Senior Housing Investment and Acquisition Round-Up (3/18/13)

Capital Senior Living Buys Senior Care Property for $6.6 Million

Capital Senior Living recently purchased an assisted living and memory care community in Elkhorn, Neb., for $6.6 million in a transaction handled by Senior Living Investment Brokerage.

Marquis Place of Elkhorn, located in a suburb of Omaha, was built in 2002 with an addition completed in 2005. Although it has a mix of assisted living and memory care units, it is set up to accept Medicaid residents.  It was formerly owned by a partnership and sold to redeploy capital to other uses, according to Senior Living Investment Brokerage.

The property has performed well historically, but occupancy struggled in 2011. However, in 2012, occupancy and financial performance recovered, and Capital Senior Living, which has other operations in the region, reportedly sees “significant upside” in the community. At time of sale, Marquis Place’s occupancy was nearly 95%.

Capital Senior Living’s focus will be to increase private pay occupancy will decreasing Medicaid census over time. An additional 1.5 acres of land adjacent to the community that can be used to develop independent living or expand the number of existing care units.

Ensign Purchases Half-Occupied Senior Care Center for $4.5 Millon

The Ensign Group, Inc. (Nasdaq:ENSG) recently acquired a skilled nursing facility in Amarillo, Tex. from a trust for $4.5 million in a transaction brokered by Senior Living Investment Brokerage.

The 150-bed Legacy Rehabilitation and Living is a single-story, approximately 37,724-square-foot facility built in 1963, with a large remodel completed between 1999 and 2001.

A regional operator had been running the facility, which will now be operated by a subsidiary of Keystone Care, Inc.

The facility has a “strong profitability” and an approximately 7% Medicare census mix, according to the brokerage, but was only 50% occupied at the time of sale.

Ensign made the purchase with cash and plans to improve the facility’s operations and occupancy.

Advocat Buys Five Skilled Nursing Facilities for $15.5 Million

Advocat Inc. (NASDAQ: AVCA) announced recently the purchase of five skilled nursing facilities in Kansas for $15.5 million.

“The acquisition of the Kansas facilities will increase our center count by more than 10 percent,”  said CEO Kelly Gill in a statement, adding that the properties are in a new region for the long-term care operator. “We are also pleased to be deepening our relationship with our primary lender, The PrivateBank, through a transaction that will increase our owned-facility portfolio.”

The acquisition is expected to close in the second quarter of 2013. The portfolio has a annual revenue of about $24 million, according to Advocat.

LCB Senior Living Acquires N.H. Senior Living Community

Norwood, Mass.-based senior housing developer and operator LCB Senior Living recently announced the acquisition of The Arbors of Bedford, an assisted living community in Bedford, N.H., from Merrimack Health Group.

The 50-unit, 83-bed property specializes in residents with Alzheimer’s disease, dementia, and other memory impairments and offers 24-hour nursing care and supervision along with a broad program of activities and exercise to promote brain health, and physical, occupational and speech therapies.

Aspen Square Buys “Troubled” Senior Housing Complex for $9.9 Million

Massachusetts-based Aspen Square Management has acquired The Overlook, a 55+ upscale community in Waco, Tex., reports the Waco Tribune.

Bear Senior Living LP developed the 162-unit active adult community with FHA-insured financing, but defaulted on the loan last year due to low occupancy levels. HUD then sold the note for The Overlook at auction for $9.9 million, the Tribune reports citing a HUD spokeswoman.

Aspen Square recently notified residents that it would be managing the University Parks Drive complex. The management company has not responded to SHN’s request for comment.

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Written by Alyssa Gerace