Senior Housing Investments & Transactions: IPA, Greystone

CCRC in St. Charles, Missouri, Sold by IPA for $17 Million

Institutional Property Advisors (IPA), a division of Marcus & Millichap Inc. that specializes in serving institutional and major private real estate investors, announced the sale of Carrington Place of St. Charles, a 294-bed, 234-unit continuing care retirement community (CCRC) in St. Charles, Missouri. 

Carrington Place of St. Charles has 138 independent living units, 27 assisted living units, 32 memory care units, and 66 semi-private and private skilled nursing beds. The $17 million sales price amounts to over $72,000 per unit.

Community amenities include a beauty and barber shop, a chapel, a deli and coffee shop, a courtyard, multiple dining rooms, a theater/auditorium, a health center and an ice cream parlor. The CCRC is also located within eight miles of 1,000 short-term acute care hospital beds.

IPA Senior Director Josh Jandris, IPA Executive Director Mark Myers, IPA Associate Director Charles Hilding and Marcus & Millichap Associate Richard Lynn represented the seller, a private company. Myers, Hilding, Jandris and Lynn also procured the purchaser, a private owner/operator from Chicago. Bradley Barham, sales manager in Marcus & Millichap’s St. Louis office, is the firm’s broker of record in Missouri.

“This was a unique opportunity for the buyer,” Myers said. “The seller had recently converted approximately 27 independent living units to assisted living, which improved revenue and cash flow, and will have a positive impact on future marketing. The new supply of seniors housing being built in the market will charge much higher monthly rates than the Carrington Place, further increasing the property’s attractiveness.”

Greystone Real Estate Advisors Closes $38 Million Sale of Virginia Beach Seniors Community

Greystone, a real estate investment, lending and advisory firm, announced its Real Estate Advisors group assisted with the closing of the sale of the Pacifica Senior Living property in Virginia Beach, Virginia, for $38 million. Capital Senior Living bought the seniors housing property on Oct. 29 from a private seniors housing owner.

The senior living community provides memory care and assisted living services. The community includes a barbershop and a beauty salon, a large central courtyard with fountain, a private dining room and a library with fireplace.

Greystone Real Estate Advisors Managing Director Mike Garbers led the transaction. The Real Estate Advisors team worked with Greystone’s Debt and Structured Finance Team to carry out the sale with Capital Senior Living.

Greystone’s Debt and Structured Finance Team sourced the acquisition financing for Capital Senior Living through a life insurance company. Cary Tremper, a managing director at Greystone, led the financing for Capital Senior Living.

“Having a best-in-class client in Capital Senior Living, as the buyer, combined with a well-located, strong performing and highly sought after asset in Virginia Beach made for a great execution for all parties,” Temper said. “Our goal is to leverage the breadth, reputation and experience of our entire seniors housing team, from investment sales to debt placement, to providing an efficient process that ensures certainty of execution for all parties.”

Blueprint Announces Sale of Skilled Nursing Facility in Washington, D.C.

Blueprint announced the successful sale of a 296-bed skilled nursing facility in Washington, D.C., called Deanwood Rehab and Wellness Center.

Blueprint said it confidentially reached out to a small group of prospective purchasers on behalf of a private New York-based seller.

The buyer ultimately chosen was a public, non-traded REIT that shared a vision for the future of the asset similar to that of the seller. Blueprint said it structured a mutually beneficial sale/lease-back aligning the interests of both parties.

After consummating the deal, Deanwood reached an occupancy level of 95% with an attractive quality mix and realized $33.5 million and $7.5 million in total revenue and EBITDAR on an annualized basis, respectively.

Blueprint said its process commanded a top of market purchase price of $50 million, or $168,918 per bed, which included a performance-based earn out. Upon the operator hitting particular performance thresholds, the purchase price attained by Blueprint will represent a record-breaking price per bed for skilled nursing facility sales in Washington D.C.

Blueprint’s Tim Cobb, Christopher Hyldahl and Steve Thomes worked together to execute the transaction.

Lee & Associates Brokers $10.7M Sale of Office Site for Conversion to Seniors Housing

Lee & Associates has arranged the sale of a 51,585-square-foot office building in the coastal town of Carpinteria, California, for $10.7 million.

The purchaser, Steadfast Carpinteria Senior LLC, intends to construct a 76-bed seniors housing community on the site. Construction is expected to start once all current tenants have vacated.

Clarice Clarke and Stephen Leider, principals with Lee & Associates Santa Barbara, represented Steadfast in the sale.

Steadfast is an affiliate of Steadfast Cos., an Irvine, California-based real estate investment management company that owns and/or operates a $3 billion portfolio in Mexico and the United States.

Lee & Associates is a brokerage with office locations throughout the United States.

Extendicare Expanding Canadian Presence With Acquisitions, Developments

Extendicare Inc. is expanding its Canadian presence in Saskatchewan and Ontario with a series of developments and acquisitions, including the purchase of three retirement communities.

The Markham, Ontario-based company is set to purchase the 116-suite Stonebridge seniors home in Saskatoon and the Riverbend facility in Regina from Brightwater Senior Living Group for a total of $50.2 million.

Extendicare also has a letter of intent to purchase two more Brightwater properties that are under construction in Moose Jaw and Yorkton, Saskatchewan.

Additionally, Extendicare is expected to purchase the Harvest Retirement Community in Tillsonburg, Ontario, for $28.4 million. The property is presently owned by a partnership of Nautical Lands Group and Baybridge Seniors Housing.

The Harvest home has 64 suites and it is being expanded by 36 suites that are scheduled to be finished in December.

The Stonebridge, Harvest and Riverbend transactions are slated to close on Dec. 1.

Extendicare is also developing three retirement communities in Bolton, Simcoe and Uxbridge, Ontario, for $81 million.

“We are pleased to continue our progress in executing on our Canadian-focused strategy following our exit from the U.S. operations,” Extendicare president and CEO Tim Lukenda said in a statement. “The retirement communities that we are acquiring, and those under development, will be great additions to our property portfolio, and are consistent with our strategy to develop our business across the continuum of care.”

Assisted Living Facility Sells for $9.4 Million in Longwood, Florida

California-based Madison Realty Equities LLC purchased Cornerstone at Longwood, an assisted living and memory care facility in Longwood, Florida, from Pacor Inc. for $9.4 million. 

The 32,968-square-foot facility has 80 units and 112 beds. The facility was 90% leased at the time of the sale. 

Pacor, Inc. bought the facility in 2008, and has since repositioned the property through renovations to the assisted living units and the memory care wing, which increased property value and rental rates.

Written by Mary Kate Nelson