Senior Housing Investments & Transactions: AdCare Completes $55 Million Portfolio Sale

AdCare Sells Nine Properties for $55 Million 

AdCare Health Systems, Inc. (NYSE: ADK), a self-managed health care real estate investment company that primarily invests in senior living and long-term care properties, has completed the sale of nine properties in Arkansas. The properties were sold to affiliates of Skyline Healthcare LLC, the current operator of the facilities, for the purchase price of $55 million. 

The purchase was comprised of $52 million in cash and a $3 million promissory note. AdCare expects to utilize the cash proceeds from the sale for general corporate purposes, including the repayment of mortgages or other debt. 


AdCare currently owns, leases or manages for third parties 29 facilities. 

Bascom Arizona Acquires $18 Million Community in Arizona

Bascom Arizona Ventures, an affiliate of private equity firm The Bascom Group, LLC, has acquired the Prescott Lakes Senior Community, a 123-unit luxury independent living community for the purchase price of $18 million, or $146,341 per unit. The community, located in Prescott, Arizona, is a master-planned community. 


Bascom worked with Brian Halpern and Alex Kane of Jones Lang LaSalle Americas, Inc. to arrange the debt financing for the purchase. The seller was represented by John Cunningham of JLL.

The property was built in 2003 and includes a clubhouse/leasing office, swimming pool with cascading waterscape, fitness center, a garden, library, game room and barbecue plazas.

“Prescott Lakes provided Bascom Arizona Ventures with a unique acquisition of a Class A apartment community in a market that has very high occupancy and limited new construction,” Mark Brotherton, portfolio manager for Bascom Arizona ventures, said in a press release. “We are excited about our newest acquisition and look forward to commencing our value add program as soon as possible for our residents.”

Ohio Senior Apartments Sold for $1.4 Million

An independent living facility in Springfield, Ohio, has been sold for $1.4 million, according to Springfield News Sun. The facility, The Fellows Terrace Apartments, was developed nearly 20 years ago, and consists of 60 one- and two-bedroom apartments. 

The building was owned by the Independent Order of Odd Fellows. It was purchased by McCreight Associates, an organizaiton that has managed the property since it was built. The property is 95% occupied and has been managed and run by Sawmill Road since the building opened. The new owners plan to put a new roof on the apartments and make upgrades to the interior, according to the Sun.

Sawmill Road also owns properties in Hilliard, Chillicothe, New Carlisle, Van Wet and Celina. 

Lowe Enterprises Acquires Florida Community

Lowe Enterprise Investors (LEI), a real estate management services business, has acquired a senior housing community in Tallahassee, Florida, in a joint venture with a foreign investment client. The community, St. Augustine Plantation, was acquired from Capital Health Group, LLC, and is a 100-unit, 115-bed facility.

The building is currently 97% occupied and was developed in two phases. In 1998, a 75-unit assisted living building was built, and a 25-unit memory care building was built in 2002. The community also includes a central dining room, beauty parlor and barber shop, fitness and activity centers, a craft/exercise center, chapel and library.

The joint venture partners have developed a plan to improve common areas, expand the property by 24 memory care beds and add a wellness center for recreation and rehabilitation that will be managed by Florida State University.

LEI recently acquired other properties in the Southeast, including hotel and apartment buildings. John Gaghan led the LEI investment team; Kenneth Assyrian and HFF led the seller’s team. Berkadia’s senior housing and health care group, led by Christopher Honn, Jeff Heath and Mike McKee, arranged financing for the transaction.

Marcus & Millichap Arranges Sale of Two Senior Living Properties

Marcus & Millichap has arranged the sale of Ashwood Retirement Community, a 105-unit, 135-bed assisted living facility in a north side suburb of Austin, Texas. The facility was owned by a private owner/operator from West Texas who plans to retire from the senior housing business.

The property was purchased by McFarlin Group, an owner/operator based in Dallas, and will be managed by Surpass Senior Living. McFarlin plans a complete repositioning of the asset, including an extensive renovation of the original building and an expansion component on a portion of the unused developable excess land. McFarlin Group will also convert the facility to 100% private pay.

The pro forma EBITDAR is $875,000—just shy of a 13.5% cap on the pro forma.  

The facility was built in 1986 on four acres as a medical office building and was renovated and converted to assisted living in 1998. The asset has a HUD loan that was assumed by McFarlin Group. Marcus & Millichap brought the asset to market with a minimum bid. The IPA team that represented the seller was led by Mark Myers, Josh Jandris and Ryan Fleming. 

In addition, Marcus & Millichap arranged the sale of River Valley Supportive Living Residence, an 80-unit, 98-bed supportive living facility located in Kankakee, Illinois.

The facility was originally built as a hotel in 1972 and was converted and fully renovated into a supportive living facility (SLF) in 2003. The building sits on two acres of land and is four stories. The buyer is planning to renovate the facility.

The seller is a private owner/operator based in the Northeast and is exiting the SLF market. The facility was 70% occupied during the marketing process, with a 12.5% margin and EBITDAR of roughly $330,000. The buyer is a private owner/operator based in the Chicago area and is currently in expansion mode for SLFs in Illinois. 

The Marcus & Millichap team of Mary Myers, Josh Jandris, Ryan Fleming and Charles Hilding represented the seller. 

The conservative pro forma constructed by the IPA team pushed EBITDAR north of $800,000 at a 28.5% margin, which corresponded with a 14% cap on the sale price. This was accomplished by an occupancy bump to the mid 80s and a mild reduction in some expense line items. 

Written by Amy Baxter

Companies featured in this article:

, , , , , , , , , ,