Senior Housing Investments & Acquisitions (8/13/13)

| August 13, 2013

American Realty Capital Buys 2 ALFs for $27.6 Million

American Realty Capital Healthcare Trust recently acquired two assisted living communities from  Principal Senior Living Group for $27,550,000.

The two-property assisted living and memory care portfolio consists of 147 beds in 123 units. Benton House, located in Covington, Ga., has 59 units with 72 beds and was built in 2009. Garden House, in Anderson, S.C., has 75 beds in 64 units and was built in 2000.

Principal Senior Living Group will continue to manage the properties under a 5-year management agreement. The transaction is a follow-on to a previous 5-property, $85.8 million portfolio sale between the two parties in November 2012.

“The pricing of this sale is a testament to the consistently high level of operational expertise PSLG brings to the table,” said Bruce Gibson, principal of Senior Capital Advisors, who represented PSLG in the transaction. —AG

Pacific Northwest Assisted Living Portfolio Sells for $27.5 Million

Cassidy Turley, a commercial real estate services provider, recently announced it arranged the sale of a three-property portfolio of assisted living communities for $27.5 million.

The portfolio includes Clearwater Springs, an 81-unit community in Vancouver, Wash.; Redwood Heights, an 80-unit community in Salem, Ore.; and Ocean Crest, a 61-unit community in Coos Bay, Ore.

The properties were an aggregate 90% occupied at time of sale and sold for $123,874 per unit.

Allen McMurtry, executive managing director at Cassidy Turley, represented the seller, an institutional owner, in the transaction. The buyer is another institutional owner. —AG

Aviv REIT Closes $9.3 Million SNF Acquisition 

Aviv REIT, Inc. (NYSE:AVIV) announced on Aug. 2 the acquisition of a post-acute and long-term care skilled nursing facility in Kentucky for $9.3 million. The property is triple-net leased to an existing Aviv tenant, Diversicare Healthcare Services, which operates 54 skilled nursing facilities in nine states.

The triple-net lease has an initial cash yield of 10.25%, initial lease term of 15 years, and an annual compounded escalator based on CPI. —AG

Emeritus Sells Senior Living Community Sells for $7.3 Million

Emeritus (NYSE:ESC) recently sold an independent and assisted living community in Jasper, Alabama to CNL Healthcare Properties for $7.3 million, or $117,742 per unit, in a transaction arranged by Senior Living Investment Brokerage.

The Terrace at Jasper has 15 independent living cottages, 35 assisted living units, and 12 memory care units with strong occupancy in the last 12 months and a stable financial performance.

The campus is located on about four acres and was constructed in stages between 1998 and 2006.

Senior Living Investment Brokerage, Inc. sold The Terrace at Jasper, an independent and assisted living facility located in Jasper, Alabama. The property consists of 15 independent living cottages, 35 assisted living units and 12 memory care units.

Occupancy has been strong over the past twelve months and the facility has benefited from a stable financial performance. An affiliate of Harbor Retirement Associates, LLC will manage the property under a long-term agreement with plans to rebrand it as HarborChase of Jasper and implement new marketing and operating strategies. —AG

Nye Senior Services Acquires Senior Housing Campus in Nebraska

Nye Senior Services recently acquired a 144-unit senior living community in Norfolk, Nebraska for an undisclosed sum. The Meadows is a senior housing campus with 76 independent living apartments and 38 assisted living apartments.

The Fremont-based company owns six other senior living communities in Lincoln, Fremont, and South Sioux City. —AG

Milestone Retirement Communities to Manage Rood’s Senior Housing Portfolio

Milestone Retirement Communities has been named to manage Rood Investments of Vancouver’s 10-property senior housing portfolio in Washington, Oregon, and California.

The portfolio contains 1,433 units of independent living, assisted living, and memory care.

Rood Investments also plans to begin construction on a 116-unit assisted living and memory care community in Orangevale, Calif. that will also be managed by Milestone. Rood is maintaining ownership of all the communities and will also remain involved in overall management direction.

Both companies are based in Vancouver, Wash. —AG

HealthLease REIT to Acquire Property from Mainstreet for $17 Million

HealthLease Properties Real Estate Investment Trust (TSX:HLP.UN) has agreed to acquire a newly-built senior housing community from Mainstreet Property Group, LLC—the REIT’s asset and property manager—for $17.13 million.

The 100-unit community, Wellbrooke of Avon, is located in Hendricks County, Indiana and will be triple-net leased to Life Care Services. The new community is the third installment of the Wellbrooke brand in Indiana and has the “Next Generation” design of hotel-like properties that lend a hospitality component to senior care. Of Avon’s 100 units, 70 are licensed to provide skilled nursing, rehabilitation, and therapy services, with the remaining 30 designated for assisted living.

“We continue our strong commitment to growth by adding yet another Class A+ property to our fast growing portfolio,” said Zeke Turner, Chairman and CEO of the REIT, in a statement. “Our partnership with LCS increases our diversity among leading seniors housing care operators and further strengthens our profile as a key real estate partner.”

Avon will be acquired under HealthLease’s pre-existing development agreement with Mainstreet that provides the REIT with a right to acquire any senior living properties Mainstreet develops. The property will generate an expected initial rental income of $1.38 million per year. —AG

SNH Buys Assisted Living Community for $22 Million

A senior living community in Cumming, Ga. recently sold to Senior Housing Properties Trust for $22.03 million, or $236,882 per unit in a transaction facilitated by Senior Living Investment Brokerage.

Gracemont Assisted Living & Memory Care has 93 units and land for expansion. —AG

Skilled Nursing Portfolio Sells for $20.9 Million

A two-property skilled nursing portfolio located in Florida sold recently for $20.86 million, or $139,067 per bed. Senior Living Investment Brokerage facilitated the sale of the two facilities, Baya Pointe in Lake City, Fla. and Osprey Point, in Bushnell, Fla. The portfolio consists of 150 beds. —AG

Titan/SenQuest Buys Luxury Independent Living Community

Titan Real Estate Investment Group’s senior housing division, Titan/SenQuest, recently acquired a luxury senior living community in Bryan, Texas for an undisclosed price.

HFF closed the sale of Waldenbrooke Estates, a 180-unit independent living community located on 5.54 acres across from the St. Joseph Regional Health Center. Community amenities include a fitness center, swimming pol, spa, library, recreation room and covered parking in addition to on-site banking services, on-site beautician and barber services, a fitness program, pet program, and full meal plan for residents.

Managing director Ryan Maconachy and director Chad Lavender led the HFF team representing the seller. —AG


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Category: Acquisitions, Senior Care, Senior Housing, Senior Living, Skilled Nursing

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