Symphony Post Acute Expands into Michigan with Caretel Acquisitions; County SNF Hits Market for $19M

Symphony Post Acute Network expanded its footprint into the Michigan market this week with the acquisition of Caretel Inns of Brighton and Caretel Inns of Lakeland, a pair of skilled nursing and assisted living facilities.

Located in Brighton and St. Joseph, Mich., respectively, the facilities blend high-end post-acute care with assisted living units, according to an announcement from the Chicagoland-based Symphony.

The move marks the first step in Symphony’s gradual takeover of Caretel Inns of America; Symphony concurrently announced plans to take over Caretel’s remaining properties in Linden, Bay City, and Woodhaven, Mich. pending approval from the Department of Housing and Urban Development.

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“I am very excited for Caretel to become part of the Symphony family,” Stephanie Hildebrant, vice president of innovation and operations at Caretel Inns of America, said in a statement. “The history, philosophies, and values of the two organizations are parallel, allowing the Caretel Concept to not only continue but to grow.”  

Symphony does not plan to rebrand the Caretel facilities in the near term, partially as a nod to the “Caretel Concept” brand initially developed by company founder Horace D’Angelo, Jr.

Evans Senior Investments Pulls Off Pair of Deals

Evans Senior Investments announced a pair of long-term care transactions this week, with the first covering two senior living and skilled nursing facilities in Michigan. Sold on behalf of a regional owner/operator, the properties boasted a 100% private-pay census on the senior living side, and a favorable Medicare Part A mix within its skilled nursing population.

“This transaction presented an exciting opportunity for a new entrant to establish a portfolio in the state with one transaction and the potential for a regional operator to solidify their economies of scale with an infusion of beds to their regional portfolio,” Jason Stroiman, president and founder of the Chicago-based Evans Senior Investments, said in a statement announcing the deal.

The second transaction involved the $11.5 million sale of the Ellenburg Nursing Center in Greenville, S.C. The property features 181 beds and was 90% full when it first hit the market, though the previous owners struggled with less than ideal economies of scale and a lack of partnership opportunities; the Ellenburg property, which took in about $12 million in annaual revenue, was the group’s only skilled nursing community.

Evans Senior Investments represented the former owners, eventually locating a regional owner-operator group to buy the facility.

“Ellenburg is well-positioned with strong demographic growth and limited competition,” Stroiman said in a separate statement. “This value-add sale presented a great opportunity for the new ownership group with operational expertise and synergies in the skilled nursing market to significantly improve the profitability at the facility.”

County to Sell Troubled Skilled Nursing Facility for $19M

Local officials in Rock Island County, Ill. approved plans to put the Hope Creek Care Center on the market for $19 million — a figure that falls just below its current $19.5 million debt load, according to a report in the Quad-City Times.

Marcus & Millichap has signed on to help broker the sale of the property, located in East Moline, Ill.

Built in 2007, the facility has 245 licensed beds on 12.5 acres of land, according to the Times; the property currently takes in about $10.6 million in revenue against $13.2 million in expenses.

Marcus & Millichap senior marketing director Ray Giannini told the publication that the brokerage firm expects multiple bids on the property, calling the local landscape “a seller’s market.”

“It’s a beautiful facility. Nothing else out there is 2007 construction,” Giannini said, per the Times. “I walked through the facility. The sun was shining; it’s got a two-story dining room. Most nursing facilities were built in the ’60s and ’70s with an addition. But this is new, state-of-the-art, sexy stuff. If a facility can be sexy, this is sexy.”

However, Giannini also told officials that the $19 million asking price likely represents the ceiling for the nursing home — which he predicted would sell for no less than $12 million, the publication reported.

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