Senior Housing Investments & Transactions: CareTrust REIT Expands Florida Footprint

Health Care REIT Purchases Fort Collins, Colorado Senior Living Facility for $56.7 Million

Health Care REIT (NYSE: HCN) on Aug. 31 purchased a senior living community in southeast Fort Collins, Colorado for $56.7 million.

MacKenzie Place is a senior living community that offers independent living, assisted living and memory care that opened in 2008. It was purchased from LB-MH Oakridge LLC, a Seattle-based company, and was operated by Leisure Care at the time of the sale. It’s unclear whether management will change as a result of the transaction.

The purchase of MacKenzie Place is the HCN’s eighth senior housing transaction in Colorado. HCN also owns two rehabilitation centers and two outpatient medical centers in the state.

Chartwell Retirement Residences Acquires 3 Ontario Properties for $170.7 Million Total

Chartwell Retirement Residences announced on Sept. 14 the acquisition of three Ontario retirement residences for a total of $170.7 million from three separate groups of vendors affiliated with MTCO Holdings Inc.

The Village of Oxford Gardens, located in Woodstock, is comprised of 185 suites, 88% of which are occupied. Montgomery Village Seniors Community, located in Orangeville, is made up of 136 suites that are 93% occupied; included in this purchase is $1 million related to excess land for development of up to 69 additional suites, as well as a deferred payment of $1.85 million due three years after closing. Harwood Place Seniors Community is a 126-suite facility situated in Ajax provided Chartwell 24 months of occupancy support of up to $2.5 million in accordance with the acquisition.

Chartwell estimates the first year unlettered yield on this transaction to be 6.1%, with the stabilized yield estimated at 6.6%.

Chartwell is an unincorporated, open-ended trust which indirectly owns and operates seniors housing communities throughout Canada.

CareTrust REIT Announces $5.4 Million Acquisition of Assisted Living Facility in Pensacola, Florida

CareTrust REIT, Inc. (Nasdaq: CTRE) announced on Sept. 2 its $5.4 million acquisition of Asbury Place Assisted Living in Pensacola, Florida.

The facility, comprised of 38 units for secured memory care and assisted living, will be leased to and operated by Better Senior Living Consulting, LLC as part of a master lease that has an initial 15-year term with two five-year extensions and CPI-based rent escalators.. The lease also includes CareTrust’s recently acquired Bristol Court Assisted Living, a 70-unit memory care facility in St. Petersburg, Florida.

The Asbury Place transaction has a going-in cash yield of 8.5% and produces initial annual rental revenue of $459,000.

“We’re thrilled to have a capital partner like CareTrust to help us grow our portfolio of secured memory care and assisted living facilities in Florida,” said Lynn Anderson, Better Senior Living’s CEO, in a news release. “Pensacola is a great market, and Asbury Place is a well-run facility that fills in a key geography for our growing footprint.”

Better Senior Living is a Florida-based senior living and memory care operations company that facilitates nine seniors housing facilities throughout the state. CareTrust is a real estate investment trust (REIT) that currently has 105 net-leased health care properties and operates three seniors housing properties in 12 states.

Evans Senior Investments Facilitates Sales of Senior Living Communities in Georgia, Michigan, Oregon

Evans Senior Investments (ESI) has facilitated the sales of three senior living communities in Georgia, Michigan and Oregon for $4.85 million, $6 million and $10.2 million, respectively.

The Brook of Roscommon, an independent and assisted living community located in Northern Michigan, was sold in a sale-leaseback transaction. The sellers, who currently own and operate several facilities in the area, remain as The Brook of Roscommon’s operator. The lease yield on the sale was 7.5%, and the lease coverage ration based on the trailing 12 months of NOI of $554,716 was 1.23x.

Franciscan Woods, a 60-unit assisted living facility in Georgia, was sold at premium market value, despite a low 2.5% NOI margin in the trailing 12-month period due to heavy staffing and being operated by a hospital. The cap rate of the facility was 5.7%, while the trailing 12 months NOI was $39,136.

Ocean Park, a memory care facility located along the Oregon coast built by a family-based owner-operator, has a resident base dominated by Medicare, with only 17 private pay residents of 55 total. It was purchased by a non-traded REIT that partnered with a regional operator. The final cap rate of the facility was 7.2% on the trailing 12 months of NOI of $739,000.

ESI is a senior housing investment banking firm that works to maximize profitability for senior housing business owners.

JCH Consulting Group Facilitates Sale of Meridian Foresight Management’s Northern California Portfolio, Country Villa Health Services’ 19 Facilities

JCH Consulting Group has announced its facilitation of two transactions: the sale of Meridian Foresight Management’s Northern California portfolio to the Providence Group, and Country Villa Health Services’ 19 facilities in Southern California.

The Meridian portfolio consists of seven skilled nursing facilities in Northern California and one senior living facility. As a result of the sale, Providence Group takes over operations of six of the Northern California facilities, as well as the senior living property, to expand its holding to 25 health care communities in California, Kentucky and Pennsylvania.

Providence, well known for partnering with hospitals, physician groups, accountable care organizations and home health agencies, plans to offer additional amenities and services to the residents of the eight acquired facilities. The details of the sale and new long-term triple net leases weren’t disclosed.

Country Villa Health Services’ 18 skilled nursing facilities and one assisted living facility were acquired for a $62 million purchase price through a sales hearing and bankruptcy auction by Shlomo Rechnitz, the founder of the medical supply company Twin Med LLC and the owner of Bruis & Lockport Services, the largest nursing home provider in California.

Seven of Country Villa’s skilled nursing facilities were made available with new leases, with an initial lease term of 15 years follow by three five-year options and a fourth four-year option

Senior Living Investment Brokerage Conducts $1.2 Million Sale of Skilled Nursing Facility in Texas, $7 Million Sale of Georgia Community

Senior Living Investment Brokerage, Inc. announced its facilitation of the sale of an 81-unit personal care community in Macon, Georgia for $7 million and of skilled nursing facility in Leonard, Texas for $1.2 million.

The skilled nursing facility, which consists of 79 beds, was purchased by a non-profit looking to expand its senior housing presence. Blair House, the Georgia property, is located near two medical facilities and is expected to continue to be an attractive, convenient option for local residents following the sale. Further details regarding the transactions were not disclosed.

Senior Living represents buyers and sellers in confidential senior housing transactions and has sold more than 500 communities nationwide since 1970.

Written by Kourtney Liepelt