Senior Housing Investments & Transactions: CareTrust REIT, NHI

Texas Investors Buy $185 million SNF Portfolio

Dallas businessmen Chuck Putnam and Donald Kivowitz have purchased a portfolio of 10 skilled nursing facilities (SNFs) in Maryland and Pennsylvania for $185 million. The portfolio includes approximately 1,297 beds total.

The transaction was financed by a syndication led by Bank of Texas, an affiliate of BOK Financial (Nasdaq: BOKF). The transaction was one of the largest syndications of a SNF portfolio in 2016 nationally, according to a press release. 

Advertisement

The transaction closed in December 2016. The seller was Mid-Atlantic Healthcare.

Bianca Andujo, manager with BOK Financial’s Texas health care banking team, served as agent and arranged $134.9 million in financing to fund the acquisition for Putnam and Kivowitz. Mike Doherty, managing director of BOK Financial’s Financial Loan Syndication, structured the syndication. 

CareTrust REIT Acquires Skilled Nursing Portfolio in Illinois

San Clemente, California-based CareTrust REIT (Nasdaq: CTRE) acquired five skilled nursing facilities (SNFs) in Illinois for the purchase price of $29.2 million. CareTrust also entered into a new tenant relationship with affiliates of Illinois-based WLC Management Firm, LLC, which took over operations effective March 1.

The portfolio includes 455 beds across the five properties—Saline Care Center in Harrisburg, Illinois; Carrier Mills Nursing & Rehabilitation in Carrier Mills; Stonebridge Senior Living Center in Benton Pinckneyville Nursing & Rehabilitation Center in Pinckneyville; and DuQuoin Nursing & Rehabilitation Center in DuQuoin. 

The investment is expected to generate initial annual rent of $2.9 million, for an initial cash yield of 10%. The new master lease carries an initial term of 15 years, with two five-year renewal options and CPI-based rent escalators. The REIT funded the transaction with cash on hand. 

PRS Takes Over Management of The Peninsula Regent

Medford, Oregon-based Pacific Retirement Services (PRS) recently took over operations of The Peninsula Regent, a continuing care retirement community (CCRC) in San Mateo, California. The community had been operated by BRIDGE Housing, a development and management company.

PRS operates life plan communities, or CCRCs, and senior living communities in six states, including Oregon, Washington, California, Texas, Wisconsin, and Arizona. 

NHI Purchases Texas SNF for $13.9 Million

National Health Investors, Inc. (NYSE: NHI) acquired a 126-bed skilled nursing facility (NSF) in New Braunfels, Texas, for $13.9 million. The facility will be leased to an affiliate of The Ensign Group, Inc. 

The acquisition is the first of four that NHI had previously committed to buying and will be added to the existing lease at an initial rate of 8.35%, plus annual lease escalators based on inflation. 

The facility was opened in 2015 and joins the current Ensign assets comprised of 15 SNFs in Texas. The transaction was funded from NHI’s revolving credit facility.

IRET Closes Sale of 13 Seniors Housing Properties

IRET (NYSE: IRET) completed the sale of 13 senior housing properties, totaling 488 units. The transaction closed for a combined $66 million. IRET received net cash proceeds of approximately $50.6 million after retiring mortgage debt and paying closing costs. 

To date, IRET, a Minot, North Dakota-based REIT, has sold 31 of its 34 senior housing properties for a combined sale price of $22.94 million.

Blueprint Healthcare Real Estate Advisors Sells SNF in Burbank, Illinois

Blueprint Healthcare Real Estate Advisors has sold Brentwood Sub-Acute Healthcare Center, a 163-bed SNF in Burbank, Illinois, for the purchase price of $7.25 million, or approximately $44,500 per licensed bed ($57,000 per operational bed).

Blueprint represented the seller, a New York-based owner of more than 180 skilled nursing and long-term care facilities nationwide. The facility had back-to-back years of total revenue and EBITDAR in excess of $10 million and $1 million, respectively. 

The facility was purchased by a national real estate investor and an emerging regional operator in a new partnership. 

Christopher Hyldahl, Gideon Orion and Michael Segal of Blueprint were lead advisors on the transaction.

Written by Amy Baxter

Companies featured in this article:

, , , , , , ,