CNL Healthcare Properties Acquires 10 Senior Communities for $158.2 Million

CNL Healthcare Properties, an investment offering sponsored by CNL Financial Group with intentions of becoming a real estate investment trust, recently acquired 10 senior living communities in two transactions totaling $158.2 million. 

The properties are located in six states in the East and Midwest and add 671 senior living units to CNL Healthcare Properties’ portfolio. 

CNL’s acquisition of five assisted living communities from Capital Health Holdings, for $85.1 million was indicated last November in a 8-K filing. Three of the properties are in Maryland: Symphony Manor, in Baltimore; Woodholme Gardens, in Pikesville, and Tranquility at Fredericktowne in Frederick. The other two are in Michigan: Brookridge Heights in Marquette, and Curry House in Cadillac. 

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The average age of the portfolio is nine years, although the Michigan properties underwent major renovations and expansions in 2010. 

Capital Health Group Management, a subsidiary of the seller, will manage the portfolio, which collectively has 348 units comprised of 225 assisted living units and 123 memory care units. 

The second acquisition is of five assets from Primrose Retirement Communities for $73.1 million and includes: Primrose Retirement Community of Decatur in Decatur, Ill.; Primrose Retirement Community of Council Bluffs in Council Bluffs, Iowa; Primrose Retirement Community of Lima in Lima, Ohio; Primrose Retirement Community of Zanesville in Zanesville, Ohio; and Primrose Cottages in Aberdeen, S.D.

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The portfolio has a total of 323 units comprised of 174 independent living units, 128 assisted living units, and 21 memory care units. 

Primrose will continue to operate the communities under long-term lease agreements. 

In February 2012, CNL Healthcare Properties made its first real estate investment by acquiring five other senior living communities from Primrose for $84 million. 

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“Our first year of investment has been very active and we are thrilled to end the year with the acquisition of these portfolios, which punctuates our interest in senior living communities,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “Our second transaction with Primrose is a real testament to the strong alignment and relationship that has been forged between our two enterprises in a short period of time. Similarly, our transaction with Capital Health launches a relationship with an experienced and dynamic developer and operator of senior living communities that we, collectively, expect will grow in breadth and depth over time.”

Written by Alyssa Gerace

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