Senior Housing Investments & Transactions: Five Star Transfers to Nasdaq

ABHOW, be.group Complete Merger

American Baptist Homes of the West (ABHOW) and be.group have completed their merger and will now be part of holding company Cornerstone Affiliates.

The previously announced deal was approved by regulators early last month. The merged companies form California’s largest nonprofit senior living provider and the nation’s sixth-largest such organization. The combined organization provides care, housing, assisted living services and memory support to nearly 10,000 seniors in 84 assisted living communities in California, Arizona, Nevada, Washington, Oklahoma and Idaho.

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The new entity announced its leadership team last week. ABHOW has $1 billion in assets and $250 million in annual revenue as of mid-2015, while be.group had $467 million in assets and $110 million in revenue.

Five Star, Senior Housing Properties Trust Transfer to Nasdaq Stock Market

Five Star Quality Care, Inc. (Nasdaq: FVE), a senior living and health care services company that owns, leases and manages senior living communities, and Senior Housing Properties Trust (Nasdaq: SNH), a senior housing real estate investment trust (REIT) have transitioned their listings of common shares to the Nasdaq Stock Market from the New York Stock Exchange (NYSE).

The transition was done by The RMR Group Inc. (Nasdaq: RMR), a holding company that manages Five Star and SNH. Most of RMR’s business is conducted by The RMR Group LLC, an alternative asset management company that primarily provides management services to publicly traded REITs and real estate operating companies. The company has approximately $22 billion of real estate assets under its management as of March 31, 2016. Its other companies that also transitioned to Nasdaq include: Government Properties Income Trust (Nasdaq: GOV), Hospitality Properties Trust( Nasdaq: HPT), Select Income REIT (Nasdaq: SIR), and TravelCenters of America LLC (Nasdaq: TA).

“The RMR Group managed companies are pleased to announce the transfer of their securities to the Nasdaq,” Adam Portnoy, president and CEO of The RMR Group Inc., said in a statement. “We believe the Nasdaq will provide our managed companies with efficient trading and other high quality services on a cost effective basis.”

LCS and HCP Win Auction Bid for Florida Community

LCS, a national senior housing and CCRC operator, announced the Life Care Companies, LLC and its joint venture partner HCP, Inc. (NYSE: HCP), a senior housing REIT, have won a bid for a senior living community located in St. Augustine, Florida, in an auction June 2.

The community, Glenmoor, has 157 independent living and 36 assisted living residents, as well as 30 private nursing suites. LCS did not disclose details of the transaction, which remained subject to final regulatory approval.

“We are very excited to partner with LCS on this transaction,” Justin Hutchens, chief investment officer of HCP, said in a statement. “We view LCS as a leading national operator of senior housing communities and CCRCs, with a long track record of delivering market leading services and care to seniors.”

Greystone Closes $6.5 Million Senior Housing Sale in Ohio

Greystone Real Estate Advisors, the senior housing sales and acquisitions services team of real estate lending, investment and advisory company Greystone, closed the sale of Woodside Village in Bedford, Ohio, for $6.5 million on June 1.

The property, a 211-unit assisted living and memory care community, was purchased by Pritok Capital from a public health care REIT. MB Financial served as the lender on the transaction, and Greyson represented the seller. Pritok Capital is a private equity group based in Skokie, Illinois, and has an expanding portfolio of 10 senior care assets. Woodside Village is the second assisted and retirement living property in the Midwest operated by HS Enterprises.

The community was built in 1988 and sits on 20 acres in the Cleveland area. The facility is 164,920 square feet with an arts and crafts center, beauty and barber shop, billiard lounge, general store and library. The majority of the units include a patio or balcony.

Evans Senior Investments Sells 3 West Cost SNFs, 1 Louisiana Seniors Housing Community

Grace Healthcare has completed the sale of three skilled nursing facilities (SNFs) on the West Coast. The sale removed the company’s presence from Arizona and California. Evans Senior Investments (ESI), a senior housing investment firm, represented Grace Healthcare in all three transactions.

Two communities in California, Grace Healthcare of Moraga and Grace Healthcare of Pleasant Hill, were sold to a California-based investor for $8.24 million, or $82,400 per bed. The communities will be leased to an operator with a presence in the state. The Arizona community, Grace Healthcare of Phoenix, was sold to a regional group for $6.46 million, or $64,600 per bed.

Grace Healthcare of Moraga is located 20 miles east of San Francisco and features 49 beds on 1.9 acres and holds private and semi-private rooms. The community was built in 1965, is 12,484 square feet and offers dementia care and rehabilitative care. Grace Healthcare of Pleasant Hill is located 10 miles east of the Moraga community, and consists of 51 beds. The community was built in 1958 and underwent renovations in 2012. The community sits on 1 acre and holds private and semi-private rooms.

Grace Healthcare of Phoenix spans 26,621 square feet over three acres and has 100 beds in semi-private rooms.

ESI also represented the seller in the sale of The Trace at Claiborne Hill, a seniors housing facility located in Covington, Louisiana. The community was sold to a national private equity company for $22.2 million, or $236,170 per unit. The seller was a regional operator.

The Trace at Claiborne Hill was built in 2009 and has 94 total units—70 independent/assisted living units, with 24 memory care units added in 2014. At the time of the sale, the community was 99% occupied. The facility boasts a movie theatre, library, piano lounge, private chapel and onsite coffee and juice bar.

The facility sits on 2.73 acres and is 84,961 square feet. It is located 40 miles north of New Orleans in St. Tammany Parish. The final cap rate of the facility was 7% on the trailing six months of NOI of $1.56 million.

SLIB Sells 4 Communities

Senior Living Investment Brokerage, Inc. (SLIB) closed the sale of a memory care facility in Oroville, California for $5.95 million, two assisted living communities in South Dakota for $1.98 million and a SNF in Georgia for $3.7 million.

The Oroville community, Larkspur Lodge, is located 70 miles north of Sacramento and 20 miles south of Chico, California. The community consists of a 33-unit, 55-bed facility and a three-unit, five-bed smaller facility next door. The total transaction included 36 unites and 60 beds. The community covers 2.5 acres and has an additional 2.5 acres for future expansion.

The seller of the community is a local owner-operator who is retiring from the business. The buyer is a local owner-operator who owns two facilities nearby and is looking to expand. The transaction was handled by Jason Punzel of SLIB.

Funzel also handled the transaction of two assisted living communities located in Rapid City and Lead, South Dakota.

Fairmount Ground Senior Care is located in Rapid City and consists of 60 units. It is approximately 25,663 square feet and is situated on 1.911 acres. Golden Ridge Senior Care is located in Lead and holds 26 units. The community is approximately 15,800 square feet and sits on 4.729 acres. Both communities are owned by Regional Health Network, the local hospital network.

The buyer is a private equity group located in Southern California. Northstar Senior Living has been hired to manage the facilities.

Brad Clousing and Ryan Saul of SLIB handled another recent transaction: the sale of a 213-bed skilled nursing community located in Augusta, Georgia. The community was sold for $3.7 million as directed by a court-ordered bankruptcy sale.

Blueprint Sells Oregon Assisted Living Facility

Blueprint Healthcare Real Estate Advisors sold a 36-unit assisted living property in Brookings, Oregon, for the purchase price of $1.05 million, or $30,000 per unit. Blueprint conducted the sales process on behalf of a national owner-operator that sought to strategically divest several non-core assets.

The community, Macklyn Place, was originally included as part of a larger portfolio offering in conjunction with other non-core seniors housing assets in the region. The asset was ultimately acquired separately by a regional operator/developer based in Oregon. The buyer is likely to convert the community to offer higher levels of care, including memory care services.

Ben Firestone, Jacob Gehl and Trent Gherardini were the lead advisors on the transaction.

Written by Amy Baxter

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