Senior Housing Investments & Transactions: Fortis Files for Receivership

Fortis Management Group Files for Receivership

Fortis Management Group filed for receivership in an agreement with its landlords, the company revealed on July 12. The Milwaukee-based management company operates 60 skilled nursing facilities and five independent and assisted living communities throughout Michigan, Minnesota, Wisconsin, Oregon, Washington and Idaho. Read the full story on Skilled Nursing News.

Joint Venture Between Solera Senior Living and Elkco Properties Acquires Florida Assisted Living Community

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A joint venture between affiliates of Solera Senior Living and Elkco Properties acquired Inn on the Pond, a property in Clearwater, Florida, comprised of 80 assisted living and memory care apartments. The community, built in 2012, will be re-branded as The Preserve at Clearwater, according to a press release.

Ashely Wilkens and Dan Revie at Ziegler Healthcare Finance, a Chicago-based specialty health care finance company, led the negotiations on behalf of Solera and Elkco affiliates, the press release noted.

Blueprint Facilitates Sale of Indiana/Iowa AL Portfolio For $14.25 Million

Blueprint Healthcare Real Estate Advisors, a Chicago-based advisory group focused on senior housing and health care real estate transactions, facilitated the sale of a four-property assisted living and memory care portfolio in Indiana and Iowa for $14.25 million, or approximately $102,000 per unit, according to a press release.

The seller was a publicly traded real estate investment trust (REIT) and a national operator that sought to exit management of the operations and assets. The buyer was a national owner/operator that has an existing presence in the region of the subject properties, the press release said.

The portfolio consisted of three senior living communities in Indiana and one in Iowa, all constructed in the late 1990s with unit capacities from 35 to 62 total units and mostly private-pay residents.

Blueprint Senior Managing Director Ben Firestone and Senior Director Mike Segal oversaw the transaction.

Evans Senior Investments Manages Sale of Texas Senior Living Community for $14.35 Million

Evans Senior Investments, a Chicago-based senior housing and skilled nursing mergers and acquisitions firm, managed the sale of Oyster Creek Manor in southeast Texas for $14.35 million or $186,000 per unit, according to a press release. The Class A community, built in 2010 and located in Fort Bend County, features 54 assisted living units and 23 memory care units. Oyster Creek Manor residents were all private-pay and the community averaged a 79% occupancy rate.

The seller was an East Coast-based institutional group that utilized a third party management company to operate the facility. The buyer is a Texas-based senior housing operator with more than 35 facilities in the state.

Kentucky Memory Care Facility Sold To Private Equity Firm For $4.32 Million

A Jeffersontown, Kentucky, memory care facility has been acquired by a private equity firm for about $4.32 million or $68,000 per unit, according to a press release. With the facility at approximately 30% occupancy at the time of sale, the transaction was a turnaround purchase for the buyer. The sale was facilitated by Evans Senior Investments, a Chicago-based senior housing and skilled nursing mergers and acquisitions firm.

The private pay facility, called Park Louisville, was built in 1999 and features 64 private memory care units. It underwent a $500,000 renovation in 2016, including new flooring, paint and light fixtures in the front entrance, lobby and reception areas.

Formerly known as Arden Courts of Louisville, the memory care facility was owned by HCR ManorCare from 1999 to 2016, when a large skilled nursing owner/operator purchased a portfolio of HCR ManorCare facilities.

The buyer will use a national senior housing management company to handle operations of the facility.

Blue Moon Capital Partners Acquires Majority Interest in Colorado Senior Living Community

Senior housing private equity investor Blue Moon Capital Partners LP acquired a majority interest in The Carillon at Boulder Creek, a 117-unit senior living community in Boulder, Colorado, according to a press release.

Blue Moon took the place of affiliates of Legacy Capital Partners, an Ohio-based real estate private equity investor, in an existing joint venture. Remaining partners include MGL Partners, a Denver-based real estate developer and investor, and Leisure Care, one of the largest senior housing operators in the U.S. and manager of independent living, assisted living and memory care communities nationwide. This is the second joint venture investment in Colorado by Blue Moon, MGL and Leisure Care.

Northwestern Mutual provided the debt.

Chicago Pacific Founders Purchases Las Vegas Senior Living Community

Chicago Pacific Founders, along with its subsidiaries, CPF Living Communities and Grace Management, Inc., acquired Acacia Springs, a senior living community in Las Vegas, the company’s third property acquisition in Nevada, according to a press release.

The 160-unit, multi-story community located near the Las Vegas strip will retain its name and continue to provide a range of independent and assisted living care services. Terms of the deal were not disclosed, but investments in the campus will improve its offerings for residents, staff and families.

Acacia Springs will be managed by Grace Management, Inc., a Minneapolis-based senior housing management company.

Griffin-American Healthcare REIT IV Acquires Initial Tranche of Eight-Facility California Senior Housing Portfolio

Griffin-American Healthcare Real Estate Investment Trust IV, co-sponsored by Griffin Capital Company, LLC and American Healthcare Investors, acquired the first of two tranches of the total 327-unit, eight-facility Northern California Senior Housing Portfolio, according to a press release.

The first tranche included five properties located in Belmont, Fairfield, Menlo Park and Sacramento, California, which total approximately 134,000 square feet of assisted living, memory care and skilled nursing facilities. The portfolio is entirely occupied and operated by Colonial Oaks Master Tenant, LLC. There is a 15-year absolute net lease with annual rent escalators of 6.5% after the first year and 2.5% thereafter.

This initial tranche was acquired from affiliates of Nazareth Healthcare, Inc., an unaffiliated third party represented by Grant Goodman and Chad Elliott of Lancaster Pollard & Co., LLC. Griffin-American Healthcare REIT IV purchased the tranche using cash on hand and borrowing from its revolving line of credit with Bank of America, N.A. and KeyBank, National Association, the release stated.

The second tranche, comprised of senior housing facilities in Napa and Sonoma, California, is expected to close later this year, but is subject to conditions and requirements that could disrupt this deadline or prevent the transaction from closing at all, according to the release.

Confluent Senior Living Sells Two New MorningStar Senior Living Communities

Confluent Senior Living, a subsidiary of Denver-based real estate investment and development firm Confluent Development, sold MorningStar of Wheat Ridge in Colorado and MorningStar of Albuquerque in New Mexico.

Confluent Senior Living co-developed both communities with its operating partner, MorningStar Senior Living. MorningStar will continue to act as the operator of the communities. The MorningStar of Wheat Ridge community, located in the Denver suburb of Wheat Ridge, is a 58,000-square-foot development completed in March 2016 that includes 64 assisted living and memory care units. It is currently 96.9% occupied. The MorningStar of Albuquerque, located in northwest Albuquerque, New Mexico, opened in February 2016 and is a 61,000-square-foot development that includes 69 assisted living and memory care suites. It is currently 95.6% occupied.

Both MorningStar Communities were purchased by Harbert Seniors Housing Fund I, LP, an affiliate of Harbert Management Corporation, a Birmingham, Alabama-based investment management company.

Holliday Fenoglio Fowler, a Chicago-based commercial real estate agency, brokered the deal on behalf of the buyer. The HFF investment sales team was led by senior managing directors Ryan Maconachy and Chad Lavender and HFF’s debt placement team was led by director Sarah Anderson.

Bankrate Acquired By Red Ventures

Bankrate (NYSE: RATE), a New York-based consumer financial services company that owns online care network Caring.com*, agreed to be acquired by Red Ventures, which labels itself a “digital consumer choice platform,” in an all-cash transaction that values Bankrate at $1.4 billion, according to a press release.

Bankrate shareholders will receive $14 per share in cash, a premium of approximately 31% over Bankrate’s three-month average closing share price, the release states. The transaction is expected to close in 2017, according to the release.

Bankrate’s comprehensive platform and millions of users across multiple brands will meet Red Ventures’ use of analytics and integrated technology to enhance relationships between service providers and consumers, the release states.

*Editor’s note: An earlier version of this article wrongly stated Bankrate owns Care.com; in reality, it owns Caring.com.

MBH Brokers Sale of 114-Unit Wisconsin Senior Housing Portfolio

MBH Investment Real Estate, LLC, a Milwaukee-based boutique brokerage firm, closed the sale of a market rate senior housing portfolio in Wisconsin, according to a press release. The portfolio included Sheboygan Regency House, a 59-unit complex in Sheboygan Wisconsin and Janesville Regency House, a 5-unit complex in Janesville, Wisconsin.

MBH marketed the portfolio on behalf of the seller, Doneff Asset Company, LLC, a builder and manager of more than 800 apartment homes across central and eastern Wisconsin.

The transaction was brokered by MBH Principal Matson Holbrook, the press release stated.

Ensign Acquires Two Senior Housing Campuses In Colorado

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 the real estate and operations of two continuing care retirement communities (CCRCs) in Colorado, effective July 1, according to a press release.

The communities are The Villas at Sunny Acres, a post-acute care and retirement community with 134 skilled nursing beds, 35 assisted living units and 198 independent living units in Thornton, Colorado; Medallion Post Acute Rehabilitation, a 60-bed skilled nursing facility in Colorado Springs, Colorado; and Medallion Villas, a 44-unit assisted living and 64-unit independent living operation in Colorado Springs, Colorado.

The facilities were previously operated by a faith-based nonprofit organization, according to the press release.

With this transaction, Ensign’s portfolio has grown to 226 facilities, 60 of which are owned.

Fortess Shareholders Approve Acquisition by SoftBank

Fortress Investment Group LLC (NYSE: FIG), a global investment firm, announced that its shareholders voted in favor of the proposed acquisition of the company by Japanese technology giant SoftBank for approximately $3.3 billion in cash, according to a press release.

The transaction is expected to close in the second half of 2017, after which Fortress will operate as an independent business within SoftBank. Fortress will continue to be led by Principals Pete Briger, Wes Edens and Randy Nardone.

Senior Living Investment Brokerage Facilitates Sale of Idaho AL Facility For $8 Million

Senior Living Investment Brokerage, a Glen Ellyn, Illinois-based senior living real estate agency, facilitated the sale of Generations Assisted Living and Wellness community in Rathdrum, Idaho for $8 million. The facility, built in 2005 with expansions in 2007 and 2013, is made up of 48 assisted living units. It is more than 28,0000 square feet and sits on just over two acres of land.

The seller was a local owner/operator that owned just this facility. The buyer was a northern California-based investment group and has leased the facility to Senior Services of America, a Tacoma, Washington-based operator that operates facilities throughout the U.S.

The transaction was handled by Jason Punzel and Brad Goodsell of Senior Living Investment Brokerage, Inc.

Written by Elizabeth Jakaitis

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