Senior Housing Investments & Acquisitions: Ide Management Group, CNL Lifestyle Properties

Ide Management Group Sells Portfolio for $63 Million

Ide Management Group has sold its portfolio of 19 communities located in Indiana and Iowa to a Midwest owner/operator for $63 million. 

The total portfolio included 1159 skilled nursing beds. Overall occupancy is 80% with approximately 12% Medicare and 10% private pay. A couple of the communities included assisted living beds, but because of the care and design, were considered closer to nursing beds from a valuation standpoint.

Since 2000, Ide Management has grown its portfolio adding a few buildings each year through acquisitions. As an organization, it generally specializes in smaller, middle market facilities that deliver quality care. It also focuses on delivering rehab/Medicare services. 

The owner elected to sell the portfolio to transition out of the business toward retirement. As part of the transaction, Ide Management granted the buyer the option to assume/purchase 12 additional facilities that are currently under lease with a public REIT at some point before 2020.

The buyer, a Midwest owner/operator, recently completely a private sale of a portion of its facilities. It purchased the Ide Management portfolio as a 1031 exchange related to the sale of those assets. This portfolio was attractive because of its Midwestern location and its profitability. 

The buyer will be able to absorb operations under its existing platform and centralized management. 

The portfolio is part of the UPL/IGT (Inter Governmental Transfer) program, which allows them to provide care while receiving a higher Medicaid rate through an affiliation with the county hospital. 

Senior Living Investment Brokerage, Inc. handled the transaction. 

Titan SenQuest Acquires Grand Rapids Property for $10.3 Million

Titan SenQuest Senior Housing, the senior housing company of Los Angeles-based Titan Real Estate Investment Group, Inc., recently bought Sentinel Pointe, a 152-unit retirement community on an 18-acre campus in Grand Rapids, Mich. 

Titan SenQuest President Doug Allen tells GlobeSt.com that the western half of Michigan is a booming market for senior housing and this $10.3 million, off-market transaction will play a key role in both the company’s regional and national expansion.

Titan SenQuest is primarily based in Texas, where the company has five senior living communities, but has begun building a Midwest regional presence. It now owns two communities in Ohio, and just closed the purchase of another in Missouri.

The Sentinel Pointe community was owned by a private family partnership that had built and owned it for generations.

The Ensign Group Acquires Arizona Assisted Living, Memory Care Property

The Ensign Group, Inc. (NASDAQ: ENSG), the 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 Sherwood Village Assisted Living and Memory Care, a 135-unit assisted living facility in Tucson, Ariz., for an undisclosed amount. 

“With this acquisition, we add assisted living and memory care services to our strong skilled nursing presence in the Tucson community,” said Christopher Christensen, Ensign’s President and CEO. 

This is the third Arizona acquisition for the company this year. Bridgestone Living, Inc., Ensign’s senior housing subsidiary, expects operations in Sherwood Village, which had an occupancy rate of approximately 65% at acquisition, to be mildly accretive to earnings in 2014.

Ensign will retain ownership of the real estate for this facility, which was purchased with a combination of cash and the assumption of an existing HUD-insured loan. 

This acquisition brings Ensign’s portfolio to 127 health care facilities, nine hospice companies, 11 home health businesses and 14 urgent care clinics across 12 states. Christensen noted that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling skilled nursing, assisted living and other health care-related businesses across the United States.

CNL Lifestyle Properties Buys 2 Properties in Sale-Leaseback for $33.6 Million

Senior Living Investment Brokerage, Inc. facilitated the $33.6 million sale-leaseback of two assisted living communities in the Atlanta, Ga., metropolitan area. 

The current operator, Oaks Senior Living, will continue to operate the two communities — which were 95% occupied at closing — under a long-term lease agreement with the buyer, CNL Lifestyle Properties, Inc., based in Orlando, Fla.

Constructed in 2011, The Oaks at Braselton, located in Hoschton, Ga., includes 46 assisted living units and 34 memory care units. Built in 2007, The Oaks at Post Road, in Cumming, Ga., includes 64 assisted living units and 36 memory care units.

Summit Healthcare REIT Acquires 2 Skilled Nursing Facilities

Summit Healthcare REIT, Inc. recently announced that it acquired two skilled nursing facilities in Colorado for approximately $8 million. 

The two properties are Juniper Village at Lamar, which is a 22,000-square-foot facility in Lamar, Colo., and Juniper Village at Monte Vista, a 20,000-square-foot facility in Monte Vista, Colo. Both of the 60-bed facilities were built in 1972 and renovated in 2008.

The properties will be operated and leased by Dakavia Management Corp. pursuant to a 15-year triple-net lease. Dakavia currently operates three other facilities in Summits portfolio. 

These acquisitions are Summit’s first since becoming self-managed earlier this year and mark the REIT’s geographic expansion into Colorado, a strategy consistent with objectives to grow and diversify Summit’s portfolio. 

Written by Emily Study