Tennessee has been a popular acquisition destination in seniors housing in the last couple of months, with six deals featuring nine properties since mid-May. Brooks Blackmon of Blueprint Healthcare Real Estate Advisors took part in a couple of recent Tennessee transactions. He and Kyle Hallion teamed up on the sale of a 48-unit assisted living community in Chattanooga, working on behalf of a repeat institutional REIT seller. Originally built in 2000, the community had historically operated strongly and showed well. Blueprint conducted a targeted marketing campaign and received several competitive offers within 30 days of initial marketing. An undisclosed party acquired the property as part of a growing regional seniors housing platform across the Southeast.
Next, Brooks and Steve Thomes worked on the sale of two assisted living communities in Franklin and Hendersonville, Tennessee (Nashville MSA). The targets included Vitality Living Franklin, which was built in 2014 with 126 units, and Vitality Living Hendersonville, which was built in 2012 with 130 units. Previously owned by an affiliate of the original developer, the communities had faced occupancy challenges during the pandemic. However, occupancy was collectively around 87% and trending upward, as was the financial performance.
Winterpast Capital Partners and its affiliated operating partner, Vitality Living, acquired the communities in partnership with Stamford, Connecticut-based Broadview Real Estate Partners. Vitality will operate them under a traditional third-party management agreement. To fund the deal, CBRE National Senior Housing originated a $32.2 million three-year acquisition loan through Popular Bank. In addition, Scribner Capital and its institutional capital provider provided joint venture equity to Winterpast and Vitality. The communities will receive approximately $5 million in capital improvements over the first year of ownership to address deferred maintenance and improve their overall competitiveness.
