Senior Housing Investments & Transactions: Summit Healthcare REIT

Senior Living Investment Brokerage Facilitates Sales of 2 Properties

In separate transactions, Senior Living Investment Brokerage, Inc. sold a skilled nursing facility in Austin, Texas, for $1.2 million, and an assisted living, memory care and independent living community in Chester, Pa., for $4.51 million.

The skilled nursing property consists of 54 beds and was built in 1970. It was purchased by a South Texas-based owner-operator that has other properties in Austin.


“The facility was closed down due to some troubles with the state,” said Senior Living Investment Brokerage Managing Director Matthew Alley, who led the sale. “The buyer was able to purchase the real estate and take possession of the Medicaid beds. The seller was able to exit the industry.”

In the second transaction, Senior Living Investment Brokerage facilitated the sale of Chestnut Ridge, a 165-unit assisted living, memory care and independent living community.

The sale was completed under the direction of the bond holder, Eaton Vance. The independent living portion of the community was developed using Section 42 low-income housing tax credits and residents must meet certain criteria in order to be eligible to live in these units.


The transaction was handled by Bradley Clousing and Toby Siefert of the brokerage firm.

Chicago Pacific Founders Makes 5th Investment in Senior Living and Care Industry

Chicago Pacific Founders (CPF) and its affiliate CPF Living Communities, recently announced the acquisition of The Carillons, a 79-unit senior living community in Sun City, Ariz., for $7.2 million.

The acquisition, CPF’s first in the high-growth Phoenix metropolitan area, is a strategic investment in a well-located, underperforming asset, inside the gates of Sun City, one of the country’s leading retirement communities.

The Carillons, previously owned and managed by Gen Care, is a single-story senior living community in one of the highest-density senior demographics in the United States. The property will retain the Carillons name and will continue to provide a full spectrum of independent and assisted living services to its residents and their families.

CPF will invest up to $1 million in immediate capital improvements, increase occupancy, and stabilize the operations over a three-year period, the organization says.

After the acquisition — CPF’s fourth community and fifth overall investment — management responsibilities will be assigned to CPF’s partner, Minneapolis-based Grace Management, Inc.

“We are thrilled to have found the Carillons and to be entering the Phoenix market, and are committed to providing the highest quality of life possible to all of our residents,” said John Rijos, CPF Living’s president and CEO.

The Carillons, acquired for $7.2 million, will be financed in part with equity and a loan from PNC Bank.

Summit Healthcare REIT, Inc. Announces Joint Venture

Publicly registered non-traded real estate investment trust (REIT) Summit Healthcare REIT, Inc., has announced that its wholly owned affiliate Summit Healthcare Operating Partnership (Summit OP) entered into a joint venture with Best Years, LLC.

The new joint venture entity will own six properties in the REIT’s portfolio, with 10% of the interests owned by Summit OP and 90% of the interests owned by Best Years. This move is part of an ongoing strategy of the REIT to attract and joint venture with institutional third-party capital to continue to grow and diversify the REIT’s senior housing portfolio.

The REIT intends to use the proceeds from the contribution of a portion of its interests in the properties to acquire additional health care properties.

“This joint venture represents our commitment to continue investing in quality health care facilities to meet the demands of the nation’s aging population, and to expand the REIT’s portfolio for the benefit of our shareholders,” said Kent Eikanas, president and chief operating officer of Summit Healthcare REIT, Inc. “It is also a strong endorsement of Summit’s strategy.”

The Ensign Group Acquires 3 Skilled Nursing Facilities

In two separate transactions, the Ensign Group, Inc. (Nasdaq: ENSG) announced that it acquired the operations and real estate of two Utah skilled nursing facilities, and one Washington skilled nursing facility.

In one transaction, Ensign acquired Wasatch Healthcare and Rehabilitation, a 63-bed skilled nursing facility in Ogden, Utah, and St. George Rehabilitation, a 130-bed skilled nursing facility in St. George, Utah. Both acquisitions were effective May 1, 2015.

“These opportunistic acquisitions further solidify Ensign’s presence in the important Utah health care market,” said Christopher Christensen, Ensign’s president and CEO.

He added that the these new operations cluster well with the skilled nursing, assisted living, home health and hospice operations already serving patients and residents in Northern and Southern Utah.

In a separate transaction on the same day, an Ensign subsidiary also acquired Bainbridge Island Health and Rehabilitation, a 69-bed skilled nursing operation in Bainbridge Island, Wash. The Washington purchase was effective May 1, 2015, and Ensign will retain ownership of the real estate for the facility.

These acquisitions bring Ensign’s portfolio to 150 health care facilities, 25 of which are owned, 12 hospice agencies, 13 home health agencies, three home care businesses and 16 urgent care clinics across 12 states.

DTZ Facilitates $20 Million Sale of Tampa Property

Commercial real estate services provider DTZ has announced that Allen McMurtry, Megan Fetter and David Kliewer have arranged the $20 million sale of Arbor Terrace at Citrus Park in Tampa, Fla., on behalf of Citrus Park ALF, LLC.

Arbor Terrace was designed by Tampa architectural firm Chancey Design and developed by a joint venture between Tampa architect/developer Walt Chancey and Rookis Development Company based in Santa Rosa Beach, Fla. The project was pre-sold to Capitol Seniors Housing prior to breaking ground and the transaction closed upon certificate of occupancy.

The property consists of 6.34 acres and 92 units – 52 assisted living, 14 transitional memory care and 26 memory care.

Since 1988, the Tampa-based DTZ senior housing team (formerly Cassidy Turley) has sold 160 senior housing communities in 31 states with an aggregate sales volume of $2 billion. The team’s average transaction size over the past decade exceeds $35 million.

Chartwell Acquires Isabella Retirement Living for $22 Million

Real estate investment trust Chartwell Retirement Residences (TSX: CSH.UN) announced recently it has acquired Isabella Retirement Living, a 94-suite retirement residence in Thunder Bay, Ontario. The close is effective immediately and the purchase price, before closing costs, was $22.1 million.

The residence will be rebranded as Chartwell Isabella Retirement Residence. This transaction will have minimal impact on residents and staff, the company said.

“We are very excited to grow the Chartwell family in the Thunder Bay community through the acquisition of Isabella and we see this as an opportunity to bring our commitment of quality service and care to even more seniors across Canada. We look forward to welcoming our new residents and staff,” said Brent Binions, president and CEO.

Chartwell is a Canadian-owned company with its head office in Mississauga and corporate offices in Montreal and Vancouver. Following this acquisition, it will own and operate 179 retirement and long-term care residences across Canada in the provinces of Ontario, Quebec, British Columbia and Alberta.

Written by Emily Study