Senior Housing Investments & Acquisitions (9/25/13)

LTC Properties to Buy Skilled Nursing Property for $14.4 Million

LTC Properties, Inc. (NYSE:LTC) recently announced an agreement to purchase a 120-bed skilled nursing facility in Trinity, Fla. for $14.4 million.

The property was built in 2008 and will be added to a master lease at an incremental initial cash yield of 8.75%. The operator is an affiliate of Traditions Management and currently leases four properties with a total of nearly 600 beds from LTC Properties. 


 “LTC is pleased to announce this acquisition, again demonstrating our commitment to expand relationships with existing customers like Traditions Management, invest in newer skilled nursing properties and acquire assets in top MSAs,” said Wendy Simpson, LTC Properties’ chairman, CEO, and president said in a statement. 

The new master lease will contain all five properties with a total of 716 beds and have a GAAP yield of 10.7%. The initial lease term is 10 years with two five-year renewal options and annual rent escalations of 2.2%.

The transaction is expected to close on or around Nov. 1, 2013. —Alyssa Gerace


Regal Lifestyle Communities Buys 4 Canadian Properties for $62 Million

Regal Lifestyle Communities Inc. (TSX:RLC) is buying four retirement communities in southern Ontario from Community Lifecare Inc. and its affiliates for $61.8 million.

The acquisition will be partially financed through an unsecured bond offering of $25 million and $12.5 million from a private placement of common shares. Regal will also arrange or assume approximately $34.5 million of first and second mortgages secured by properties in the portfolio. 

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“We are pleased to be able to announce a sizable acquisition less than a year after completing our initial public offering,” Regal president and CEO Simon Nyilassy said in a statement. “These four quality retirement homes are well established in strong markets in Port Perry, Ottawa, London and Chatham, Ont., and will be immediately accretive to Regal’s AFFO per share and will lower the company’s payout ratio.”

The 542-unit portfolio is comprised of the 100-unit Port Perry Villa in Port Perry; the 142-unit Lynwood Park Lodge in Ottawa; the 131-unit Grand Wood Park in London and the 173-unit Chatham Retirement Resort. 

Financing details can be accessed here. —AG

The Looking to Sell Calif. Senior Living Community

The has given residents of its Twelve Oaks assisted living community in La Crescenta, Calif. a 60-day notice to move out, with closure tentatively scheduled to occur no later than November 1.

The senior living company has received approval from the state Department of Social Services, which licenses Residential Care Facilities for the Elderly, and began notifying residents and their family in late August. 

“The community’s condition is such that it would require extensive renovation and expansion to bring it up to standards,” the company says in a Frequently Asked Questions release on the closure. “Its topography and sprawling nature of the property make it difficult to effectively serve its assisted living population, which is frailer and has higher-level care needs than the typical older adult resident.”

Following a “thorough review” of possible renovation options, determined the cost and scale required to complete the project made it infeasible. 

The company is working with a broker to find a buyer for the property, Dan Hutson, a spokesman for the company, told NBC4.

Many of the community’s residents have already transferred to other properties, according to the company, and it’s working with residents and their families to ensure appropriate placement for the remaining residents. —AG

MBK Senior Living Expands with Colo. Senior Living Acquisition

MBK Senior Living has closed escrow on Hillcrest of Loveland, an 84-unit senior living community approximately 50 miles north of Denver, Colo. There is no debt on the property, which was 100% occupied at time of purchase, but the acquisition price was not disclosed. 

This is the third community that MBK now owns and operates in Colorado, as it has acquired The Inn at Greenwood Village and The Palisades at Broadmoor Park in Colorado Springs within the last year.

The acquisition of Hillcrest of Loveland to MBK Senior Living’s portfolio brings the company’s number of owned and managed properties to more than 1700 units.

“We are thrilled to introduce Hillcrest residents and their families as well as the entire Loveland community to MBK’s heritage of commitment to exceed the quality, service and care expectations of those we serve, “ said Terry Howard, president of MBK Senior Living. 

Hillcrest offers independent living, independent living “plus,” assisted living, and MBK Senior Living’s signature memory care neighborhood, Connections for Living by MBK. 

Amenities include an outdoor patio and gazebo; library/fireplace lounge; and a theatre, and residents have access to chef-prepared, restaurant-style dining, scheduled transportation, housekeeping and linen services, and social, recreational, wellness, and educational classes and activities. Apartment styles include studios and one- and two-bedroom units. —AG

Paragon Healthcare Acquires Brookshire Senior Care Center

Paragon Healthcare Group’s acquisition of Brookshire Residence and Rehabilitation Center means that the senior living facility will undergo an array of improvements, including new amenities and more staffing. 

Plans are currently underway to upgrade Brookshire’s memory care unity, short-term rehab program, and training for staff based on the needs of the community and feedback from local physicians, family and staff. 

Healthcare improvements include hiring a new regional clinical director who is bringing additional training for complex cases such as respiratory and tracheostomy care. Paragon is also introducing a new high-tech therapy program and renovating the short-term rehab wing. 

Additional plans include expanding dining menus with home-cooked meals, Wi-Fi access, as well as renovations to facility patient rooms and common areas to create a welcoming environment. 

“We’re very excited for the new improvements by Paragon Healthcare Group,” said Rick Carr, regional director of marketing at Brookshire. “Paragon’s hands-on approach and involvement is helping us to provide better customer service and care. Starting with out name change, we are slowly removing the stigma of nursing home care by introducing 5-star care and hospitality.”

Another important focus for the company will be to renew and improve relationships with local vendors and businesses in the community. —Jason Oliva

Health Care REIT Buys MOB for $49.5 Million

Health Care REIT (NYSE: HCN) last week purchased the Bethesda Health City medical complex west of Boynton Beach, Florida, for $49.5 million, The Palm Beach Post reports.

Bethesda Health City includes 133,000-square-feet of offices on 35 acres near Bethesda West Hospital, and adds to the 80 properties owned by the Toledo, Ohio-based REIT in Florida. 

The sellers, Investcorp and Flagler Investment, paid the Bethesda Health System $37 million for the property in 2011. —JO

Gentiva to Acquire Harden Healthcare for $409 Million

Gentiva Health Services, Inc. (NASDAQ: GTIV) is strengthening its presence in the home health industry through the $409 million purchase of Harden Healthcare.

The acquisition of the Austin, Texas-based Harden will add the company’s home health, hospice and community care businesses to Gentiva’s portfolio. 

The purchase price to be paid by Gentiva is approximately $408.8 million, consisting of $355 million in cash and approximately $53.8 million in Gentiva common stock. To fund the transaction and finance existing its existing term loans, Gentiva expects to raise a new $855 million term loan facility. 

As part of the transaction, Gentiva will become a preferred provider for Harden’s 49 skilled nursing and assisted living facilities in Texas. 

“This transaction is a great strategic fit for Gentiva and we believe it will provide significant long-term value for our shareholders,” said Gentiva Executive Chairman Rod Windley. “I consider the Harden transaction a milestone in the continued Gentiva growth story.”

Excluding its long-term care business, Harden’s 2012 consolidated revenue was approximately $476 million.

The transaction is scheduled to close in the fourth quarter of 2013 and is subject to customary closing conditions. —JO

Healthlease REIT Completes Acquisition of Development Projects

Healthlease Properties Real Estate Investment Trust (TSX: HLP.UN) completed three development properties acquired from the Smith/Packett portfolio, as well as the commencement of the operating triple-net leases of the facilities. 

The two North Carolina properties offer assisted living and memory care, while the other is a standalone memory care community comprising a total of 191 beds. 

The Smith/Packett portfolio, which was acquired earlier this year, is triple-net leased to tenants affiliated with leading national operators of assisted living, memory care and skilled nursing facilities. 

“The successful acquisition and completion of these development properties are testaments of our ability to execute on our growth strategy,” said Zeke Turner, chairman and CEO of the REIT. “The completion of these development properties is consistent with our goal of adding high-quality assets that further strengthen and diversify our property portfolio.”

Two of the recently completed North Carolina facilities, a 54-bed Alzheimer’s facility located in Youngsville and a 77-bed combination assisted living and Alzheimer’s facility located in Clayton, will be managed by Saber Health Care Group, LLC. —AG

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