Senior Housing Investments & Transactions: ROC Seniors, AdCare

Greystone Real Estate Advisors Closes Sale of St. Louis Community

Greystone, a real estate lending, investment and advisory company, recently announced its Real Estate Advisors group closed the sale of Brentmoor Retirement Community in St. Louis, Missouri.

The property was acquired by Titan SenQuest Management, Inc. a wholly owned subsidiary of Titan Real Estate Investment Group, Inc. for an undisclosed price. The property was sold by the Strategic Partners Value Enhancement Fund, based in Indianapolis, Ind.

The Brentmoor, converted from a multifamily property to a senior community in the mid-1990s, comprises 72 independent living units and 18 assisted living units.

“The unit mix and prime location of The Brentmoor within an affluent baby boomer demographic makes it an attractive seniors housing investment for years to come,” said Cody Tremper, a managing director of Greystone Real Estate Advisors, who led the sale.

ROC Seniors Acquires 14-Property Portfolio for $230 Million 

Holliday Fenoglio Fowler, L.P. (HFF) announced recently that it has closed the sale of a 14-property senior housing portfolio totaling 1,038 units located in California, Oklahoma, Ohio, Texas, West Virginia and North Carolina.

HFF marketed the portfolio on behalf of the seller, a joint venture between private funds managed by Iron Point Partners, LLC and Meridian Senior Living, LLC. ROC Seniors Housing Fund Manager, LLC (ROC Seniors) purchased the 14-property portfolio for approximately $230 million, according to reports.

In addition, ROC Seniors agreed to purchase an additional 46-unit asset located in Ohio that will close at a later date. Meridian will continue to manage the properties.

The portfolio is comprised of a mix of independent living, assisted living and memory care units.

The HFF team representing the seller was led by Managing Director Ryan Maconachy and Director Chad Lavender.

Institutional Property Advisors Closes $15 Million Sale

Chicago-based Institutional Property Advisors, a division of Marcus & Millichap, has closed the sale of Arcadia Nursing & Rehabilitation Center in New Jersey for $15 million.

The seller of the 115-bed skilled nursing facility was a private, local company looking to divest part of its portfolio. The buyer was a private, regional investor.

Adjacent to the community is a 6-acre plot of land that has been locally approved for long-term care, assisted living and medical office space.

The property includes two private courtyards, a rehabilitation room and an on-site movie theater.

AdCare Completes Operations Transfer of 8 Properties, Leases 2, Sells 1

AdCare Health Systems, Inc. (NYSE MKT: ADK), a self-managed health care real estate investment company that invests primarily in real estate purposed for senior living and long-term health care, recently provided an update on its strategic transition to a property holding and leasing company.

“Our progress continues to be steady, swift and on target with the transition plan envisioned by our Board,” said Bill McBride, AdCare’s chairman and CEO. “Today, we place another mile marker along our journey to transition to a property holding and leasing company, with the majority of our properties transitioned to new operators.”

AdCare has completed the transfer of operations of eight Arkansas properties to a third-party operator, effective May 1, 2015. The operations transfer was completed pursuant to lease agreements previously signed with affiliates of Aria Health Group, LLC.

Lease agreements with affiliates of Aria for the company’s two remaining Arkansas facilities were terminated on May 1, 2015. AdCare is seeking to sell or lease these facilities to other regional operators.

It has also signed agreements to lease two Oklahoma properties, which are expected to transfer operations in the third quarter of 2015.

The company signed agreements with affiliates of Southwest LTC Management Services LLC. Southwest LTC operates 20 skilled nursing facilities and one assisted living facility in Texas.

The lease agreements with Southwest are expected to become effective in the third quarter of 2015, subject to Southwest’s receipt of licenses and other approvals required by the state of Oklahoma. The initial term of the leases is 10 years with two five-year renewal options. The initial annual rent will be approximately $1 million and then escalate each year thereafter.

Additionally, AdCare has signed an asset purchase agreement to sell another property in Oklahoma to Gracewood Manor, LLC for approximately $3.5 million. The sale is expected to close in the third quarter of 2015.

The agreement may be terminated by Gracewood Manor for any reason before the 30th day of the due diligence period set forth in the agreement.

Since the Board approved the strategic plan to transition AdCare’s business from an owner and operator of health care facilities to a health care property holding and leasing company, it has entered into agreements for 36 of its 40 health care facilities.

Brokerage Facilitates $3.9 Million Sale of Florida Community

Senior Living Investment Brokerage, Inc. facilitated the sale of The Cottages of Bradenton, a 64-unit assisted living and memory care community in Bradenton, Fla., for $3.85 million.

The community features 34 assisted living units and 30 memory care units.

Bradley Clousing and Patrick Byrne of Senior Living Investment Brokerage handled the transaction.

Granite Investment Group Sells 2 Texas Properties For $23.4 Million

Irvine, California-based Granite Investment Group announced recently that, through an affiliate, the company has sold two senior housing properties near Austin, Texas, for $23.4 million.

“We are very pleased with our investment in these senior housing properties, which are each well-located in the Austin-Round Rock metropolitan area, the 35th largest metropolitan area in the U.S., and provide a variety of amenities and care to residents,” said Scott Rickard, chief investment officer with Granite Investment Group.

The sale included Park Place Care Center and Assisted Living, a senior care campus comprised of a 116-bed skilled nursing facility and a 48-bed assisted living facility in Georgetown.

Built in 1997 on nearly 7 acres of land, Park Place offers 24-hour skilled nursing care, short- and long-term rehabilitation, private and semi-private rooms, activity directors, spiritual care and an order-by-menu dining program. An affiliate of Granite Investment Group originally purchased the property in 2007 for approximately $9.2 million.

The second property in the transaction is Pflugerville Care Center, a 111-bed skilled nursing facility built in 1991 on approximately 3.2 acres of land. The community provides residents with short- and long-term rehabilitation care, two therapy gyms and gardens, tracheotomy, intravenous care and wound care. An affiliate of Granite Investment Group originally purchased the property in 2005 for approximately $9.1 million.

Mark Myers and Joshua Jandris of Institutional Property Advisors, a division of Marcus & Millichap, brokered the transaction.

Marcus & Millichap Closes Sale of The Arbor in Texas

Joshua Jandris, Mark Myers and Morris Lalezarian of Marcus & Millichap represented the seller in the sale of The Arbor Assisted Living Facility in Nacogdoches, Texas, to Prevarian Senior Living, a developer and operator of assisted living communities in Texas, Florida, Oklahoma and Arizona.

The purchase price was not disclosed, but the property contains 36 units and 40 beds of assisted living, with additional land for expansion. The property was built in 1996, is approximately 93% occupied, and is located less than 2 miles from a 153-bed acute care hospital.

The true potential for Arbor’s upside is in the additional land, Marcus & Millichap notes. Prevarian intends to upgrade the existing community and to develop an 18,000-square-foot expansion, which will add 23 units in total, including an 11-unit/16-bed memory care wing.

The Arbor will be managed by Civitas Senior Healthcare, LLC.

Written by Emily Study