Senior Housing Investments & Acquisitions: Aviv REIT, Capital Senior Living, Legacy Healthcare

Capitol Seniors Housing Buys 97-Unit California Property

Real estate services firm Cushman & Wakefield recently announced the sale of Fremont Hills, a 97-unit Class A assisted living and memory care community in Fremont, Calif. Capitol Seniors Housing purchased the property for an undisclosed amount and MBK Senior Living will manage it.

Cushman & Wakefield arranged the transaction and advised the seller, a joint venture between affiliates of Westport Capital Partners LLC, Capital Health Group and Spirit Living Group.

Aviv REIT makes $16.2 Million Acquisition

Aviv REIT (NYSE:AVIV) has added to its portfolio three post-acute and long-term care skilled nursing facilities in Missouri, costing $16.2 million.

The properties are triple-net-leased to existing Aviv operator Diversicare Healthcare Services, which is now Aviv’s eighth largest operator relationship. The deal has an initial cash yield of 10%, CPI-based annual escalators and an initial lease term of 14 years.

Capital Senior Living Acquires 3 properties for $83.6 Million

One of the country’s largest senior living operators, Capital Senior Living Corporation (NYSE:CSU) has purchased three Ohio senior living communities for $83.6 million from joint ventures in which it held a 10% interest (the “Ohio JV Communities”).

Capital Senior Living previously managed the Ohio JV Communities under long-term management agreements. The properties have 433 units, consisted of 227 independent living units and 206 assisted living units. Two communities are financed with $40.1 million of 10-year fixed rate debt that is non-recourse to the company with a blended interest rate of 4.41%. One community is financed with a $21.6 million two-year bridge loan with a variable interest rate of about 2.9%.

Evans Senior Investments Closes $16.2 Million Deal

An unnamed publicly traded real estate investment trust purchased Saxton Care Centers in St. Joseph, Mo., for $16.2 million. The portfolio includes 269 skilled nursing units, 100 assisted living units and 16 independent living units.

The buyer is utilizing one of its existing operators that is looking to expand its presence in Missouri.

Evans Senior Investments represented the seller and facilitated the closing.

Legacy Healthcare Acquires ManorCare Property for $19 million. 

Legacy Healthcare has acquired ManorCare in Highland Park, Ill., for $19 million, and has assumed operations with plans to rename the property Warren Barr North Shore.

The 215-bed skilled nursing facility will undergo a nearly $2.5 million multi-phase renovation, which will include upgraded private suites, expanded and updated technology, a luxurious new lobby and state-of-the-art therapy centers.

This is the fourth acquisition by Legacy Healthcare in the past year. Other acquisitions include Warren Barr Gold Coast in Chicago, Arlington Long Grove and Aurora Rehabilitation and Nursing.

The Ensign Group Acquires Washington Skilled Nursing Facility

The Ensign Group, Inc. (NASDAQ:ENSG), parent company of the Ensign group of skilled nursing, rehabilitative care services, home health care, hospice care, assisted living and urgent care companies, has acquired Beacon Hill Rehabilitation in Longview, Wash.

The acquisition adds a 67-bed skilled nursing facility to Ensign’s senior living portfolio. The company, which did not disclose the purchase price, is operating Beacon Hill under a long-term master lease arrangement and is expected to be mildly accretive to earnings in 2014. At acquisition, effective July 1, the occupancy rate at Beacon Hill was about 75%.

This acquisition brings Ensign’s portfolio to 126 health care facilities, nine hospice companies, 10 home health agencies and 12 urgent care clinics across 12 states.

HFF closes sale of 6-property Royal Seniors Housing Portfolio

Holliday Fenoglio Fowler, L.P. (HHF) announced it has closed the sale of the six-property, 849-unit Royal senior housing properties located in Texas, Oklahoma and Florida.

The portfolio was offered free and clear of existing financing and/or operator. It includes a mix of independent and assisted living units and the majority of the buildings have recently undergone renovations.

The properties are Royal Estates of Abilene, Royal Estates of El Paso, Royal Estates of San Angelo, Royal Estates of Wichita Falls, Copper Lake Estates & Townhomes and Lake Howard Heights.

HFF, a provider of commercial real estate and capital markets services, represented the seller.

Written by Emily Study