Senior Housing Investments & Transactions: Kayne Anderson, SLIB Sales

Kayne Anderson Buys $38 Million Palm Beach Gardens Community

An affiliate of Kayne Anderson Capital Advisors, an alternative investment firm that manages more than $23 billion in assets, purchased a newly completed senior housing community in Palm Beach Gardens, Florida, for $38 million, The Real Deal reported.

The community, Discovery Village at Palm Beach Gardens, was sold by Discovery Senior Living. The community was completed earlier this year and includes 120 units for independent living, assisted living and memory care. The  purchase was financed with a $26.6 million mortgage from Texas Capital Bank, according to The Real Deal.

ACI of Largo designed the 130,000-square-foot development with Legman Design Group. The community boasts meal service, scheduled transportation, health and wellness services, onsite medical and therapy services, housekeeping, social and recreational activities, a clubhouse with dining rooms, social areas, a game room, indoor heated wellness pool, a salon and spa, media center and a hobby center.

SLIB Sells $3 Million SNF and IL Facility in Texas

Senior Living Investment Brokerage, Inc. (SLIB) sold a skilled nursing and independent living facility in Baytown, Texas, for $3.03 million. The facility includes 105 skilled nursing beds and 40 independent living units.

The facility was purchased by a for-profit owner/operator from Louisiana that is looking to expand its footprint in Texas. Matthew Alley of SLIB led the sale.

“This is a property that has significant deferred maintenance as well as negative cash flow,” Alley, senior living managing director at SLIB, said in a statement. “The for-profit buyer expects to be able to increase revenues through marketing and repositioning the asset.”

Brad Clousing of SLIB also sold a skilled nursing campus in Greer, South Carolina for $10.1 million, or $70,100 per bed. The configuration of the campus includes 12 separate cottages with 12 private rooms in each cottage. Occupancy was 90%, but the property was operating at a loss on $15.2 million of revenues. The seller was a not-for-profit hospital system.

JCH Consulting Closes Two Sales in California

JCH Consulting Group, a full service real estate brokerage firm in the long-term care industry, sold an adult day care business in Campbell, California, and six-property killed nursing portfolio in Central California.

The skilled nursing portfolio consists of six properties built between 1950 and 1975, with the facilities ranging from 42 to 99 beds. At the time of closing, the average occupancy rate was 80%. 

JCH worked with Marcus & Millichap, the listing broker, to facilitate the transactions. Nick Stahler of JCH was the lead agent on the transaction.

JCH also sold an adult day care business for $825,000. At the time of closing, the business had an occupancy rate of 85%. The transaction price represented a 3x multiple of the trailing 12-month net operating income. 

The seller was a single asset owner/operator that is planning to retire from the business; the buyer is a new owner/operator entering the space. Nick Stahler was the lead agent on the transaction.

Revera Acquires Community in Ontario

Revera Inc., a senior housing owner, operator and investor that owns or operates more than 500 properties across Canada, the United States and the United Kingdom, has acquired Emmanuel Village in Kitchener, Ontario.

The independent living community features 102 apartment suites and has been renamed Briarfield Gardens. It will be managed by Revera. With this transaction, Revera owns and operates 64 retirement communities in Ontario and 98 across Canada.

“We are thrilled to welcome Briarfield Gardens residents and employees into the Revera family,” Thomas G. Wellners, Revera president and CEO, said in a statement. “The Kitchener-Waterloo region is a dynamic part of the province, and we are pleased to expand on the options for older adults in the area.”

Delayed Senior Housing Project Acquired

A senior housing project that never opened its doors in Longview, Texas, has been acquired by an Austin-based private equity group that plans to complete the project and open it in 2017, Longview News-Journal reported. The property, Parkview on Hollybrook, started building three years ago and was purchased by Parkview on Hollybrook LLC for $20.7 million.

Parkview on Hollybrook is a limited liability compaay created by Austin-based Thrive FP to own the project, Longview News-Journal reported. The sale of the project closed on September 5 and was financed by Citizens National Bank.

Reportedly, the project was stopped in 2014 after construction went over budget. Original plans for the project reveal assisted living apartments to house 51 people; a separate memory care/assisted living unit with 22 apartments and 32 beds; and an independent living facility with 126 one- and two-bedroom apartments. The assisted living portion of the development is complete, while the independent living portion is 80% done, according to Longview News-Journal.

When completed, the community will have 126 independent living units and 83 assisted living and memory care units. Thrive FP will tap 12 Oaks Senior Living to operate the community. 12 Oaks operates facilities across Texas, Ohio, Oklahoma and Tennessee.

Written by Amy Baxter