Senior Housing Investments & Transactions: Ziegler, Greystone

Ziegler Arranges Sale of Six-Property Portfolio to Griffin-American Healthcare REIT III

Chicago-based specialty investment bank Ziegler recently announced the closing of the sale of the Brentwood Portfolio on behalf of SLCM, LLC., a developer and provider of senior housing in Indiana and Michigan.

The portfolio, which was purchased by Griffin-American Healthcare REIT III under a RIDEA structure, totals 653 rental units across six senior living properties located in “mid-sized markets” throughout Northern Indiana and Southwestern Michigan, Ziegler stated in a release on the transaction.

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Previously, the portfolio was managed by Brookdale Senior Living (NYSE: BKD). 

Ziegler served as the exclusive advisor to SLCM in the sale of the portfolio, which comprised over 464 licensed assisted living and memory care units, 159 independent living apartments and 30 villas. 

“Ziegler was able to identify a number of companies interested in the Brentwood Portfolio, and secured multiple proposals to acquire the portfolio,” Ziegler stated in a release. “Ultimately, SLCM chose Griffin-American Healthcare REIT III as their buyer.”

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The transaction closed in three phases as Ziegler assisted in navigating disparate state licensure processes, operator transition and a Fannie Mae loan assumption.

Additionally, Ziegler also introduced Griffin-American Healthcare REIT III to Ridgeline Management Company, which will provide third-party management services. Ridgeline, which is based in West Linn, Ore., manages 21 independent living, assisted living and memory care communities in nine states throughout the U.S.

Greystone Real Estate Advisors Closes Sale of Ga. Senior Housing Portfolio

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New York-based real estate lending, investment and advisory company Greystone this week announced that its Real Estate Advisors Group closed the sale of two senior housing communities in the Atlanta metropolitan region for $10.8 million.

The 90-unit portfolio, sold by Pacifica Companies and purchased by a publicly-traded REIT, includes Dunwoody Senior Living, which is a 58-unit assisted living and memory care community in Dunwoody, Ga.; and Roswell Senior Living, a 32-unit memory care facility in Roswell, Ga.

Leading the sale was Mike Garbers, managing director of Greystone Real Estate Advisors. 

“With such strong locations for both communities, and in combination with their new and renovated units and amenities, this portfolio of assisted living and memory care properties garnered multiple offers from a variety of interested buyers,” Garbers said in a written statement. 

Cushman & Wakefield Brokers $2 Million Sale of Facility in N.H.

Cushman & Wakefield of New Hampshire completed the sale of a former manufacturing facility on behalf of Nashua RE Holdings LLC to National Development for $2 million, reports NEREJ. 

The Cushman & Wakefield of New Hampshire team, led by Executive Director Thomas Farrelly, Senior Director Denis C.J. Dancoes II and Associate Director Sue Ann Johnson, oversaw the transaction, which included the 8.51-acre development site.

The site, located at 575 Amherst St. in Nashua, is a 51,885-square-foot former manufacturing facility that will be redeveloped as Bridges by EPOCH at Nashua, a 54-bed assisted living and memory care community that will open in the fall of 2016.

575 Amherst Street represents prime real estate just off Nashua’s coveted commercial hub, Amherst Street/Route 101A, said Farrelly in the NEREJ article. 

“It offers an excellent opportunity for repositioning into an assisted living/memory care facility, where it will benefit from its superior accessibility, located at a heavily-traveled, lighted intersection with signage opportunities,” he said.

Lancaster Pollard Advises on $27.5 Million Affordable Senior Housing Sale

Lancaster Pollard recently advised on the sale of Northgate Terrace, an affordable senior housing property in Oakland, Calif., for $27.5 billion to WNC, a national real estate investor. 

A Sec. 202 property, Northgate Terrace consists of 180 units and 20 one-bedroom units. Originally constructed in 1969, the property was aging and in need of “substantial rehabilitation,” Lancaster Pollard stated in a release on the transaction.

“Facing the prospect of significantly rehabilitating the property, ownership decided it would prefer to sell the property rather than undertake the rehabilitation process,” the company said.

WNC will perform a complete renovation of the existing property at a total cost of $47 million, which includes the acquisition and comprehensive renovation that will create a new facade, “seismic upgrades,” general plumbing improvements, a new community room, medical exam space, as well as upgrades to the building’s elevators. 

All of the property’s units will also receive new appliances, lighting, fixtures, cabinets and other upgrades as a result of the renovation.

Lancaster Pollard put together a sell-side M&A package and solicited targeted and competitive bids for the purchase of the property.

Since Northgate Terrace was originally built for retired graphic arts union employees and currently has existing union contracts with several employees, LP sought a solution that would keep all union employees as well as its resident council in place.  

WNC Closes on $75 million Calif. Senior Housing, Family Fund

In other WNC news, the company announced that it recently closed WNC Institutional Tax Credit Fund X California Series 13, LP, a $75 million institutional low-income housing tax credit (LIHTC) fund. 

The fund, which includes seven investors, will acquire nine properties in California.

Comprised of senior housing and family properties, WNC Cal 13 includes 978 units of affordable housing in both suburban and urban parts of Calif. Compared to previous funds in the WNC California series, WNC Cal 13 is the company’s second-largest equity raise thus far. 

The fund includes Casa de Seniors in San Clemente, a 72-unit senior housing rehabilitation project located one mile from the Pacific Ocean.

In addition, 80% of the properties had repeat developers and six of the seven investors in the fund had previously participated in WNC funds.

To date, WNC has closed a total of 18 Calif. funds that have acquired more than 250 properties in 46 counties. 

“The closing of the most recent WNC California Series fund is a testament to our experience in the LIHTC market and our dedication to providing affordable housing to the state’s low income seniors and families,” said WNC Executive Vice President and Chief Operating Officer Michael Gaber in a written statement.

With the closing of Corp 40 in the spring and the closing of WNC Cal 13, WNC’s cumulative portfolio value has now surpassed the $7 billion benchmark.

Evans Senior Investments Facilitates $13.25 Million Sale of Ohio Community

Chicago-based Evans Senior Investments (ESI) announced this week that it facilitated the sale of Whispering Pines Village, an independent living and assisted living community in Columbiana, Ohio, which sold for $13.25 million, or $194,852 per unit.

Located in Northeast Ohio, Whispering Pines Village consists of 12 independent living villas and 56 assisted living units. The community opened in 2001 and was built as a Class A asset with all private rooms, large common spaces and expansive square footage.

The independent living villas at the facility were built between 2004 and 2008. Despite its rural location, Whispering Pines Village’s reputation for care in the community allowed the facility to achieve a combined occupancy of 94% at the time of the transaction.

“As Whispering Pines Village is the current owner’s only facility, an opportunity existed for a buyer with a portfolio of facilities to utilize economies of scale to further improve margins as Whispering Pines Village is folded into their portfolio,” said Jason Stroiman, president and founder of ESI. 

ESI showcased the property to a select group of buyers and procured a dozen letters of intent from private REITs, public REITs and private equity firms. After analyzing deal terms and pricing, ESI arranged confidential tours with a select group of buyers. 

In a competitive bidding process, a national operator emerged as the winner, though its name is undisclosed. 

The final cap rate of the facility was 7.2% on the trailing 12 months NOI of $953,000, according to ESI.

Written by Jason Oliva

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