Senior Housing Investments & Acquisitions: Aviv REIT, Ensign Group, Capital Senior Living

Aviv REIT Announces $94 Million Acquisition

Aviv REIT, Inc. (NYSE:AVIV) announced it has acquired two assisted living facilities and one skilled nursing facility for $82 million, in addition to two parcels of land for $12.2 million.

With the parcels of land, Aviv has gained the entitlements for construction of two new assisted living facilities and a 50-unit addition to one of the existing assisted living facilities.

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The acquisition includes a 126-unit assisted living facility and a 72-unit skilled nursing facility located in West Yarmouth, Mass., as well as a 93-unit assisted living facility in Weston, Mass.

The properties will be triple-net leased to existing Aviv operator Maplewood Senior Living, an operator of 12 facilities in three states. The acquisition has an initial cash yield of 8%, which increases to 8.5% in year two, with CPI-based annual escalators after then, and an initial lease term of 10 years.

The occupancy of the facilities is 91%.

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Griffin-American Healthcare REIT III Acquires Medical Office Building

Griffin-American Healthcare REIT III has acquired Acworth Medical Complex, an approximately 39,000-square-foot medical office building in the Atlanta suburb of Acworth.

Acworth Medical Complex is approximately 83% leased to four tenants, including Emory Specialty Associates LLC, Northside Hospital and Eldercare Pharmacy.

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The medical office building was acquired from unaffiliated third party investors represented by Spencer Coan of SK Commercial Realty. Griffin-American Healthcare REIT III financed the acquisition using cash on hand. The purchase price was not disclosed.

The Ensign Group Acquires Hospice Agency, 4 Seniors Facilities

In two separate transactions, 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, acquired Namaste Hospice in Denver, Colo., and four senior housing properties in California.

In the first transaction, the Ensign Group acquired Namaste Hospice for an undisclosed purchase price. Namaste will be operated by Cornerstone Healthcare Inc., Ensign’s home health and hospice operating company.

The purchase was made with cash, and brings Ensign’s portfolio to 10 home health agencies and nine hospices, across nine states. Ensign expects the newly acquired agency to be mildly accretive to earnings in 2014.

In the second transaction, the Ensign Group agreed to purchase California properties Keiro Nursing Home, South Bay Keiro Nursing Home, Keiro Retirement Home and Keiro Intermediate Care Facility for an undisclosed amount.

Keiro Nursing Home is a 300-bed skilled nursing facility in Lincoln heights; South Bay Keiro Nursing Home is a 98-bed skilled nursing facility in Gardena; Keiro Retirement Home is a 127-unit assisted living facility on a senior living campus in Boyle Heights; and Keiro Intermediate Care Facility is a 90-bed intermediate care facility also located on the Boyle Heights campus.

The facilities will be purchased with cash and will be operated by Ensign’s California-based subsidiaries. The acquisition is expected to be effective in the fourth quarter of 2014.

Capital Senior Living Acquires 3 Ohio Properties Through $61 Million Financing

Wells Fargo provided more than $61 million in financing to Capital Senior Living for the acquisition of three senior living facilities in Ohio.

For the Waterford at Richmond, $23.7 million was issued for the assisted and independent living facility. The Waterford at Richmond has 141 units comprised of both assisted and independent living units. The loan is a 10-year, fixed rate through Fannie Mae.

For The Wellington at Dayton, $16.4 million was issued for the assisted living and independent living facility. The Wellington at Dayton has 146 units comprised of both independent and assisted living units. The loan is a 10-year, fixed rate through Fannie Mae.

For The Waterford at Levis Commons, $21.6 million was issued for the senior housing facility, which has 146 units. The loan is a 24-month bridge loan.

Virginia Assisted Living Facility Sells for $14.1 Million

Capitol Seniors Housing has purchased Sudley Manor House, a 78-bed assisted living and memory care community in Manassas, Va., for $14.1 million.

Avison Young negotiated the sale between the seller, American Senior Living LC, and Capitol Seniors Housing.

Capitol Seniors Housing plans an extensive capital-improvement program to update the facility and will retain The Arbor Company as its operator.

Reposition Planned for Recently Acquired Independent Living Community

Marathon Development, Inc. and Brannan Associates LLC have acquired the former 100-unit Parkside West Independent Living Community in Auburn, Wash., for an undisclosed amount.

Parkside West, now known as Brannan Park, will undergo a substantial remodel and repositioning as a licensed assisted living and memory care community with 102 units of assisted and 27 beds of memory care when complete.

Construction is anticipated to take eight months. Village Concepts, Federal Way will manage the project when complete.

Juniper Acquires Pennsylvania Senior Living Community for $35.5 Million

Juniper Communities, a privately held company that owns and operates assisted living, personal care, memory care, independent living and skilled nursing facilities nationally, has acquired Brookline Village for $35.5 million. Brookline, a senior living community in State College, Pa., covers a full spectrum of retirement and senior health care living options.

National law firm Akerman represented Juniper Communities in its acquisition of Brookline.

The acquisition will increase Juniper’s size and resident capacity by 25%, and marks the seventh campus of senior living properties Juniper owns or operates in Pennsylvania.

The Brookline property consists of five buildings with a total of 274 units: 116 skilled nursing/rehabilitation, 38 memory care, 87 personal care and 33 independent living. The main campus is comprised of independent living apartments, two personal care communities and a skilled nursing/rehabilitation and long-term care facility. A short distance from the main campus is a free-standing, purpose-built memory care community.

The campus will be named Juniper Village at Brookline.

Amerita Expands into Arizona Through Acquisition

Amerita, Inc., a wholly owned subsidiary of PharMerica Corporation (NYSE:PMC), recently announced it has acquired Altius Healthcare. Financial terms of the transaction were not disclosed.

The Braff Group originated the transaction and served as the exclusive mergers and acquisitions advisor to Altius.

Altius provides home infusion and specialty infusion services from two locations in Prescott and Tucson, Ariz. The company treats patients at home, doctor’s offices, assisted living facilities, ambulatory infusion centers and other non-hospital settings.

Written by Emily Study

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