Capital Health Group Buys $97 Million Senior Housing Portfolio

Capital Health Group acquired a regional portfolio of seven senior housing communities on December 31, 2013. The eighth asset in the portfolio will close upon the successful assumption of the Department of Housing and Urban Development loan currently encumbering the community.

The portfolio was sold by joint ventures composed of private investors and public REITs for $96.6 million. The properties comprise 657 units including independent living, assisted living and memory care. Five of the properties are located in the Salt Lake City metro area, with the remaining two properties located in St. George, Utah and Las Vegas, Nevada.

A joint venture comprising affiliates of CHG and AEW Capital Management, LP purchased all of the Utah assets in the portfolio, the company said.


CHG’s affiliated management company will take over operations of the communities, which were previously managed by a single operator.

The acquisition also includes a 1.4-acre land parcel adjacent to the St. George community, for which there are plans to build a 48-unit memory care building in mid-2014 according to a company news release. CHG plans to increase the portfolio’s NOI through asset repositioning, improved management, and various expansion projects, one of its principals said.

“The portfolio fits CHG’s investment strategy, which focuses on the development and acquisition of existing communities with opportunities for expansion, conversion, and improved management,” said Ken Assiran, CHG’s Managing Principal.


“The acquisition not only expands the management company’s senior housing portfolio to 2,200 beds, but offers a unique opportunity to realize immediate scale in a new region,” said Jack Dwyer, a principal of CHG and their affiliated management company.

According to CHG, the company acquired the portfolio on behalf of Capital Health Holdings, LP, a joint venture composed of CHG, Hunt Realty Investments, and the Teacher Retirement System of Texas. AEW acquired the portfolio on behalf of AEW Partners VII, LP, the seventh in the firm’s series of opportunistic real estate funds.

Written by Elizabeth Ecker

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