Capital Senior Living Corporation (NYSE:CSU), recently announced it has completed the acquisition of four senior living communities in two transactions for a total of about $64.9 million.
Located in Indiana and South Carolina, the communities have an aggregate 388 units, consisting of 48 independent living units, 257 assisted living units, and 83 memory care units.
The four properties have been financed with an aggregate of approximately $49.3 million of 10-year fixed rate debt that is non-recourse to Capital Senior Living with an interest rate of 5.56%.
The acquisitions generate an annual revenue of approximately $14.7 million, according to Capital Senior Living, with average occupancy above 95% and average monthly rents of about $3,100. Capital Senior Living reports cash from facility operations (CFFO) as $2.3 million, or $0.08 per share.
“These acquisitions continue the successful execution of our disciplined and strategic acquisition program that increases our ownership of high-quality senior living communities in geographically concentrated regions and generates meaningful increases in CFFO, earnings and real estate value,” said Lawrence Cohen, CEO of Capital Senior Living, in a statement. “We are very pleased to have completed more than $150 million of acquisitions in 2013. The exceptional returns generated by these acquisitions complement the fundamental strength of our substantially all private-pay business as we benefit from need-driven demand, limited new supply and an improving economy and housing market.”
Capital Senior Living says it’s conducting due diligence on other potential acquisitions that could close in the first quarter of 2014.
Written by Alyssa Gerace
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