Senior Housing Investments & Transactions: NHI Acquires $74 Million CCRC

NHI Acquires $74 Million CCRC in Connecticut

Real estate investment trust (REIT) National Health Investors, Inc. (NYSE: NHI) acquired an entrance-fee continuing care returned community (CCRC) in North Branford, Connecticut, for $74 million.

The CCRC will be leased to NHI’s current tenant, Senior Living Communities, based in Charlotte, North Carolina. The lease term is 13 years at a lease rate of 6.77% with a 4% annual escalator on January 1, 2017 and 2018 and a 3% annual escalator thereafter. NHI expects the transaction to close mid-November. The purchase is funded on NHI’s revolving credit facility.

The CCRC consists of 227 independent living units, 22 assisted living/memory care units and 50 skilled nursing units. It will be the ninth community leased by NHI to Senior Living Communities.

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IRET Sells 8 Senior Housing Communities

Minot, North Dakota-based real estate investment trust (REIT) IRET has sold a portfolio of eight senior living communities for $43.9 million. The transaction is part of the REIT’s previously announced plan to exit the senior living business and sell its remaining senior housing properties.

The properties include a total of 313 units, all located in Idaho. The portfolio was purchased by the current tenants, affiliates of Edgewood Senior Living. IRET expects to receive net cash proceeds of approximately $31.2 million after retiring mortgage debt and paying other closing costs.

The REIT also plans to redeem 1.2 million outstanding shares of its 8.25% Series A Cumulative Redeemable Shares.

SLIB Closes Two Senior Living Sales

Senior Living Investment Brokerage (SLIB) sold a 102-unit independent living facility located in Redding, California, for $18.35 million, or $179,902 per unit.

The facility features studio, one- and two-bedroom units and is approximately 93,500 square feet. The seller is a local owner/operator and the buyer is a regional senior living owner/operator with multiple senior living communities in Northern California.

Jason Punzel of SLIB handled the transaction.

SLIB also closed the sale of a 16-unit memory care facility in Tomball, Texas, for $2.57 million, or $160,938 per unit. The community, Forever Young Senior Living, was built in 2010 and is approximately 7,600 square feet. The seller is an local owner/operator, and the buyer is an independent real estate owner that is leasing the property to a regional operator with other communities in southeast Texas.

Jason Punzel and Matthew Alley of SLIB handled the transaction.

Blueprint Closes Sale of Two Senior Living Communities and a SNF

Blueprint Healthcare Real Estate Advisors has closed the sale of a 123-bed health and rehabilitation skilled nursing facility (SNF) in New Bedford, Massachusetts, for $4 million.

At the time of the sale, Southeast Massachusetts Health & Rehabilitation Center was 79% occupied with revenues totaling more than $6.7 million. The SNF was acquired by a regional owner/operator with a notable presence in the eastern part of the state.

The transaction was led by Steve Thomes and Christopher Hydahl of Blueprint.

The firm also closed the sale of a 77-unit private pay senior living community in Baton Rouge, Louisiana, which was purchased for $11.5 million by a subsidiary of Florida-based specialty insurer Fortegra Financial Corporation, an affiliate of Tiptree Financial Inc. (Nasdaq: TIPT).

The community offers independent living, assisted living and memory care. Traditions Senior Management of Clearwater, Florida, has been engaged to provide management services. Traditions manages other communities in Louisiana.

Jacob Gehl was the lead Blueprint advisor on the transaction, supported by Michael Segal. Clint Parker and Jeremy Joiner from Brown Gibbons Lang & Company Real Estate Partners assisted in the transaction.

Blueprint facilitated the sale of The Hearth on James, a 71-unit independent and assisted living community in Syracuse, New York, as well. The community was the second closing in a three-community portfolio sale of $50 million.

The community was originally built in 2001 and was acquired in a sale/leaseback structure between Mainstreet Health Investments Inc. (TSX: HCPU), a North American real estate health care company and the current owner/operator, The Hearth, which manages 15 retirement communities in four states and is based in Syracuse.

Tim Cobb and Steve Thomes were lead advisors on the transaction.

Cushman & Wakefield Facilitates Sale of Michigan Senior Living Portfolio

Global real estate services firm Cushman & Wakefield has facilitated the sale of three senior living properties in the suburbs of Detroit, Michigan. The portfolio was purchased by an affiliate of Chicago-based Green Courte Partners, a real estate investment firm building a nationwide portfolio of age-restricted housing.

The 371-unit portfolio consists of three independent living properties: Pine Ridge of Garfield, Pine Ridge of Plumbrook and Pine Ridge Villas of Shelby.

The acquisition is Green Courte’s third in its strategy, and now boasts a portfolio of five independent living properties totaling 764 units. An affiliate of Spectrum Retirement Communities, LLC will manage the properties.

Bethel Homes and Services Acquires Westchester Retirement Community

Westchester County, New York-based Bethel Homes and Services has acquired Westchester Meadows in Valhalla, New York. Bethel is a not-for-profit senior living organization in Northern Westchester that manages two other senior living campuses on Croton and Ossining. The acquired community will now be known as The Knolls, a Bethel Community.

The Knolls is a CCRC and was acquired by Bethel after the previous management left the community in a state of bankruptcy. Bethel is able to honor the contracts of existing residents through the terms of the purchase, which ensures residents will keep their homes and expected services without losing all the money they invested when they moved in.

“We will rebuild The Knolls’ financial foundation, so that residents can feel confident in our ability to provide an exceptional senior living experience,” Anastasios Markopoulos, Bethel’s CFO, said in a news release.

The Knolls will offer customizable one- and two-bedroom residences, dining services, transportation services and housekeeping. The campus will undergo substantial renovations and service improvements.

Commonwealth Assisted Living Rebrands to Commonwealth Senior Living

Charlottesville, Virginia-based Commonwealth Assisted Living has changed its named to Commonwealth Senior Living, effective November 1, 2016. The company, which was founded in 2002, operates 23 senior living communities throughout Virginia and has more than 1,500 residents and 1,500 employed associates.

“For almost 15 years, we have experienced tremendous growth and success thanks to the incredible work our associates do every day to improve the lives of our residents, their families and each other,” said Richard Brewer, president and CEO of Commonwealth. “Our new company name and logo better communicate the services we provide and are designed to help visualize our core values which are the foundation of our mission.”

Written by Amy Baxter

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