The team at Newmark certainly demonstrated variety with its productivity in the first four months of the year in seniors housing and care transactions. The team closed eight sales, four refinances, three acquisition loans and three construction loans for a host of clients across the country. And from what we hear, there are another $550 million to $600 million in active adult sales alone set to close in the next two months. So, the momentum is building for another great year.
To the sales, a couple of deals involved very high-quality properties that sold way above the average per-unit price for seniors housing sales. Most recently, that was the sale of Danberry at Inverness, a senior living community in Birmingham, Alabama. Sentio Investments paid an undisclosed sum to Artemis Real Estate for the 232-unit property, which opened in 2009 with independent living, assisted living and memory care services. Newmark also arranged acquisition debt from Freddie Mac to fund the deal.
A couple of highlights were Ventas’ acquisition of Mangrove Bay from The Blackstone Group for $105.3 million, or $658,100 per unit, and PGIM Real Estate’s purchase of The Patriot Portfolio in Massachusetts from AEW Capital Management for $101.5 million, or $583,300 per unit.
In addition, the team closed the sale of two assisted living/memory care communities in South Florida for the seller, Joy Developers. Both built in 1998, the properties were located in Lantana and Boca Raton, combining for 144 units. The Rosdev Group acquired them through its affiliate Comprehensive Care Capital (CCC) for $22 million, or $152,800 per unit, with a $20.5 million mortgage provided by East West Bank and arranged by Ziegler. CCC’s operating affiliate, Forte Healthcare, led by Yosef Nathan, will manage both locations going forward.
There was a sale of two senior living communities in Florida for an undisclosed price that Newmark also arranged $64.52 million of Fannie Mae debt to fund the deal. Dubbed “Project Lightning,” the deal included HarborChase of Mandarin in Jacksonville, a 114-unit community that was developed by Vestcor Communities in 2018, and The Grove at Canopy, a 118-unit luxury senior living community in Tallahassee also developed by Vestcor in 2019. Occupancy at the Jacksonville property dipped to 88% during the pandemic but rebounded to 95% and above soon thereafter. Meanwhile, the Tallahassee community experienced strong lease up, and both communities were 100% occupied at the time of the deal. Not many operators can say that these days. HRA Senior Living operates the Jacksonville location, and Starling Senior Living operates the other. The buyer was not disclosed, but both operators will stay in place.
Newmark closed one skilled nursing deal so far this year, but it was a big one involving eight skilled nursing facilities and 700 beds in Arkansas. Capital Senior Ventures was the seller, but no other details were disclosed. The last Newmark sale of this period involved a 175-unit senior living community in Mesa, Arizona. Built in 1985 as low-income housing but converted to seniors housing in 1996, the 13-story building has independent living, assisted living and memory care units. Midland Investments sold it to Oakland for $4.85 million, or $27,700 per unit.
