Senior Housing Acquisitions: CNL Lifestyle Properties, Capital Senior Living, & More

CNL Lifestyle Properties Acquires Colo. Senior Housing Community

Senior living real estate investment trust CNL Lifestyle Properties has acquired MorningStar at Dayton Place in Aurora, Colo., for approximately $29.9 million. 

The senior housing community will continue to be managed by its current operator, MorningStar Senior Living, which currently has 21 properties under management or development in six states.

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MorningStar at Dayton Place has 238 units split between independent living, assisted living, and memory care. The main campus was builtin 1987 but underwent a $1 million renovation in 2010. An additional 41 cottages were added to the community in 2009. 

As of Dec. 9, the senior living community was 84.5% occupied. 

“We are delighted to add MorningStar at Dayton Place to CNL Lifestyle Properties’ portfolio of senior housing communities,” said Stephen H. Mauldin, president and CEO of CNL Lifestyle Properties. “MorningStar is known in the senior housing industry for creating a positive and nurturing environment for residents. We know they share our values of ensuring the highest quality of care and look forward to growing our relationship with them as they manage this community.”

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CNL Healthcare Properties owns four other assets that MorningStar operates under a long-term management agreement in addition to the Aurora property CNL has just purchased.

“CNL Healthcare Properties has and will continue to look at opportunities with MorningStar,” said Kevin Maddron, senior managing director for healthcare and senior housing properties for CNL Financial Group. —AG

Berkadia Finances 3 Capital Senior Living Acquisitions

Berkadia Commercial Mortgage LLC recently provided three acquisition loans totaling $28 million for Capital Senior Living Corporation (NYSE:CSU), originated by Senior Vice President Lisa Lautner of Berkadia’s Seniors Housing and Healthcare group.

The three loans were originated for senior housing properties in Georgia, Ohio and Wisconsin.

For Hyland Park of Fitchburg in Wisconsin, Lautner arranged an $11.9 million, 10-year fixed rate loan through Fannie Mae that amortizes over 30 years. The property, which CSU acquired in late October, has 82 independent and assisted living units and was 98% occupied at closing. Amenities include indoor and outdoor common areas such as a fitness center, theater room, and swimming pool.

Lautner originated another fixed-rate loan through Fannie Mae for The Woodlands of Middletown, this one for $7.6 million with a 10-year term and 30-year amortization schedule. The 61-unit community provides both assisted living and memory care in studio, one-bedroom, and “companion” suites and was 93% occupied at time of sale. The acquisition closed on Sept. 5, 2013.

Berkadia secured an $8.5 million loan through its Proprietary Bridge Lending Program for Peachtree Plantation, a 64-unit assisted living and memory care facility located in Oakwood, Ga. The two-year, floating rate loan features interest-only payments. The property, which includes a variety of apartment styles and many indoor common areas, is currently 91% occupied. The loan closed on Sept. 30, 2013. —AG

Local Owner Sells Okla. Independent Living Community for $13.3 Million

Atlanta-headquartered ARA recently brokered the $13,325,000 sale of Heritage Oaks, a 121-unit independent living community located in Richmond, Virginia. Heritage Oaks is situated on approximately seven acres and features studio, one-bedroom, and two-bedroom units.

Cody Tremper from ARA’s national specialty practice group, ARA Seniors Housing, handled the disposition on behalf of Heritage Oaks Retirement Community, LLC, a single-facility owner based in Norman, Okla., to an undisclosed private equity buyer. The transaction took less than 60 days from initial contract execution to closing. The facility, built in 1987 and constructed using steel frame and concrete, allows some flexibility for the future owner to operate the building as independent living or, through a partial conversion, to add assisted living. —AG

Sentio Healthcare Buys Senior Living Community for $15 Million

Sentio Healthcare Properties, Inc., a real estate investment trust focused on healthcare-related real estate, announces the acquisition of Standish Village at Lower Mills through a joint venture with a member of the seller, Senior Living Residences . 

Standish is a senior living community located in Boston, Mass. with 85 units:  72 units dedicated to assisted living, and 13 units dedicated to memory care.

Located on 1.75 acres of land along the Neponset River, Standish Village is a historical landmark that originally served as a 19th century mill. Some architectural features of the original mill that have been retained include decorative turrets, and oversized windows in the units. Amenities of the facility include a main dining room, library, exercise room, music room, sunrooms, living rooms, activities areas, and a resident kitchen.

SLR is based in Massachusetts and will continue to operate the facility. In addition to Standish, SLR is the owner/operator of four more facilities and manages an additional seven properties. 

This transaction marks another deployment of Sentio’s investment agreement with an affiliate of global investment firm Kohlberg Kravis Roberts & Co. L.P.  As a part of the agreement, KKR committed to provide an initial $150 million of convertible preferred equity to Sentio over a two to three year period. 

“Adding Standish to our portfolio is an exciting opportunity for us and we believe this new market will continue to enhance the diversity of the REIT,” said John Mark Ramsey, President and CEO of Sentio. “We are pleased SLR chose to partner with us and believe their operational experience along with their focus on exceptional resident care will help sustain the strong track record Standish has experienced thus far.” —AG 

Love Funding Closes $5.5M Acquisition Loan for Senior Community

Love Funding recently announced the closing of a $5.54 million loan for the acquisition of North Park Retirement Community, an assisted living and skilled nursing facility in Brook Park, Ohio.

Robert Smallwood and Bruce Gerhart of Love Funding’s Cleveland office secured the loans through the U.S. Department of Housing and Urban Development’s 232/223(f) loan insurance program for the refinance or purchase of healthcare projects that are more than three years old and don’t require substantial rehabilitation.

North Park Retirement was built in 1967 and converted to an assisted living facility in 1988, with additional assisted living units added in 1994. In 2010, the facility was completely renovated, converting 18 assisted living units into 23 skilled nursing units. Today, it provides a total of 49 assisted living beds and 25 skilled nursing beds.

During this construction, the subject also added 2,000 square feet to the facility in order to incorporate a large therapy room to attract Medicare residents. 

North Park Properties LLC is purchasing the property from NP Properties of North Olmsted LLC. Since buying the property in February 2010, NP Properties has leased the facility to North Park Care Center LLC. North Park Properties is 100%-owned by John Paul Coury III, who has been involved in the long-term care industry for more than two decades and has served as the administrator or two other family facilities in Ohio and a non-family facility in Arizona.

For the purpose of this transaction, Love Funding obtained an appraisal from Integra Realty Resources showing that the property had stabilized from the skilled nursing conversion. 

HealthLease Acquires Community from Mainstreet for $17 Million

HealthLease Properties Real Estate Investment Trust (HLP.UN), acquired a newly-built, triple-net leased, 100-unit seniors housing and care facility from Mainstreet Property Group, LLC, the asset manager for the REIT, for $16.98 million.  The facility is leased on a triple-net basis to an operator that is owned 50% by Life Care Services and 50% by an affiliate of Mainstreet. 

The facility, Wellbrooke of Crawfordsville, is located in Montgomery County, Indiana, and marks the fourth Wellbrooke-branded facility in the state. Of the 100 units at Crawfordsville, 70 are licensed to provide skilled nursing, rehabilitation and therapy services, while the other 30 provide assisted living.

“As we continue to add Mainstreet-developed properties to our portfolio, we are building a strong brand presence as the leading owner of high-quality seniors’ housing and care properties,” said Zeke Turner, Chairman and CEO of the REIT. “This market-leading position helps us attract great operators as tenants who recognize that HealthLease facilities will enable them to provide the best care for their consumers.”

Crawfordsville was acquired under the REIT’s pre-existing development agreement with Mainstreet, which provides the REIT with a right to acquire any seniors housing and care properties developed by Mainstreet. —AG

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