Senior Housing Investments & Transactions: IPA’s $1.06 Billion Year

IPA Closes $1.06 Billion in Transactions

In 2016, IPA National Seniors Housing Group closed $1.06 billion in transactions. The total includes 29 transactions in 19 states.

Highlights of the year include the completion of the largest privately held majority SNF portfolio sale on record nationally since 2012 and the second-largest stand-alone senior care property sale on record.

IPA closed the sale of the Regency Post-Acute Healthcare System portfolio, the largest senior housing sale on record in Texas. IPA also closed the Jewish Home Lifecare Bronx campus and Arbor Square campus, which were the largest stand-alone SNF sale on record and a record high closing on a per unit basis, respectively.

CareTrust REIT Buys Two Wisconsin Communities for $26.1 Million

CareTrust REIT, Inc. (Nasdaq: CTRE), a senior housing real estate investment trust (REIT), acquired two senior housing communities in the Milwaukee metropolitan area for the purchase price of approximately $26.1 million.

Both communities were added to the existing lease with New York-based operator Premier Senior Living, LLC, which took over operations Feb. 1. The lease has a remaining initial term of approximately 14 years with two five-year renewal options and CPI-based rent escalators.

The purchase includes Applewood of Brookfield, a 48-unit assisted living and memory care facility located in Brookfield, Wisonsin, and Applewood of New Berlin, a 40-unit assisted living and memory care facility located in New Berlin, Wisconsin.

The portfolio is expected to generate additional cash rent of $2.16 million, resulting in an initial cash yield of 8.3%. Th acquisition was funded using CareTrust REIT’s $400 million unsecured revolving credit facility.

OnShift Launches Employee Engagement Software for Senior Living

OnShift, a Cleveland-based provider of human capital management software for senior living and post-acute care, launched OnShift Engage, a cloud-based employee engagement software.

The mobile tool has several capabilities, including employee satisfaction measurement; employee recognition and rewards; manager, team and employee communications; new hire tracking; and employee performance reporting.

“The workforce issues that long-term care and senior living providers face have become increasingly intense, many of which stem from a workforce that is simply not engaged,” Mark Woodka, CEO of OnShift, said in a statement. “OnShift Engage is a monumental step toward helping providers advance a culture and environment where employees feel valued, actively work toward the goals of the organization and ultimately stay with the employer long term.”

SLIB Closes Sale of $.18 Million SNF in Texas

Senior Living Investment Brokerage (SLIB) sold a $1.8 million skilled nursing facility (SNF) in Hondo, Texas.

The facility, which features 75 SNF beds, was built in 1966, while its office annex was built in 1997. The facility was purchased by an independent owner/operator located in the Dallas/Fort Worth area.

Matthew Alley of SLIB facilitated the transaction.

Ensign Group Acquires Texas Healthcare Campus

The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign group of skilled nursing, rehabilitative care services, home health care, hospice care and assisted living companies, acquired Parkland West Healthcare Center, a 124-bed skilled nursing and 17-bed assisted living facility in San Antonio, Texas. The transaction was effective Feb. 1.

At the time of acquisition, the facility has an occupancy rate of approximately 34%. The transaction brings Ensign’s portfolio up to 211 health care facilities, 51 of which are owned, 19 hospice agencies, 17 home health angelicas and three home care businesses across 14 states.

ESI Arranges Sale of Two Utah Communities for $26.5 Million 

Evans Senior Investments (ESI) arranged the sale of two senior housing communities in southern Utah for the purchase price of $26.5 million, or $236,500 per unit. American Capital purchased both communities, which will be leased to Meridian Senior Living.

The portfolio includes The Retreat at SunRiver, a 48-unit community built in 2012. It includes 36 assisted living units and 12 memory care units. The community sits on 1.72 acres and has access to the outdoor offerings at the SunRiver Master Plan Community.

The other community, The Retreat at SunBrook, features 64 units, including 50 assisted living units and 14 memory care units. The two-story community is 57,344 square feet and sits on 2.38 acres.

Both facilities posted occupancy above 90% and EBITDAR margins above 40% throughout the transaction period.

Written by Amy Baxter