Amid a sustained jump in healthcare mergers, acquisitions and lending into the sector, KeyBank has provided a $74.25 loan to an investment group that purchased a rehabilitation and nursing center in Manhattan.
The buyer group, operating under the Cassena Care name, purchased the DeWitt Rehabilitation & Nursing Center on Manhattan’s Upper East Side for $105.5m.
Cassena Care operates nursing and rehabilitation facilities throughout the New York City boroughs and Connecticut.
The 499-bed, 170,000 sq ft center at 211 East 79th Street opened in 1967 and hasn’t changed hands in more than three decades, illustrating the rapid transformation the senior care and healthcare space has seen over the last several years as more and more consolidation occurs.
The number of Americans aged 65 and older is expected at least to double by 2030 and more housing is needed to support them.
Last year was a record year for healthcare acquisitions, which in particular “exploded” during the final quarter, according to Irving Levin Associates, a publisher of senior and healthcare business intelligence.
Dollar volume declined to $1.8bn in the first quarter of 2015, compared to more than $5.0bn in each of the four previous quarters; but the figure jumped to $4.1bn in the second quarter, signaling that a rebound is underway.