Senior Housing Investments & Transactions: Safanad, Formation Capital Acquire $129 Million Portfolio

Safanad and Formation Capital Acquire $129 Million Assisted Living Portfolio 

Safanad, a global principal investment firm that invests in real estate, private equity and public markets, and its industry partner in the senior care investment platform, Formation Capital, have acquired a portfolio of nine assisted living facilities for the price of $128.6 million.

Formation Capital is a global private investment management firm dedicated to health care services investment and real estate.

The facilities were acquired from Agape Senior, one of the largest providers of assisted living and memory care services in South Carolina. Management of the facilities will transfer to Frontier Management, a national operator of assisted living communities and retirement homes with 62 facilities already under its management across the United States.

“This transaction is a further milestone in the long-standing partnership between Safanad and Formation Capital and confirms our mutual commitment to a health care investment strategy,” Safanad CEO Kamal Bahamdan said in a statement. “We will continue to support Agape Senior’s mission of meeting the needs of its residents with improved facilities and services.”

Blueprint Arranges Sales of Two Senior Housing Communities, One SNF

Blueprint Healthcare Real Estate Advisors, a boutique investment advisory firm that specializes in seniors housing and health care real estate transactions, arranged the sale of two senior housing communities and one skilled nursing facility.

Lamplight Inn of Fort Myers, a 74-unit assisted living community in Fort Myers, Florida, was sold for $5.7 million, or $76,000 per unit. Trent Gherardini and Ben Firestone were the lead advisors for Blueprint on the transaction. The property was sold by a private ownership group divesting non-core assets. It was purchased by a publicly traded real estate investment trust (REIT), which will lease the community to a regional director. 

Blueprint also arranged the sale of Karr House, a 40-unit assisted living facility in Hoquiam, Washington, for $2.6 million, or $65,000 per unit. Ben Firestone, Jacob Gehl and Trent Gherardini were the lead advisors on the transaction. The property is located along the coast of Washington State, approximately 110 miles southwest of Seattle. A national owner/operator looking to divest non-core assets sold the property to a regional operator.

Finally, the firm arranged the sale of Sunset Nursing Center, a 60-bed skilled nursing facility in Lawrence County, Ohio, for $2.1 million, or $35,000 per bed. At the time of sale, the asset was facing operational challenges and a negative cash flow. Blueprint helped arranged an ideal buyer in a new venture consisting of a regional operator with a specialty focus on higher acuity care and a real estate investor. Blueprint’s Jacob Gehl and Connor Doherty were the lead advisors on the transaction.

Marcus & Millichap Brokers $4.5 Million Sale of CCRC

Marcus & Millichap, the largest national commercial real estate brokerage firm, has brokered the sale of Scarlet Oaks, a 183-unit continuing care retirement community (CCRC) in Cincinnati, Ohio, for $4.5 million, or $25,000 per unit.

The property was purchased by an East Coast-based private owner/operator from a national owner/operator. The names of the parties were not disclosed. The property is 75 years old.

Marcus & Millichap’s Mark Myers, senior vice president of investments, and Joshua Jandris, vice president of investments, along with associates Ryan Fleming, Peyton Stanforth and Charles Hilding, handled the sale. 

SLIB Arranges $5.15 Million Sale

Senior Living Investment Brokerage, Inc. (SLIB) represented the seller in the sale of a 51-unit assisted living and memory care community for the purchase price of $5,150,000 million. The asset, located just outside Tampa, Florida, underwent extensive renovation and conversion to assisted living in 2008 and features large floor plans. There is also potential for increased bed capacity.

The community was the seller’s only asset and was sold to a private fund. A regional operator will run the community. 

Bradley Clousing of SLIB advised the seller on the transaction.

HFF Closes $48 Million Sale of Two Florida Senior Housing Communities

Holliday Fenoglio Fowler, L.P. (HFF) has closed the sale of Carpenters Creek and Creekside, two senior housing communities in Pensacola, Florida, for a combined purchase price of $48 million free and clear of existing debt.

The two properties consist of a total of 179 units. The properties are 93.9% leased overall. HFF marketed the offering on behalf of the seller, a private San Diego-based owner/operator. The assets were purchased by Capital Senior Living.

The HFF team representing the seller was led by senior managing directors Ryan Maconachy and Chad Lavender.

Birchwood Health Care Properties Purchases Florida Facility for $5.5 Million

Birchwood Health Care Properties, LLC (Birchwood HCP) has acquired a 51-unit assisted living facility outside of Tampa, Florida for $5.5 million, including assumption of liabilities and funding of reserves. Birchwood HCP is a Chicago-based health care real estate private equity firm that focuses on senior housing and nursing home assets. First mortgage financing was provided by Congressional Bank.

The facility, Stone Ledge Manor, had approximately $1.8 million of annual revenue in place at the time of closing, but was experiencing cash management issues in the months leading up to the acquisition. Birchwood is working toward approval for a 26-bed expansion, which it expects to receive in the coming months. The facility was converted to assisted living in 2008 in a gut rehab.

“We are very excited to form a new operator relationship in Florida,” Isaac Dole, founder and managing principal of Birchwood HCP, said in a statement. “While the transaction was very difficult to complete, we are very optimistic about the long term prospects for the facility.”

Written by Amy Baxter