Senior Housing Investments & Transactions: CNL Healthcare Properties II, Vitality Senior Living

CNL Healthcare Properties II Makes Its First Acquisition

CNL Healthcare Properties II, Inc., a non-traded real estate investment trust (REIT) focused on seniors housing and health care properties, made its first acquisition by purchasing Summer Vista Assisted Living Community, a newly-constructed senior living community located in Pensacola, Florida.

SRI Management, LLC, the company that has managed Summer Vista since it opened in February 2016, will continue to manage the community under a five-year agreement. SRI manages 15 other senior living communities throughout Florida and Louisiana, including two for CNL Healthcare Properties, Inc., a related REIT.

Summer Vista sits on 3.5 acres and consists of 67 assisted living units and 22 memory care units. The community features a 24-hour emergency response system, on-site therapy, beauty salon, bistro, fitness center, nature walking trail and chauffeured transportation.

Vitality Senior Living Acquires Second Community

Vitality Senior Living, a Nashville-based senior living provider, completed the purchase of Texas Star Assisted Living in Allen, Texas, effective April 1, 2017. The community will rebrand as Vitality Court, Texas Star. It is the second acquisition for the relatively new senior living company.

The community opened one year ago and features 86 apartments offering independent living, assisted living and dementia care lifestyles.

“Our plan is to build upon an already great community with Vitality specific physical plant and programmatic enhancements,” Chris Guay, founder and president of Vitality, said in a press release. “These enhancements will start day one, as we invest immediately in infrastructure and physical plant upgrades that will support our commitment to enhancing lifestyles and redefining aging through innovation and technology.”

Blueprint Sells $82 Million SNF Portfolio in the Midwest

Blueprint Healthcare Real Estate Advisors sold portfolio of 18 skilled nursing facilities (SNFs) in the Midwest, including nine property in Kansas; six in Missouri; two in Iowa; and one in Nebraska, for $82 million, or approximately $45,000 per bed. Combined, the portfolio includes 1,843 total licensed beds with generated total revenue of approximately $110 million on a trailing basis at the time of sale.

The seller is a publicly-traded owner/operator that elected to divest its assets in the region and concentrate on its core geographic density, hospital partners and its greatest growth potential. Cascade Capital Group is the buyer.

The portfolio included HUD mortgage indebtedness and two leased assets.

Ben Firestone, Christopher Hyldahl and Michael Segal of Blueprint structured the transaction.

Blueprint also sold a 120-bed SNF in Port St. Joe, Florida, for $9,345,000, or approximately $78,000 per licensed bed. The community, The Bridge at Bay St. Joe, was sold on behalf of a publicly-traded REIT and a national operator that sought a strategic exit of the operations and the asset.

At the time of sale, the trailing 12-month operational performance represented $9 million and $250,000 in gross revenue and EBITDAR, respectively. The average census over the same period was 80% with a quality mix of approximately 25%.

Trent Gherardini, Ben Firestone and Christopher Hyldahl structured the transaction.

SLIB Sells Pennsylvania Community for $3.8 Million and Illinois Communities

Senior Living Investment Brokerage (SLIB) sold a personal care and memory care facility in Pennsylvania for $3.8 million.

The facility has 85 licensed beds and 45 units and was built in 2000. The buyer plans to focus on marketing to drive up census and increase margins. The is the buyer’s third building in Pennsylvania. At the time of sale, the community was 82% occupied.

The seller, The Hollinger Group, elected to divest its senior housing and focus on rehab and its CCRC business.

Matthew Alley, Ryan Saul and Toby Siefert led the transaction for SLIB.

SLIB also closed the sale of two senior living communities located across the street from one another in Decateur, Illinois, for the purchase price of $11.155 million, or $101,409 per unit, with a 7.5% cap rate.

Keystone Gardens, built in 2001, is a 50-unit independent living community, while Keystone Meadows, built in 1999, features 60 units of assisted living. Both communities are 72% occupied.

The properties were the only Illinois assets for the Michigan-based seller. The buyer is a Michigan-based regional operator with three other communities in Illinois and others across the Midwest.

CBRE Launches Healthcare Specialty Practice for Valuation Services

CBRE Group, Inc. has launched Healthcare Practice Group, a cohesive combination of its valuation & advisory services ‘seniors housing & care’ and ‘medical office.’

The property types covered by the new Healthcare Practice Group include independent living, assisted living, memory care, nursing care, continuing care retirement community (CCRC), medical office, surgical centers, out-patient rehab and hospitals. The group will be led Zach Bowyer, Tom Baroch, MAI, and Bennett Johnson.

Both groups have achieved a combined 30% year-over-year growth in revenues for the past three years. In 2016, the groups completed valuation or advisory assignments on more than 3,000 seniors housing and medical properties throughout the U.S. with an aggregated value of more than $50 billion.

The integrated health care services platform is leveraged by CBRE’s resources, including more than 725 appraisers and consultants with a market presence in more than 98 major metro markets. CBRE’s valuation and advisory services assist corporations, commercial bans, financial institutions, investors, property owners, REITs and government agencies.

IPA Seniors Housing Sells SNF Portfolio

IPA Seniors Housing closed the sale of a SNF portfolio of seven facilities with 1,456 total licensed beds. Known as The McGuire Portfolio, five of the facilities are located mainly in Buffalo, New York, one in East Patchogue, Long Island, and one in Warren, Michigan.

The Warren facility has 297 beds, with the other facilities ranging from 153 to 216 beds. Occupancy was 90% at the Michigan facility, but was roughly 96% across the portfolio. The portfolio has a 37% quality mix and five-star Medicare ratings at each property.

Revenues reached above $150 million, and the undisclosed purchase price was 3.5x EBITDA after rent payments.

The portfolio’s operations were purchased by a regional operator, subject to existing leases with a REIT.

American House Senior Living Communities Assumes Management of Florida Community

American House Senior Living Communities has taken over the management of Providence Independence at Wildwood. The transition, which was effective March 31, 2017, will include renaming the community American House Wildwood.

The community features 173 independent living apartments of one- and two-bedroom units. The community also has an outdoor heated exercise pool and spa, putting green, shuffleboard court, fully-equipped business center, card and billiard rooms, full-service bar and restaurant, upscale fitness facility, and private physical therapy rooms.

Written by Amy Baxter