Senior Housing Investments & Transactions: NHI’s Purchase Option

NHI Exercises Purchase Option to Acquire Five Senior Living Communities

Real estate investment trust (REIT) National Health Investors, Inc. (NYSE: NHI) has exercised a purchase option to acquire five assisted living and memory care facilities owned and operated by Bickford Senior Living for the purchase price of $87.5 million.

The facilities have a total of 277 units and an average combined occupancy of 92%. The facilities are located in Crystal Lake, Iowa; St. Charles, Missouri; Oswego, Illinois; Omaha, Nebraska; and West Des Moines, Iowa. The combined average age of the communities is 12 years.


NHI has committed $2.4 million for capital expenditures and expansion of the existing facilities, and the funding will be added to the lease base. The lease has an initial term of 15 years plus two five-year renewal options with a 3% escalator. The facilities are not included in the existing joint venture between the parties, according to NHI. NHI’s purchase option on a sixth facility was relinquished.

The acquisition was funded by NHI’s revolving credit facility and was anticipated as part of the company’s most recent financial guidance to the market.

Anthem Memory Care Expands Into Kansas


Lake Oswego, Oregon-based Anthem Memory Care has acquired two new communities in Kansas, the fourth state the memory care operator and developer has entered.

Anthem currently operates four dementia care communities in Denver, one in the greater Chicago area and one in Chico, California. It is developing three more in Illinois and California.

The two new communities are Morningside Place in Overland Park, Kansas, and Chisholm Place in Wichita, Kansas. Both communities were previously operated by JEA Senior Living and had been named Cypress Springs Alzheimer’s and Memory Support Residence. Both communities can accommodate 66 residents each, with a mix of private, semi-private and shared suites.

The acquisition of the Kansas communities was financed by LTC Properties, Inc. (NYSE: LTC), a real estate investment trust (REIT) that primarily invests in seniors housing and health care properties. The transaction represents the sixth and seventh properties LTC has completed or acquired with Anthem.

Anthem is investing $1 million in physical upgrades across the two communities, as well as adding staff, training programs and technology to adapt them to its care approach.

Love & Company to Merge with Hunsicker Senior Living

Love & Company, a national advertising and consulting firm specializing in senior housing, is merging with Hunsicker Senior Living Services to expand its national footprint. Love & Company expects that the merger will add $1 million of annual billing.

The move expands the reach of the Maryland-based Love & Company west of the Mississippi River. The companies have worked together in “different capacities” for more than five years, President and CEO of Love & Company Rob Love said.

The financial terms of the merger were not disclosed and the transition of Hunsicker team members and strategic partners is yet to be determined.

“By bringing Hunsicker Senior Living Services under Love & Company’s umbrella, we have gained some wonderful senior housing sales tools, including an online training system that keeps community sales people operating at their very best,” Love added.

IPA Arranges Sale of New Jersey Facility

Institutional Property Advisors (IPA), a division of Marcus & Millichap, arranged the sale of Kensington Court, a 118-unit, 121-bed assisted living and memory care facility in Trenton Fall, New Jersey.

The facility is made up of two floors across approximately 91,000 square feet. The assisted living portion consists of 42 studio units and 49 one-bedroom apartments. The memory care division is comprised of 26 studio apartments and two one-bedroom units, which house four residents. At the time of sale, the facility was 90% occupied.

The seller of the facility is the TAK Group of Clark, New Jersey, a private developer of seniors housing and medical office buildings. Chicago-based Mark Myers, IPA executive director, and Joshua Jandris, IPA senior director, along with Charles Loccisano, a Marcus & Millichap investment sales professional in New Jersey, represented the TAK Group in the sale. The facility was acquired by an affiliate of the Carlyle Group.

Springpoint Senior Living Completes Acquisition of CCRC From CHI

Springpoint Senior Living, New Jersey’s largest nonprofit senior housing provider, completed its acquisition of a continuing care retirement community (CCRC) in Denville, New Jersey, from Catholic Health Initiatives (CHI). The previously-announced acquisition closed in early May.

Springpoint, which entered into the New Jersey market in 1916, serves nearly 4,000 senior residents and employs more than 1,700 employees in the state.

Foley Represents InnovAge in Conversion, Acquistion

Foley & Lardner LLP provided legal counsel to InnovAge, the nation’s second-largest and Colorado’s largest provider of the Program of All Inclusive Care of the Elderly (PACE), in its conversion from a nonprofit to a for-profit business.

InnovAge was acquired by New York-based private equity firm Welsh, Carson, Anderson & Stowe XII, L.P. as part of the conversion to for-profit status. The fair market value of the transaction was $196 million with an $8 million earn out if InnovAge meets a minimum revenue of $286 million in the fiscal year.

The conversion is the first of its kind in the nation, though the deal maintains the charitable purpose of InnovAge in the public interest and continues its dedication to Colorado charities through an independent charitable foundation called NextFifty.

“This transaction provides InnovAge with the opportunity to expand its operations while attracting investors and continuing to benefit Colorado’s under-served aging population,” Mark Waxman, lead Foley partner on the deal, said in a statement.

SLIB Arranges Sale of Alabama Nursing Home

Senior Living Investment Brokerage, Inc. (SLIB) facilitated the sale of a 117-bed skilled nursing community in Daphne, Alabama. The transaction also included a free-standing medical office building.

The transaction was handled by Brad Clousing and Ryan Saul of SLIB.

Written by Amy Baxter

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