Amy Sitzman, Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors handled the sale of eight small assisted living communities divided evenly between Washington and Oregon. News of the deal came out in June with two separate acquisition financing announcements from JD Stettin of Carnegie Capital, the first for the Oregon communities and the second for the Washington ones. Totaling 321 units of assisted living, the portfolio was previously owned by a joint venture between Sabra Health Care REIT and private equity group TPG, with Enlivant as the operator. They were struggling operationally and seen as value-add opportunities. The new owner will also convert a number of units to memory care.
These eight properties were originally brought to market in the beginning of 2019 as part of an 11-property portfolio, and a letter of intent was signed in the second quarter of 2019. However, three communities were spun off and sold separately. The buyer for the eight communities was a joint venture between an Arizona-based private equity firm making its first seniors housing acquisition and a reputable Oregon-based owner/operator. No purchase price was disclosed. To fund both acquisitions, Carnegie Capital secured a total of $18.58 million of debt, a certain amount going towards the renovation and conversion projects. There was a COVID-19 related material change in lender reserve requirements, but the deal finally closed on June 11.