Senior Housing Investments & Acquisitions: Sentio Healthcare, Aviv REIT, Validus

Sentio Healthcare Properties Acquires Community for $42.5 Million

Sentio Healthcare Properties, Inc., a health care-focused real estate investment trust (REIT), recently announced the $42.5 million purchase of St. Andrew’s Village, a Class A, 246-unit continuing care retirement community (CCRC) in Aurora, Colo.

The St. Andrew’s Village campus includes 146 independent living units, 60 assisted living units and 40 skilled nursing units (58 beds).

Sentio will continue to lease the property to an affiliate of the current manager, ESLP Management, LLC, which focuses on composes with a full continuum of care.

“We are very excited to add St. Andrew’s Village to our portfolio and believe it will enhance the diversity of the REIT, both geographically and by property type,” said Sentio President and CEO John Mark Ramsey, in a statement. “We believe the addition of ESLP Management to our existing team of operating partners will also be a great asset for us. Their extensive experience in senior housing and ability to manage the continuum of care, combined with their track record and industry reputation, make them an excellent partner not only for this community but for future investment opportunities as well.”

This transaction marks another capital deployment under Sentio’s investment agreement with an affiliate of leading global investment firm Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates “KKR”). As part of the agreement, KKR committed to provide an initial $150 million of convertible preferred equity to Sentio over a two- to three-year period.

Aviv REIT Announces $84 Million Acquisition Of Skilled Nursing, Senior Housing

Aviv REIT (NYSE: AVIV) announced it has acquired four post-acute and long-term care skilled nursing facilities (SNF) in Washington, an assisted living facility (ALF) in Washington and a campus in Idaho, which includes an SNF and an ALF, for $83.6 million.

The SNF and ALF properties are triple-net leased to existing Aviv operator EmpRes at a blended initial cash yield of 9%, for a term of 12 years.

This transaction increases Aviv’s third quarter-to-date acquisitions to $182 million and year-to-date acquisitions to $369 million.

“We are pleased with the consistently strong pace of our investment activity, and, as we have anticipated, the depth and quality of the opportunities we are identifying in the market,” said Craig M. Bernfield, chairman and CEO of Aviv, in a statement. “This investment with EmpRes is further evidence that the commitment and effort we make to support our operator relationships creates ongoing opportunities to invest in off-market transactions in attractive markets all over the country.”

EmpRes, which will be Aviv’s third largest operator by rent concentration, operates 48 facilities in six states, 23 of which they lease from Aviv.

Validus Group Completes Sale of Affiliate for $80 Million

Tampa-based boutique investment firm Validus Group — which develops, owns and manages real estate and real estate-related businesses — announced recently that it has closed the sale of Validus Strategic Capital Partners (VSCP) to RCS Capital Corporation for an initial purchase price of $80 million.

VSCP is a provider of advisory and operational services to non-exchange traded alternative investment vehicles.

With the closing of the sale, Mario Garcia Jr., CEO and Managing Partner of Validus Group, says the firm will make more investments in Validus Senior Living, an expanding portfolio of multifamily properties for seniors in Florida.

In addition to Validus Senior Living, Garcia says Validus Group will also make investments in current affiliates, and continue to look for other strong investment opportunities.

Clearview Capital Completes 2 Add-On Acquisitions for Active Day/Senior Care

Active Day/Senior Care, Inc., a portfolio company of Clearview Capital, LLC, has completed the acquisitions of Family Matters, LLC of Clifton Heights, Penn., and Holland Health, Inc., d.b.a. Home Health Mates of Hingham, Mass., for an undisclosed amount.

Active Day/Senior Care is a provider of adult day health services in the U.S. with 75 centers in 11 states. The company also provides home health services in six locations.

With the acquisition of Family Matters, the company now operates 11 adult day health centers in Pennsylvania. The acquisition of Holland Health, which provides private duty in-home care, expands the company’s Active Home Care division.

“Our strategy of rapid growth by acquisition has continued to progress rapidly with the acquisitions of Family Matters and Holland Health”, said James G. Andersen, Clearview Capital’s co-managing partner, in a statement. “Our pipeline of targets remains robust and we expect to complete additional acquisitions in the near term to expand Active Day/Senior Care’s footprint while maintaining the Company’s commitment to providing the finest possible care to elderly, frail and disabled adults.”

In addition to its investment in Active Day/Senior Care and the adult day care market, Clearview Capital is actively seeking opportunities to add to its other health care services investments in St. Croix Hospice, LLC, Child Health Holdings, Inc. d.b.a. Pediatric Health Choice, and Pyramid Healthcare, Inc., as well as to establish new platform companies in the health care services arena.

Prestige Care Acquires 2 Skilled Nursing Facilities on West Coast 

Prestige Care Inc. has acquired Oakwood Country Place in McMinnville, Ore., and Liberty Country Place in Centralia, Wash., after managing the centers since 2013.

The two centers offer residents and short-term care patients a place to recover from surgery or illnesses in a therapeutic setting while they prepare to return to an active lifestyle.

The acquisition is part of Prestige’s growth strategy, focused on bringing care to communities throughout the western U.S.

Brokerage Firm Facilitates Sale of Facility for $15 Million

Senior Living Investment Brokerage, Inc. has facilitated the sale of a skilled nursing and assisted living community in Florence, Ala., for $15 million.

Glenwood Healthcare is family owned and operated and consists of 125 skilled nursing beds and 30 assisted living units. At the time of closing, the community was 93% occupied.

The buyer is a New York-based investment group and has entered into a lease with Genesis Healthcare to operate the community post-closing.

Marathon Development and Brannan Associates Acquire Washington Community for Repositioning

Mathon Development, Inc. and Brannan Associates LLC have acquired the former Parkside West Independent Living Community in Auburn, Wash.

Now known as Brannan Park, the owners will remodel and reposition the community as a licensed assisted living and memory care community encompassing 102 units of assisted living and 27 memory care beds.

Construction is projected to take eight months and two land parcels have been acquired to meet additional expansion plans including independent living cottages and standalone memory care.

LRS Architects in Portland, Oregon; Costa Mesa-based Nelson + Morris; and Warner Design Associates in San Mateo, Calif. are working with Marathon with the project. Village Concepts, Federal Way will manage the project upon its completion.

Ziegler Provides Hospital Financing Solution Under HUD’s New Section 242/223(f) Program

Specialty investment bank Ziegler announced the closing of the $51.3 million refinancing of Coosa Valley Medical Center—an acute care hospital located in Sylacauga, Alabama.

The financing was closed as the first FHA Section 242/223(f) community hospital refinancing transaction under HUD’s new regulations issued in 2013.

The hospital is a 248-bed non-profit facility. In 2005, Ziegler assisted the hospital in the issuance of Series 2005-A Bonds. The property had roughly $50 million in outstanding tax-exempt bond debt with an average interest rate of 6.0%.

Ziegler advised the use of the FHA Section 242/223(f) program to refinance the debt, which led to a new loan with a 25-year term and fixed rate of just over 4%. CVMC was also able to capitalize on more than $790,000 for hospital renovations and lower its annual debt service costs by up to $677,000.

“Ziegler was instrumental in guiding us through the new FHA Section 242/223(f) refinancing program, allowing us to partner with HUD and take advantage of the low, fixed interest rates available in today’s market,” stated Glenn Sisk, Chief Executive Officer of CVMC. “With this refinancing, we were able to significantly lower our debt service which will provide a solid foundation for CVMC’s future growth in the ever-changing healthcare environment.”