Senior Housing Investments & Transactions: Arcapita Hits $200 Million in Acquisitions in 2016

Arcapita Acquires $200 Million in Senior Living Properties in 2016

Global investment firm Arcapita acquired a privately-held senior living portfolio of three properties for $110 million in the metro areas surrounding Washington D.C. and Atlanta. The properties will be managed by an affiliate of The Arbor Company.

The portfolio brings Arcapita’s total investment in the U.S. senior living sector to approximately $200 million for 2016. The firm also recently acquired three senior living community in Colorado for approximately $87 million.

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The company’s management team has previously acquired, managed and exited from senior living investments with a total transaction value in excess of $1.7 billion in the United States and United Kingdom.

Arcapita’s portfolio includes six U.S. senior living properties, totaling 506 units.

“We see a lot of potential in the senior living sector,” Arcapita’s CEO Atif A. Abdulmalik said in a news release. “Our team has extensive experience investing in the senior living sector, having managed and successfully exited five senior living portfolios, consisting of over 74 properties, in the past. Previous investments both in the United States and United Kingdom has returned attractive IRRs and cash-on-cash multiples to investors.”

Vitality Senior Living Acquires First Property

Vitality Senor Living, a new Nashville-based senior living operator, has acquired BrightWater of Victoria. The new company will rebrand the community as Vitality Court.

The facility will feature 98 apartments offering independent living, assisted living and dementia care.

“Our plan is to build upon an already great community with Vitality specific physical plant and programmatic enhancements,” said Vitality CEO Chris Guay. “These enhancements will start day one as we invest immediately in infrastructure upgrades that will support our commitment to innovate through the use of technology. Victoria will be an integral part in proving out our vision of empowering successful aging for older adults.”

Colliers Facilitates $3.7 Million Sale of Massachusetts Senior Living Property

The Boston office of Colliers International arranged the sale of an independent living and nursing home campus located in Quincy, Massachusetts, for $3.7 million.

The campus, Eventide Home, is situated on 6.5 acres and features 60 independent and skilled-nursing beds.

The buyer, O’Connell Development, plans to reposition the property into a 58-unit senior housing residential rental property. Robert Cronin of Colliers brokered the transaction, with Peter O’Connell representing O’Connell Development.

Healthcare Transactions Group Sells Assisted Living Facility

Healthcare Transactions Group, Inc. arranged the sale of Homestead Manor Assisted Living, a 61-unit assisted living facility in Denton, Maryland. The property is licensed for 85 beds. Details of the transaction were not disclosed.

Mark Davis of Healthcare Transactions Group acted as mergers and acquisitions advisor to the seller, a nonprofit organization affiliated with the Chesapeake District of The Wesleyan Church.

The buyer was a Maryland-based for-profit operator of assisted living facilities.

SLIB Sells Several Senior Living Properties

Senior Living Investment Brokerage, Inc.(SLIB) facilitated the sale of a 45-unit assisted living community located in Trussville, Alabama, for $4.5 million. The community was built in 2009 and has additional land for expansion.

Bradley Clousing of SLIB handled the transaction.

SLIB also closed the sale of Golden Crest, a 52-unit assisted living community located in Franklin, New Hampshire, for $7.26 million, or $138,615 per unit. The community is situated on a rural, 13-plus-acre farm setting.

The building is 32,468 square feet, and each unit features a private bath and kitchenette with rates ranging between $3,800 to $4,200 for a private unit.

The building was sold by a private owner who desired to exit the senior living business. Existing HUD debt was paid off at closing. The buyer is a public real estate investment trust (REIT) that partnered with a New Hampshire-based operator.

The transaction was handled by Toby Siefert of SLIB.

Additionally, Matthew Alley, Jason Punzel and Jeff Binder of SLIB sold a $7.5 million assisted living facility in Vancouver, Washington. The building, which was built in 2013, consists of 48 assisted living units.

SLIB represented a receiver on the sale. The buyer is a regional senior living owner/operator, which plans to invest in capital and cosmetic improvements and convert some of the employee apartments to senior living units.

Premier Senior Living Acquires Oakwood Terrace Memory Care Community

Premier Senior Living Group, LLC, acquired Oakwood Terrace, a 58-bed memory care community located near Scranton, Pennsylvania, for $8.5 million. Premier is a privately held, New York City-based assisted living and memory care company.

With this latest transaction, Premier will raise the number of beds in its portfolio to 1,296 in 23 locations across six states.

Inspirit Senior Living Acquires Virginia Senior Living Facility

Inspirit Senior Living acquired Hilltop House, an assisted living facility founded by Joe and Juanita Smith in 1985. Since its opening, the community has been operated continuously by the Smith family. Details of the transaction were not disclosed.

Hilltop House is a five-acre, 96-bed facility, and is the first acquisition for Inspirit, a new venture headed by CEO David McHarg.

Inspirit plans to renovate the property and upgrade the back-office accounting and administrative systems. Inspirit’s strategy is to acquire stand-alone facilities with the aim to incorporate them into a regional network.

Inspirit was founded by McHarg in 2015 after he retired as president and COO of Greenfield Senior Living.

Written by Amy Baxter

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