Senior Housing Investments & Acquisitions: ARC Healthcare Trust II, Senior Resource Group

Chelsea Jewish Foundation Announces Merger with Aviv Centers

The Boards of Directors of the Chelsea Jewish Nursing Home Foundation, Inc. (CJF) and Aviv Centers for Living, Inc. recently announced that the two organizations are combining to serve seniors north of Boston. 

Together, they will become the largest senior living nonprofit organization on the North Shore, and CJF will manage the Aviv properties. Additionally, the CJF management team will operate the combined organization.

Peabody-based Aviv will continue to provide services under that name as well as the names of its individual facilities – the Waldfogel Health Center, Shapiro-Rudolph Adult Day Health and the Woodbridge Assisted Living complex.

CJF was founded in Chelsea, Mass., and operates models of care including skilled and short-term rehab residences, traditional and specialized assisted living options, independent living residences, educational programs, home care, personal care and hospice agencies serving more than 500 individuals.

Aviv provides an integrated system of care on a single campus in Peabody, Mass. It offers assisted living, skilled nursing, adult day health, short-term rehabilitation, home care and geriatric care management and currently serves more than 300 residents and patients.

Sentio Healthcare Properties Acquires Maryland Property For $9.7 Million

Sentio Healthcare Properties Inc., a real estate investment trust (REIT) focused on health care-related assets, has announced the $9.65 million purchase of Spring Village of Wildewood, located in California, Md.

Wildewood is a 48-unit senior living community with a mix of assisted living and memory care units. The community is located within The Villages of Wildewood, a 55+ age-restircted, single-family and multi-family community, within a larger planned unit development (PUD) known as Wildewood. 

The newly constructed property opened in May 2014. 

Sentio has partnered with Maryland-based WoodBine Senior Living to operate the property. WoodBine currently manages two exisitng properties in Sentio’s portfolio, Forestview Manor and Spring Village at Floral Vale. 

This acquisition marks an additional investment under Sentio’s investment agreement with an affiliate of leading global investment firm Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates “KKR”). As a part of the agreement, KKR committed to provide an initial $150 million of convertible preferred equity to Sentio over a two- to three-year period.

Senior Resource Group Expands Footprint to Georgia With Latest Acquisition

Senior Resource Group (SRG), a California-based developer and operator of luxury retirement communities, has expanded its multi-site footprint to Georgia with the acquisition of The Hallmark Buckhead in Atlanta. 

Opened in 2007, the 22-story high-rise apartment building has been renamed The Piedmont at Buckhead under its new ownership.

The 203-unit retirement community will continue to offer a continuum of care setting featuring a mixture of independent and assisted living options. 

The purchase price was not disclosed. 

Institute for Professional Care Education Acquires Health Care Training Company

The Institute for Professional Care Education (IPCed), a provider of online training and instructor resources within the post-acute care market, announced it has acquired Care and Compliance Group of Murrieta, Calif. 

Financial terms were not disclosed. 

With the addition of Care and Compliance Group, the combined company will provide more than 500 training resources to home care, certified home health, assisted living and skilled nursing care providers. 

“We are very pleased to expand our reach, expertise and content catalogs and will be providing the industry with additional choices for managing compliance training and caregiver education,” said IPCed CEO Sharon Brothers.

Care and Compliance Group was founded by Sandi Flores more than 30 years ago with a commitment to providing training throughout the state of California to assisted living and residential care providers. 

Cornerstone Healthcare Group to Acquire TrinityCare Senior Living 

Cornerstone Healthcare Group, a private company owned by funds managed by Highland Capital Management, L.P., recently announced the company has entered into an agreement to acquire the operations of TrinityCare Senior Living for cash and assumed debt of $27 million. 

A subsidiary of University General Health System, Inc., TrinityCare develops, owns, operates and manages independent living, assisted living and memory care properties in Texas, Tennessee and Georgia. 

Cornerstone operates Long Term Acute Care (LTAC) Hospitals, with 19 locations in the United States.

“We are pleased to add TrinityCare’s services to our senior care platform,” stated David Smith, president and CEO of Cornerstone. “The Southwest and Southeast regions of the United States continue to represent underserved markets for senior care, and this acquisition will expand our network while enabling us to continue to offer our patients best-in-class services.”

Cornerstone will operate its senior living business under the TrinityCare name. Donald W. Sapaugh, founder of TrinityCare Senior Living and current president of University General Health System, Inc., will join Cornerstone as president and CEO of Cornerstone’s senior living division. After the closing of the transaction, Sapaugh will resign as president of University General Health System but will remain as a board member and chairman of the Capital Markets Committee.

“The sale of our senior living segment represents our ongoing commitment to execute our strategic plan announced earlier this year, and we believe this elimination of debt and non-core assets will enhance our focus on our flagship hospital in Houston,” said Hassan Chahadeh, M.D., chairman and CEO of University General Health System, Inc.

Financial terms of the transaction were not disclosed. 

Grandbridge Facilitates $12 Million Seniors Long-Term Acquisition Loan 

The Atlanta-based Seniors Housing and Healthcare Finance team of Grandbridge Real Estate Capital recently closed an $11.95 million permanent fixed-rate loan secured by Dancing River of Grapevine. 

Funding for the acquisition was provided by BB&T Real Estate Funding, Grandbridge’s exclusive balance sheet lending platform, and featured a seven-year and 30-year amortization with a two-year interest-only component. 

Located in Dallas, Texas, the 81-bed senior housing community has a mix of assisted living and memory care and offers amenities that include an on-site salon, spa with massage services, library, fitness classes, private dining room and additional common room amenities.    

“As a boutique investment group, we evaluate many deals and choose few. We do the same with our lenders,” said Stephanie Anderson, principal at SilverStone Health Care Real Estate. “Grandbridge’s customer service levels exceed most. They are a structuring shop and take the time to understand our debt objectives for each community. The skills and knowledge of their teams have helped expand SilverStone’s platform and simplified our debt processes.”

ARC Healthcare Trust II Acquires 2-Property Portfolio for $55 Million

Senior Capital Advisors has announced the sale of a two-property, 150-unit/205-bed portfolio of assisted living and memory care communities in Georgia and Kansas for $54.76 million.

Senior Capital Advisors represented the seller, Principal Senior Living Group, based in Alpharetta, Ga., and procured the purchaser, New York-based American Realty Capital Healthcare Trust II. 

The properties include Benton House of Alpharetta, Ga. (79 units, 105 beds) and Benton House of Prairie Village, Kan. (71 units, 100 beds).

The portfolio’s all private-pay census was above 90% at closing. Both properties opened in 2013 and were expanded in late 2014. Due to consistently high census and strong market demand, the expansion units at both properties were heavily preleased and are expected to fill quickly.

Principal Senior Living Group and American Realty Capital Healthcare Trust II anticipate the closing of an additional community in the near future.

Senior Living Brokerage Firm Facilitates $26.5 Million 2-Property Sale 

Senior Living Investment Brokerage, Inc. represented the seller, Presence Life Connections, in the sale of two Illinois communities for $26.5 million. 

The first community, Presence Ballard Rehabilitation, is a skilled nursing facility constructed in 1977. It includes 231 licensed skilled nursing beds — 181 beds functional capacity (30 private and 201 semi-private). Price per licensed bed equates to $75,593; for functional, $93,923. This community, at 65% occupancy, cost $17 million. 

The second community, Saint Andrew Life Center, is a CCRC that was constructed in 1963. It consists of 209 beds/units. The community is 80% occupied and cost $9.5 million, with the price per bed/unit amounting to $45,455. 

Presence Life Connections, sold the two communities for a combined $26.5 million. Deploying capital to other operations and focusing on their core business was the driving factor to sell, as well as the negative financial performance and resulting financial drain on the organization.

The buyer, Health and Home Management Inc., is an Illinois-based company that owns other communities in this market. It plans to increase occupancy at Ballard and control costs through economies of scale. It will invest cap x into the communities to achieve higher rents and explore ways to bring a SLF license to Saint Andrew Life Center.

Written by Emily Study