Senior Housing Investments & Transactions: HFF Closes $569 Million Joint Venture

$569 Million Joint Venture Sale of Florida Senior Housing Portfolio Closed by HFF 

Holiday Fenolglio Fowler, L.P. (HFF) closed a $569 million sale of a six-property seniors housing portfolio in Florida, known collectively as Aston Gardens. The sale was a joint venture between health care real estate investment trust (REIT) Welltower Inc. and Canada Pension Plan Investment Borad (CPPID).

HFF exclusively marketed the offering on behalf of Kayne Anderson Real Estate Advisors, the seller of the portfolio. The joint venture between Welltower and CPPIB purchased a 97.5% stake in the portfolio for the value of $555 million. Welltower holds a 55% stake of this partnership, while CPPIB owns the remaining 45%.

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Discovery Senior Living purchased the other 2.5% stake in the portfolio for nearly $15 million.

The HFF team representing the seller was led by senior managing directors Ryan Maconachy and Chad Lavender.

Blueprint Arranges Sales of Two California Seniors Housing Transactions 

Blueprint Healthcare Real Estate Advisors arranged the sale of Keiro Senior Healthcare, a four-property seniors housing portfolio in Los Angeles. The purchase price was listed as $41 million in an all-cash transaction. The 642-unit portfolio was bought by Pacifica Cos., a private investment firm based in San Diego. Christopher Hyldahl led the Blueprint team on the transaction.

The portfolio consists or two skilled nursing facilities holding a total of 398 beds, a 90-bed intermediate care facility and a 154-unit independent living facility. The deal also included a 23,000-square-foot administrative building as well as a 6,000-square-foot auditorium and recreation center on the primary campus. Pacifica will lease the two skilled nursing facilities to Aspen Healthcare.

The Keiro properties focus on serving the Japanese-American seniors demographic in Southern California.

Blueprint’s Christopher Hyldahl was the lead advisor for a second transaction this month and was supported by Gideon orion and Mike Segal.

Blueprint represented the seller in the sale of a 198-unit independent living, assisted living and memory care community in the Sacramento suburb of Roseville, California, for $39 million. The sale price equates to approximately $197,000 per unit and a capitalization rate of 6.8% based on in-place operating income.

The property, The Terraces of Roseville, was purchased by a California-based investment firm. The seller was a New York-based private investment group. Westmont Senior Living will continue to operate the community after the sale.

CareTrust REIT Acquires Four Assisted Living Assets

CareTrust REIT, Inc. (NASDAQ: CTRE) acquired a portfolio of four assisted living assets for an aggregate purchase price of approximately $27 million. The acquisition brings CareTrust REIT into three new states and initiates a new tenant relationship.

Three of the properties, which consist of 366 units and are located in Baltimore, Maryland, Fort Wayne, Indiana, and West Allis, Wisconsin, are being leased back to an entity headed by two of the three key principals in the seller. The transaction allowed the two continuing partners to restructure and consolidate their existing partnership and complete the capitalization of their new company, Priority Life Care, LLC. Priority is headed by the brother-sister team of Severine and Robert Petras, who have been operating the three assets, among others, for several years.

The fourth property is a 74-unit assisted living facility in Fort Myers, Florida. It has been added to CareTrust’s existing master lease with Better Senior Living Consulting, LLC.

The acquisitions were funded using cash on hand of approximately $15 million, with the balance coming from approximately $12 million of funds drawn on CareTrust’s $400 million unsecured revolving credit facility. CareTrust has approximately $96 million of debt currently outstanding on its unsecured line.

SLIB Arranges $20.2 Million Sale of Two Georgia Communities

Senior Living Investment Brokerage (SLIB) arranged the sale of two assisted living communities in Georgia to Omega Healthcare Investors for $20.2 million. The transaction was led by Bradley Clousing of SLIB.

The transaction included a 109-unit community in Valdosta, which sold for $17.5 million, and a 26-unit community in Nashville, which sold for $2.7 million. Both communities are located in South Georgia near the Florida border.

The structure of the transaction is a sale-leaseback deal, and the undisclosed seller will continue to operate both communities.

JCH Arranges SNF Portfolio Sale in California 

JCH Senior Housing Group arranged the sale of Riverside Healthcare Center to Reliant Management Group in a lease with the option to purchase once the facility graduates off the special facility focus list. Reliant’s option price is $12.5 million. The center is a 188-unit skilled nursing facility (SNF) that was one of nine SNF communities throughout California that had been operated by Lifehouse Healthcare Services. The transaction closed February 1, 2016.

Riverside has found itself on the Specialty Facility Focus (SFF) list for 43 months and under a Systems Improvement Agreement (SIA). The terms of the agreement created a 15-year lease with the option to extend for two additional 5-year periods. The facility, located in Riverside, California, sits on nearly 4 acres and has grown to span nearly 40,000 square feet over the years. It was originally constructed in 1969 and provides a full range of nursing care, rehabilitation care, social services and support services.

Shep Roylance, senior vice president of JCH represented both Lifehouse and Reliant Management during the transaction.

Senior Capital Advisors Arranges $15.5 Million Sale of Georgia Community 

Senior Capital Advisors arranged the sale of Harmony at Harbor crossing, a 60-unit assisted living and 75-bed memory care community in Eatonton, Georgia, for $15.5 million. The purchase price equates to $258,333 per unit.

Senior Capital Advisors represented the seller, a locally based developer, and also procured the buyer. New York-based Care Investment Trust and North Miami Beach-based Royal Senior Care formed a joint venture to purchase the asset. In addition to the existing property, the joint venture also purchased an adjacent 1.46-acre parcel with plans to develop it into a 24-unit memory care addition. This property was bought for $525,000, or $21,875 per build able bed.

Harmony at Harbor opened in November 2014 and reached stabilization by the end of 2015. Royal Senior Care assumed management of the property at the closing of the sale. The private pay census was above 90% at the time of closing.

The transaction was the fourth purchase for Royal Senior Care that was led by Bruce Gibson, principal of Senior Capital Advisors.

Springpoint Senior Living Enters Acquisition Agreement with Catholic Health Initiatives

Springpoint Senior Living entered into an agreement with Catholic Health Initiatives (CHI) to acquire Franciscan Oaks, a continuing care retirement community (CCRC) in Danville, New Jersey. The sale is anticipated to close by April 30, 2016, subject to regulatory and Church approvals and financing.

The sale is part of a strategic decision by Colorado-based CHI to divest its New Jersey properties. Springpoint ins a non-profit that has been serving New Jersey for 100 years.

The purchase will enable Springpoint to further expand its portfolio in norther New Jersey, which it first entered in 2013 with the affiliation of Winchester Gardens. Springpoint is New Jersey’s largest non-profit provider of housing and services for seniors, with six CCRCs, 18 affordable housing communities and home care services.

Written by Amy Baxter

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