Senior Housing Investments & Transactions: Transforming Age’s $138 Million Portfolio Buy

Transforming Age Acquires $138 Million Portfolio 

Transforming Age, formerly known as Presbyterian Retirement Communities Northwest, acquired an eight-property portfolio totaling more than 1,000 units for $138 million. 

The portfolio, located across the Twin Cities, was acquired from a joint venture between Des Moines, Iowa-based LCS and Chicago-based Harrison Street Real Estate. 

“Transforming Age saw the purchase of the portfolio a an opportunity to expand our mission,” a spokeswoman for the Seattle-based nonprofit told the Minneapolis/St. Paul Business Journal. 

The properties in Minnesota include: The Rivers in Burnsville; The Timbers in Apple Valley; Waterford Estates in Brooklyn Park; Waterford Manor in Brooklyn Park; Tradition in Brooklyn Park; Heathers Manor in Crystal; Heathers Estates in Crystal; and Meridian Manor in Wayzata.

Greystone Closes $33 Million Sale of Two Carolina Communities

Greystone Real Estate Advisors closed the $33-million sale of Brookdale Hendersonville in Hendersonville, North Carolina, and Brookdale Skylyn in Spartanburg, South Carolina. The buyer is a private equity group, which purchased the properties from Brookdale Senior Living Inc. (NYSE: BKD) on Dec. 15.

Brookdale Hendersonbille is an independent living and memory care community that consists of independent living cottages, a clubhouse, an administrative office building and a separate memory care building. The community, which was built in 1985 and 1993, sits on 21.36 acres of land.

Brookdale Skylyn is an independent living, assisted living, memory care and skilled nursing community. The property includes two senior living buildings and one skilled nursing building. It sits on 17.61 acres of land and was built in 1986.

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

Elder Care Alliance Acquires Independent Living Community in California

California-based nonprofit organization Elder Care Alliance acquired The Villa at San Mateo, a 135-unit independent living community for seniors. The transaction marks the first acquisition of an existing community by Elder Care Alliance.

The community rests on a 4.5-acre campus and is located 20 miles south of San Francisco and 15 miles north of Palo Alto. Including this transaction, Elder Care serves upwards of 660 residents on five campuses across California.

The acquisition was made in cooperation with Rockwood Pacific, CBRE and HJ Sims. Rockwood Pacific serves as Elder Care’s exclusive agent in identifying and acquiring new senior living properties. 

Cushman & Wakefield Arranges Sale of $25 Million Senior Housing Portfolio in San Francisco

Global real estate services firm Cushman & Wakefield arranged the sale of Hayes Valley Senior Living, a 52-unit, 103-bed senior housing portfolio consisting of two properties in the heart of San Francisco. The portfolio was sold for $25 million, or $481,000 per unit.

The fully licensed properties are located across the street from one another in the Hayes Valley District. One property was originally built in the 1880’s as a classic Victorian hotel and was converted into an assisted living building in 1997. The other property was purpose-built as assisted living in 2005. 

The buyer is a San Diego-based private large owner/operator, and the seller was a local nonprofit owner/operator.

Executive Managing Director Richard Swartz, Executive Director Jay Wagner and Senior Director Aaron Rosenzweig of Cushman & Wakefield were involved in the transaction.

AdCare to Buy $9 Million SNF in Tennessee

AdCare Health Systems, Inc. (NYSE: ADK), a health care real estate investment company, signed a letter of intent to purchase a skilled nursing facility with 169 licensed beds in Tennessee for approximately $9 million.

AdCare also executed a letter of intent with Skyline Healthcare LLC, a former tenant, to lease the facility upon purchase. Skyline Healthcare operates facilities throughout the country, including Tennessee. The terms of the long-term lease agreement are expected to include a 15-year term with initial cash rent of $900,000 in the first year and a 2% annual rent escalator.

AdCare intends to finance the acquisition with conventional mortgage debt and cash on hand. The purchase is expected to close in the first quarter of 2017. The purchase of the facility and lease to Skyline is subject to satisfactory due diligence, debt financing and the negotiation and execution of a definitive purchase agreement and lease agreement.

SLIB Sells $2.1 Million SNF

Senior Living Investment Brokerage (SLIB) sold a $2.1-million skilled nursing facility (SNF) in Eagle Point, Iowa. Matthew Alley and Ryan Saul of SLIB were involved in the transaction.

The facility includes 99 skilled nursing beds. The building was constructed in 1950 and was updated in 2004 and 2010. The buyer is a regional owner operator with other senior living communities in Indiana. 

“This nursing home, while struggling with census, was a geographic fit for the buyer’s expansion plans in Iowa,” Matthew Alley, senior living managing director, said in a statement. “It shows that there is market for turnaround deals in Iowa.”

Written by Amy Baxter