The M&A market is trudging along, and we suppose that is all we can hope for given the new risks facing the senior care industry and new hurdles for closing deals today. Scottsdale, Arizona-based owner and operator Cadence Living joint ventured with Dylan Investments, a boutique real estate investment firm based in Los Angeles, to acquire an assisted living/memory care community in an affluent suburb of Portland, Oregon. All parties involved had help on the deal, with Orix Securites representing the seller and Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors advising the buyers.
Built in 1998 and having undergone a memory care conversion in 2016, the community now comprises 88 total units, split between 62 assisted living and 26 memory care rooms. It is located in West Linn, about five miles south of downtown Portland, and boasts sweeping views of the Williamette River valley. Current operation metrics are not known, but Cadence Living and Dylan Investments also acquired the adjacent vacant land to potentially add 100 residential units in the future. So, census may be strong enough to warrant the expansion. The purchase price came to $26.5 million, or $301.100 per unit.
Blueprint also announced its involvement in a publicly traded REIT’s sale of a 155-unit seniors housing community in Memphis, Tennessee to Elevation Financial Group, which we covered earlier this week. Built in 1990 and featuring 125 independent living and 30 assisted living units, the community will be converted to an affordable 55+ community, although it will have no income qualifications for residents. The deal was placed under contract after the COVID-19 pandemic took off in this country and closed with minimal delay. It probably also helped that the buyer paid in all cash. Brooks Blackmon and Ben Firestone handled the transaction.
