Senior Housing Investments & Acquisitions: ARC Healthcare Trust II, CNL Healthcare

Aviv REIT Announces $5 Million Skilled Nursing Acquisition 

Aviv REIT, Inc. (NYSE: AVIV) announced recently it acquired a skilled nursing facility in Greenville, Ky., for $4.6 million.

The property is triple-net leased to existing Aviv operator Diversicare at an initial cash yield of 10%, for a term of 14 years. Diversicare operates 52 facilities in nine states, 13 of which they lease from Aviv.


“We have now closed $374 million of acquisitions year-to-date and we are continuing to cultivate a strong pipeline of attractive investment opportunities, especially in the SNF market, which is deep and fragmented,” said Craig M. Bernfield, chairman and CEO of Aviv. “This acquisition strengthens our relationship with Diversicare and is another example of the commitment and effort we make to support our operators, who help us identify attractive and strategic off-market transactions all over the country.”

PruittHealth Acquires Skilled Nursing and Rehab Center in North Carolina

PruittHealth — a network of post-acute care services offering skilled nursing care, home health care, end-of-life hospice care, among other services — has announced that it has officially taken over operations of Rockingham Manor in Rockingham, N.C.


The 120-bed skilled nursing and rehabilitation center, which sits on more than 4 acres of land, is now known as PruittHealt – Rockingham. PruittHealth purchased the center in October 2009, and until recently, it was under lease to an outside operator.

Assisted Living Facility Sells for $10.7 Million

Prudential Real Estate Investors, operating as SHP IV Germantown LLC, recently bought the Gardens of Germantown assisted living home in Germantown, Tenn., for $10.7 million.

The 31,000-square-foot building was purchased from Germantown-based The Gardens of Germantown LLC.

Prudential Real Estate Investors paid $344 per square foot, compared to the $4.2 million, or $135 per square foot, that The Gardens of Germantown LLC paid for the property in 2009.

Bayshore HealthCare Acquires Canadian Senior Living Referral Agency

Canadian-owned Bayshore HealthCare Ltd. has acquired eOccupancy Senior Living, a Canadian-owned senior living referral agency, for an undisclosed amount.

Through this acquisition, eOccupancy will continue to operate under the name eOccupancy Senior Living.

A provider of home and community health care services, Bayshore will incorporate eOccupancy into its suite of services to offer seniors comprehensive information and support that will help them better understand their health care options.

“Partnering with the healthcare advisors at eOccupancy Senior Living allows us to expand our offerings and deliver the most innovative healthcare services and solutions to our clients,” says Kevin Webster, managing director of Bayshore HealthCare. “Together with eOccupancy, we aim to be the number one trusted source for seniors and their families who are looking to make informed decisions when it comes to their individual healthcare needs and lifestyle choices.”

Services at eOccupancy are offered at no charge to the families they work with but are compensated by the participating providers in its nationwide network.

Brokerage Firm Arranges $27.6 Million Sale of 3 Assisted Living Properties

Senior Living Investment Brokerage Inc. advised the seller, a local owner, in the sale of three assisted living communities located in the Tampa Bay area for $27.6 million.

The buyer of the properties, which had an average occupancy of 90% at the time of sale, was Sabra REIT.

The portfolio featured 190 units and the communities — Delaney Creek in Brandon, Fla., Nature Coast in Lecanto, Fla., and West Winds in Zephyrhills, Fla. — were constructed in 1997, 1999 and 2008.

ARC Healthcare Trust II Buys 6-Property Portfolio for $97.7 Million

Senior Capital Advisors, a real estate brokerage firm, recently announced the sale of a six-property, 375-unit/462 bed portfolio of assisted living and memory care communities in Georgia, Florida and Missouri for $97.74 million.

The firm represented the seller, Principal Senior Living Group (PSLG), based in Alpharetta, Ga., and procured the purchaser, New York-based American Realty Capital Healthcare Trust II.

The properties include Benton House of Johns Creek, Ga. (59 units/72 beds, built in 2011); Benton House of Brunswick, Ga. (55 units/65 beds, built in 2013); Benton House of Dublin, Ga. (59 units/72 beds, built in 2009); Manor on the Square, Roswell, Ga. (62 units/75 beds, built in 1994, rehabbed in 2012); Benton House of Titusville, Fla. (67 units/90 beds, built in 2009); and Benton House of Lee’s Summit, Mo. (73 units/beds, built in 2012, expanded in 2014).

PSLG will continue to manage the properties on behalf of ARC Healthcare Trust II. The portfolio’s all private-pay census at the time of close was 88.5%.

The two companies anticipate the closing of three additional communities in the near future.

CNL Healthcare Acquires Medical Office Building for $30 Million

CNL Healthcare Properties, a real estate investment trust (REIT), has acquired the Lee Hughes Medical Building, a Class A medical office building, for approximately $29.9 million.

Built in 2008, the property is located on the campus of the 500-bed Glendale Adventist Medical Center in Glendale, Calif., a part of the Los Angeles metropolitan area.

Cypress West Realty Management Inc. will provide on-site leasing and asset management services. Cypress also manages three additional medical office buildings for CNL Healthcare Properties.

“As a newer, stabilized, on-campus property in one of the nation’s largest metropolitan areas, this property is an attractive fit for our growing portfolio of healthcare facilities,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “We are excited that this acquisition gives us the opportunity to both strengthen our presence in southern California and grow our existing partnership with Cypress West.”

Physically connected to the main hospital via a sky bridge, Lee Hughes Medical Building is 97% occupied, with a wide range of tenants, including an ambulatory surgery center leased by Adventist Health that is one of the newest and largest centers of its kind in the Los Angeles area.

Glendale Adventist Medical Center is one of the largest hospitals in that region, and the Lee Hughes Medical Building is the only on-campus medical office building not owned by the hospital.

Texas Independent Living Facility Sells for $11.5 Million

Senior Living Investment Brokerage, Inc. announced that a commercial real estate firm has sold Arbrook Independent Living, its only senior housing asset, for $11.5 million.

The buyer is an undisclosed REIT that invests in health care-related real estate and the operator is a company headquartered in Virginia.

Arbrook Independent Living, located in Texas, is a 128,486-square-foot facility that consists of 178 units. The three-story community was built in 2002.

Northampton Nursing Home To Sell to Athena Health Care Systems

The Overlook at Northampton nursing home in Massachusetts will be sold to Athena Health Care Systems, a Connecticut company that operates nursing homes in Massachusetts, Rhode Island and Connecticut.

Masonic Health System of Charlton, which owns The Overlook, confirmed recently that the company has ended months of negotiations with multiple suitors by reaching a purchase-and-sale agreement with Athena Health Care Systems.

Masonic Health spokesman Patrick McShane said the deal for the 120-bed facility and the 106 acres of land it sits on is expected to close Oct. 31. Both companies declined to say how much Athena is paying to acquire the property, which is assessed by the city of Northampton at $4.3 million.

Written by Emily Study

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