Senior Housing Investments & Transactions: CBRE Arranges $77 Million Sale

CBRE Capital Markets Arranges $77.3 Million Sale, $50.5 Million Senior Housing Financing

CBRE Capital Markets’ National Senior Housing team arranged the sale of two senior housing communities in Georgia to an affiliate of Arcapita Investment Management US for $77.25 million, or $327,330 per unit.

The properties include the 146-unit Arbor Terrace Peachtree City located in Peachtree City, Georgia, and the 90-unit Arbor Terrace of East Cobb in Marietta, Georgia.

Lisa Widmier and Matthew Whitlock of CBRE represented the seller in the transaction, which was an affiliate of Capitol Seniors Housing. Aron Will of CBRE’s team originated $50.5 million in acquisition financing on behalf of the borrower. CBRE secured a seven-year fixed-rate loan with 36 months interest only through its Freddie Mac Seller Servicer direct lending program.

“The buyer will continue to use the current operator, The Arbor Company, through the acquisition of these communities,” Widmier, executive vice president of CBRE National Senior Housing, said in a statement. “Plans to further this relationship are ongoing.”

The communities include 236 independent living, assisted living, personal care and memory care units and were acquired by the seller between December 2013 and March 2014. At the time of offering, occupancy was approximately 95%.

CBRE Group also arranged the sale of Tealridge Assisted Living and Memory Care, a 52,283-square-foot senior care facility located in Edmond, Oklahoma.

The facility was purchased for $6.75 million by a non-profit private investor who is looking to establish a presence in the Oklahoma market. MOC Assisted Living was the seller.

The 65-unit facility was constructed in 2010. Daniel Morris, CCIM with CBRE’s Oklahoma City office, represented the buyer in the transaction.

Greystone Arranges $21.5 Million Senior Housing Sale

Greystone’s Real Estate Advisors group has arranged the $21.5 million sale of an independent living, assisted living and memory care community located in Jacksonville, Florida. The purchase price of the community, Wyndham Lakes, was $21.5 million.

The community was purchased by a private equity group; the asset was sold by a publicly traded real estate investment trust (REIT).

The community sits on 14 acres of land and used to be operated by Brookdale Senior Living. It consists of 12 residential building and one common area structure.

Mike Garbers and Cody Tremper of Greystone represented the seller in the transaction. Tremper also arranged non-recourse acquisition financing through a regional bank.

Evans Senior Investments Arranges $19 Million Personal Care Portfolio 

Evans Senior Investments (ESI) arranged the sale of two Pennsylvania personal care communities to a national owner/operator for $19 million, or $151,000 per unit.

Combined, the two communities feature 126 units, 76,991 square feet and averaged 88% occupancy. With a combined revenue of $5.2 million and $1.5 million in NOI, the deal traded at a 9.95% capitalization rate or a 3.7x gross income multiplier, ESI stated.

ESI represented the undisclosed seller the transaction.

“Each unit of the communities was built with the future of seniors housing in mind, featuring private bathrooms, modern finishes and expansive square footage,” Jason Stroiman, founder and president of ESI, said in a press release. “This portfolio represented the opportunity for a savvy operator to institute a robust marketing and revenue management program to bring occupancy to stabilized levels, significantly amplifying the portfolio’s NOI over the short term.”

Marcus & Millichap Arranges Senior Living Sale

Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment firm, arranged the sale of Rosemont of Kingwood, a senior living community located in Kingwood, Texas.

“Built in 1998 and renovated in 2012, the property has an historic occupancy of 90% or greater and received a ‘Best Care Award’ from the community,” said Rod Llanos, a senior associate in Marcus & Millichap’s Houston office.

Llans and Doug O’Toole, vice president with Marcus & Millichap’s The Woodlands office, represented the seller and procured the buyer.

The facility is 72,000 square feet and features three floor plans that range in size from 480 square feet to 651 square feet. The community includes amenities such as a billiard room, library, chapel and a large in-the-round gazebo and outdoor grill area.

Ohio Presbyterian Retirement Services Changes Name to Ohio Living

The largest not-for-profit provider of life plan communities and services in Ohio, Ohio Presbyterian Retirement Services, has changed its name to Ohio Living.

As a result, the organization’s 12 life plan communities, which were formerly known as continuing care retirement communities (CCRCs), will have Ohio Living in front of their existing name.

“We selected Ohio Living because it embodies the essence of who we are as an organization—a community of people who celebrate living,” Ohio Living CEO Laurence C. Gumina said in a statement. “We believe this new brand is an expression of our organizational values and speaks to the principles of who we are and the care and support we provide to the more than 73,000 adults and to our 3,200+ employees throughout the state of Ohio. Our people, mission and ownership will remain the same, while our new name positions us to meet the need of today’s and future generations.”

The organization’s home health and hospice provider, Senior Independence, will change its name to Ohio Living Home Health & Hospice. The charitable foundation will be known as Ohio Living Foundation.

The company was careful to point out that the name change was not a result of a merger, acquisition or change in ownership.

Written by Amy Baxter