Senior Housing Investments & Acquisitions (1/13/13)

Platinum Healthcare Sells Six-Property Ill. Skilled Nursing Portfolio for $48.5 Million

Platinum Healthcare recently sold a six-property skilled nursing portfolio for $48.5 million in a transaction handled by Senior Living Investment Brokerage, Inc.

The 822-bed portfolio had been owned and operated by a Midwest operator of long-term care properties. The senior care communities are located in Marseille, Morton, Peoria Heights, Princeton, and Springfield, Ill. and have a total of about 224,000 square feet. They were built between 1963 and 1996 and are all located within 90 miles of Peoria, Ill.

All of the facilities have stable financial operational histories and were bought by an Illinois-based owner/operator of senior housing facilities who wants to improve the portfolio’s overall occupancy and Medicare census.

Private Bank provided financing for the deal.

The portfolio was operating at 74% occupancy at time of sale in 2012, with a 14% private-pate mix and 15% Medicare mix.

Jeff Binder and Ryan Saul of Senior Living Investment Brokerage were the brokers involved with the deal.

USA Properties Fund Buys 2 Affordable Senior Apartments in California

USA Properties Fund Inc. has acquired two California affordable senior housing apartments, both of which while undergo extensive renovations.

The first, Victoria Woods is a 176-unit affordable housing community in San Bernardino. Soon to be renamed Vintage at Kendall, USA Properties looks to spend $4.5 million to renovate the former Victoria Woods community.

Vintage at Kendall will feature 104 one-bedroom, one-bath apartments and 72 two-bedroom, one-bath units with sizes ranging from 572 square feet for singles and 723 square feet for doubles.

The second, Victoria Woods Senior Apartments is a 125-unit affordable senior housing community in Yorba Linda in northern Orange County. Extensive renovations budgeted at $25,500 per unit include a name change of the community, soon to be Vintage at Stonehaven.

The complex will feature 100 one-bedroom, one-bath apartments and 25 two-bedroom, one-bath units. One-bedroom units are 585 square feet, while two-bedroom units offer 753 square feet.

Both purchases are located near commercial centers complete with transportation services and access to major freeways. The acquisitions also become LifeSTEPS communities, which offer services for seniors from case management and mediation, to social and volunteer program events.

Presbyterian Senior Living Acquires Senior Housing Management Division, 4 Properties

Presbyterian Senior Living recently announced the acquisition of the senior housing management division of Springwood Real Estate Services and four Springwood properties located in York County, Pa. The transfer of the senior housing management division was immediately effective, while the ownership transfer of the senior housing locations will take place during the first quarter of 2013.

The properties being acquired are:

• Shrewsbury Courtyards, in Shrewsbury, Pa.
• Shrewsbury Courtyards II, also in Shrewsbury, Pa.
• Stony Brook Gardens, in York, Pa.
• Springwood Overlook, also in York, Pa.

All are senior housing projects funded with Low Income Housing Tax Credits provided by the Pennsylvania Housing Finance Agency (PHFA). In addition to PHFA, some of the communities have received funding through the York County Planning Commission, the Federal Home Loan Bank of Pittsburgh, Fulton Bank and Susquehanna Bank. All together, the properties have 272 apartment units and have about 300 residents.

This recent transaction is the culmination of an ongoing relationship between Springwood Real Estate Services and Presbyterian Senior Living. The organizations have partnered in recent years to develop Westminster Place at Stewartstown, a 96-apartment affordable housing community located at the site of the former Hopewell Furniture Factory in Stewartstown, Pa. In October, Springwood affiliates donated two senior properties to Presbyterian Senior Living: Silver Spring Courtyards and Silver Spring Gardens in Mechanicsburg, Pa.

Holiday Retirement Acquires N.C. Senior Living Community from AEW Capital Management

Holiday Retirement recently acquired a senior living community in Raleigh, N.C. for an undisclosed price from AEW Capital Management.

Wakefield Plantation is a 121-unit luxury independent living community that was built in 2002.

ARA Seniors Housing Group, headquartered in Atlanta, Ga., brokered the sale.

LTC Properties Buys 2 Parcels of Land for $26.2 Million in Development Commitments

LTC Properties, Inc. (NYSE:LTC) has purchased two parcels of land for a total of $3.1 million along with entering into development commitments totaling $26.2 million.

In December 2012, LTC had purchased an 11.2 acre parcel of land in Northern Kentucky for $2.1 million, and simultaneously added the land parcel to an existing master lease with affiliates of Carespring Health Care Management, LLC, with a development commitment to fund the construction of a $143-bed skilled nursing facility for a cost not to exceed $21.4 million.

The same month, LTC purchased a six-acre parcel of land in Frisco, Tex. for $1 million and entered a lease and development commitment with affiliates of Mustang Creek Estates for an 81-unit assisted living community project not to exceed $4.8 million.

The Carlyle Group Acquires Calif. Senior Housing Community

Global alternative asset manager The Carlyle Group (NASDAQ:CG) recently announced the acquisition of Monarch Place Piedmont, a 149-unit assisted living community in Oakland, Calif.

Upon the Dec. 21, 2012 closing, Monarch Place was renamed The Point at Rockridge.

Carlyle is planning a $1.5 million renovation of its newly acquired property, which will include converting the building’s second floor into a 27-unit memory care floor, complete with an outdoor patio for patients with Alzheimer’s and dementia.

The firm also plans to convert 30 studio units to 15 one-bedroom units and the installation of senior-friendly step-in showers.

Carlsbad-based senior housing management company Integral Senior Living was hired to manage the property.

Equity for the investment will derive from Carlyle Realty Partners VI L.P., a $2.25 billion U.S. real estate fund.

Carlyle Group’s acquisition of Monarch Place marks the 32nd investment the company has made in the senior housing sector since 2003.

Fla. Skilled Nursing Facility Sells for $25 Million, 5.86% Cap Rate

Whitehall of Boca Raton, a 154-bed skilled nursing facility in Boca Raton, Fla., recently sold for $25 million at a 5.86% cap rate.

The facility, which also has 18 assisted living beds, caters almost exclusively to short-term rehab Medicare beneficiaries and has an 85% quality mix and 93% overall census.

The 82,000-square-foot facility was built in 1982 and was sold by a local owner/operator looking to retire from the long-term care business. The buyer was a regional owner/operator who used a Japanese equity company and a large national lender to finance the acquisition and close it quickly.

Evans Senior Investments represented the seller in the transaction, which broke down to $145,348 per bed.

Ensign Group Acquires Two Hospice Agencies in Arizona & California

The Ensign Group, Inc. (NASDAQ:ENSG) recently announced the acquisition of two hospice agencies in Arizona and California from Saint Jude Hospice.

Emblem Hospice is located in Mesa, Ariz., and Vesper Hospice is located in Pasadena, Calif. The acquisitions represent a “lateral diversification” that broadens Ensign’s service offerings within the continuum of care, according to Christopher Christensen, Ensign’s president and CEO.

The deal was effective Jan. 1, 2013, and the two agencies are now operated by a subsidiary of Cornerstone Healthcare, Inc, Ensign’s home health and hospice-based portfolio subsidiary.

Ensign made the purchases with cash.

Ensign Acquires Washington Home Health Agency 

Ensign also recently announced the acquisition of a home health agency in Washington that’s certified by the Joint Commission on Accreditation of Healthcare Organizations.

Puget Sound Home Health will be operated by a subsidiary of Paragon Healthcare, Inc., Ensign’s home health and hospice-based portfolio subsidiary for the Northwest.

The purchase was made with cash and was effective as of Jan. 1, 2013.

AdCare Finalizes Acquisition of 3 Skilled Nursing Facilities

AdCare Health Systems, Inc. has completed a previously announced agreement to acquire three skilled nursing facilities for $13.5 million.  >The facilities are:

• Sumter Valley Nursing and Rehab Center in Sumter, S.C., a 96-bed facility that generates an estimated $6.7 million in annualized gross revenues
• Georgetown Healthcare and Rehabilitation in Georgetown, S.C., an 84-bed skilled nursing facility that generates an estimated $3.8 million in gross annualized revenues.
• Northwest Nursing Center in Northwest Oklahoma, an 88-bed facility that generates an estimated $2.4 million in annualized gross revenues. This property is expected to generate about $7.6 million in annualized gross revenue after underling a renovation.

In other news, Chris Brogdon has resigned as AdCare’s chief acquisition officer, although he will remain vice chairman and will continue to serve the company as a consultant overseeing M&A activity—providing essential the same services as when he was CAO.