Senior Housing Investments & Transactions: NorthStar Merger Closes

NorthStar, Colony Merger Closes

NorthStar Asset Management (NYSE: NSAM), NorthStar Realty Finance Corp. (NYSE: NRF) and Colony Capital (NYSE: CLNY) completed the previously announced merger of the companies into real estate investment trust (REIT) Colony NorthStar Inc. (NYSE: CLNS).

The new entity currently has an equity market capitalization of approximately $9 billion and assets under management of $58 billion. The transaction was originally announced in June 2016 and approved by all three companies’ stockholders in December 2016.

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“We are delighted to complete the merger of these three great companies leading to increased scale, diversity and value creation opportunities for Colony NorthStar and its stockholders,” Thomas J. Barrack, executive chairman of the board, said in a statement. “The closing of this transformative transaction represents a milestone in our collective long-term strategy of building a leading global real estate business focused on a core set of real estate verticals in addition to top-tier institutional and retail investment management business.”

SLIB Closes Several Transactions

Glen Ellyn, Illinois-basedSenior Living Investment Brokerage Inc. (SLIB) arranged the sale of a skilled nursing facility (SNF) in Snyder, Texas, for $3,715,000. The facility includes 97 licensed and 72 operational SNF beds and was built in 1977.

The buyer is a Texas-based operator that will own the real estate. Matthew Alley of SLIB handled the transaction.

SLIB also facilitated the sale of two assisted living communities in Shiloh and Troy, Illinois. The communities sold for $18.6 million. Each features 63 units and has strong historic occupancy.

Bradley Clousing, Patrick Byrne and Jeff Binder of SLIB handled the transactions.

SLIB also facilitated the sale of four senior housing assets in Pennsylvania. The portfolio, Keystone Villa, is spread across three sites between Harrisburg and Philadelphia, Pennsylvania. Financial terms were not disclosed.

The Douglassville location was originally built as a 123-unit independent living community, but was expanded with a second building in 2009 and 2013 to offer 124 personal care units and memory care.

The Fleetwood location was built in 2011 and offers 123 personal care and independent living units. The Ephrata location opened in 2014 and offers 139 units of independent living, assisted living and memory care. 

The communities were constructed, owned and operated by local owners who elected to exit the senior housing business. The buyer is Capital Health Group, LLC, a private equity firm. Milestone Retirement Communities, LLC, will manage the portfolio.

Toby Siefert, Bradley Clousing and Jeff Binder of SLIB handled the transaction.

Lancaster Pollard Facilitates $30.5 Million Sale of Florida Community

Financial services firm Lancaster Pollard advised a private ownership group on the sale of its 146-unit seniors housing community in Port Orange, Florida. The community, CountrySide Lakes, sold for $30.5 million to Shepard Health, a Miami-based real estate development company and senior housing operator. 

The community was built in 1984 and offers 26 independent living units and 120 assisted living units. The 100% private pay property has a waiting list and has average 97% occupancy since 2013.

Lancaster Pollard had been a long-term capital partner of CountrySide Lakes. Chad Elliot, managing director of the mergers and acquisitions group at Lancaster Pollard, and Gerald Swiacki, senior vice president and the firm’s Southeast regional manager, led the transaction on behalf of the seller. 

The sale was funded through a $24 million loan arranged by Natasha Ursuy, team lead of health care financing at Fifth Third Bank, as well as secondary financing.

Integral Senior Living to Manage Revel Senior Living Community

Integral Senior Living, a senior living operator based in Carlsbad, California, has been chosen to manage Revel, a senior community located in Henderson, Nevada.

The community is under development and is expected to open for pre-leasing in early 2017. Upon opening, the community will offer 146 one- and two-bedroom independent living residences. Revel has partnered with Sodexo and Food Network star Beau MacMillan for dining options in two farm-to-table restaurants. 

The Wolff Company has invested in, acquired and developed multifamily assets for more than 60 years, and is headquartered in Scottsdale, Arizona. 

Friends Life Care and SpiriTrust Lutheran Create Continuing Care at Home Program 

Pennsylvania-based Friends Life Care Partners, a not-for-profit Quaker organization, has partnered with senior care provider SpiriTrust Lutheran to co-brand and launch a continuing care at home (CCAH) program. SpiriTrust operates 6 senior living communities and offers home care, hospice and palliative care among other services, and reaches 21,000 patients annually.

The program will launch in early 2017 and aims to reach local seniors who plan to age in place at home. The two organizations will begin holding informational seminars in February to provide details about membership in the program. 

Track 5 Media Launches SeniorCaring.com 

Track 5 Media, LLC, a Lancaster, Pennsylvania-based network of industry websites, has launched SeniorCaring.com, a referral website with a dually accredited certification program. 

The website serves both families and seniors looking for a senior housing solution and senior living communities seeking well-matched residents. Partner communities are vetted and audited annually through resident and care-seeker reviews, inspection reports and licensing validation. The website also features an online education library.

Track 5 Media also owns and manages several websites, including TravelNurseSource.com, AlliedTravelCareers.com and LocumJobsOnline.com. 

Written by Amy Baxter

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