Senior Housing Investments & Transactions: First Acquisition for Ventas Spin-Off

Ventas Spin-Off Announces First Acquisition

Care Capital Properties Inc. (NYSE: CCP) has announced the completion of its first acquisition since it officially spun off from Ventas Inc. (NYSE: VTR) last month, a transaction valued at $210 million.

The acquisition includes eight skilled nursing facilities and one assisted living facility in Shreveport, Louisiana, according to a news release. As part of the deal, CCP entered into a long-term triple-net lease with Texas-based operator Senior Care Centers, LLC (SCC), which concurrently acquired the properties’ operations, including those of a rehabilitative therapy company, four hospice agencies and two hospice in-patient units.

“CCP’s strategy is to grow with our existing operators as well as with quality operators who we don’t presently have relationships with,” said CC CCP Executive Vice President and CFO Lori B. Wittman in a statement to SHN. “We believe that the sector is ripe for consolidation, and that CCP is well-positioned with our cost of capital, relationships and experience to be able to take advantage of the opportunities.

CCP purchased the nine-property portfolio for approximately $190 million and made a $20 million five-year, fully amortizing loan to SCC for a total transaction value of $210 million. The initial cash lease yield on the properties is 8.25%, and the loan bears interest at a rate of LIBOR plus 5%, which escalates 25 basis points annually.

The announcement comes just weeks after Ventas officially spun off the majority of its skilled nursing assets into CCP, a new real estate investment trust that began trading last month on the New York Stock Exchange.

The properties, which contain 1,174 beds total at an average occupancy rate of about 88% and a Q-mix of approximately 47%, is being leased to SCC through a 15-year master lease with annual rent escalations and two five-year renewal options. SCC is expected to account for about 16% of CCP’s net operating income on a pro forma basis as a result of the transaction.

The move is SCC’s first outside of Texas, according to a news release.

NHI Acquires 2 Senior Living Communities for $12.7 Million Total

National Health Investors (NYSE: NHI) announced on Aug. 31 the acquisition of two senior living communities in Oregon and Michigan for a combined purchase price of $12.7 million.

Golden Age Senior Living in Portland, Oregon, a 40-bed memory care community at 88% occupancy, was purchased for $6.7 million. It will be leased to NHI’s existing partner Chancellor Health Care for 15 years with renewal options at an initial lease rate of 7.75% plus annual escalators. The GAAP lease yield is 8.9%.

The Brook of Roscommon in Roscommon, Michigan, a 42-unit, primarily private-pay independent and assisted living community at 95% occupancy, will be leased to a new partner, The Brook Retirement Communities, for 10 years with renewal option at an initial lease rate of 7.5% plus annual escalators. The GAAP lease yield is 8.6%.

The transactions were funded with cash on hand and NHI’s revolving credit facility.

“These acquisitions are representative of our desire to continue our practice of partnering with strong regional operators,” NHI’s President and CEO Eric Mendelsohn said in a prepared statement.

Technology Company Inovalon Acquires Avalere Health

Avalere Health, a leading advisory company focused on health care business strategy and public policy that has put out research reports on long-term and senior care, has joined forces with Maryland-based technology company Inovalon.

A company that uses data to drive improved health care performance, Inovalon combines advanced cloud-based data analytics and data-driven intervention platforms to accomplish insight in clinical and quality outcomes, utilization and finances. Through the acquisition, Avalere will have enhanced access to proprietary commercial data and business improvement methods to deliver information to clients.

Avalere will continue to operate from its headquarters in Washington, D.C., with staff located throughout the country. Its executive team also remains in place under the acquisition.

Capitol Seniors Housing Acquires The Summit of Uptown in Park Ridge, IL

Senior living investment firm Capitol Seniors Housing (CSH) announced on Aug. 24 its plans to acquire The Summit of Uptown, a community located in Park Ridge, Illinois.

The acquisition of the currently family-owned and operated senior living community will be effective around Sept. 18. Further details relating to the transaction were not disclosed. CSH employs The Arbor Company, based in Atlanta, to manage its properties, now including The Summit of Uptown.

“We have long wanted to return to Illinois and the Chicago area,” said Scott Stewart, managing partner of CSH, in a news release. “We can’t think of a better place to start than Park Ridge.”

CSH first plans to invest additional resources to update and complete The Summit of Uptown’s renovation, which was started several years ago.

Blueprint Healthcare Real Estate Advisors Coordinates, Closes $11.6 Million Sale of Illinois Assisted Living Facility

Blueprint Healthcare Real Estate Advisors has announced the closing of an $11.6 million sale of an assisted living and memory care community in Collinsville, Illinois.

American Realty Capital Trust III purchased the 66-unit Cedarhurst of Collinsville from a St. Louis-based senior housing developer. The acquisition allows Cedarhurst Living to continue to operate the community on behalf of American Realty.

Blueprint advisors Ben Firestone and Mario Wilson facilitated the transaction on behalf of the clients.

Written by Kourtney Liepelt