Senior Living Firm Brokers $55 Million of Transactions in 9 States

Senior Living Investment Brokerage, Inc., based in Glen Ellyn, Ill., announced on Feb. 3 that it recently brokered the sale of 13 senior living properties across nine states.

The total value of the nine transactions was $55,436,000.

“Due in large part to the historic lows in interest rates and improved access to financing, acquisition activity for senior living properties nationwide continues to gain momentum,” said Grant Kief, president of the brokerage firm, in a statement. “Investors are increasingly gravitating toward the consistent performances and steady returns for  skilled nursing centers and seniors housing.”

The transactions include:

• Three independent/assisted living communities located in Washington, Sterling, and Pekin, Ill., for a total of 186 units that were 96% occupied. These Class A seniors housing properties were built between 2007 and 2009, and sold for a total $30.75 million; an operating company affiliated with the seller will continue to manage the sites.
• Windcrest Alzheimer’s Care Center, in Abilene, Tex., and Wesley Woods Alzheimer’s Care Center, in Waco, Tex. Both skilled nursing centers have 120 beds and were purchased for $14.2 million but a publicly traded real estate investment trust; the seller is a not-for-profit organization based in Austin, Tex.
• A 142-bed skilled nursing center, 25-bed inpatient rehabilitation facility, and administration/medical office building on a 12-acre site in Daphne, Ala., sold by a local not-for-profit organization for $10.55 million to a buyer who operates a large portfolio of healthcare assets nationwide.
• Stone County Nursing and Rehab, a 97-bed skilled nursing center, and Stone County Residential Care Center, a 32-bed residence, both located in Mountain View, Ark. The two properties were sold by White River Health System to a national operator for $4.2 million and had a combined occupancy of 92% at the time of sale.
• North Roanoke Assisted Living, a 142-unit residence in Roanoke, Va. The facility, located on 18 acres of land, was recently renovated and sold for $3.5 million to a local operator. Approximately 80% of the facility’s revenue comes from state reimbursement, which impacted the sales price and cap rate.
• Rose Court Senior Living, an assisted living and memory care property in Phoenix, Ariz. This property was sold in foreclosure by a Detroit bank to The Ensign Group for $3,225,000. More than 80% of the facility’s revenue comes from Medicaid.
• Creekside Senior Living, an independent/assisted living community in Green Bay, Wisc. This senior living residence defaulted on its loan in 2006 and was court-appointed a receiver who oversaw the repositioning of the property, which was about 75% occupied at the time of sale to SABRA REIT. It sold for $2.6 million and will be operated by Pathway Senior Living.
• A 40-bed assisted living property located in Saint Ann, Mo. which sold for $1.2 million to a local operator. The facility was originally built in 1984 as a short-term rehabilitation facility, but was converted to assisted living.
• Family Care Center, a 29-bed skilled nursing center in Fairland, Ok., which sold for $561,000 to a regional owner/operator from Texas. It was previously family-owned and operated.

Written by Alyssa Gerace