Kayne Anderson Real Estate Advisors has already been one of the most active acquirers during the pandemic, with its purchase of seven senior living communities from Welltower for approximately $500 million as the major highlight. We have thought that private equity, with its deep pockets and billions of dollars on the sidelines, was well positioned to take advantage of value-add deals this year and would help kick start the senior care M&A market. The M&A market hasn’t really come back to life, but private equity firms have certainly been the biggest players of the year. Just look at AEW’s acquisition of another Welltower portfolio.
Kayne Anderson recently acquired two large and newly built senior living communities in the St. Louis, Missouri area. The St. Charles community was built for approximately $35.8 million and has 180 total units of independent living (90), assisted living (62) and memory care (28), while the Wentzville property has 139 units with the same senior living continuum.
Both were developed in the last couple of years by O’Reilly Development Companies. Under the management of Arrow Senior Living, they have also already stabilized and boast long waiting lists. Not wanting to mess with that success, Kayne Anderson joint ventured with Arrow Senior Living on the deal. The purchase price came to $97 million, or $304,100 per unit. Brooks Blackmon and Ben Firestone of Blueprint Healthcare Real Estate Advisors handled the transaction.