Senior Housing Investments & Acquisitions (9/10/13)

Care Investment Trust Closes Acquisition of 2 Senior Housing Assets

Care Investment Trust LLC, a subsidiary of Tiptree Financial Inc. (NASDAQ:TIPT) that focuses on senior housing real estate investment, and privately-held senior housing owner and operator Premier Senior Living, L.L.C., recently announced the closing of a previously announced acquisition of two senior housing facilities located in Baldwinsville and Geneva, New York for an aggregate of $21.9 million.

Premier will manage the two properties under a triple-net master lease with an initial 12-year term and two renewal options of five years each. Occupancy across the newly acquired, 131-bed portfolio was approximately 97% as of July 2013.


“Care is pleased to be working with Premier Senior Living, an experienced operator in the senior housing sector,” said Torey Riso, Jr., President and CEO of Care. “We sincerely hope that this will be the start of a long-lasting, mutually beneficial relationship between our growing organizations.”

Premier currently operates other assisted living and memory care facilities in New York, Ohio, and Florida.

“We sourced this opportunity through a 25-year relationship with the sellers and we are delighted to have successfully completed our first, of what we hope will be many transactions with Care,” said Wayne Kaplan, Co-founder and Managing Member of Premier.


Housing Authority Approved to Issue $12 Million of Bonds for Senior Housing

The Canton Housing Authority has received approval from the Canton City Council to issue $12 million in bonds to Canton Cove Properties to develop a senior living community in the city, reports the Cherokee Tribune.

The city council voted 5-0 to approve the issuance, which will provide the majority of funding for the $13.1 million project, a 79-unit assisted living and memory care community off Reinhardt College Parkway in Georgia.

The Canton Housing Authority will only be the issuer of the bonds, with no liability for payments if the developer stops making them. Read more.

Diversicare Completes Disposition of Arkansas Senior Care Portfolio

Diversicare Healthcare Services Inc. (NASDAQ:DVCR) has completed a previously disclosed disposition of 11 skilled nursing facilities in Arkansas, effective Sept. 1. The transaction was completed through amending Diversicare’s existing master lease with the properties’ owner, Omega Healthcare Investors, Inc. (NYSE:OHI).

“The decision to exit Arkansas after 20 years was not one that we took lightly. These facilities were staffed with, and managed by, a dedicated group of caregivers committed to providing high quality services to the patients and residents we served,” said Kelly J. Gill, president and CEO of Diversicare. “We believe this transaction demonstrates our continued execution of our strategic portfolio management efforts and further evidences our commitment to the strategic plan we embarked upon nearly three years ago.”

Omega has not announced which operator has assumed the leases for the Arkansas properties.

Clearview Capital Completes Expands Senior Care Inc. Empire with 11th Acquisition 

Active Day/Senior Care, Inc. a portfolio company of Clearview Capital, LLC, has completed the acquisition of Guardian Programs Adult Medical Day Care of Glassboro, N.J. in a transaction that closed on June 20.

Active Day/Senior Care is an adult day health services provider with 79 centers in eleven states. Designed to be a cost effective alternative to home health services, nursing homes and assisted living facilities, the company’s centers offer a daytime program of nursing care, social services, meals and recreational activities to elderly and disabled adults.

The transaction is the eleventh add-on acquisition that Active Day/Senior Care has made since Clearview Capital’s initial investment in the Company in late 2005. The company announced its plans to make additional acquisitions in the future both within its current footprint and in new markets.

Pacifica Companies Acquires Santa Fe Assisted Living Community

San Diego-based Pacifica Companies recently acquired an assisted living and memory care community in Santa Fe, New Mexico, after buying the property’s debt and pursuing foreclosure earlier in 2013.

Rosemont Assisted Living Community of Santa Fe will now be managed by Pacifica Senior Living of San Diego, the management company’s vice president of operations told residents and their families in an August letter.

Pacifica is a privately-held real estate investment firm that owns 41 senior living communities throughout the United States. In January, Pacifica Rosemont filed a foreclosure complaint against the Rosemont community for defaulting on $7 million of debt that Pacifica had acquired from The Federal Loan Mortgage Co.

Centura Health to Sell Senior Living Community to Frontline

Frontline Management is in talks to acquire Villa Pueblo Senior Living Community in a deal expected to close during the fourth quarter.

The 14-story senior living community includes independent living, assisted living, and skilled nursing units.

Villa Pueblo’s current operator is the Sisters of Charities Health Care System. Centura is a healthcare system formed by the Sisters of Charities Health Care System and Catholic Health Initiatives. Frontline Management is a management, development, and consulting services firm specializing in senior housing.

Centura was represented by Evans Senior Investments.

Azura Living Buys Colo. Memory Care Community

Azura Living announced on its website the July 1 acquisition of Metzler Memory Care in Castle Rock, a 48-unit memory care community in Colorado.

The property, renamed Azura Memory Care of Castle Rock, was sold by a local real estate owner who has previously built another senior housing property that he sold in 2012. He was represented by Evans Senior Investments.

Azura Living also operates Azura Rehabilitation Suites in Lakewood, a short-term rehabilitation-focused skilled nursing facility, along with 14 memory care properties in Wisconsin.

Aviv REIT Closes $3.5 Million SNF Acquisition

Aviv REIT, Inc. (NYSE: AVIV) announced recently it has acquired a post-acute and long-term care skilled nursing facility Texas for $3.5 million. The property is triple-net leased to Trinity Healthcare, LLC, an existing Aviv tenant.

Trinity, a skilled nursing facility operator, currently operates three other facilities in Texas, all of which are leased from Aviv. The triple-net lease has an initial cash yield of 11.00%, initial lease term of 10 years, and an annual compounded escalator based on CPI.

“This is our third attractive acquisition with Trinity in less than a year and we are committed to working collaboratively with Trinity to help grow its business,” said Craig M. Bernfield, Chairman and CEO of Aviv, in a statement. “Trinity sourced this acquisition and brought it to us because of our strong relationship with them. Our ability to cultivate strong relationships with operators is key to providing us ongoing opportunities to grow our business.”

Health Care REIT Completes Triple Net Lease with Emeritus

Health Care REIT, Inc. (NYSE:HCN) announced last week that the company completed its previously-announced triple net lease transaction with Emeritus Corp. (NYSE:ESC). Health Care REIT entered into a long-term, triple net lease with Emeritus on a portfolio of 38 Class A senior housing communities previously owned in an 80/20 joint venture between Health Care REIT and Merrill Gardens. As part of the transaction, Health Care REIT acquired Merrill Gardens’ 20% equity interest in the joint venture for $173 million, which now includes pro rata mortgage debt of $74 million.

Capital Senior Living to Close Illinois SNF

Capital Senior Living (NYSE:CSU) is closing one of its skilled nursing facilities in Illinois according to a notice filed with the state last Wednesday, reports the Post-Tribune.

Town Centre Health Care, in Merrillville, Ill., includes a 120-bed skilled nursing facility that CSU plans to close on November 4, although the operator said in the filing it will continue to manage the community’s independent and assisted living units.

The skilled nursing facility’s occupancy was not disclosed.

Wedgwood Apartments LLP Sells Texas Senior Complex

Wedgwood Apartments LLP of Centennial, Colo. recently sold a San Antonio senior apartment complex, according to the local Business Journal.

The high-rise community has 301 units comprised of studio, one, and two-bedroom apartments for 55+ adults and was 91% occupied at time of sale. On-site amenities include a beauty salon, fitness facilities, a restaurant, and a game room. The community also features personal care services that include housekeeping, pharmacy, and an on-site medical team.

The sale price was not disclosed, nor was the seller, described only as an out-of-state investor by Hendricks-Berkadia, which negotiated the deal out of the firm’s San Antonio office. Financing was arranged by Michael Levell from Berkadia’s Austin/San Antonio office.

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