Senior Housing Investments & Transactions: CareTrust REIT Acquires Texas Portfolio

CareTrust REIT Purchases Texas Portfolio for $96 Million

CareTrust REIT (Nasdaq: CTRE), a senior housing and health care real estate investment trust (REIT), has acquired three skilled nursing facilities (SNFs) and one skilled nursing campus in the Dallas-Forth Worth area for approximately $95.9 million.

In connection with the transaction, CareTrust entered into a new tenant relationship with the affiliates of Priority Management Group, LLC, which took over the operations on Dec. 1, 2016.

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The portfolio includes 540 skilled nursing beds an 28 assisted living units. It is scheduled to generate first-year annual cash rent of $8.6 million, resulting in an initial cash yield of 8.9%. The initial term of the new master lease is 15 years, with two five-year renewal options and CPI-based rent escalators. 

“These well-regarded, well-located and recently-built or renovated facilities are an outstanding addition to our growing portfolio,” Mark Lamb, CareTrust’s director of investments, said in a statement. “More importantly, we are very excited to be welcoming Priority Management Group, an exceptional operator with a very experienced and highly successful management team, to the CareTrust family.”

CareTrust funded the acquisition from cash on hand, including the approximately $81 million of net proceeds from its November equity offering, and its $400 million unsecured revolving credit facility.

HFF Closes $74 Million Sale, Secures $48.55 Million Financing

Holiday Fenoglio Fowler, L.P. (HFF) closed the $74 million sale and secured $48.55 million in financing for Horizon Bay at Hyde Park, a 136-unit senior housing community in the Hyde Park neighborhood of Tampa, Florida.

The community includes a blend of one- and two-bedroom independent and assisted living units, averaging 714 square feet. The community, which was built in 2011, is situated on 1.91 acres. The property is 98% leased and features a full-service bar and lounge, restaurant-style dining room, coffee bar, fitness center, beauty and barber shop, chapel/theater, cafe, billiards, wellness center, heated swimming pool, library, media room and concierge service.

Ryan Maconachy and Chad Lavender, senior managing directors, and Director Dave Fasano of HFF’s Dallas office led the HFF senior housing team in the transaction, representing the seller. Zach Nolan, associate director of HFF’s Tampa office, provided local market assistance. Sarah Anderson, associate director, led the team’s debt placement efforts for the buyer/borrower. 

Juniper Buys $13.65 Million Community in Pennsylvania

Juniper Communities, a New Jersey-based senior living owner and operator, acquired Wood River Village Retirement Community for the purchase price of $13.65 million. Wood River is located in Bucks County, Bensalem, Pennsylvania. 

Law firm Ackerman LLP represented Juniper in the transaction. Juniper is among the top 40 largest senior living providers. Greg Limoncello, part with Ackerman’s Corporate Practice Group and co-chair of the firm’s Senior Living Facilities Practice, led the Ackerman team involved in the acquisition. Other lawyers representing Juniper included Real Estate Partner Robert Leanly, Real Estate Associate Sam Starkey and Corporate Associate Abe Sutton.

SLIB Arranges Sale of Assisted Living Community in Washington

Senior Living Investment Brokerage (SLIB) facilitated the sale of Elite Care at Sylvan Park, an assisted living facility in Vancouver, Washington, for $7.5 million, or $156,250 per unit. 

The facility, which was built in 2013, consists of 48 units and is approximately 55.904 square feet on 2.65 acres of land. SLIB represented the seller on the transaction. 

The buyer was a regional owner/operator, which plans to invest in capital and cosmetic improvements, including converting some of the employee apartments to senior living units.

Matthew Alley, Jeff Binder and Jason Punzel of SLIB handled the transaction. 

Blueprint Sells Two Senior Housing Portfolios

Blueprint Healthcare Real Estate Advisors sold a three-property portfolio of skilled nursing facilities located in Southeast Missouri.

The assets, consisting of 270 total licensed beds across a regional cluster of rural facilities, were owned by a publicly-traded REIT and operated by a Texas-based provider. At the time of sale, the portfolio’s overall census had declined and two of the facilities were operating at deficits.

The buyer is a Missouri-based owner/operator with a significant presence in the region and a history of operational turnaround. 

Ben Firestone, Michael Segal and Josh Salzman of Blueprint handled the transaction. 

Blueprint also sold a portfolio of five assisted living and memory care facilities in Central Florida for the purchase price of $16 million, or approximately $71,000 per unit. The properties were owned by a publicly-traded REIT and operated by a reputable national operator with a large presence in the state. 

Blueprint represented seller. The buyer was a high net-worth health care real estate investor that partnered with a growing regional operator to improve the portfolio’s overall performance. 

Trent Gherardini and Ben Firestone structured the transaction.

JLL Buys Integra Realty Dallas Office

JLL, a Chicago-based real estate firm, has acquired the Dallas-Fort Worth offices of Integra Realty Resources (IRR). JLL has affiliated offices in Austin, Fort Worth, Oklahoma City and Tulsa.

JLL provides valuation and appraisal services in more than 40 countries across Europe, Asia Pacific and parts of the Americas. The acquisition will bring approximately 100 employees to JLL. The acquisition also includes property tax advisory services, formerly known as Equus Property Tax Services. 

“The addition of the Dalls affiliate of IRR broadens JLL’s global valuation and advisory services with critical expertise and expanded bandwidth across the country,” John Gates, CEO of Markets at JLL Americas, said in a statement. “IRR-Dallas bring a strong track record in capital market valutations, eminent domain and the senior housing and health care sectors.”

Greystone Closes $12.5 Million Sale of Former Brookdale Building

Greystone Real Estate Advisors has closed the $12.5 million sale of the Park at Trowbridge in Southfield, Michigan. 

The property, a 298-unit independent living community, was purchased by a private equity group from a publicly-traded REIT on Dec. 1. The building was built in 1998 and was formerly operate by Brookdale Senior Living. 

Mike Garbers and Cody Tremper of Greystone represented the seller in the transaction. 

Written by Amy Baxter

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