Senior Housing Investments & Transactions: Greystone, Cushman & Wakefield

Greystone Real Estate Advisors Closes $44.8 Million Indiana Portfolio

Greystone Real Estate Advisors, the seniors housing and multifamily real estate services group of financial and private investment group Greystone, has closed the $44.75 million sale of a two-property seniors housing portfolio in Indiana. The properties were sold to an undisclosed private equity investment fund on December 9, 2015, by Leo Brown Group, a privately-held company based in Indianapolis. 

The properties, Traditions at Reagan Park and Traditions at Solana, are newly-constructed independent living, assisted living and memory care communities with 81 units and 105 units, respectively. Both properties are located in the Indianapolis metropolitan area and boast amenities including restaurant-style dining, a beauty salon, a chapel, 24-hour nursing services, a theater, a fitness center and walking paths. 

Radiant Buys $6 Million Community in Oregon

Radiant Senior Living, a Portland, Oregon-based seniors housing owner and operator, has acquired Emerald Gardens of Woodburn. The community is a 44-unit assisted living and memory care facility approximately 30 miles south of Portland. The purchase price was named at $6 million.

The community was originally built in 1987 and was most recently renovated in 2013 to add 12 units of secured memory care. Within each unit, residents have access to a 24-hour emergency call system with central monitoring. 

The transaction was arranged by Shep Rylance and James Duffy of JCH Senior Housing Group. The seller was not disclosed. 

Senior Living Investment Brokerage Sells 3 SNFs

Ryan Saul and Patrick Burge of Senior Living Investment Brokerage Inc. facilitated the sale of three skilled nursing facilities—one in Colorado and two in Utah.

The Colorado property, Crown Crest of Parker, was sold for $13.5 million and consists of 154 beds. It was 70% occupied at the time of the sale. Kola Regional Care and Rehab, a 120-bed facility located in Cedar City, Utah, was sold for $9.14 million with an occupancy rate of 58%. Kolob Care, a St. George, Utah, facility with 180 beds was also sold for $9.14 million and had an occupancy rate of 47% at the time of sale.

The seller is a private owner based in Illinois that is looking to exit the seniors housing business. The seller noted that operating from Illinois proved to be too difficult as the skilled nursing market has become more competitive in Utah and Colorado. The buyer is a real estate owner in the Midwest that leased the communities to experienced operators within Colorado and Utah. 

The SNF portfolio was sold for a total of $31.78 million with 454 beds overall, or $70,000 per bed. The cap rate on the transactions was 8.7%.

Marcus & Millichap Arranges Sale of Pennsylvania Facility

Joshua Jandris, Mark Myers, Charles Hilding and Andrew Hilding of the Institutional Property Advisors of Marcus & Millichap have arranged the sale of an independent living and personal care facility in Palmyra, Pennsylvania. The transaction was arranged on behalf of AMC Delancey Group, Inc. and Heritage Senior Living. The transaction closed on February 1, 2016.

The facility, Traditions of Hersey, is a 120-unit facility located 18 miles east of Harrisburg, Pennsylvania. It was built in 2007 and acquired by Griffin-American Healthcare REIT III, Inc. The facility was 93% occupied at the time of sale. Heritage Senior Living continues to manage the property. 

Cushman & Wakefield Arranges Sale of The Heritage at Brentwood

Cushman & Wakefield, a global commercial real estate services firm, has arranged the sale of a an entrance-fee based continuing care retirement community (CCRC) in Brentwood, Tennessee, a suburb of Nashville. Cushman & Wakefield’s Senior Housing Capital Markets team represented Westminster Capital in the sale of the CCRC, The Heritage at Brentwood, a 283-unit property. 

Heritage Investment Partners purchased a 70% majority stake in the property on February 1 from Westminster Capital. Heritage Investment Partners replaced Westminster’s ownership position to form a new partnership with Warpath Green and LCS. The debt in the transaction was financed through a loan from the senior living community’s new local banking partner, Pinnacle Financial Partners. The property recapitalization was led by a previous Nashville-based minority owner who was joined by new investors. The property will continue to be managed by Life Care Services, the management arm of LCS.

The facility was originally built in 2007 by Westminster, Harpeth Green and LCS. The community spans nearly 50 acres and consists of 217 independent living units, a fully licensed skilled nursing facility with 66 units and a stand-alone adult day care center. 

An additional phase of development is expected to commence with sales in 2016, which will include 97 additional independent living apartments and new amenity features. 

The Cushman & Wakefield Boston team involved in the transaction included executive managing director Richard Swartz, managing director Jay Wagner, senior director Aaron Rosenzqeig and associates Stuart Kim and Caryn Miller. 

Minnesota Senior Care Community Sells for $31 Million 

The Waters Senior Living, a Minnesota-based senior housing owner and operator with seven communities, has purchased a seniors housing complex in Eden Prairie, Minnesota, for $30.75 million. The Waters is the fifth-largest operator of senior housing in the Twin Cities. 

The property, The Colony, consists of 165 units and was bought from St. Paul-based non-profit Senior Care Communities. The property is three stories and was originally built in 2002. 

Waters managed the property prior to the sale and continues to operate another 700 units owned by Senior Care Communities. The deal brings Waters’ portfolio to above 800 units in the Twin Cities metropolitan area, with another 1,000-plus properties under management. 

Southern Plains Care Center Sells for $10.4 Million

Southern Plains Alzheimer’s Special Care Center, a senior living facility in Tulsa, Oklahoma, has sold for $10.4 million. 

JEA Senior Living of Vancouver, Washington—the previous owners—sold the property to Virtus Real Estate Management of Austin, Texas. Virtus Real Estate Management has a combined acquisition value of $2.5 billion across its commercial properties and investments funds.