Senior Housing Investments & Transactions: HFF Closes On Northeast Portfolio, Development Site

HFF Closes Deals in Northeast and Miami

Holiday Fenoglio Fowler, L.P. (HFF) has closed a $10.3 million sale of a 0.9-acre development site that will be developed into a high-rise seniors housing community. The site, which is located directly across from the Dadeland Mall in Miami’s Kendall neighborhood, was sold to Greystar, a fully integrated real estate company with investment management, development and property management expertise.

HFF marketed the site on behalf of the seller, Dadeland Building LLC, and procured Greystar as a buyer. Manny de Zarrage, executive managing director with HFF, Jaret Turell, managing director, and Maurice Habif, associate director, led the HFF investment sales team that represented the selle in the transaction.

The site will be developed into a 216-unit, active adult (55+) community called Overture Dadeland. Greystar is headquartered in Charleston, South Carolina, and manages over 400,000 units in over 160 global markets.

HFF also closed a portfolio deal of two assisted living and memory care commented for $98.25 million, or almost $575,000 per unit. One property is locate in suburban Philadelphia and one is located in New Jersey. Both properties were built in 2013 by the owners a joint venture between Formation Development Group and Shelbourne Healthcare Development Group.

The average census across the portfolio was 94%. 

Ryan Maconachy and Chad Lavender of HFF represented the seller in the transaction. Sara Baccich led HFF to secure a $63.86 million acquisition loan through Cornerstone Real Estate Advisors.

JCH Group Facilitates Two Sales

Riverside Healthcare Center, a 188-licensed bed skilled nursing facility located in Riverside, California, was sold to Reliant Management Group in a lease purchase transaction for $13.1 million, or $69,680 per bed. The SNF was one of nine facilities that had been operated by Lifehouse Healthcare Services in California. 

Riverside had been on the Specialty Facility Focus list for over 47 months when Reliant Management Group graduated the property off the list and exercised its purchase option in June 2016. The transaction closed July 1, 2016. The facility sits on 4 acres and features several one-story buildings. The deal was closed 30 days from acceptance of the letter if intent and has a brief marketing period of 30 days. At the time of closing, the property was 60% occupied.

Shepard Roylance, vice president of The JCH Group, represented both Lifehouse and Reliant in the transaction. 

Roylance also facilitated the sale of Oceanside Hawaii Assisted Living & Memory Care for the purchase price of $6,640,000. The property was sold to a local owner and operator, and the transaction closed on June 30, 2016. The transaction was also facilitated by JCH Group’s Lee Blake. 

Elmcroft Sells Two Louisville Facilities

Elmcroft Senior Living Inc. has sold two senior living facilities to Capital Health Group LLC, a privately heal real estate company with 33 operating senior housing facilities and 8 communities under construction in its portfolio. The communities are both located in Louisville, Kentucky, and consist of a combined 145 units (155 beds).

The portfolio of assisted living and memory care units will be managed by CHG’s affiliate management company, Compass Pointe Healthcare System.A Cushman & Wakefield team led by Allen Mcmurtry negotiated the deal, the terms of which were not disclosed. 

The portfolio is made up of two communities: Elmcroft at Oaklawn an Elmcroft of Valley Farms. The Oaklawn property consists of 80 total units, including 56 assisted living and 24 memory care units. The facility has been renamed Symphony at Oaklawn. Valley Farms has 31 assisted living units and 34 memory care units. 

CHG acquired the properties on behalf of CHH Senior Housing, LP, a CHG sponsored programmatic joint venture with Hunt Realty Investments and the Teacher Retirement System of Texas.

LTC Properties Acquires $14.3 Million Senior Living Community

Real estate investment trust LTC Properties (NYSE: LTC) has acquired the Village at Athens, a 70-unit assisted living and memory care community near Athens, Georgia, for $14.3 million.

The community is newly constructed and received its certificate of occupancy in May 2016. It has been added to an existing master lease with an affiliate of Thrive Senior Living at an incremental cash yield of 8%. The private-pay community consist of 90 licensed beds with 50 assisted living units and 20 dedicate memory care units.

The community is LTC Properties’ third partnership with Thrive. Two additional development projects are expected to open by the end of the year. 

Written by Amy Baxter