Senior Housing Investments & Transactions: ESI, Sienna Senior Living

ESI Arranges Sale of Indiana Skilled Nursing and Memory Care Facility 

Shady Nook Care Center, a 37,332-square-foot skilled nursing and memory care facility in Dearborn County, Indiana, has sold to an undisclosed local buyer who will continue to operate the facility as currently established.

Evans Senior Investments (ESI) arranged the sale.

Shady Nook Care Center was built in 1984 and features 12 private rooms and 35 semi-private rooms for residents. The facility underwent a $395,000 general renovation project in 2010 to include all new hallway carpeting, new fixtures, room renovations and exterior painting. The renovation is expected to help the facility’s private room wing continue to attract Medicare Rehab residents in the future.

ESI President Jason Stroiman commented on the smooth transaction with Shady Nook Care Center, saying it “would allow the new owner to continue the immense focus on achieving quality nursing and dementia care for the patients and residents.”

Town of Greenburgh, New York, Sells Land to Capitol Seniors Housing

The town of Greenburgh, New York, announced the sale of 715 Dobbs Ferry Road, the former location of Frank’s Nursery and Craft Center, to Washington, D.C.-based Capitol Seniors Housing.

Capitol Seniors Housing intends to build a 90-100 unit assisted living community on the property.

“In recent years, residents have encouraged the town to sell the property, which we took over by foreclosure, for residential purposes or for an assisted living facility,” Town Supervisor Paul Feiner said. “Our current code authorizes assisted living facilities to be built at this location, so no zoning changes will be required. We hired a broker over a year ago to help us market the property and worked hard to market the property.”

The approximately $3.53 million price was “the best offer we received,” Feiner added.

Sienna Senior Living Inc. to Acquire Traditions of Durham Retirement Residence in Ontario

Sienna Senior Living Inc. (TSX: SIA), one of Canada’s largest owners of seniors housing, announced it has entered into a definitive agreement with Durham Retirement Residence Limited Partnership to acquire Traditions of Durham, a retirement residence in Oshawa, Ontario, Canada, for C$37 million. The residence is one of Sienna’s managed homes.

The closing of the transaction is anticipated to occur on or around Dec. 31, and is subject to regulatory approval and customary closing conditions. Sienna plans to finance the acquisition by an assumption of the existing property level mortgage of about C$22.7 million, maturing in March 2020 and bearing interest at 3.5%. The rest of the purchase price is expected to be paid in available cash and drawdowns from the company’s credit facilities. The vendor is set to provide the company with an annual net operating income guarantee, in accordance with the transaction terms.

Traditions is a 140-suite independent and assisting living residence in Oshawa, Ontario, that began operations in 2010 with a first phase of 90 suites. An additional 50 suites were added pursuant to a second phase in 2012. The facility is currently 90.71% occupied.

“We are pleased to be further expanding Sienna’s high quality retirement portfolio, and as the management company for Traditions, we know the residence well and are excited to formally welcome the Traditions team and residents to the Sienna family,” said Lois Cormack, Sienna’s president and CEO. “This acquisition is consistent with our strategy to expand our retirement division with quality assets in secondary and tertiary communities.”

Sienna Senior Living is the largest licensed long-term care provider in Ontario. The company owns and operates 35 long-term care homes and 10 retirement residences, representing a total of 6,799 beds/suites across British Columbia and Ontario.

Clearview Capital Retires From its Investment in Senior Care/Active Day

After a 10-year hold, during which it completed 15 acquisitions, Clearview Capital’s Pledge Fund announced the sale of its interests in Senior Care/Active Day, Inc. to Audax Private Equity Fund IV, LP.

Financial details were not disclosed.

Based in Trevose, Pennsylvania, Senior Care is the country’s premier operator of adult day health centers. The company operates 80 locations across 11 states and serves about 4,000 members on a daily basis.

“Over an incredibly productive 10-year ownership period we have had the great fortune of partnering with CEO Jim Donnelly and COO Craig Mehnert to build by far the country’s largest operator of adult day health centers,” said James Andersen, co-founder and managing partner of Clearview Capital. “Highlighted by the acquisition and integration of Active Day, which was twice Senior Care’s size, we were able to create a highly diversified and efficient operation by completing 15 add-on acquisitions that saw revenue more than quadruple while earnings increased nearly six-fold.”

“The 10-year partnership with Clearview Capital has been incredibly successful in so many ways, and has allowed for Senior Care to grow not only in terms of the number of adult day health centers we operate, but also in terms of the services we provide, the members we serve, and our valuable employees who provide day to day care,” said Senior Care CEO Jim Donnelly. “With the expertise, knowledge and access to the financial markets Clearview Capital has provided throughout the years, we were able to accomplish all of the objectives we had originally set out to achieve.”

“The sale of Senior Care marks the fourth exit from a Clearview fund in the past 12 months and wraps up all Clearview’s legacy investments prior to Clearview Capital Fund II, LP,” said Calvin Neider, co-founder and managing partner of Clearview Capital. “With a very young portfolio averaging less than three years since our original investment and with ample capital remaining in Clearview Capital Fund III, LP, we are well-positioned to add new, high-quality  companies to our stable of investments.

Lincoln International served as financial advisor and Pepper Hamilton served as the legal advisor to Senior Care.

Independence Healthcare Management Buys MaClay Healthcare Center for $14.4 Million

Los Angeles-based owner/operator Independence Healthcare Management has purchased MaClay Healthcare Center in Sylmar, California, for $14.4 million.

The acquisition, which closed on Oct. 30, was facilitated by Shep Roylance of JCH Senior Housing Group.

MaClay Healthcare Center was previously operated by Lifehouse Healthcare Services, which operates several skilled nursing communities in California. The transaction was a one-off sale and represented only one of multiple moves Lifehouse is making to diversify its entire California skilled nursing portfolio. All of the facilities within Lifehouse’s current portfolio are strategically located throughout Southern and Northern California, but MaClay was the sole establishment located in Los Angeles county.

MaClay is a 175-bed skilled nursing facility situated on almost six acres of property.

MatrixCare to Buy AOD Software

MatrixCare, a portfolio company of OMERS Private Equity and the provider of the industry-leading electronic health record for senior living and long-term care providers, has entered into a definitive agreement to acquire Fort Lauderdale, Florida-based AOD Software.

The closing of the transaction is subject to customary closing conditions. Financial details were not disclosed.

AOD is the premier solution for continuing care retirement communities, as well as the industry’s leading provider of integrated clinical, operational, financial, home health/home care and point-of-sale solutions. AOD serves more than 800 CCRCs and other long-term care facilities, as well as 1,400 home health and home care locations.

“AOD has experienced tremendous growth and profitability over the last 20 years by focusing on the needs of our industry, sustaining innovation to meet those needs, and by providing superior customer service,” said Aric Agmon, AOD president and CEO. “With our combined technology, resources and industry experience, I am excited to work with [MatrixCare] to offer providers an innovative solution that truly covers their entire scope of services and levels of care including skilled nursing, assisted living, memory care, adult day care, independent living, continuing care retirement communities, rehabilitation, and home Health. We are fully aligned in dedication to the LTPAC industry and meeting the evolving needs of providers with continued innovation.”

Used in over 8,500 care settings, MatrixCare is the industry-leading cloud-based EHR across the continuum of care.

Written by Mary Kate Nelson