Transactions & Financings: $1 Billion REIT IPO, LTC Sells Portfolio to NHI

Strategic Student & Senior Housing Trust’s IPO Declared Effective by the SEC

Maryland-based Strategic Student & Senior Housing Trust, Inc., a public non-traded real estate investment trust (REIT) sponsored by SmartStop Asset Management, LLC, announced that its registration statement pertaining to an initial public offering of about $1.1 billion in shares of common stock was declared effective by the Securities and Exchange Commission (SEC) on May 1.

Strategic Student & Senior Housing Trust plans to qualify as a REIT for federal income tax purposes for the taxable year ended Dec. 31, 2017, and will offer as much as $1 billion in shares of its common stock in its primary offering, comprising three classes of shares.


Additionally, Strategic Student & Senior Housing Trust is offering up to $95 million in shares of its common stock pursuant to its distribution reinvestment plan at $9.81 per share for Class A shares, $9.50 per share for Class T shares, and $9.40 per share for Class W shares.

Strategic Student & Senior Housing Trust plans to mainly invest in a portfolio of income-producing student housing and senior housing real estate assets. Currently, the company owns three senior housing properties and two student housing properties.

LTC Sells Five-Building Senior Housing Portfolio to NHI for $67.5 Million


LTC Properties, Inc. (NYSE: LTC), a real estate investment trust (REIT) that invests mainly in senior housing and health care properties, recently sold a portfolio of five assisted living and memory care communities managed by Sunrise Senior Living for $67.5 million to National Health Investors, Inc. (NYSE: NHI). As part of the deal, LTC also sold a parcel of land to NHI, according to a source with knowledge of the situation.

All together, the communities—located in Cleveland, Ohio, Columbus, Ohio, and Erie, Pennsylvania—have 320 units.

LTC plans to recognize a net gain on sale of about $48 million in the second quarter of this year. The deal was structured to close concurrent with Sunrise Senior Living’s lease expiration on April 30.

Rental revenue under this lease for the four months ended April 30, 2018, totals about $1.5 million.

KeyBanc Capital Markets Inc. and CS Capital Advisors, LLC served as LTC’s financial advisors on the deal. Sherry Meyerhoff Hanson Crance LLP acted as LTC’s legal advisor.

Going forward, the communities will be leased to an affiliate of Bickford Senior Living at an initial rate of 6.85% with annual fixed escalators and a 15-year maturity. The acquisition was funded with a draw on NHI’s revolving credit facility.

Revera and Axium Form JV to Share Ownership of 32 Long-Term Care Homes in Canada

Canada-based senior living owner, operator and investor Revera Inc. and portfolio management firm Axium Infrastructure recently completed a joint venture transaction to share ownership of 32 of Revera’s long term care homes in Ontario, Manitoba, Alberta and British Columbia, Canada.

Axium owns a 75% equity interest in the joint venture, while Revera holds a 25% equity interest and will continue managing the properties.

Additional properties may be added to the joint venture in the future.

BMO Capital Markets served as financial advisor and Torys LLP acted as legal advisor to Axium on the deal. Brookfield Financial and CIBC Capital Markets served as financial advisors and Goodmans LLP acted as legal advisor to Revera on the deal.

Greystone Closes Sale of Senior Living Community in Georgia

Greystone Real Estate Advisors recently closed the sale of a 57-unit assisted living and memory care community in Marietta, Georgia.

An institutional investor and Surpass Senior Living purchased the community from a publicly-traded real estate investment trust (REIT).

Surpass will now manage the community.

Cody Tremper and Mike Garbers of Greystone Real Estate Advisors represented the seller in the deal.

Healthcare Management Partners Arranges Sale of Nine Communities Via ‘Stalking Horse’ Auctions

Turnaround and consulting firm Healthcare Management Partners, LLC (HMP), serving as the court-appointed receiver, recently closed the sale of substantially all assets pertaining to nine senior care facilities which were placed in receivership on Jan. 20, 2017, by the U.S. District Court for New Jersey in response to a complaint brought by the Securities and Exchange Commission (SEC).

HMP, working with Nashville-based partners at the Waller law firm, chose to use a stalking horse auction to maximize returns on the sale of the nine senior care properties.

Agemark Acquisition, LLC was the successful bidder for eight of the nine properties, and Opelika Retirement Investors, LLC was the successful bidder for the ninth property.

The HMP team involved in the auction included Derek Pierce, Lauren Douglas, Ronald Winters, Tyler Brasher and Ward Tishler. The Waller team was led by Blake Roth and Ryan Cochran.

HMP also employed Marcus & Millichap’s Mike Pardoll as real estate broker and exclusive listing agent to market the properties and the stalking horse auction.

The Ensign Group Acquires Senior Housing Campus in Dallas, Texas

The Ensign Group, Inc. (Nasdaq: ENSG) has purchased the real estate and operations of Grace Presbyterian Village, a 26-acre post-acute care and retirement campus in Dallas, Texas, from Presbyterian Communities and Services.

Grace Presbyterian Village, which will now be known as The Villages of Dallas, is a full-service senior housing campus with 81 independent living units, 36 assisted living units, 26 memory care units and 125 skilled nursing beds. Going forward, the community will be managed by a subsidiary of Keystone Care LLC, Ensign’s Texas-based portfolio subsidiary.

Ensign anticipates the community, which currently has an occupancy rate of about 79%, to be operationally accretive to earnings in 2018.

CareTrust REIT Adds Two Post-Acute Providers to Portfolio

Self-administered real estate investment trust (REIT) CareTrust REIT, Inc. (Nasdaq: CTRE) has officially added Hillstone Healthcare, Inc. and Trio Healthcare, Inc. to its growing portfolio of post-acute care providers.

In doing so, CareTrust completed its previously-announced plan to re-tenant the remaining nine Ohio assisted living and skilled nursing facilities previously leased to affiliates of Pristine Senior Living.

On February 27, 2018, CareTrust announced it entered into a lease termination agreement with Pristine for the nine properties, with a target completion date of April 30, 2018.

On May 1, 2018, Trio took over operations in the seven facilities based mainly in the Dayton area, while Hillstone assumed the operation of the two facilities in Toledo and Willard, each under a new 15-year master lease. Pristine previously relinquished operations at seven CareTrust facilities in the Cincinnati region to a different CareTrust tenant, Trillium Healthcare, Inc., which has been managing those facilities since Dec. 1, 2017.

Written by Mary Kate Nelson

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