Senior Housing Investments & Acquisitions: Capital Senior Living, SNH, NorthStar

Capital Senior Living Buys Mass. Assisted Living Community

Cassidy Turley, a commercial real estate services provider, arranged the sale of a Massachusetts assisted living community to Capital Senior Living for an undisclosed purchase price.

The community, Whitcomb House, located in Milford, Mass., includes three interconnected buildings containing 68 total units within 48,565-square-feet. Two of the buildings have since been renovated and converted to their present use from 1996-2000, while the third building was added in 2006 to connect the existing structures. 

The 87-bed community contains 66 assisted living beds and 21 memory care beds on approximately 9.3 acres. The facility’s occupancy has averaged in the mid-90% range and recently increased above 97%.

Cassidy Turley’s Tampa Senior Housing team has sold 149 senior housing communities in 29 states with an aggregate sales volume of $1.8 billion. —JO

Heritage Ministries Assumes Sponsorship of Vinecroft Retirement Community

Ziegler recently announced the successful closing of a sponsorship transition for Vinecroft Retirement Community, a Mennonite-affiliated, Christian-based retirement community for seniors aged 62 and older located in Clarence Center, New York, a suburb of Buffalo. Vinecroft opened its doors to residents in 2002 and includes 62 independent living units comprised of 44 apartments and 18 duplex homes.

The sponsorship transition process was initiated by Vinecroft in early 2012 after an early identification of a potential financial concern that if occupancy were to continue to decline, they could be challenged to make their debt payment. The Board and management discussed the benefits to the residents and the long-term survival of the mission of affiliating with another sponsor.

Following an extensive process, Heritage Ministries was determined to be a very compatible fit for mission, culture and operational strength assuring the ministry of Vinecroft for their residents would continue strong into the future. Ziegler served as a strategic advisor to Vinecroft through the affiliation process with Heritage Ministries.

“Heritage Ministries secured a loan from the Free Methodist Foundation to refinance a portion of Vinecroft’s outstanding senior indebtedness,” Ziegler said. “The interest rate and maturity on Vinecroft’s subordinated notes were adjusted to enhance the financial strength of the organization.”

Heritage Ministries is a not-for-profit organization that manages and operates human service ministries in Chautauqua County, New York. Heritage, founded in 1886 and headquartered in Gerry, N.Y., directly serves more than 600 residents on a daily basis through several service lines, including rehab and skilled nursing centers and retirement and senior living communities throughout New York.

“Although a difficult decision for the Board of Vinecroft to make, they demonstrated a strong commitment to doing the best for their residents throughout this process. Ziegler was pleased to have been a partner in this strategic pursuit,” said Rebecca Neth Townsend, senior vice president in Ziegler’s Investment Banking practice. —AG

County Nursing Home Begins Process of Affiliating with Asbury System

Calvert County’s nursing home board of directors has voted to enter a letter of intent to affiliate with Asbury Communities, a preliminary stage during which one of Asbury’s CCRCs and the Calvert County Nursing Center will explore legal and regularity hurdles to moving forward. 

“When we evaluated the changing health care environment both nationally and within our county, we saw a need to adapt in order to ensure the continued success of our nursing center,” said Hagner Mister, Board chair for Calvert County Nursing Center. “As the CCNC Board looked for similar mission-focused partners to support their vision, Asbury’s reputation and success in Calvert County made the two organizations an ideal fit.” —AG

NorthStar Healthcare Completes $29.7M in Senior Housing Acquisitions

NorthStar Healthcare Income, Inc. recently announced that it completed three transactions resulting in the acquisition of four senior housing properties for an aggregate total cost of $29.7 million. 

Assets within in the transaction included a 70-unit assisted living and memory care community located in Leawood, Kansas and a 48-unit assisted living and memory care facility located in Spring Hill, Kansas. Each of these communities was operated by an affiliate of Advantage Health Group and were acquired for a total cost of $15.6 million.

Two facilities operated by affiliates of Peregrine Health Management Company were also included within the completed transactions closed by NorthStar Healthcare Income. 

The first community is a 48-unit memory care facility located in Clinton, Connecticut. It was acquired for $11 million, while the second community, a 14-unit assisted living facility located in Skaneateles, New York, was acquired for a total cost of $3.1 million.

“We are pleased with the growth of NorthStar Healthcare’s portfolio and our ability to efficiently invest capital,” said Daniel R. Gilbert, CEO of NorthStar Healthcare. “We are committed to acquiring quality senior housing facilities and partnering with experienced operators, and these acquisitions demonstrate our strong presence in the senior housing market.”

As of November 12, 2013, NorthStar Healthcare has invested in assets totaling $41.0 million, consisting of three equity investments totaling $29.7 million and one senior loan totaling $11.3 million. —JO

Centura Health System Sells CCRC for $3.6 Million

In November, Evans Senior Investments represented Centura Health System in selling a 228-bed continuing care retirement community (CCRC) in central Colorado, just south of Denver. 

The 228-bed Villa Pueblo Senior Living Community comprises 127 independent living units, 41 assisted living units and 60 skilled nursing beds. 

The buyer for the portfolio was Frontline Management, a senior housing management company based in Longmont, Colorado. At the time of sale, the Villa Pueblo community was losing more then $1.2 million annually. 

Centura Health System, which services Colorado and Western Kansas, owns 15 hospitals and seven senior living facilities across the two states. —JO

Senior Housing Properties Trust Acquires Tenn. ALF for $10M

Senior Housing Properties Trust (NYSE:SNH) acquired a 60-unit assisted living community in Jefferson City, Tenn. in October for around $9.9 million.

Five Star Quality Care operates the private-pay senior living community under a long-term management agreement with the REIT. —AG

Senior Housing Properties Trust Acquires 2 Senior Living Communities for $19M

SNH also acquired two senior living communities in Canton and Ellijay, Ga. for around $19.1 million in October. 

The two assisted living communities have a total of 153 private pay assisted living units and are operated by Five Star. —AG

Heritage Oaks Retirement Community LLC Sells Property for $13.3M

ARA, an Atlanta-based privately-held investment advisory brokerage firm, brokered the $13.3 million sale of Heritage Oaks, a 121-unit independent living community in Richmond, Virginia. 

Built in 1987, Hertiage Oaks is situated on approximately seven acres and offers studio, one-bedroom and two-bedroom units to its residents. The building was constructed using steel frame and concrete to allow some flexibility for the future owners to operate the building as independent living or undertake partial conversions. 

Cody Tremper of ARA’s specialty practice group handled the disposition on behalf of Heritage Oaks Retirement Community, LLC, a single-facility based in Norman, Oklahoma. The transaction took less than 60 days from initial contract execution to closing. 

“The speed with which this transaction closed and the price that we were able to achieve for the seller are indicative of the continued increase in interest in the Seniors Housing sector,” says Tremper. “We had a broad spectrum of potential purchasers including owner/operators, private equity and public REITs who were attracted to the upside potential in this quality asset.” —JO

IRET Buys Senior Housing Complex for $15.2 Million

Minot, North Dakota-based IRET announced it has purchased a $15.2 million senior housing complex located in Sartell, Minnesota, which the company will add to its growing portfolio. 

The community, Ponds at Heritage Place, offers studio, one-bedroom and two-bedroom units. Amenities include nine foot ceilings, heated underground parking garage, in-unit washers and dryers, as well as a new fitness center. 

Within two buildings, Heritage Place tops three stories and features 58 units. —JO

Written by Jason Oliva