Senior Housing Investments & Transactions: Sienna Senior Living Completes $255 Million Acquisition

Sienna Senior Living Closes $255 Million Senior Housing Portfolio Acquisition

Ontario-based Sienna Senior Living (TSX: SIA) has completed a previously announced acquisition of eight seniors housing residences in British Columbia for the purchase price of $255 million. The deal includes two private-pay independent living communities and six residences with both private pay and funded long term care, independent living and assisted living. The acquisition also includes options to acquire up to 100% interest in two additional, newly built senior living assets and a 50% interest in the current manager and operator of the residences, Pacific Seniors Management General Partnership (PSM). 

The transaction increases Sienna’s retirement suites by 29% and long-term care beds by 11% in its portfolio. The transaction includes the assumption of approximately $135 million in existing mortgages at a weighted interest rate of 3.9% and a weighted average term to maturity of 5.2 years. It also includes the issuance of approximately $10 million of common shares of Sienna to an affiliate of one of the vendors of the portfolio assets and Sienna’s proceeds from a public offering of subscription receipts that was completed on May 6, 2016.

Advertisement

Sienna owns and operates 54 senior living residences in Ontario and British Columbia, comprising nearly 7,900 beds/suites across the continuum of senior housing and care services. The deal added 223 independent living units and 761 long-term care beds.

The sale was closed by Mike Garbers and Cody Tremper from Greystone Real Estate Advisors’ sales advisory team.

Asbury Communities Announces New Affiliation 

Asbury Communities, a not-for-profit system of senior living communities, has welcomed Asbury Place via affiliation. Asbury Place is a not-for-profit continuing care retirement community (CCRC) provider with communities in Maryville and Kingsport, Tennessee. Asbury Communities is headquartered in Germantown, Maryland.

The affiliation expands Asbury Communities to eight locations in four states, serving more than 4,300 seniors and employing more than 3,000 associates.

Asbury Place originally opened in 1956 and now serves approximately 600 seniors and employs 400 associates. Both systems are accredited by the Commission on Accreditation of Rehabilitation Facilities and the Continuing Care Accreditation Commission (CARF-CCAC). Asbury Communities is the 17th largest not-for-profit multi-site senior living organization in the country.

Stratford House to Join Commonwealth Assisted Living

Stratford House, an independent and assisted living facility located in Danville, Virginia, will become the 23rd community owned and operated by Commonwealth Assisted Living, a Charlottesville-based company with 22 senior living communities throughout Virginia.

Financial details of the transaction were not disclosed, though Commonwealth plans to expand services by investing $3.5 million into the community. Stratford House has been in business since 1990, and owned and operated by the non-proft Board of Stratford Housing since 2008. The deal is expected to close in approximately 60 days from the announcement on July 28.

Commonwealth, which expanded into Williamsburg, Virginia, earlier this year, also operates a nearby community in South Boston. The new owner plans to bring new programs to Stratford House, including its Travel the World activity programs, Farm to Table and Today from the Bay dining programs, along with the clinical support services on site. The property will be updated over the next 18 months, including the introduction of Commonwealth’s memory care program, Sweet Memories. 

“We are very fortunate to have found the right company to lead Stratford Housing and ensure it remains a resource to the Danville community in the future,” said James A. Motley, Stratford House board chairman. “This decision did not come lightly, but ultimately after visiting Commonwealth Assisted Living’s communities in Charlottesville and South Boston and interviewing their leadership team, the board gained confidence that this was the right path to ensure our residents continue to receive exemplary service from an organization whose singular focus is on the increasingly complex business.”

ORIX USA Acquires Boston Financial Investment Management

ORIX USA, a capital provider based in Dallas, Texas, has entered into an agreement to acquire Boston Financial Investment Management LP, one of the largest syndicators in the Low Income Housing Tax Credit (LIHTC) industry. The acquisition was completed July 8, 2016.

Boston Financial will be a new separate subsidiary of ORIX USA, headed by Boston Financial’s current CEO, Ken Cutillo. 

Boston Financial has raised more than $10 billion of low-income housing and tax credit equity investments in over 2,200 properties. ORIX USA and its family of companies offer investment capital and asset management services to clients in corporate, real estate, municipal and energy sectors. 

SLIB Sells SNF for $2.9 Million in Texas

Senior Living Investment Brokerage, Inc. (SLIB) has sold a skilled nursing facility (SNF) located in Midland, Texas, for $2,900,000.

The facility holds 106 beds and was purchased by an independent owner/operator located in the Dallas—Fort Worth area. The main building of the facility was built in 1963, and its therapy building was built in 1996.

Matthew Alley, SLIB managing director, facilitated the sale. 

“The Midland transaction allowed for the outgoing operator to sell a facility that was outside its geographic scope,” Alley said. “This deal showed the benefits of SLIB’s local focus as the purchaser is a mid-sized owner/operator located in Texas.”

Blueprint Competes Sale of Nursing Center in All-Cash $6 Million Deal

Blueprint Healthcare Real Estate Advisors has sold Riverbank Nursing Center, a 99-bed SNF, for $6 million in cash. The facility is comprised of 3 private, 15 semi-private and 22 three-bed units. 

The SNF is located in Riverbank, California, and had total revenue and EBITDA of $5.7 million and $240,000, respectively, at the time of sale. The negotiated terms of the sale included an immediate nonrefundable deposit of $1 million and a 10-day period for the locally-based buyer to conduct due diligence and close.

The transaction closed 10 days after the offer was accepted by the seller. Blueprint’s Christopher Hyldahl was the lead advisor on the transaction and was supported by Gideon Orion.

Written by Amy Baxter

Companies featured in this article:

, , , , , , , , ,