transaction would have been almost certainly REIT financed or purchased by a large, national owner-operator.

If you have any questions on the topic of this post or would like a confidential valuation of part or all of your seniors housing portfolio, please contact Matthew Alley at 630-858-2501 ext. 225 or [email protected].

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Hear about how to Sell assisted living and nursing home

June 3, 2015/in assisted living, Ryan Saul, sell assisted living, sell nursing home, Senior Living Investment Brokerage, what is my property worth/by ryanmsaul

Attend the Interface Seniors Housing Midwest conference on June 11th in Chicago to hear about how to sell your assisted living community. Ryan Saul, Managing Director at Senior Living Investment Brokerage, will be on a panel to discuss the Seniors Housing investment market: Who’s Buying, Who’s Selling & What’s Driving Deal Velocity in the Seniors Housing space. I can make time at the conference to discuss how to buy or sell assisted living. Please contact me at 630-858-2501 or Email Ryan Saul.

To learn more about the Interface Seniors Housing Conference, please go to interfaceconferencegroup.com/srm2015

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Ryan M Saul