Senior Housing Investments & Transactions: HCN, Care Investment Trust

Texas Senior Living Communities Acquired for $79 Million

Evergreen Senior Living Properties, LLC and management affiliate ESLP Management, LLC, recently announced the acquisition of four senior living communities in Texas from Sears Methodist Retirement System in a $79 million transaction.

The purchase includes The Craig in Amarillo, Meadow Lake in Tyler, The Parks in Odessa, and Wesley Court in Abilene.


Evergreen plans to spend approximately $1 million on renovations at The Craig, according to Chris Coates, Evergreen CEO, to include extensive refurbishing of the physical facility and adding new transportation vehicles for the community, according to local reports

Senior Lifestyle Corp. Named New Management Company of Texas Community

Senior Lifestyle Corporation recently announced its role as the new property management team for The Village at The Woodlands Waterway in The Woodlands, Texas, making it the 17th property the company is managing in Texas.


The 207-unit property consists of independent living, assisted living and memory care services. Approximately 120 associates staff the property.

“We are pleased to manage this beautiful senior community,” said Jane Atobajeun, executive director of the community. “Here, residents can maintain their independent lifestyles as well as receive assisted living and memory care support all in a beautiful community with a wide array of services and amenities.”  

Oxton Senior Living Acquires Georgia Senior Living Community

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Oxton Senior Living, an operator of senior living facilities in Georgia and Alabama, has announced the acquisition of Shadowmoss Plantation in Savannah, Ga.

The new name of the senior living community is now Oxton Place of Savannah. It currently provides exclusive memory care services for the Greater Savannah area.

The two co-founders of Oxton Senior Living, Todd Barker and Dwayne A. Edwards, said they are looking forward to what 2015 has in store for this community because there are plans to expand and include personal care and senior living services.

Sale-Leaseback Deal for ALF Nets $7.2 Million

Shawnee Heartland Assisted Living, a 48-unit facility in Shawnee, Kans., has been bought in a sale-leaseback transaction, according to local reports.

A partnership formed by Granite Investment Group, based in Irvine, Calif., paid $7.2 million for the facility, the Kansas City Business Journal reports. The transaction was completed at a capitalization rate of approximately 8.4% and includes a long-term bond net lease that expires in 2030.

The seller, Shawnee Heartland Assisted Living Inc., has operated the single-story facility since its completion in December 2000.

“This community is an exceptionally well-maintained and managed senior-care facility in the midst of an affluent suburb of Kansas City with a growing population of senior citizens,” Humair Sabir, vice president of acquisitions for Granite Investment Group, said in a release. “We have partnered with an operator that enjoys an enviable track record of patient care and service who has also proven themselves adept at fiscal management. As such, this acquisition is an ideal addition to Granite Investment Group’s growing portfolio of senior housing.”

Oakmont Senior Living Portfolio Sold to Health Care REIT

Greystone, a real estate lending, investment and advisory company, recently announced its Real Estate Advisors group has closed the sale of two properties owned by Oakmont Senior Living.

The two properties, Oakmont of San Antonio Heights in Upland, Calif., and Oakmont of Folsom in Folsom, Calif., were sold to Health Care REIT, Inc. on February 27, 2015.

Oakmont of San Antonio Heights is a newly constructed Class A+ assisted living and memory care community in the Riverside-San Bernardino metropolitan area comprising 79 units.

Oakmont of Folsom is a brand new Class A+ assisted living and memory care community in the Sacramento metropolitan area comprising 66 units.

The purchase price was not disclosed. 

Software-as-a-Service Provider Expands Senior Living Footprint

Dude Solutions Inc., a software-as-a-service (SaaS) provider of operations management solutions, recently announced the acquisition of Windmill Software Inc., including its flagship senior living operations software, TheWorxHub.

The acquisition will help grow Dude Solutions’ senior living footprint with its products and market expertise, and also marks the opening of a Dude Solutions Canadian office in Toronto. Terms of the transaction were not disclosed.

“Dude Solutions’ goal is to become the undisputable leader in the markets we serve. For senior living, one of the fastest growing market segments in North America, acquiring Windmill Software will position us to become the clear market powerhouse offering a robust suite of facilities and operations software to senior living,” said Kent Hudson, CEO of Dude Solutions.

Dude Solutions will continue to provide TheWorxHub integrated suite of operations applications for more than 650 senior living communities in the U.S. and Canada. The acquisition will extend Dude Solutions’ support to other senior living departments, including housekeeping, transportation, inventory, IT and others.

“I’m excited about the next phase of growth for the combined organization as this acquisition provides our team the scale and support needed to significantly increase our market penetration,” said Jo-Anne Kempe, Windmill Software’s president and founder. “There is a great cultural fit as Dude Solutions echoes our commitment to helping create successful senior living communities through powerful operations solutions.”

The acquisition is part of Dude Solutions’ 2015 growth initiative, which includes plans to increase hiring for the senior living team. This deal is Dude Solutions’ first acquisition since it announced a growth investment of up to $100 million from Warburg Pincus, a leading global private equity firm focused on growth investing, in February 2014.

“This acquisition is illustrative of what we had envisioned when Warburg Pincus invested in Dude Solutions,” said Alex Berzofsky, managing director of Warburg Pincus. 

Evans Senior Investments Facilitates 3 Transactions

In separate transactions, Evans Senior Investments announced it facilitated the sale of two assisted living and memory care communities as well as a portfolio of four skilled nursing facilities. 

The investment banking firm handled the sale of Pennsylvania-based The Haven at Springwood, a 99-unit assisted living and memory care facility that sold for $11.86 million, or $119,697 per unit.

“Built in 2004 by experienced developers, The Haven at Springwood represented an opportunity to own a larger stabilized asset in York County, one of the most populous counties in Pennsylvania,” said Evans Senior Investments President Jason Stroiman.

Recognizing that the owner’s limited experience in operating senior housing assets had hindered the facility’s financial performance, Evans worked with the owners to develop a reasonable pro-forma forecasting the facility’s financial performance in the hands of a new owner. The firm procured several letters of intent.

The final capitalization rate of the facility was 7.75% on the pro-forma net operating income of $918,000.

The Haven at Springwood features 89 assisted living units and 10 memory care units. The facility opened in 2004 and was stabilized at an occupancy of 96%.

The firm also facilitated the sale of an assisted living and memory care facility located near Houston, Texas. The seller, which is not named, has been in senior housing for more than 10 years and helped establish the 46-unit facility from the ground up.

“The all private pay newer facility, with all private units, was an attractive asset for any buyer trying to grow their portfolio and reach economies of scale in a historically hard state to grow in,” said Evans Senior Investments CEO Jeremy Stroiman. 

Final sales price of the facility was $6.6 million with a capitalization rate of 6.6%. The buyer was a regional owner/operator looking to grow their Texas portfolio.

The facility is 84% occupied and has an adjusted net operating income of $435,523.

In its third recent transaction, Evans Senior Investments facilitated the sale of Health Care Corporation’s South Carolina-based portfolio of four skilled nursing facilities and 454 beds for $27.5 million, or $60,572 per bed.

ESI showcased the property to a select group of buyers and procured a dozen letters of intent from REITs, private equity firms and regional operators. In a competitive bidding process, a regional owner/operator emerged as the best transaction partner.

The final cap rate of the facility was 11.6% on the trailing twelve months adjusted NOI of $3.2 million, with a full underwriting of the projected Medicaid rate increase it had been granted by the state.

“Health Care Corporation had a sizeable skilled nursing portfolio,” Jason Stroiman said. “Their facilities represented an opportunity for either a new entrant to establish a portfolio in the state with one transaction or for a regional operator to solidify their economies of scale with an infusion of beds to their regional portfolio.”

The Health Care Corporation’s portfolio consisted of four facilities built between 1973 and 1988: Calhoun Convalescent Center; Chesterfield Convalescent Center; Lancaster Convalescent Center; and Valley Falls Terrace. It featured a combined occupancy of 92.8%.

Marcus & Millichap Closes $5.3 Million Sale of ALF

Mark Myers, Charlie Hilding and Joshua Jandris — of Marcus & Millichap — recently closed the sale of Albuquerque, N.M.-based Casa De Rosa Assisted Living Center at a price of $5.275 million.

The seller was a local family from Albuquerque, and this 49-unit/51-bed assisted living facility was their sole seniors housing property.

They bought it from a nonprofit organization when the property was vacant and in disrepair. The brothers who sold it did so because they are retiring from business.

The buyer was an investment group from California. The existing local lender allowed an assumption of the loan.

There average occupancy is about 90%, with about 35 private pay residents at an average monthly rate of $3,200, and six to 10 Medicaid residents.

LTC Properties Completes $30+ Million in Transactions

LTC Properties, Inc. (NYSE: LTC) has committed $12.2 million to purchase and complete the development of a 56-unit memory care property currently under construction in Texas.

In conjunction with this commitment, LTC purchased the land and existing improvements for $7.2 million, and entered into a master lease for an initial term of 15 years with an affiliate of Thrive Senior Living, which includes an 8.75% initial cash yield escalating at approximately 2.25% annually thereafter.

The master lease provides for the payment of a lease inducement fee of up to $1.6 million to be amortized as a yield adjustment over the lease term.

The master lease also provides LTC a right to provide similar financing for certain future development opportunities, the right of which the company has already exercised, adding to the master lease a parcel of land purchased in South Carolina for $2.5 million, coupled with the company’s commitment to provide Thrive with up to $16.5 million, including the land purchase, for the development of an 89-unit combination assisted living and memory care property.

In conjunction with this new development, LTC provided Thrive an additional lease inducement fee of up to $2.4 million to be amortized as a yield adjustment over the lease term.

In a separate transaction, LTC purchased and equipped a 106-bed skilled nursing property in Wisconsin for a total of $13.9 million by exercising its right under a $10.6 million mortgage loan.

The property was leased to an affiliate of Fundamental as part of a master lease for an initial term of 10 years at a 10.3% initial cash yield escalating 2.5% annually thereafter.

Additionally, the company provided a lease inducement in the amount of $1.1 million, which will be amortized as a yield adjustment over the lease term, to Fundamental.

Illinois CCRC Sold to ROC Seniors-LCS Joint Venture

As advisor to a venture between Westminster Capital and LCS, Cushman & Wakefield Senior Housing Capital Markets has arranged the sale of Wyndemere, a 432-unit entrance fee CCRC located in Wheaton, Ill.

ROC Seniors Housing, a private equity real estate manager, was the buyer and entered into a new joint venture with LCS on the acquisition of the asset. Life Care Services, the management arm of LCS, will continue to manage the community. 

Wyndemere consists of 237 independent living units, 65 assisted living units and 130 skilled nursing units. The independent living units are comprised of 211 apartment units and 26 townhomes. The community, which was largely built out in the 1990s, was acquired by the seller in 2010 from a regional nonprofit hospital system.

C&W also arranged the first mortgage non-recourse acquisition financing with Bank of America. Financing terms included a 3-year term and a favorable loan-to-value. The Cushman & Wakefield team involved in this transaction included Executive Managing Director Richard Swartz, Managing Director Jay Wagner, Senior Director Aaron Rosenzweig and Associate Stuart Kim. 

The Hollinger Group Sells 6-Property Portfolio to Care Investment Trust 

Senior Living Investment Brokerage has facilitated the sale of The Hollinger Group’s Northeast portfolio, consisting of six senior housing communities.

The communities and their approximate purchase prices are as follows: The Gardens at Cross Keys in Glassboro, N.J. ($12.3 million); Graysonview Harrisburg in Harrisburg, Pa. ($8.6 million); Allzwell Assisted Living in Chesapeake, Va. ($9.2 million); Autumn AL at Bel Air in Bel Air, Md. ($13.5 million); Autumn AL at Cockeysville in Cockeysville, Md. ($5.4 million); and Autumn AL at Hagerstown in Hagerstown, Md. ($5.5 million).

The total portfolio includes 301 assisted living units with an average occupancy of 94%.

The Hollinger Group elected to sell the portfolio to exit senior housing and focus on the rehab, LTACH and CCRC business. After acquiring and improving these communities over the last several years, they capitalized on the strong market and will deploy equity to other core businesses.

The buyer was Care Investment Trust LLC, a seniors housing-focused real estate investment and finance subsidiary of Tiptree Financial Inc. (NASDAQ: TIPT).

Concurrent with the acquisition, Care Investment Trust will master-lease the properties to affiliates of Greenfield Senior Living, a privately held owner and operator of senior housing facilities in the Mid-Atlantic and South regions of the United States.

Pursuant to the lease, Care Investment Trust will provide Greenfield with $1 million to fund initial capital expenditures to enhance and reposition each of the properties. In connection with the acquisition, Care secured a $39.5 million, 10-year loan, which includes 18 months of interest-only payments.

The initial funding amount was approximately $38.7 million and the remaining amount was held back at closing to reimburse the borrowers for a portion of the capital expenditures.

Last month, Care Investment Trust closed on the purchase of Hollinger Group’s Southern Portfolio for $29.125 million. This brings the total portfolio value to $83.6 million.

“This was a strategic acquisition that immediately brought quality, cash flowing communities into a market where the buyer has an existing portfolio,” said Ryan Saul, managing director at Senior Living Investment Brokerage. 

Saul, Brad Clousing, Patrick Burke and Jeff Binder of Senior Living Investment Brokerage handled the transaction.

Post sale, The Hollinger Group and its affiliates will own and operate four properties including a CCRC in Columbia, S.C.; an assisted living facility in Kulpmont, Pa., and a 96-bed transitional care facility in Mechanicsburg, Pa.

Written by Emily Study

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