Transactions & Financings: Welltower’s $130 Million CCRC Acquisiton

Welltower Acquires CCRC in Florida for $130 Million

Toledo, Ohio-based health care real estate investment trust (REIT) Welltower, Inc. (NYSE: WELL) has officially acquired Stratford Court of Boca Pointe, a 527-bed continuing care retirement community (CCRC) in Boca Raton, Florida, for $130 million, according to the South Florida Business Journal.

The seller was Newton, Massachusetts-based REIT Senior Housing Properties Trust (Nasdaq: SNH).

Specifically, SPTMRT Properties Trust, an affiliate of Senior Housing Properties Trust, sold the property to Welltower Jefferson Propco TRS, a subsidiary of Welltower. In January, Welltower announced plans to purchase four CCRCs from Senior Housing Properties Trust for $368 million.

Stratford Court is currently operated by McLean, Virginia-based Sunrise Senior Living.

Radiant Senior Living Buys Memory Care Community in Nevada

Radiant Senior Living recently acquired the Arbors Memory Care community in Sparks, Nevada, for an undisclosed price.

Portland, Oregon-based Radiant, which was founded 2010, currently owns and operates 18 assisted living and memory care communities in Washington, Oregon, Montana, Colorado, and now, Nevada.

MidCap Closes Loan for Acquisition of Senior Living Community 

Commercial finance firm MidCap Financial recently closed a transaction with Palatine Capital Partners Management, LLC, a principal investment company that concentrates on small and mid-cap real estate assets.

The approximately $9 million floating rate first mortgage loan facilitated the purchase of a purpose-built, 145-unit assisted living and independent living community in the Southwestern U.S. The financing will allow Palatine to implement a $2.5 million capital improvement plan to renovate the community’s exteriors, unit interiors and common areas.

Ziegler Closes $14.7 Million Portfolio of HUD Refinancings in California  

Chicago-based speciality investment bank Ziegler recently announced the successful closing of $14.7 million of senior living refinancing transactions via the Section 232/223(a)(7) HUD Mortgage Insurance Program by Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler.

Oakdale Heights of Redding, a 60-unit standalone assisted living community, and Sierra Oaks of Redding, an 85-unit assisted living and memory care campus, are both located in Redding, California. The communities had about $14.1 million in outstanding Section 232/223(f) HUD mortgages that were originally financed in 2014 at interest rates in the mid-4s by a different HUD lender.

ZFC recommended refinancing the existing debt under HUD’s Section 232/223(a)(7) program to enable both assets to lower their debt service by locking low, long-term fixed interest rates while at the same time extending the maturities of the loans to 35 years. 

Blueprint Arranges Sale of Two Arizona Assisted Living Communities

Blueprint recently announced the successful sale of a 50-unit assisted living community in Peoria, Arizona that had been vacant since 2008, as well as the sale of a 50-unit assisted living community in Mesa, Arizona, that had been vacant since 2013.

The seller of both properties was looking to divest. A different buyer purchased each community.

The buyer of the Peoria community is an established regional owner-operator, according to Blueprint. The buyer of the Mesa property is a growing behavioral group that plans to transform the asset into a drug treatment center. 

Blueprint’s Amy Sitzman handled both transactions.

Ziegler Closes $94.3 Million Refinancing of Board & Care Community in Florida

Chicago-based specialty investment bank Ziegler recently announced the closing of the $94.34 million refinancing of a not-for-profit client in Florida—the Village at Gainesville—by Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler.

The loan represented the largest refinance of a single-asset senior housing community in HUD’s portfolio.
 
The Village at Gainesville has 639 units, 511 of which are unlicensed independent/board and care and 128 of which are licensed assisted living/memory care. 
 
Specifically, ZFC recommended refinancing the outstanding tax-exempt bonds with the FHA Section 232/223(f) program to enable the community to lower its debt service by locking in a 35-year, fixed interest rate of less than 3.5%. 

Blueprint Arranges $19 Million Sale of Senior Living Community in California

Blueprint recently announced the $19 million sale of Healdsburg Senior Living Community, a 110-unit assisted living, memory care and skilled nursing community in Sonoma County, California.

The name of the buyer was not disclosed, though the buyer was identified in a global private real estate investment company with a large national senior housing portfolio, according to Blueprint.

The transaction was led by Blueprint’s Christopher Hyldahl and Mario Wilson.

Cushman & Wakefield Arranges Sale of 115-Unit Senior Housing Community in Oregon

Cushman & Wakefield Senior Housing Capital Markets recently arranged the sale of Quail Park of Klamath Falls, a 115-unit independent living, assisted living and memory care community in Klamath Falls, Oregon. The buyer was Irvine, California-based MBK Senior Living, which will now manage the community.

The purchase price was undisclosed.

Cushman & Wakefield exclusively represents senior housing developer Morningside Development and West Coast-based senior housing owner and operator Living Care Lifestyles, and both companies were involved in this specific transaction.

The Cushman & Wakefield team involved in the deal included Executive Managing Director Richard Swartz, Senior Director Aaron Rosenzweig, Executive Director Jay Wagner and Associate Caryn Donahue.

ESI Arranges $14.5 Million Sale of Senior Housing Community in South Carolina

Evans Senior Investments (ESI) recently arranged the $14.5 million sale of The Willows of Easley, a 100-unit independent and assisted living community in Easley, South Carolina. The seller was an independent owner/operator, and the buyer was a private equity firm based in Chicago.

At the time of the sale, The Willows averaged 96.1% occupancy, was  100% private pay and posted a 35.8% EBITDAR margin in the trailing 12-month period.

Written by Mary Kate Nelson