Senior Living Investment Brokerage, based in Glen Ellyn, Ill., recently brokered the sale of seven senior living properties across three states for a total of $30,350,000.
“All signs point to a surge during the last several months in investor interest in senior living properties. Buyers are extremely motivated. For skilled nursing facilities as well as seniors housing, we’re closing transactions relatively quickly,” said Grant Kief, President of Senior Living Investment Brokerage.
Operator + REIT Joint Venture Buys Four Alabama Senior Living Communities
Four of the properties were located on two campuses in Alabama and sold for a total $19.3 million. The seller is a not-for-profit organization that has been strategically divesting itself of senior living operations in the last few years.
The 36-acre Daphne, Ala. campus has a 60-unit assisted living residence and a 64-unit memory care facility; it has additional land that can potentially be used for expansion.
The other campus, in Fairhope, Ala., has a 95-unit assisted living residence and an 18-unit independent living community. Because the independent living residents initially participated in life care contracts, the buyer assumed approximately $2 million in projected liabilities on a go-forward basis. The independent living property is subject to a 75-year ground lease with a private entity, and the buyer assumed that lease as part of the transaction.
The buyer of these four seniors housing properties is a joint venture between a regional, Texas-based operator and a real estate investment trust.
Bradley Clousing, Ryan Saul, and Matt Alley, all out of Senior Living Investment Brokerage, were responsible for the transactions.
Management Company Buys Pennsylvania Independent & Assisted Living Community
Another property, located in Schwenksville, Pa., sold for $5.8 million. The Colonnade, a 94-unit independent and assisted living community, has 120 beds with independent living rents averaging $2,900 a month, and monthly assisted living rents averaging $3,550.
After losing nearly $1 million in both 2010 and 2011 because of state survey citation limitations, The Colonnade’s sellers, a group of TIC investors, hired a management company to improve performance. The company was able to effect a successful turnaround, and the property is now positions to achieve a projected $800,000 net operating income upon stabilization.
The management company, which also operates other local properties, bought The Colonnade. The sale was arranged by Ryan Saul and Toby Siefert.
“The Colonnade transaction is consistent with what we are seeing across the market with turnaround opportunities. Under previous management, performance suffered as a result of a ban on admissions. At $48,000 per unit, the facility was purchased well below replacement cost,” said Saul.
New York Operator Buys Two Texas Skilled Nursing Facilities, Leases Two Others
Two skilled nursing facilities, both located in Atlanta, Tex., sold for $5.25 million to a New York-based owner/operator with several other Texas facilities.
Golden Villa, built in 1994, has 120 beds. Rose Haven Retreat, with 108 beds, was built in 1970.
The seller was an independent owner/operator and included a lease in the transaction for two other skilled nursing facilities the buyer will control: Mission Manor Nursing Home in Mount Vernon, Tex., and Heritage Nursing Home in Quitman, Tex.
Matthew Alley and Jeff Binder facilitated the transaction.
“Senior Living Investment Brokerage added significant value to the transaction by creatively structuring it as a purchase of two properties and a lease of two properties in order to meet the needs of the buyer and seller,” said Alley.
Written by Alyssa Gerace