Transactions & Financings: Brookdale’s $75 Million Purchase, StoneGate Buys Eight Properties

Brookdale Pays $75 Million for California Property

Brentwood, Tennessee-based Brookdale Senior Living (NYSE: BKD) paid about $74.5 million to acquire the real estate of Palm Beach Gardens, a 317-unit property in Palm Beach, Florida.

That equates to about $235,000 per unit, according to The Real Deal, which reported on details of the transaction, citing property records. 

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The seller was Irvine, California-based real estate investment trust HCP Inc. (NYSE: HCP), leading The Real Deal to surmise that this is part of a $275 million, six-property deal that the REIT struck with Brookdale in November 2017.

That complex transaction is one of several that HCP has undertaken to lessen its exposure to Brookdale, the nation’s largest senior living operator, which has struggled financially since acquiring rival Emeritus Corp. in 2014.  

Brookdale financed the Palm Beach acquisition with a $139 million loan from Grandbridge Real Estate Capital, according to The Real Deal. 

Palace Group Closes on $95 Million Construction Loan

Development company and operator The Palace Group has closed on a $95 million construction loan from TD Bank, The Real Deal reported, citing property records.

The loan is for the 320-unit Palace at Weston, which is to be built in the community of Weston, about 20 miles west of central Fort Lauderdale, Florida.

The Palace Group has a portfolio of 11 senior living properties, including the Palace at Weston. 

Construction is scheduled to begin this month, with pre-leasing by the end of the year. The community is slated to include independent living, assisted living and memory care.

Eastern Union Funding Closes Over $1 Billion in First Quarter 2018

Commercial real estate mortgage firm Eastern Union Funding closed more than $1 billion of commercial real estate loans in the first quarter of 2018. The CRE mortgage closings rose 40% year-over-year.

The largest monthly contributor in the first quarter—March 2018—set a new company record at $643 million of closed CRE loans. The March record was accompanied by more than 530 submissions and almost $700 million under application.

Eastern Union’s $1 billion first quarter represented a combination of 54% refinances and 46% new purchases. Sector breakdown is as follows: Multifamily, 67.47%; Retail, 10.72%; Mixed-Use, 9.13%; Office, 5.02%; Health care, 3.84%; Industrial, 2.27%; Other, 1.55% .

Eastern Union’s Healthcare division is experiencing the biggest market share growth for the firm, with the last closing of the quarter having raised $33.4 million of debt and $7 million of equity to close a $42.5 million acquisition of a skilled nursing portfolio located in Alabama.

Eastern Union is actively expanding nationally, with the objective to open an office in every major market throughout the United States.

StoneGate Senior Living Acquires Eight Properties in Oklahoma 

StoneGate Senior Living recently acquired eight new properties in Oklahoma. The communities offer a variety of supported services, from independent living to assisted living, skilled nursing, memory care, and rehabilitation.

The eight established properties are newly contracted from Southwest Healthcare.

“We are excited to announce our involvement with the Southwest Healthcare properties,” says John Paul Taylor, COO of StoneGate Senior Living. “As an Oklahoma native, as is our CEO, we have known Denver McCormick for many years and have always appreciated the manner in which he and the Southwest team have cared for the senior population. We will strive to follow in his footsteps with our involvement in his properties and hope to continue the legacy and success.”

The properties include:

  • Garland Road Nursing and Rehabilitation Center in Enid, Oklahoma
  • Highland Park Manor in Okmulgee, Oklahoma
  • Meadowlake Estates in Oklahoma City, Oklahoma
  • Noble Health Care Center in Noble, Oklahoma
  • Ranchwood Nursing Center in Yukon, Oklahoma
  • Tuscany Village Nursing Center in Oklahoma City, Oklahoma
  • Meadowlakes Retirement in Oklahoma City, Oklahoma
  • Victorian Estates in Yukon, Oklahoma

StoneGate management says plans for the assets include making substantial investments in the IT infrastructure and physical plant.

StoneGate currently contracts with 13 total properties in Oklahoma; 11 skilled nursing facilities and two assisted living communities with over 1,300 beds. 

Cushman & Wakefield Arranges Sale of Senior Living Community in Atlanta 

Cushman & Wakefield recently negotiated the sale of a 93-unit, 85,000-square-foot assisted living and memory care community for more than $400,000 per unit in the Atlanta metro area. 

Based in Cushman & Wakefield’s Tampa office, Senior Director Paul Carr, Executive Director Allen McMurtry, Senior Director David Kliewer and Senior Director Megan Fetter represented a global real estate investment company in the disposition. The buyer is a private equity fund with assets throughout the country.

Sienna Senior Living Acquires 10 Communities in Ontario, Canada

Sienna Senior Living Inc. recently completed the previously announced acquisition of 10 private-pay independent supportive living and assisted living retirement communities in Ontario, Canada, for an aggregate purchase price of about $382 million.

The communities comprise 1,245 private-pay suites located in the Greater Toronto and Greater Ottawa areas.

ESI Arranges $51 Million Sale of Senior Living Community in Washington

Real estate brokerage firm Evans Senior Investments (ESI) arranged the sale of Garden Court Retirement Community, a 148-unit independent and assisted living community in Everett, Washington, for $50.5 million. The seller was an independent owner/operator, and the buyer was a national private equity firm. 

At the time of the sale, the community was 100% private pay, averaged 95% occupancy, and was cash flowing at 45% EBITDAR margin in the trailing 12-month period.

The buyer will use Artēgan to manage the community. 

Chicago Pacific Founders Acquires Communities in South Carolina, Texas

Health care private equity investment firm Chicago Pacific Founders (CPF) and its subsidiaries—Grace Management, Inc. and CPF Living Communities—recently purchased The Willows of Easley, a 100-unit senior living community in Easley, South Carolina.

Terms of the deal were not disclosed.

The Willows of Easley is now managed by Grace Management.

Chicago Pacific Founders also purchased Collier Park Senior Living (formerly Atria Collier Park), a 159-unit senior living community in Beaumont, Texas.

Terms of the deal were not disclosed, but Collier Park is now operated by Grace Management.

MidCap Closes First Mortgage Bridge to HUD on Memory Care Community

MidCap Financial, a commercial finance firm that concentrates on the middle market in the United States, recently announced it closed a deal with Onelife Development to refinance a memory care community in Beaverton, Oregon.

Specifically, MidCap Financial provided a $15 million first mortgage floating rate loan with a three-year term. The loan refinanced existing debt, as well as provided for the recapture of equity, originally used to develop the community in 2016.  

Onelife Development is a seniors housing developer based in Denver, Colorado. Currently, Onelife has three seniors housing developments in Oregon.  

Written by Mary Kate Nelson

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