Senior Housing Investments & Acquisitions: Aviv REIT, ISL, Masonicare

Senior Living Investment Brokerage Handles $5.3M Sale 

Senior Living Investment Brokerage, Inc. recently facilitated the $5.32 million sale of three small assisted living communities in Southeast Michigan with a total of 78 units.

The communities are all located within one mile of one another in Temperance, Mich. and were sold by an owner/operator looking to exit the senior housing industry. The buyer is a regional owner/operator looking to implement additional marketing resources to improve census.

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The communities are The Terrace, The Carriage House, and The Garden House, all under the Windhaven Eldercare Center umbrella. The Terrace, with 43 units, and The Carriage House, with 19 units, provide assisted living, while The Garden House has 16 units dedicated to memory care. 

The deal had an 11.9% cap rate and a price per unit of $68,205. Bradley Clousing and Tom Rusthoven of Senior Living Investment Brokerage handled the transaction. 

ISL New Manager of San Antonio Senior Living Community

Senior living community manager Integral Senior Living was recently selected to manage The Heights at Shavano Park, a new community that will break ground soon in San Antonio, Texas. The Heights at Shavano Park is owned by Meridian Capital, LLC, a partner of Global M&A Partners. Groundbreaking for the new development will take place in Spring 2014, with a Summer 2015 planned opening date.

When completed, the Mediterranean-style community will offer both assisted living and memory care apartments. On the edge of the Texas Hill Country, the city of Shavano Park is located in the San Antonio Metropolitan Area in northwest Bexar County, approximately 12 miles north of downtown San Antonio.

Masonicare Buys Site for Planned Senior Living Project

Senior Living Development, LLC, recently sold 107 acres of land to Masonicare Charity Foundation in a deal brokered by Delta Real Estate, LLC, reports VoicesNews.com.

The site has been approved for the development of 309 units of independent and assisted living units, which will be operated by Masonicare with Senior Living Development as development advisor. 

“We are extremely pleased to have structured a sale to Masonicare, one of the best senior care providers in the state,” Mark De Pecol, CEO of Senior Living Development, said in the article. “The property is a strategic location providing them with an ever-expanding presence in Connecticut.”

Del Webb owns and operates a 55+ active adult community adjacent to the site, called Oxford Greens. 

Masonicare expects to break ground on the development in 2016, VoicesNews.com reports. 

Illinois CCRC Sponsorship Transferred to Wesley Willows

A Rockford, Illinois CCRC has transitioned sponsorship from Lutheran Social Services of Illinois to Wesley Willows, a not-for-profit single-site CCRC also in Rockford, handled by Ziegler. 

Peterson Meadows Retirement Community is now a Wesley Willows Community. The CCRC opened 1993 on a 34-acre campus. It offers 75 independent living apartments and 59 duplex units. Ziegler underwrote a bond issue in 1992 to finance the community’s construction. 

LSSI determined its core strength and opportunity for advancing its faith-based mission is with its social service programs, according to Ziegler. Additionally, recent operating results have “challenged” Peterson Meadows’ ability to meed debt service obligations. 

The LSSI Board hired Ziegler to find a mission-compatible not-for-profit sponsor for the Rockford CCRC, which ended up being Wesley Willows.

Extending sponsorship to Peterson Meadows affirmed Wesley Willows’ growth vision and commitment to the Rockford area, Ziegler notes.

“Although the opportunity to become the sponsor of Peterson Meadows had not been anticipated, our ability to extend our sponsorship to Peterson Meadows enables us to grow significantly while continuing to serve the Rockford, Illinois community,” said Bill Pratt, Wesley Willows’ CEO, in a statement.   

Regal Lifestyle Communities to Acquire 2 Canadian Properties for $44 Million

Regal Lifestyle Communities (TSX:RLC) announced recently an agreement to issue nearly 3.6 million common shares priced at $7.75 per common share with the intention of using the proceeds to acquire two senior living communities in Canada.

The total gross proceeds of the issuance will be approximately $20 million, and underwriters have been granted an over allotment option to purchase up to an additional $3 million common shares.

Regal will use the aggregate net proceeds from the offering to fund the approximately $44 million acquisition of two independent living retirement homes, and for general corporate purposes.

The two properties in question are located in Maple Ridge, British Columbia and Milton, Ontario. The Maple Ridge community has 93 independent living units, and the Milton community has 104 independent living units. The properties are currently approximately 84% leased. 

Both properties are expected to close by the end of March 2014. Regal expects to arrange around $29 million of mortgage financing secured by each property to help fund the acquisition. 

The investments are expected to represent a cap rate of approximately 7.25% at closing, and approximately 7.75% upon stabilization. 

Regal expects the common shares offering to close on March 21, 2014.

Aviv REIT Acquires 9 LTC Facilities for $49 Million 

Aviv REIT, Inc. (NYSE: AVIV) announced recently it has acquired nine post-acute and long-term care skilled nursing facilities in Kentucky and Iowa, in two separate transactions, for $48.5 million. Seven of the skilled nursing facilities are located in Kentucky and are triple-net leased to new Aviv operator Providence Group, an operator with an existing nine-facility portfolio in Kentucky and California.

The other two skilled nursing facilities are located in Iowa and are triple-net leased to existing Aviv operator Trillium Healthcare, an operator of 10 facilities located in Iowa and Nebraska. These investments have a blended initial cash yield of 10.7%, annual escalators and initial lease terms of ten years.

“We are excited to close these strategic acquisitions, continuing our momentum in the first quarter with $104 million of acquisitions now closed year-to-date, following $159 million of acquisitions in the fourth quarter and $239 million of total investments in 2013,” said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv, in a statement.  “We have enhanced our diversified portfolio by creating another new operator relationship with the Providence team, which has over 20 years of experience operating SNFs, and by doing another acquisition with Trillium, an operator relationship we have built over the past five years.” 

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