Senior Housing Investments & Acquisitions: Atria, Global Healthcare REIT, Fortress

| February 19, 2014

Cahill Group Buys $250 Million Senior Care Portfolio

Cahill Group recently announced it has completed the $250 million acquisition of the Rosewood skilled nursing and health care portfolio, based in St. Louis, Missouri. 

The acquisition includes skilled nursing facilities, senior living, home health, and other related management and service companies in St. Louis and Illinois, and the new company will be renamed Cahill Rosewood.

“The Rosewood brand is very strong, and Rosewood is one of the best managed providers delivering excellent care,” said Mark Yampol, who leads Cahill Group and is a third-generation healthcare operator. “These businesses will form the foundation for Cahill’s planned growth in the healthcare arena.”

Cahill Group financed the transaction with a combination of equity and loans  with Holland & Knight serving as legal counsel.

Aviv Buys Texas LTC Facility for $16 Million

Aviv REIT, Inc. (NYSE: AVIV) announced recently it has acquired a post-acute and long-term care skilled nursing facility in Houston, Texas for $15.9 million. The property, built in 2013, is triple-net leased to existing Aviv operator Fundamental Long Term Care, an operator of 104 facilities in nine states. The investment has an initial cash yield of 9.1%, a 2% fixed annual escalator and an initial lease term of ten years.

“Our investment strategy continues to produce quality opportunities, with the addition of this brand new, state-of-the-art SNF, which was brought to us by Fundamental and this represents our third transaction with Fundamental since the end of last summer,” said Craig  Bernfield, Chairman and Chief Executive Officer of Aviv, in a statement. “We have already closed $56 million of acquisitions in 2014 and we believe Fundamental will be a part of our growth story.”

Two Elmcroft-Managed Senior Living Communities Sell for $4.6 Million

Senior Living Investment Brokerage recently facilitated the sale of two senior living communities in Blytheville and Pocahontas, Arkansas, in a transaction led by Bradley Clousing and Jeff Binder.

Both communities were built in 1997 approximately 85 miles apart from each other and have 51 units, 45 private and six semi-private. 

The buyer is a regional owner/operator based in Missouri, says Senior Living Investment Brokerage. Elmcroft Senior Living was the previous owner of the Pocahontas community, and it had leased Blytheville, which was previously owned by Ventas.

Fortress Buys Florida Assisted Living Community for $24 Million

A Fortress Investment Group subsidiary recently acquired an assisted living community in Sarasota, Fla. for $24.1 million, reports the local Herald-Tribune.

Sarasota Retirement Residence LLC, based in Lake Oswego, Ore., was the property’s seller, which reportedly paid $1.16 million for the land in May 2004 before building the 118,606-square-foot Desoto Beach Club community the following year. Holiday Retirement, owned by Fortress and the largest independent living provider in the nation, is also headquartered in Lake Oswego. 

Fortress has purchased six total senior living communities in Southwest Florida since last August, according to the Herald-Tribune, including the Royal Palm Retirement Center in Port Charlotte for $18.1 million. 

IRET Acquires Idaho Assisted Living Facility for $7.1 Million

Investors Real Estate Trust announced in early February that its operating partnership, IRET Properties, recently completed the acquisition of a newly-built assisted living community in Fruitland, Idaho. The Spring Creek Fruitland community was acquired for $7.1 million from an affiliate of Edgewood Group and is triple-net leased to and operated by Edgewood Fruitland Senior Living, LLC, an affiliate of Edgewood Group LLC.

The new community has 39,222 square feet and brings IRET Properties’ portfolio to eight assisted living properties in Idaho. 

IRET Properties also recently purchased an approximately 3.4 acre parcel of vacant land adjacent to the Spring Creek Fruitland assisted living community for possible future development for $335,000. 

Atria Senior Living Acquires N.Y. Assisted Living Community

Atria Senior Living acquired Delmar Place, an assisted living community in Bethlehem, New York, in December according to Spotlightnews.com. The community was previously privately owned and operated and currently has 85 residents. 

The community has since been renamed to Atria Delmar Place and joins three other Atria-owned and managed communities in the Albany area.

Wickfield Properties Buys Senior Apartment Complex for $4.25M

Ann Arbor, Mich.-based Wickfield Properties recently purchased the Courthouse Square Apartment complex for $4.25 million, reports mlive.com. Courthouse Square is an 11-story, 116-unit low-income senior housing property that used to be a hotel.

First Centrum bought the building from the city of Ann Arbor after it took ownership of the property in the 1990s through tax foreclosure, and then used low-income housing tax credits to convert it into 55+ housing for low-income residents. First Centrum was required to own the building for 15 years under that tax credit agreement, mlive.com reports, which ended in 2010.

However, a deed restriction requires Wickfield to keep the apartments low-income, although the real estate company is looking into whether the complex will remain senior housing. Read more.  

Global Healthcare REIT Acquires Fourth Senior Living Center for $2 Million

Global Healthcare REIT, Inc. (OTCQB:GBCS) recently announced it has completed its fourth senior living acquisition. Effective February 7, the REIT acquired Southern Hills Retirement Center, a skilled nursing facility in Tulsa, Okla., for $2 million.

Global Healthcare REIT subsidiary West Paces Ferry Healthcare REIT, Inc. formed Southern Tulsa, LLC to buy the property using a $1.5 million senior mortgage with First Commercial Bank. 

The Southern Hills senior living campus is comprised of three buildings with a total of 104,192 square feet on a 4.36 acre parcel. The retirement center includes 106 nursing beds, 84 independent living units, and 32 assisted living beds. 

Chris Brogdon, the former director of acquisitions for AdCare, is president of Global Healthcare REIT. 

Madison Realty Closes on Six Senior Living Properties

Madison Realty Companies recently closed the acquisition of six senior living communities in Colorado and Nebraska. Details of the transaction were not disclosed. The deal was first announced in August 2013 and has closed in three separate transactions. 

Five of the properties provide assisted living, and the remaining property is a skilled nursing facility. 

Madison Realty obtained financing from FHA and local banks to acquire the communities.

“Our business strategy is to upgrade the properties, add memory care sections to most of the assisted living properties and to expand some of them over the next two years,” Gary Langedoen, senior managing director at Madison Realty, told SHN.

At this point, the private real estate investor doesn’t plan to rebrand any of the properties and intends to keep the existing management company in place for most of the newly acquired communities. 

“We always want to work with existing management and keep the name, which so often reflects the care and hard work of the previous owner,” Langedoen said in a statement. 

Robert Craig, the previous owner and operator of several senior housing properties in Colorado, had a waiting list for one of the communities. Without the resources for an expansion, he sold the property to Madison Realty and was kept on as manager, the company said in a press release. 

Prestige Senior Living Adds Four More Properties to Management Portfolio

Prestige Senior Living, L.L.C., a Washington-based senior living provider, recently began managing four more assisted living, independent living and memory care communities in Washington as part of a second wave of building management transitions following an acquisition by CNL Healthcare Properties.

CNL Healthcare Properties acquired 13 communities in Oregon and Washington through an investment that was finalized late last year.  The new Prestige-managed communities in Washington are Independent and Assisted Living at Monticello Park, Auburn Meadows Assisted Living and Memory Care, Independent and Assisted Living at Rosemont and Independent and Assisted Living at Bridgewood.

At Auburn Meadows, the company plans to introduce its Expressions memory care program for residents living with Alzheimer’s or other forms of dementia.

The expansion brings Prestige’s portfolio to more than 80 owned and managed communities.

“This partnership with CNL Healthcare Properties marks an important opportunity for us to spread our vision of quality care to new communities throughout the Pacific Northwest,” said Harold Delamarter, president and CEO of Prestige Care, in a statement. “We look forward to collaborating with CNL and sharing our values-based approach to senior care with residents and staff at these communities.” 


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Category: Acquisitions, Management & Operations, REIT, Senior Housing, Senior Living, Skilled Nursing

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