Transactions & Financings: Five Star/Diversified Complete 107-Community Transition Plan; Acts Partners With Willow Valley

Acts Retirement Services and Willow Valley Communities have forged a strategic alliance, aligning two of the largest nonprofit senior living and care organizations in the United States.

Acts, headquartered near Philadelphia, ranked as the third-largest multi-site senior living nonprofit on the 2021 LeadingAge/Ziegler 200, with more than 9,500 units across a portfolio of 26 life plan communities. Willow Valley ranked No. 34, with more than 2,000 units across three campuses in Lancaster County, Pennsylvania.

Under the new alliance, Willow Valley CEO John Swanson will step down from that role to concentrate on future development. The alliance is the result of a leadership transition plan that has taken shape over several years, according to a letter to Willow Valley residents announcing the definitive agreement with Acts.

Other Willow Valley leaders will remain the same.

Willow Valley is in the midst of an ambitious project to bring a highrise independent living community to downtown Lancaster, Pennsylvania. And, the organization is redeveloping the 47,000-square-foot Southern Market Center, located across the street from the planned highrise.

The Southern Market redevelopment includes a food hall as well as other culinary-focused spaces, which Willow Valley anticipates will be synergistic with the independent living community.

Going forward, Willow Valley will retain its name, identity and “operating autonomy,” Willow Valley Board Chair Jill Gilbert said in a press release issued Nov. 16.

“Bringing Acts in to support our existing management and operations leverages the scale and shared expertise important to both organizations,” she stated.

Acts will serve as sole corporate sponsor and manager for Willow Valley Communities, and the alliance will involve “mutual representation” on each organization’s board.

“Aligning with Willow Valley Communities is a proud moment for Acts. Willow Valley is clearly one of the finest senior living providers in the nation,” stated Acts Board Chair Dr. John Esterhai. “Our organizations coming together in this strategic alliance provides a platform for future success and our ability to serve seniors. With so much already in common, this alliance simply makes both organizations stronger.”

Financings

HJ Sims closed on more than $398 million in tax-exempt and taxable bond issue to build a senior living community on-campus at SUNY Purchase College in Westchester County, New York.

Fairfield, Connecticut-based HJ Sims began acting as the investment banker on the project, called the Broadview at Purchase College, back in 2014.

In 2018, the firm raised $15 million for the initial development costs to go along with a $5 million grant that was received by the Purchase College Foundation Housing Corporation.

The community, called the Broadview, will be centrally located on the Purchase College campus and will include units for assisted living, memory care, and residential apartments and villas.

Life Care Services will operate the property.

Greystone Finances Gold Standard’s Florida Acquisition

Greystone provided a $13.6 million bridge loan to Gold Standard of Care for the purchase of a senior housing campus in West PalmBeach, Florida.

The campus combines two senior living communities with a skilled nursing facility.

Gold Standard purchased the assets from National Healthcare REIT.

Sales and Transitions

Five Star Completes Transition of 107 Communities, Exits Skilled Nursing

Five Star Senior Living (Nasdaq: FVE) announced the successful transition of operations of 107 communities owned by Diversified Healthcare Trust (Nasdaq: DHC).

The move completes Five Star’s exit from the skilled nursing sector.

The amended management arrangement with Diversified, announced in April of 2021, leaves Five Star with 140 senior living communities with approximately 20,000 units under its management.

Of those, 91% are either independent living or assisted living; the remaining 9% are memory care units. Diversified now owsn approximately 120 properties managed by Five Star.

The transitioned communities represented less than 12% of Five Star’s total management and operating revenues in 2020, as previously reported by Senior Housing News.

Five Star will retain 45 outpatient rehabilitation and wellness clinics located in the transitioning communities under its Ageility division.

Rehabilitation and wellness services will be one of Five Star’s business focuses as a result of the transitions, according to Five Star President and CEO Katie Potter.

SLIB Facilitates Sale of Northern Nevada Community

Senior Living Investment Brokerage (SLIB) announced the sale of an assisted living and memory care community in Gardnerville, Nevada.

The seller, a regional owner and operator, will continue to operate the community for the buyer, which is a long-time private equity group located in the Western U.S.

The community, built in 1997, has 65 units on about 2.5 acres of land.

Legacy expands Tennessee Portfolio With Acquisition

Cleveland, Tennessee-based Legacy Senior Living announced its purchase and future renovation plans for Main Street Senior Living in Hendersonville, Tennessee.

The $1 million renovation project will begin immediately and will be followed by an expansion that is planned to begin in 2022.

MBK acquires Mariposa Point

MBK Senior Living announced the acquisition of Mariposa Point, an 83-unit assisted living and memory care community.

The community, the 34th in MBK’s portfolio in the Western U.S., will re-brand to Sky Point.

Livingston Street Capital Surpasses $150 Million in Dallas with Acquisition

Carrollton, Texas-based Livingston Street Capital acquired Atlas Point at Prestonwood, a 183-unit active adult and multifamily community in the Dallas metroplex.

With this acquisition, Livingston Street has invested more than $150 million in the active adult market within six months, according to Peter Scola, the company’s founder, president, and CEO.

BHI Partners With Cincinnati Communities

BHI Senior Living, for the third time in five years, added communities to its portfolio via acquisition or partnership, with its recently announced partnership with Maple Knoll Communities.

Both Cincinnati-based Maple Knoll and Indianapolis-based BHI are non-profit organizations.

Maple Knoll has two retirement communities — one in Cincinnati and one in Oxford, Ohio.

BHI, meanwhile, has five other retirement communities, all of which are in Indiana.

Vium Capital finances two sales

Vium Capital announced it has helped finance two acquisitions.

The first included $58 million in a bridge-to-HUD loan for six properties in Michigan, encompassing five skilled nursing facilities and one assisted living facility.

The second, $21.2 million in a bridge-to-HUD loan, helped the seller unload their only Wisconsin property to a buyer that wanted to grow their presence in the state. The community, Bria of Trinity, is a rental CCRC in Milwaukee.

Other Transactions:

Officials announced a new business format franchise agreement between American Baptist Homes of the Midwest (ABHM) and the HomeCare Advocacy Network.

The goal of the relationship is to provide the option for seniors who want to age in their own homes.

HCAN will provide training, structure, and support to provide a separate, complementary line of home care.

For ABHM, the arrangement allows for an extension of off-campus services that can establish relationships with seniors and families early on, thus paving the way for a possible transition to an ABHM community.

ABHM, a non-profit organization, will first offer in-home services via HCAN to its Tudor Oaks Senior Living Community, located in Muskego, Wisconsin.

With the HCAN agreement, the home care venture will keep the Tudor Oaks name.

“The ability to keep our brand front and center is a huge marketing advantage. Our name is well known in the community, and we believe seniors will like the fact that their care is coming from a reputable nonprofit organization,” said Jeff Hongslo, CEO of ABHM.

Ideally, ABHM hopes to develop three additional markets over the next two years, according to a statement.