Senior Housing Investments & Transactions: ESI, Summit Healthcare REIT

Summit Healthcare REIT, Inc. Expands to New Hampshire

Summit Healthcare REIT, Inc. acquired a 59-bed/50-unit assisted living facility in Littleton, New Hampshire, for a purchase price of $8.5 million in a sale-leaseback transaction on Nov. 17. Summit has assumed the HUD loan collateralized by the property in the amount of about $4.7 million.

The 34,684-square-foot facility is leased to and operated by an affiliate of Riverglen House of Littleton, LLC pursuant to a 15-year triple net lease. Riverglen was developed by the current operator with the goal of developing and managing assisted living communities within town centers located on uniquely attractive sites.

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“Riverglen is a great addition to Summit’s portfolio,” said Kent Eikanas, president and chief operating officer of Summit Healthcare REIT, Inc. “Summit now has ownership in 26 senior housing facilities spanning nine states, and we are proud of the progress we have made toward our goal of expansion and diversification of the REIT.”

Summit is a publicly registered non-traded REIT that is currently concentrating on investing in senior housing real estate located across the United States. The present portfolio involves interests in 26 long-term triple-net leased health care facilities.

Oxton Senior Living Acquires Senior Living Community in Montgomery, Alabama

Oxton Senior Living, a provider of personal care, memory care and assisted living communities in Alabama and Georgia, announced the opening of their newest senior living community in Montgomery, Alabama.

The new assisted living facility, Oxton Place of Montgomery, is scheduled to open in December.

Oxton Senior Living was founded in 2014.

Cushman & Wakefield Senior Housing Sells Assisted Living and Memory Care Community in Central New Jersey

As part of its exclusive representation of AEW Capital Management, Cushman & Wakefield Senior Housing Capital Markets facilitated the sale of The Brookside, a kosher memory care and assisted living community in Freehold, New Jersey.

The 160-unit community was acquired by SilverStone Health Care Real Estate, LLC, a senior housing investment firm that began in 2014 and currently has seven assets in four major MSAs.

Kaplan Development Group, LLC, which owns and/or manages 17 communities across eight states, is set to continue to manage the community.

“We are very excited about the closing of our first affinity community, The Brookside, in affluent Monmouth County, NJ with Kaplan Development and its deep connections to the thriving Jewish communities in Northern New Jersey,” said Stephanie Anderson, principal at SilverStone.

The Cushman & Wakefield team dealing with the transaction included Rick Swartz, head of Cushman & Wakefield’s Senior Housing Capital Markets team, Associate Stuart Kim and Managing Director Jay Wagner.

“Silverstone recognized Brookside’s unique position within the market and moved quickly to conclude the acquisition. This is a great addition to SilverStone’s portfolio,” added Rick Swartz.

Evans Senior Investments Arranges $30 Million Sale of 105-Unit Seniors Housing Community in Minnesota

Evans Senior Investments arranged the sale of The Shores of Lake Phalen, an independent living, assisted living and memory care community in Maplewood, Minnesota.

A non-traded REIT bought the property for $30 million, or $285,714 per unit. The property has 51 assisted living units, 22 independent living units and 32 memory care units.

A national operator is anticipated to step in to manage and operate the facility. The final cap rate of the facility came in at 6.3% on the 2015 budget NOI of $1.9 million.

In September 2014, following a two-year lease up period, the facility successfully established a pattern of stabilized, 90%+ occupancy. 

Evans Senior Investments is a senior housing investment banking firm that has worked with more than 500 senior housing businesses in all 50 states.

Blueprint Announces $18.35 Million Sale of Cottage Living Portfolio in Wisconsin

Blueprint announced the successful sale of the Cottage Living portfolio for $18.35 million, or approximately $150,000 per unit. The Cottage Living portfolio consists of four assisted living and memory care communities located in Appleton, Wisconsin, and Green Bay, Wisconsin.

The portfolio was 92% occupied at the time of the sale, generating about $1.6 million in trailing EBITDAR on an annualized basis.

Blueprint worked with the seller to create a marketing approach strategically targeting just one specific buyer: a private, non-traded REIT based in Southern California. The buyer partnered with a regional, West Coast-based provider new to the Wisconsin market to operate the communities.

Blueprint’s Jacob Gehl served as the lead advisor on the transaction.

Senior Living Investment Brokerage Facilitates Sale of Texas Skilled Nursing Facility for $850,000

Glen Ellyn, Illinois-based Senior Living Investment Brokerage announced that its Senior Living Managing Director Matthew Alley sold an 51-bed skilled nursing facility in Olney, Texas, for $850,000. The buyer was a regional owner-operator located in the Houston region.

“The buyer operates the other property in the market,” Alley said in a prepared statement. “The facility was closed prior to the transaction being completed. It was a deal that made sense for both the buyer and the seller.”

Senior Living Investment Brokerage has completed more than 25% of the publicly announced senior housing transactions over the past four years.

Principle Valuation to Merge with Prism Healthcare Partners

Seniors housing valuation firm Principle Valuation LLC and health care consulting firm Prism Healthcare Partners, both based in Chicago, have announced plans to merge. 

The deal is anticipated to close in January.

“The merging of our two firms provides clients a trusted partner to help tackle a wider range of challenges and improve their bottom line,” said David Shade, president and CEO of Prism. “Joining forces presents opportunities to expand our firms’ market presence, extend and enrich client relationships, and increase the scale of operations and support for our teams.”

Both companies are privately owned and have similar clientele. The two companies have worked together on several projects.

“The fit between Prism and Principle Valuation is natural,” said Timothy Baker, president of Principle Valuation. “Both firms are established and well-respected healthcare provider-focused organizations with complementary cultures and approaches to client service. Merging will enhance our collaborative relationship to the benefit of clients and staff.”

Written by Mary Kate Nelson

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