Transactions & Financings: Sun Communities’ $343M Mobile Home Deal; SHAG’s Opportunity Zone Development

Sun Communities agrees to $343.6M mobile home portfolio deal

Mobile home and recreational community real estate investment trust Sun Communities (NYSE: SUI) entered into an agreement to acquire an eight state, 31-community portfolio through a merger with Jensen Communities, for $343.6 million. The portfolio comprises of 5,230 developed sites and over 460 additional expansion sites available for development; 77% of the portfolio is age-restricted and 35% of the sites are located in Connecticut.

The purchase price will be paid through a combination of issuing common stock to Jensen’s shareholders and a cash payment. At the closing, Sun will issue to Jensen shareholders $274.8 million in shares of its common stock at an issuance price of $139.3072 per share based on a 20-day trailing volume weighted average share price. The balance of the adjusted purchase price will be paid in cash.

California senior apartments sell for $71M

Berkadia Managing Director Joe Leon and Associate Director Michael Thagard represented the seller, the Zinn Group, in the 71 million sale of HW Senior Living Apartments, a 3120-unit senior apartment development in Westminster, California.


The buyer is an experienced senior living owner/operator.

Sortis Holdings closes on $59M senior housing opportunity zone project

Portland, Oregon-based private equity firm Sortis Holdings (SOHI) closed on equity funding for Tukwila Village Phase II, a mixed income senior living development in Tukwila, Washington. Sortis invested capital from its $100 million Sortis Opportunity Zone Fund alongside project sponsor Bryan Park, a Puyallup-based developer who has developed, owns and operates more than 5,000 senior living apartments in Washington. The completed project will be operated by Sustainable Housing for Ageless Generations (SHAG).

Phase II comprises 204 apartment units exclusively for seniors, six live/work units, approximately 8,300-square-feet of commercial/retail space and structured parking. When completed in late 2020, the combined project will be the third-largest senior living development in Washington, encompassing 403 apartment units exclusively for seniors, six live/work units, approximately 32,000-square-feet of commercial and retail space, over 400 garage and surface parking stalls, a community center, a central outdoor plaza and a new King County public library.


Twenty percent of the units at Tukwila Village will be set aside for seniors making up to 50% of the area median income. The project is also being financed through the use of both Low Income Housing Tax Credits and tax exempt bond financing from the Washington State Housing Financing Commission.

Oklahoma Methodist completes $13.4M capital campaign

Oklahoma Methodist Manor, an independent living and assisted living community in Tulsa, Oklahoma, completed a $13.4 million fundraising campaign geared toward expanding its assisted living and memory care options.

The provider is expected to break ground on two new memory care houses and a community life center in early 2020.

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MassHousing provides $6M financing for affordable housing project

MassHousing closed on $5.5 million in affordable housing financing to 2Life Communities for the development of the Harold and Ronald Brown Family House, which will create 62 new, mixed-income, rental housing units for senior citizens in Brookline, Massachusetts. 2Life Communities will develop the new supportive housing through a ground lease with Congregation Kehillath Israel.

As part of the development, the existing Epstein Auditorium, a structure adjacent to the KI Synagogue, will be demolished and replaced by the new residential building. The Brown Family House will feature 52 one-bedroom apartments and 10 two-bedroom apartments. Fifty-seven of the units will be income-restricted, with eight units affordable to extremely low-income residents, 15 units affordable to households earning at or below 50 percent of the Area Median Income (AMI), 26 affordable to households at or below 60 percent of the AMI, and 8 units affordable to households earning at or below 110 percent of the AMI.

Other financing sources included $14.7 million in equity financing from state and federal Low Income Housing Tax Credits, allocated by the Massachusetts Department of Housing and Community Development (DHCD), $3.4 million in direct support from DHCD, $3 million from the Town of Brookline, and a $2.6 million philanthropic sponsor loan.

HJ Sims provides $5.1M loan for Arizona assisted living facility

HJ Sims provided a $5.12 million mezzanine loan for on behalf of Madison Realty Companies for Heritage Village Assisted Living, an assisted living and memory care community in Mesa, Arizona. Heritage is operated by SAL Management Group (SAL), which operates 26 communities with more than 1,200 assisted living and memory care units. SAL also currently operates all nine of Madison’s communities including three properties in the greater Mesa area.

Proceeds from the loan will be used to expand Heritage with the development of two assisted living and memory care buildings.

Atlas Senior Living acquires Alabama, Georgia assisted living facilities

Birmingham, Alabama-based Atlas Senior Living acquired Shepherd Living at Savannah Quarters, a 104-unit Independent Living, Assisted Living, and Memory Care community in greater Savannah, Georgia; and Shepherd Living at The Range, a 104-unit Independent Living, Assisted Living and Memory Care community in Madison, Aabama.

The acquisition and financing were arranged by Meridian Capital Group, led by Meridian Managing Directors Ari Adlerstein and Ari Dobkin.

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