Senior Housing Acquisition and Investment Round-Up (10/7/12)

Here’s a collection of some smaller senior housing and care acquisitions that were announced in the past couple of weeks:

AdCare Acquires Ark. Senior Care Facility for $6.3 Million

Long-term care provider AdCare Health Systems, Inc. (NYSE:ADK) has signed a purchase agreement to acquire a Little Rock, Arkansas-area skilled nursing facility for $6.3 million. AdCare is buying all of the issued and outstanding membership interests of LJL Properties, LLC from sellers John Montgomery and Michael Morton, according to an 8-K filing.


The 70-bed facility is a newly constructed property located near two hospitals, St. Vincent Rehab hospital and Baptist Health Medical Center North, which management believes will serve as key referral sources.

Because the facility has not yet opened, there are no historical performance metrics. However, management expects annualized revenue to exceed $8.5 million and contribute positively to the consolidated bottom line, inclusive of depreciation and interest expense. 

AdCare expects to complete the acquisition by the fourth quarter of 2012 and will finance the majority of the transaction with a traditional bank loan. 


“This impressive and strategically located facility squarely aligns with our strategic goals and significantly broadens our presence in the Little Rock, Arkansas region,” said Boyd Gentry, AdCare’s president and CEO, in a statement. “Our optimization strategy leverages our regional teams to increase facility occupancy and Medicare census, as well as optimize reimbursement and patient care. We have built a solid network of referrals for our Arkansas facilities, and adding this facility, we can more effectively take advantage of our regional organization. We expect to achieve optimal results for both the Medicare rate and mix over the initial nine to 12 months of operation.”

Focus Healthcare Partners JV Buys Ill. Senior Care Property for $9.8 Million

A joint venture between private investment and asset management firm Focus Healthcare Partners and Artemis Real Estate Partners has purchased an 80-unit assisted living and memory care project in New Lenox, Ill. for $9.8 million through a court-ordered receivership sale.

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The campus has five resident buildings similar to each other in design and finish, with 16 studio apartments surrounding an open kitchen, living, and dining area. The units’ amenities include kitchenettes and private bathrooms. Two of the buildings are run as memory care, and Focus Healthcare Partners plans to designate a third one for memory care immediately, with the possibility of transitioning one or both of the remaining buildings as well.

A local, new-to-the-industry developer built the campus in 2007, but it has struggled with occupancy and was placed in receivership in late 2010. The property has remained in receivership until the sale to the Focus/Artemis joint venture was completed. The Focus Healthcare joint venture is running the community as 100 beds and plans to put some capital expenditures into the campus, according to Curt Schaller, the co-founder and principal of the firm. 

Encore Senior Living is managing the property. The sale was brokered by ARA National Seniors Housing Group.

Aurora Health Management Buys Ct. Senior Care Center

An affiliate of Aurora Health Management LLC has completed the acquisition of Brittany Farms Health Center in New Britain, Ct., from the Center for Special Care after receiving regulatory approvals last Monday, reports the New Britain Herald.

The Millersville, Md.-based Aura operates skilled nursing facilities in Connecticut, New Hampshire, and Maryland.

“The Center for Special Care has operated Brittany Farms since 1998, and our board and the management of the facility are proud of the quality care that the staff has provided to the residents,” said David J. Kelly, chairman of HSC Community Services Inc., in a statement. 

Selling the health center allows HSC Community Services’s health system to focus on its other speciality programs under its flagship operation, Hospital for Special Care, said Kelly. 

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