Senior Housing Investments & Transactions: Ventas Completes $1.5 Billion Portfolio

Ventas Completes Acquisition of $1.5 Billion Life Sciences Portfolio

Health care real estate investment trust (REIT) Ventas Inc. (NYSE: VTR) completed its previously announced acquisition of a $1.5 billion portfolio of Wexford Science & Technology, LLC life sciences buildings. Ventas acquired the properties from affiliates of Blackstone Real Estate Partners VIII L.P., completed Sept. 1.

The portfolio includes 23 operating properties encompassing 4.1 million square feet, which were 97% leased. Ventas also acquired two development assets pre-leased to Duke University and Wake Forest University that are expected to produce a stabilized unlettered yield of approximately 7.5%. Also included in the acquisition were development sites principally contiguous to existing assets—two present near-term development opportunities.

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“We are pleased to complete this accretive transaction, which marks Ventas’ entry into the attractive life science business and provides more diversified, reliable income and growth for our shareholders,” Debra A. Cafaro, Ventas CEO and chairman, said in a news release. “With attractive real estate leased by top universities, academic medical centers and research companies, and a strategic partnership with leading developer Wexford, the transaction adds high quality properties and establishes a new platform for growth.”

Wexford will continue to manage the portfolio. Under the acquisition terms, Ventas entered into a long-term management and pipeline agreement with Wexford, with Ventas maintaining exclusive rights to jointly develop future projects with Wexford, which will be independently owned and operated by its existing management team.

Prestige Care Acquires Four Senior Living Communities

Prestige Care, a senior living, skilled nursing and rehabilitation care provider, entered an agreement to acquire four assisted living communities, located in Washington and Idaho. The communities are owned by Carl Campbell.

Prestige will assume ownership and management of the communities. The portfolio includes communities in Wenatchee, Washington; East Wenatchee, Washington; Ellensburg, Washington; and Nampa, Idaho. Prestige will also rename the communities, which are a mix of independent living, assisted living and skilled nursing facilities.

“Welcoming these Campbell communities into our Prestige family is both an honor and a wonderful fit for our organization’s value-driven approach to quality care and service for seniors and their families,” Harold Delamarter, founding partner and CEO of Prestige Care, said in a news release.

The transaction is expected to be completed this fall.

Genesis Healthcare to Sell Four Assisted Living Facilities

Genesis Healthcare, a Pennsylvania-based health care services provider with more than 500 skilled nursing and senior living communities nationwide, is selling four assisted living communities in West Virginia for a total of nearly $22 million.

The facilities are four of the five communities owned by Genesis in the state of West Virginia and include Quarry Manor in Charleston; Regency Place in Scott Depot; The Seasons in Lewisburg; and The Summit at Hidden Valley in Oak Hill. The Seasons will sell for $3.5 million; The Summit will sell for $1.5 million; Regency place will sell for $8.175 million; and Quarry Manor will sell for $8 million.

Genesis made the decision to divest the assets in June, in addition to other facilities located in Delaware and Pennsylvania, according to The Charlestown Gazette-Mail.

The communities are being purchased by newly-created limited-liability companies linked to Enlivant Healthcare, a national senior living company based in Chicago, Illinois, according to the news outlet.

Once the deal is completed, Genesis will only operate one remaining assisted living facility in the state of West Virginia—Wishing Well Assisted Living Community in Fairmont.

Joint Venture Acquires New York and Washington DC Properties for $54.5 Million

Two properties, one in Washington D.C. and one in Yorktown Heights, New York, have been acquired by a joint venture between Blue Vista Capital Management LLC and Meridian Senior Living LLC for $54.5 million. The joint venture purchased the properties free and clear of existing debt.

The Washington D.C. property, Chevy Chase House, includes 131 independent living, assisted living and respite care units with studio, one- and two-bedroom floor plans averaging more than 600 square feet each. The property is close to other medical care providers, as is the Yorktown Heights property, Country House. Country House includes 88 independent living, assisted living and respite care units.

The seller was Holladay Corporation, a Washington D.C.-based real estate developer and owner. HFF, led by senior managing director Ryan Maconachy and Chad Lavender, marketed the asset on behalf of Holladay. Blue Vista acquired the assets within their BVREP IV fund vehicle, a successor fund of the firm’s middle market real estate fund series.

NHI Purchases Oregon Communities for $36.6 Million

National Health Investors (NYSE: NHI) purchased three senior living facilities in McMinnville, Oregon, for the price of $36.6 million. The facilities are leased to Chancellor Health Care, LLC in a lease term of 15 years with an annual lease rate of 7.5% plus annual fixed escalators.

The acquisition was funded through NHI’s revolving credit facility. The facilities include 134 units in total and 181 beds, according to Evans Senior Investments, which represented the seller in the transaction. With this transaction, NHI now leases seven senior hosing facilities to Chancellor. Two of the facilities are located on neighboring lots, while all three are located within 4 miles of each other.

The first facility, which opened in 2008 and was recently expanded in 2015, consists of two buildings and includes 16 independent living units, 29 assisted living units and 54 memory care units. The second facility opened in 2015 and is comprised of 35 memory care units.

“The addition of these newer facilities to our portfolio strengths NHI’s presence in the northwest region and provides us an opportunity to expand our successful relationship with Chancellor Health Care,” NHI President and CEO Eric Mendelsohn said in a statement.

The seller of the facilities was FirCrest Community Living, an independent owner and operator in the Pacific Northwest. Evans Senior Investments represented FirCrest in the transaction.

Lutheran Community at Telford and Community at Rockhill to Affiliate

The Lutheran Community at Telford, a Telford, Pennsylvania-based senior living community, and the Community at Rockhill, a residential community for older adults in Bucks County, Pennsylvania, have announced their plans to affiliate, pending official approval on Oct. 13.

Pending approval, a new parent company will be formed to be governed by a board of directors comprised of each community’s existing board structures. The parent company will be led by CEO of Lutheran Community, Daniel McKee. The Community of Rockhill’s CEO Karen Lehman will remain with Rockhill through the transition until later this fall, when she plans to become a consultant. Each community will retain its name, location and independent identity. The name of the parent company has yet to be determined.

The organizations are situated nearly a mile and a half apart and are both nonprofit, faith-based communities. Affiliations are becoming more common as overhead costs rise for smaller organizations, the communities stated.

HHHunt Buys $11.5 Million Assisted Living Project

HHHunt purchased a stalled assisted living project in western Henrico County, Virginia, for $11.5 million through a federal bankruptcy court in Arizona. HHHunt, one of the biggest homebuilders in the Richmond area, plans to complete the project and open the facility in December or January, Richmond Times-Dispatch reported.

The facility, which was built for memory care, consists of three buildings with 16 apartments in each building. HHHunt will open the community as Spring Arbor Cottages of Richmond.

The seller is New Dawn Assisted Living Holding Co. LLC. Based in Arizona, the company entered bankruptcy protection in November after nearly completing the project. New Dawn filed for bankruptcy with fewer than 50 creditors and between $10 million and $50 million in assets, according to Richmond Times-Dispatch.

HHHunt Assisted Living Inc. placed a bid on the facility in a bankruptcy auction process. HHHunt’s senior living division has another senior living facility about two miles from its latest purchase.

As part of the bankruptcy auction, another facility was sold for $7.5 million to a different buyer. Both properties were unfinished and could not be licensed.

Written by Amy Baxter

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