Senior Housing Acquisitions: Aviv REIT, NHI, Capital Senior Living & More

Capital Senior Living Buys Assisted Living Community from Pulliam

Capital Senior Living has purchased assisted living and memory care community Dillon Pointe in Spartanburg, South Carolina, from Pulliam Investment Company.

The sale was arranged by Cassidy Turley Executive Managing Director Allen McMurtry.


The property was purchased by a Capital Senior Living Affiliate. It was built in 1996 and was renovated in 2010; it has 55 beds and had near 100% occupancy at the time of sale, according to Cassidy Turley.

Aviv REIT Acquires Four Skilled Nursing Communities for $20 Million

Aviv REIT Inc. (NYSE: AVIV) acquired four post-acute and long-term care skilled nursing facilities in two separate transactions for $20 million. The facilities are located in Texas and Illinois.


One of the properties is located in Texas and is triple-net leased to Fundamental Long Term Care, an existing Aviv operator. The three other SNFs are located in Illinois and are operated by another existing Aviv operator, Bridgemark Healthcare, also under a triple-net lease.

The investments have a blended initial cash yield of 9.9%, annual escalators and initial lease terms of seven and 10 years, respectively, according to the company.

“Our relationship-oriented growth strategy continues to produce accretive acquisitions, as Fundamental and Bridgemark brought both of these transactions exclusively to us,” said Craig M. Bernfield, chairman and CEO of Aviv. “Fundamental is a new operator relationship for us this year, and with this transaction, they are now our seventh largest operator.”

Aviv Closes Acquisition of $43 Million Senior Housing Portfolio

Aviv REIT acquired two long term care properties in two separate transactions totaling $43 million. One of the properties is located in Minnesota and includes a post-acute and long-term care skilled nursing facility, an assisted living facility and an independent living facility. The second property is a long term care skilled nursing center located in Texas.

The Minnesota campus is triple-net leased to new Aviv operator Mission Health Communities which operates 15 facilities in four states. The Texas property is triple-net leased to existing Aviv operator Trinity Healthcare, which operates four facilities in Texas.

The investments have a blended initial cash yield of 9.7%, annual escalators and initial lease terms of 10 years, according to Aviv REIT.

“We are off to a great start in 2014 and our pipeline is very strong,” said Craig M. Bernfield, chairman and CEO of Aviv. “We are excited that we are able to continue to convert our pipeline into accretive acquisitions with attractive yields.”

New Buyer Enters Senior Housing Market with $5.6 Million Purchase

New senior living market entrant Memory Care America purchased 50-unit assisted living community Windsor Place in Naples, Florida for $5.6 million from a partnership operated by Sovran Management. The transaction was facilitated by Senior Living Investment Brokerage and is subject to Department of Housing and Urban Development insured financing assumed by the buyer at the close of escrow.

The property will be managed by Superior Residences of Perry, Florida. It has a cap rate of 3.7% and a census of 80%; which the operator plans to improve through a dedicated focus on memory care services.

Care One REIT Sells SNF to Florida Reliance Properties for $12 Million 

Care One REIT sold skilled nursing facility the Woods of Manatee Springs Nursing Center in Bradenton, Florida for $12.2 million. The buyer was Florida Reliance Properties, which secured an interim loan through Monroe & Giordano used to execute a purchase option and position the property for eventual permanent Department of Housing and Urban Development financing.

The 72,000 square foot property is set on nearly 13 acres; it contains 120 units including eight private rooms with total occupancy at 89%. Payor mix among residents is 2.5% private, 21% Medicare, 67% Medicaid and 9.5% other, according to the companies. The facility was built in 1985 with a major renovation in 1995 and additional planned renovations following the closing.

The property includes a resident activity room, therapy/gym room, hydro therapy, swimming pool, dining room and pond adjacent to the site.

The Woods of Manatee Springs will continue to operate the property under a new lease with the new owner.

Summit Healthcare REIT Completes First Acquisition Under New Name

Summit Healthcare REIT, Inc., formerly known as Cornerstone Core Properties REIT has completed its first acquisition under the new name. The REIT acquired a 40-unit assisted living facility in Redding, California for $3.5 million in late December. The facility was built in 1992.

The community, at 26,000 square feet, has been triple-net leased to a Compass Senior Living affiliate, the new operator of the community, pursuant to a 10-year term, according to Summit.

“We are very pleased to start a relationship with Compass and confident we will experience a lot of success together in the future” said Kent Eikanas, President and Chief Operating Officer of Summit Healthcare.

NHI Completes Sale of 3 Texas Skilled Nursing Facilities for $18.5 Million 

National Health Investors, Inc. (NYSE:NHI) has complete the sale of 3 skilled nursing facilities in Texas to an affiliate of Fundamental Long Term Care Holdings, LLC for $18,491,000.

The facilities include a total of 484 beds, and have an average age of 41 years.

According to NHI, cash rent to NHI for 2013 for the three communities was $2.1 million after allocations under the amended master lease. NHI plans to defer recognition of any tax gain on the sale and continues to lease 4 skilled nursing facilities to Fundamental.

Senior Living Investment Brokerage Tallies Strong 2013 Transaction Volume

Senior Living Investment Brokerage has announced its full-year tally of senior housing and skilled nursing deals for 2014 for a total of 55 transactions.

The company expects a strong pace to continue in 2014, with a favorable sellers’ environment.

“The continued effect of the low interest rate environment has had a major impact on market pricing for seniors housing assets throughout the past year,” said the firm. “While REITs and private equity investment funds have been dominant players in the multiple-property portfolio sales, low interest rates, lack of inventory and the aging demographics have created aggressive pricing for individual property transactions as well. We experienced a significant increase in the average price per unit for assisted living facilities and price per bed for skilled nursing facilities throughout 2013.”

FNR Buys Indiana Skilled Nursing Facility for $13 Million 

FNR Healthcare Group, a Chicago-based private equity firm, has acquired Fort Wayne, Indiana-based Woodview Healthcare, a skilled nursing facility, for $13 million.

The transaction was facilitated by Senior Living Investment Brokerage.

The community contains 128 beds and 37,000 in square footage including a 1,500 square foot therapy gym. The property was built in 1970 and has benefited from ongoing cap-ex investment.

The seller was an assisted living owner/operator who had purchased the facility because of its location next to his assisted living community. He sold Woodview after selling his senior housing portfolio, according to Senior Living Investment Brokerage.

FNR is partnering with a regional operator to manage the skilled nursing facility. Woodview currently has an 84% occupancy rate with a payor mix of 43% private pay; 20% on Medicaid; and the remaining 37% Medicare.  — EE