Senior Housing Investments & Transactions: SNH, Prudential

Hospitality House Acquired for $3.6 Million

Carlsbad, California-based Merrill Commercial Real Estate, Inc., a full-service real estate firm offering solutions in the senior housing space, recently closed the sale of Hospitality House senior community, with Menlo Management of Menlo Park, Calif., acquiring the property for $3.6 million, or $85,714 per unit, from an independent owner.

Hospitality House includes 42 units/80 beds, comprised of a mix of assisted living and memory care/dementia residents.

Menlo Management plans to reposition the property from a current census of 47% through capital improvements and the conversion of assisted living beds to memory care beds.

Dungarvin Inc. Announces Completion of Three Acquisitions

Dungarvin Inc. — a national organization of privately owned companies that provide community-based supports to people with varying needs across 13 states — recently announced that it had acquired a portion of services provided by Legacy Endeavors, a provider of residential and non-residential services to adults with disabilities in Minnesota.

With the completion of this transaction Dungarvin added 12 group homes serving 34 people, as well as in-home services, independent living services, and supported employment services for approximately 35 individuals.

Dungarvin also announced that it had acquired the agency companion or host home segment from Renaissance Management Group serving 21 individuals in Tulsa and Oklahoma City, Okla.

Additionally, Dungarvin reported that it had acquired assets and entered into a consulting and support agreement with Disability Services, Inc. (DSI) of Gallup, N.M. Dungarvin will assume operations and will support about 140 individuals in supported living group homes, independent living services, day services, community integrated employment services, and the families, infants and toddlers program.

SNH Acquires CNL Lifestyle Community for $24 Million

Newton, Mass.-based Senior Housing Properties Trust (NYSE: SNH) has acquired Chateau Vestavia, a Birmingham, Alabama-based senior assisted living facility, according to local reports. 

SNH acquired the property as part of a portfolio sale by CNL Lifestyle Properties that included 37 other health care facilities. The purchase price for the property was $23.6 million, the Birmingham Business Journal reports.

David Hegarty, president of Senior Housing Properties Trust, said there are currently no plans to change anything at the 130,000-square-foot facility. The property is currently leased to Trinity Lifestyles, which will continue operating at Chateau Vestavia.

“They will be the tenant and occupant for at least another eight years,” Hegarty told the Business Journal.

The community can house 163 residents, offering a variety of services from independent living to assisted living, memory care, short-term stays, adult day services and post-operative care.

Capital Senior Living Affiliate Acquires 2 Communities 

Afiliates of Dallas-based Capital Senior Living Corp. acquired The Waterford of West Bend, formerly known as Emerald Way Assisted Living & Memory Care, and the Emerald Ridge Assisted Living facility in Hartford, Wis., according to a BizTimes.com report.

The communities were sold by SCR Properties LLC and SCRP West Bend LLC. The Waterford of West Bend was sold for $2.1 million and the Emerald Ridge Assisted Living facility in Hartford was sold for $2.2 million, the report states.

Emerald Ridge Assisted Living, built in 2004, has 34 one- and two-bedroom apartments for residents 65 and older and serves 20 memory care residents with Alzheimer’s disease or dementia.

New York firm to Acquire Main Senior Living Community 

A Monsey, New York-based health care management firm has reached an agreement to purchase the Victorian Villa Rehabilitation and Living Center in Canton, Maine, according to local reports.

Pinnacle Group’s planned acquisition of the senior living facility was announced by facility Administrator Mark Jacobs, who said he will continue to run its day-to-day operations, with only minor changes expected.

Pinnacle Group is set to purchase Victorian Villa’s business operations and real estate holdings for $1.8 million, according to a letter of intent filed with the state.

Prudential Real Estate Investors Acquires 391-Unit Portfolio 

Prudential Real Estate Investors acquired three assisted living and memory care communities in Tennessee and Connecticut on behalf of Senior Housing Partners (SHP) V for $110 million, the company announced recently. Additional terms of the transaction were not disclosed.

The acquisition is the first investment for the newly launched fund. PREI is the real estate investment and advisory business of Prudential Financial, Inc.

The three Class A communities, which comprise 341,000 square feet across 391 units of recently constructed purpose-built communities for senior housing, include The Hearth at Hendersonville located in Hendersonville, Tenn.; The Hearth at Franklin located in Franklin, Tenn.; and The Hearth at Glastonbury located in Glastonbury, Conn.

“We are pleased to add the Hearth Portfolio, a high-quality senior housing portfolio with strong income potential, as the first investment for our SHP V portfolio,” said Noah Levy, head of PREI’s senior housing business. “We look forward to partnering with Hearth Management, who are proven senior housing operators, to deliver attractive risk-adjusted returns for SHP V investors.”

Hearth Management, which previously owned the property through a joint venture partnership, has been retained as the property manager.

On May 5, PREI announced it had raised $629 million in capital commitments for SHP V, the fifth in a series of dedicated, closed-end funds designed to capitalize on investment opportunities in the growing senior housing industry. The capital raised from U.S. public and corporate pension plan investors exceeded PREI’s $500 million target.

Written by Emily Study