Newmark announced that it has completed White Oak Healthcare Partners’ sale of 31 properties all previously operated by Senior Lifestyle Corporation to two different sellers. We heard of the first two tranches last month, with Welltower announcing it would acquire 29 of the properties for approximately $147 million, transitioning the operation of 22 of the communities to Pathway to Living and the other seven communities to Frontier Management.
Totaling 1,103 units, the Pathway portfolio consists of 156 independent living, 835 assisted living and 112 memory care units located in Georgia, California, Washington and Texas. That results in a per-unit price of $87,900 per unit. Welltower had said that the deal went for well below replacement cost, and they were not kidding. The REIT plans on investing an additional $15,000 to $20,000 per unit, which should help improve the portfolio’s value.
The Frontier portfolio totals around 455 units and sold for approximately $50 million, or $110,000 per unit. Lastly, two properties with a combined 142 units located in Nebraska and Kansas sold to Midwest Health. That purchase price comes to approximately $15 million, or around $105,600 per unit. Another below replacement cost deal, it seems.
Newmark’s Senior Housing Team consisting of David Fasano, Ross Sanders, Ryan Maconachy and Chad Lavender represented White Oak in the deal. That should free up a lot of capital for White Oak, which is a subsidiary of White Oak Global Advisors, a $7 billion private equity and debt fund.
