In 2013, Clearwater, Florida-based TJM Properties sold 15 of its 19 senior living communities to Fortress Investment Group/Holiday Retirement for $220 million, effectively exiting the sector to focus on the hotel industry and its remaining senior living communities. However, TJM has recently re-invested in the sector through the acquisition of five separate senior living communities in Florida in 2023. Interestly, these five communities were part of the 15-community portfolio that the company had previously divested.
TJM initiated its return to the sector in February with the purchase of Bayside Terrace, a 162-bed senior living community in Pinellas Park, Florida. The acquisition was attractive to TJM due to the team’s prior history/success with the community and its close proximity to the regional office as well as other TJM-owned communities.
The company then closed on two additional communities in June and two more in July. Grandbridge first handled the sale of Spring Haven, a 297-unit senior living community in Winter Haven, and Lake Morton Plaza, a 123-unit senior living community in Lakeland. The communities were both older-vintage assets that were not stabilized, and the new owner has significant capital improvements planned.
Next, Grandbridge sold The Grande, a 144-unit community in Brooksville, and Balmoral, a 125-unit assisted living/memory care community in Lake Placid. Both assets were also not stabilized and had older physical plants. The seller of the five communities was Griffin-American Healthcare REIT IV, which acquired the communities, plus three others, in 2017 for $110 million at an approximate 7.0% cap rate.
TJM’s intention is to retain ownership of these communities in the long term, and there are currently no plans for additional acquisitions. Although specific financial details were not disclosed, TJM did note that the communities were all thirty to fifty cents on the dollar from when they sold.
