Amid rumors that a moratorium has been placed on large Chinese companies making significant purchases in the U.S. senior care market (like Zhonghong Zhuoye Group Co Ltd.’s proposed acquisition of Brookdale Senior Living), Hong Kong-based Chevalier International Holdings Ltd. continues to invest, recently adding two more senior living communities and 299 units in the Detroit, Michigan area to its growing portfolio.
Getting its start in the market in 2011 with the purchase of three assisted living/memory care communities and 336 beds in Oregon, the company stepped it up in late 2012, when it bought 18 assisted living communities (and 1,322 licensed beds) in North Carolina from a joint venture between Formation Capital and Smith/Packett for $124 million, or $164,500 per unit, at a 9.6% cap rate.
Chevalier added two more communities in North Carolina since, bringing their portfolio to 23 communities, until now. The two Michigan communities are located in relatively affluent suburbs and were both built in the mid-1980s. One property features 143 independent living, assisted living and memory care units, while the other is all-IL with 156 units. Both were close to fully occupied too. New Senior Investment Group, the previous owner, had invested in significant improvements since acquiring them in late-2014/early-2015. Still, the purchase price for the two communities added up to $33 million, or $110,400 per unit. Mike Garbers and Cody Tremper of Greystone Real Estate Advisors handled the transaction.
