Senior Housing Investments & Transactions: HFF, NHI

HFF Closes Sale of Seniors Housing Community in Florida

Dallas-based Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of a seniors housing community in Melbourne, Florida, called Sonata at Melbourne.

HFF marketed the community on behalf of the seller. Kayne Anderson Real Estate Advisors, a real estate private equity investor in off-campus student housing, seniors housing and medical office buildings, bought the asset free and clear of existing debt.

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Sonata at Melbourne is 97% leased and has a total of 135 beds across 47 independent living, 54 assisted living and 34 memory care units. 

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

NHI Announces Acquisition and Lease of 2 CCRCs

National Health Investors (NHI) announced the purchase of two entrance-fee continuing care retirement communities (CCRCs) from funds managed by affiliates of East Lake Capital Management for $56.3 million, along with its entrance into a lease transaction with other affiliates of East Lake.

NHI funded the acquisition with available cash and borrowings on the company’s revolving credit facility.

The CCRCs, located in Southbury, Connecticut and Bridgeport, Connecticut, have a total of 460 units. The facilities are sub-leased to affiliates of Watermark Retirement Communities, the current manager.

The 15-year lease has an initial lease rate to East Lake of 7% with yearly escalators of 3.5% in years two through four, and 3% per year thereafter.

The CCRCs have a 2.3 average lease coverage ratio based on the initial NHI lease payment for the last two years. NHI has committed up to an extra $10 million for capital improvements and possible expansion of the communities over the next two years.

IPA Arranges Sale of 158-Bed Seniors Housing Facility in Dallas

Institutional Property Advisors (IPA), a division of Marcus & Millichap serving institutional and private real estate investors, arranged the sale of The Legacy at Preston Hollow, a nonprofit seniors housing community in Dallas.

The Legacy at Preston Hollow, built in 2000, has 45 assisted living beds and 113 skilled nursing beds.

The seller was represented by Mark Myers, Charles Hilding, Joshua Jandris and Ryan Fleming of IPA, along with Marcus & Millichap’s Kelsie Vogds.

Jandris, Myers, Hilding and Fleming procured the buyer, as well.

Arkansas Skilled Nursing Facility Sells for $3.53 Million

FC Encore Properties B Holdco LLC, an affiliate of Formation Capital, bought a 70-unit skilled nursing facility in Little Rock, Arkansas, for $3.53 million.

Diamond Senior Living LLC, an affiliate of GE Capital, sold Chenal Rehabilitation & Healthcare Center. The property is helping secure a $479 million funding agreement with a lending consortium headed by KeyBank of Cleveland, according to Arkansas Business.

RCLAL Buys Two Senior Living Communities in South Dakota

Regional Health, a large operator of hospitals and medical centers in South Dakota, announced it sold two of its senior care facilities to RCLAL, a limited liability corporation.

RCLAL purchased Golden Ridge Regional Senior Care in Lead, South Dakota, and Fairmont Grand Regional Senior Care in Rapid City, South Dakota, for an undisclosed amount.

Northstar Senior Living of Redding, California, will manage the communities, Rapid City Journal reported

Fairmont Grand has 48 assisted living beds as well as two apartments for residents who do not require daily assistance. Golden Ridge has 16 assisted living units and 10 independent living apartments.

SLIB Sells 110-Unit Independent Living Community in Idaho

Matthew Alley, a senior living managing director at Glen Ellyn, Illinois-based Senior Living Investment Brokerage, Inc., sold a 110-unit independent living community in Boise, Idaho, for $3.9 million.

The buyer was a real estate owner based in Canada. The property will be managed by a national operator.

“This transaction showed the depth of marketing that senior living performs on each of its listings,” Alley said. “The purchaser is a group that was relatively unknown, being headquartered in Canada. Combining the local knowledge for each specific market and the international reach that senior living has affords each individual seller the best opportunity to sell his or her property at the top of the market.”

Texas Health Resources Buys Forest Park Fort Worth for $116.5 Million

Arlington, Texas-based Texas Health Resources, which owns 24 hospitals in North Texas, bought Forest Park Medical Center in Fort Worth, Texas, for $116.5 million in a bankruptcy auction.

Texas Health’s bid was $1 million higher than the second-best offer, according to Deirdre Ruckman, the attorney representing Sabra Health Care REIT, the Star-Telegram reported. Sabra Healthcare REIT acted as the secured lender for the 150,000-square-foot hospital, as well as the adjacent 80,000-square-foot office building and parking garage.

The owner of the 54-bed Forest Park Medical Center Fort Worth filed for Chapter 11 bankruptcy in late 2015. Sabra Texas Holdings then posted the property for foreclosure after the hospital failed to make an interest payment on a $66.8 million construction loan.

Written by Mary Kate Nelson

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