Senior Housing Investments & Transactions: Blackstone Deals

Blackstone Buys Florida Properties for $155 Million

Blackstone Group (NYSE: BX) purchased four senior living communities from Welltower Inc. (NYSE: HCN) in South Florida for a combined $154.7 million. The acquisitions are part of a previously announced $1.13 billion deal between Blackstone and Brookdale Senior Living (NYSE: BKD).

The transactions include: Mangrove Bay, a 155-unit complex in Jupiter, for $71.9 million; The Sterling Aventura, a 171-unit property in Aventura, for $48.9 million; The Atrium at Boca Raton, a 160-unit community in Boca Raton, for $21.8 million; and Presidential Palace, a 104-unit development in Hollywood, for $12.1 million.


Koelsch Communities Sells Six Properties

Family-owned senior housing operator Koelsch Communities sold six communities in a sale-leaseback transaction for $137 million. The transaction was an expansion of Koelsch Communities’ 12-property relationship with real estate investment trust (REIT) Ventas (NYSE: VTR), which purchased the communities.

The six communities include: Canterbury Park in Longview, Washington; Cedarbrook in Fresno, California; The Hampton & Ashley Inn and The Hampton at Salmon Creek, both in Vancouver, Washington; Madison House in Kirkland, Washington; and Spring Creek Inn in Bozeman, Montana. Koelsch remains the operator of the six communities. The company operates 22 communities in seven states, with another eight in development.


The Ensign Group Enters Sale-Leaseback with Mainstreet

The Ensign Group, Inc. (Nasdaq: ENSG) entered into definitive agreements to sell and lease two skilled nursing facilities (SNFs) and one assisted living community to Mainstreet Health Investments, Inc. (TSX: HLP.U).

Upon closing the transaction, Ensign will lease the properties from Mainstreet under a triple-net lease with an initial 20-year term and CPI-based rent escalators. The properties are located within high-density neighborhoods of the Los Angeles and Phoenix metro markets and have been owned and operated by Ensign for “many years,” according to a press release.

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In conjunction with the transaction, Mainstreet agreed to release Ensign from its lease obligations on three transitional care facilities in Kansas and Texas that are currently under development.

Once the transaction is completed, Ensign subsidiaries will operate five properties in Kansas, one in Texas and one in Colorado that were developed by Mainstreet Property Group. Ensign affiliates will no longer have any outstanding lease obligations with Mainstreet Health Investors or Mainstreet Property Group with respect to facilities under development.

Oppidan Investment Co. Sells Red Rock Senior Living of Woodbury to Welltower

Oppidan Investment Company, a Twin Cities-based national property development firm, sold Red Rock Senior Living of Woodbury to Welltower. The building includes 77 total units—39 luxury independent and assisted living units, 32 memory care suites and six care suites.

NHI Acquires Assisted Living/Memory Care Facility and Memory Care Portfolio

National Health Investors (NYSE: NHI) purchased a 102-unit assisted living and memory care facility in Portland, Oregon, for $26.2 million. 

The facility has been leased back to Prestige Senior Living and was added to the existing Prestige master lease that is comprised of three SNFs and 1 assisted living facility. The master lease has a remaining term of 12 years. The investment has an initial cash yield of 7% plus annual fixed escalators. It was funded by a draw on NHI’s revolving credit facility.

NHI also purchased a portfolio of five memory care facilities for $61.8 million. The facilities have a total of 223 units and are located in Illinois and Texas. The properties will be leased back to The LaSalle Group, a new NHI tenant.

The lease term is 15 years with three renewal option periods. It has an initial cash yield of 7% with annual fixed escalators. The acquisition was funded by a draw on NHI’s revolving credit facility.

Civitas Senior Living Acquires The Hampton’s Senior Living Community

Civitas Senior Living has acquired The Hampton’s Senior Living Community, comprised of 120 independent living units, 56 assisted living apartments, 30 cottage-style residences and 38 memory care suites, located in Tyler, Texas. The acquisition adds to Civitas’ growing presence in East Texas; Civitas recently acquired communities in Athens, Longview and Kilgore.

Civitas, a Fort Worth, Texas-based management company, will oversee the community’s range of operations.

Blueprint Sells SNF in Upstate New York

Blueprint Healthcare Real Estate Advisors sold a 160-unit SNF in Upstate New York. The sale represents part one of a two-building disposition that is scheduled to be finished later this year. The portfolio price was $32 million, or equal to $100,000 per licensed bed.

The seller was a New York-based national owner and operator of skilled nursing and long-term care facilities. At the time of the sale, trailing 12-month operational performance yielded $14.25 million in total revenue and $1.35 million in EBITDAR.

The average monthly occupancy was 92.3%, with a quality move of 25.9% and a 9.5% operating margin. The buyer is a regional owner/operator with synergies in the western part of the state. 

Christopher Hyldahl and Gideon Orion were the lead advisors on the transaction.

Written by Amy Baxter

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