Senior Housing Investments & Transactions: Berkshire, The Bascom Group

Berkshire Closes Fund to Invest in Senior Housing, Other Sectors

Boston, Massachusetts-based Berkshire Group, a real estate investment management company, has announced the closing of a $161.5 million venture investment vehicle that will target senior housing as well as other real estate sectors.

The BRV Partners Fund I seeks to invest in growing, high-potential real estate-related operating platforms nationwide.

The Fund currently has two active platforms: a hotel investment company in partnership with Lodging Capital Partners, and a fully integrated senior housing development and management business in partnership with Norwood, Massachusetts-based LCB Senior Living.

One-quarter of the fund is allocated to senior housing investments through the partnership with LCB.

“We see that allocation growing as we expand our relationship with LCB in the Northeast and find new senior housing platforms to sponsor in West Coast markets,” Shelley Santulli, senior vice president and head of business development, strategy & administration, tells SHN.
Since starting that platform in March 2013, Berkshire Group has closed on 14 assets (8 developments and 6 acquisitions) across New England, Santulli notes.

Berkshire’s fund will invest across additional platforms targeting operators in the West Coast self-storage, retail, office, industrial, medical office and mixed-use development sectors with experienced teams and strong deal flow.

“BRV Partners Fund I focuses on real estate operating companies with high-quality management teams that are experts in their regions and sectors,” said Larry Ellman, managing director and head of venture investments. “We seek to actively partner with these management teams to set strategy and drive execution, and will add value through providing growth capital and leveraging our team’s diverse real estate operating and investment experience.”

Quail Springs Acquired for $5 Million

Glen Ellyn, Ill.-based Senior Living Investment Brokerage, Inc. recently arranged the $5 million sale of Quail Springs, an 80-unit assisted living and memory care community in Oklahoma City.

The community — which includes 68 assisted living and 12 memory units — was an operational outlier and not producing a positive EBITDA at the time of closing for the seller, Elmcroft/Ventas, according to Senior Living Investment Brokerage.

Summit Senior Living was the buyer, according to news reports.

The transaction was handled by Bradley Clousing and Jeff Binder of Senior Living Investment Brokerage.

Bascom Group Acquires Senior Housing Apartments for $10.4 Million

The Bascom Group, LLC — an Orange County, Calif.-based private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies — recently acquired Boulder Palms, a 183-unit, four-acre, age-restricted community in Las Vegas.

The sale price was $10.35 million. CBRE’s Brandon Smith and Brian Eisendrath arranged debt financing through One West Bank. Doug Schuster and Vittal Ram of Newmark Grubb Knight Frank represented the seller.

The deal is Bascom Group’s eighth acquisition in Las Vegas in the past 20 months. The Nevada city is a “natural destination” for aging Baby Boomers, given low costs of living and numerous choices for entertainment and health care, said Bascom Senior Principal Scott McClave. Acquisitions including Boulder Palms will put Bascom in a strong position in the market, he said.

Boulder Palms is located in close proximity to Union Village, a $1.2 billion integrated health care village development.

Texas Skilled Nursing Portfolio Sells for $30.5 Million

Senior Living Investment Brokerage, based in Glen Ellyn, Illinois, has closed the sale of a 3-property skilled nursing portfolio in Texas comprising 473 beds. The portfolio spans properties in Richardson, Waco and Austin, Texas, and sold for $30.5 million. The Richardson and Waco properties include additional assisted living and independent living units.

The facilities were built in 1986 and 1988 and were purchased by an undisclosed independent owner/operator based in Louisiana.

“The seller believed that this market was the right time to enact its exit strategy. Senior Living was able to garner several offers with four buyers advancing to a final round of bidding,” said Matthew Alley, who completed the transaction for Senior Living Investment Brokerage.

Vita Healthcare Group Acquires Two Pennsylvania SNFs

Vita Healthcare Group, a regional provider of skilled nursing and rehabilitative care services, last week acquired the operations and real estate of two Pennsylvania skilled nursing facilities.

Susquehanna Valley Nursing and Rehabilitation Center of Columbia, Pa. is a 173-bed SNF, while Rheems Nursing and Rehabilitation Center of Elizabethtown, Pa., has 45 SNF beds plus 38 personal care units.

As a result of the transaction, the Rheems facility will be renamed Elizabethtown Nursing and Rehabilitation Center.

Capital Funding Group provided financing for the transaction, of which the acquisition price was not disclosed.  Craig Casagrande from Capital Funding provided financing for the transaction.

Chris Urban of Ambrose Capital Group advised the seller.

The Ensign Group Acquires Calif. Home Health Operations

The Ensign Group (Nasdaq: ENSG), through its home health and hospice subsidiary Cornerstone Healthcare, Inc., last week acquired Managed Care at Home, a Medicare and Medi-Cal certified home health agency serving the San Jose area.

The Milpitas, Calif.-based Managed Care at Home brings not only a group of talented and committed caregivers, but also deep community relationships, said Cornerstone’s President and CEO Daniel Walker in a written statement.

“We are committed to providing life-changing home health services to our patients and their families and look forward to extending that commitment to the residents of San Jose and surrounding communities,” Walker said.

With the acquisition, Cornerstone now owns 10 home health and hospice operations, four home health-only operations, two hospice-only operations and three private-duty home care operations in nine western states.

“Home health services continue to be an essential part of our effort to build the post-acute continuum of care, and we are pleased to expand our offerings into the strategic San Jose market,” said Ensign President and CEO Christopher Christensen in a statement.

Written by Team SHN