Transactions & Financings: LCS Assumes Operations of Rose Senior Living; United Church Homes’ New Development Venture

Sales and operator transitions

Life Care Services assumes management of former Rose Senior Living communities

Life Care Services assumed management of six communities owned by Rose Senior Living, an operator based in Bloomfield Hills, Michigan.

The communities include:

  • Heritage at Irene Woods, Memphis, Tennessee
  • Rose Senior Living and Rose Villas, Avon, Ohio
  • Rose Senior Living, Beachwood, Ohio
  • Rose Senior Living, Carmel, Indiana
  • Rose Senior Living, Clinton Township, Michigan
  • Rose Senior Living at Providence Park, Novi, Michigan

Additionally, Life Care Services is under agreement to manage a seventh community currently in development – Rose Senior Living in Farmington Hills, Michigan, which is scheduled to break ground later this year. The portfolio was previously managed by Ecumen.


Foundry Commercial venture acquires Kansas community

FSL Senior Living Ventures, a senior housing joint venture from Foundry Commercial and Foster Senior Living, acquired The Piper, a 120-unit senior housing community in Kansas City, Kansas. The community includes 60 assisted living units, 20 memory care units and 20 physician-directed care units.

Fundamental Advisors, in partnership with Scribner Capital, provided the joint venture equity for the acquisition. Ziegler Managing Director Dan Revie and Vice President Tedd Van Gorden represented the seller in the transaction.

Benchmark becomes part owner, will operate Connecticut retirement community

Benchmark Senior Living became a part-owner and will assume operations of Meadow Ridge, a continuing care retirement community in Redding, Connecticut and the largest CCRC in the state. Affiliates of Senior Care Development will retain majority ownership. Benchmark now operates the two largest CCRCs in Fairfield County, Connecticut.


SLIB completes $8M sale of California assisted living and memory care community

Senior Living Investment Brokerage Managing Director Jason Punzel, along with Vice Presidents Brad Goodsell and Vince Viverito, were the sole brokers in the $7.8 million sale of a 90-unit assisted living and memory care community in Orangevale, California. The buyer is a smaller owner/operator with a strong footprint in the area. The seller is a northern California-based nonprofit operator.

Cushman & Wakefield sells Colorado infill site to Harrison Street venture

Cushman & Wakefield National Senior Housing Capital Markets Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Managing Director Aaron Rosenzweig, Senior Director Jim Dooley and Associate Bailey Nygard arranged the sale of a high quality, urban infill development site in the affluent Cherry Creek suburb of Denver. The fully entitled site was purchased by a joing venture of Harrison Street Real Estate Capital, Ryan Companies and Cadence Living.

The joint venture will develop a seven-story, mid-rise building totaling 137 units of independent and assisted living space. Cushman & Wakefield served as the exclusive advisor to Titan Development and supported Ryan Companies with helping to source the development equity partner.

Blueprint sells 2 Massachusetts assisted living facilities

Blueprint Healthcare Real Estate Advisors Senior Directors Connor Doherty and Amy Sitzman, along with Senior Associate Giancarlo Riso and Associate Ryan Kelly, were the sole brokers in the sale of two assisted living properties in Massachusetts totaling 195 units.

The buyer is a partnership between an experienced real estate investor with an existing home health business Massachusetts seeking to expand their health care portfolio, and a seasoned seniors housing operator based in New York.

ACG, Artemis acquire 2 Pacific Northwest senior housing communities

A venture between American Capital Group, Artemis Real Estate Partners and MorningStar Senior Living acquired two independent senior living communities in Kirkland, Washington and Hillsboro, Oregon. The properties will be managed as MorningStar Senior Living of Kirkland and MorningStar Senior Living of Hillsboro, respectively.

Standard Communities acquires Massachusetts affordable senior apartments

Standard Communities completed the acquisition of Westwood Glen Apartments, a 156-unit affordable senior apartment community in Westwood, Massachusetts. The acquisition was part of a two-property, $65 million deal.

Imagine Senior Living assumes operations of Texas community

New operator, Imagine Senior Living, assumed operations of The Gardens of Castle Hills, an assisted living and memory care community in San Antonio, Texas. The community was formerly known as Ventura Hills.


Douglaston Development closes on $60M financing package

Douglaston Development, a real estate development and services firm with offices in New York City and Douglaston, New York, closed on a $59.9 million financing package to begin the first phase of a mixed-use development in the Bronx which will include 188 affordable senior apartments, Real Estate Weekly reports.

The development will be built on land leased by Douglaston from the New York Botanical Garden. The financing includes $32.1 million in tax-exempt bond financing provided by New York State Homes and Community Renewal, a $12.8 million subsidy from the New York City Department of Housing Preservation and Development, a $6.8 million deferred development fee and $1.6 million in accrued interest from subsidy programs. Construction is expected to begin in the spring.

Cushman & Wakefield completes 2 financing transactions

Cushman & Wakefield National Senior Housing Capital Markets Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Managing Director Aaron Rosenzweig, Senior Director Jim Dooley and Associate Bailey Nygard completed the following transactions:

  • The team was the exclusive advisor to a joint venture of Harrison Street Real Estate Capital and LCB Senior Living to secure acquisition financing for a portfolio of three senior housing assets totaling 263 assisted living and memory care units in Cherry Hill, Voorhees and Stafford Township, New Jersey. Cushman & Wakefield arranged the non-recourse financing with Synovus Bank with earmarked capex funds and earn-out potential for additional proceeds.
  • The team served as exclusive advisor to Harrison Street and Stellar Senior Living in arranging acquisition financing for Heritage Sun City, a 211-unit independent and assisted living community located in the Sun City, Arizona. The non-recourse financing was provided by a national bank that will also provide acquisition financing to the same borrower for another Arizona-based senior housing community, set to close in early 2021.

Ratings Outlooks

Fitch affirms bond outlooks for Maryland, Texas CCRCs

Fitch Ratings affirmed the “BBB+” rating on the following Maryland Health and Higher Educational Facilities Authority bonds issued on behalf of Broadmead:

  • $60 million in Series 2018A revenue bonds
  • $15 million in Series 2018B revenue bonds

The bonds are secured by a gross revenue pledge and a mortgage on the facility. Key rating drivers include an average 98.3% operating ratio and 21.3% net operating margin – adjusted (NOMA) over the past four audited years, which compare well to Fitch’s “BBB” category medians of 97.4% and 23%. Independent living, assisted living and skilled nursing occupancies at Broadmead have averaged 95%, 82%, and 87%, respectively, over the past four years, indicating good demand for services.

Fitch also affirmed the “BB+” rating on Series 2013, 2020A and taxable 2020B bonds issued by the New Hope Cultural Education Facilities Finance Corporation on behalf of Morningside Ministries. Key ratings drivers are weak profitability, stable demand and good liquidity. As of September 30, Morningside Ministries had $34 million in unrestricted cash and investments, translating to 358 days cash on hand (DCOH), 43.9% cash to debt and 6.4x cushion ratio, which is good for the current rating.


United Church Homes enters new senior housing venture

United Church Home and Mission DG, a privately-owned real estate development company specializing in multifamily and mixed-use projects, are embarking on a joint venture to fund pre-development activities for new affordable senior housing in Texas. United Church Homes will be an investment partner in several projects in southern Texas.

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