Maintaining its blistering pace at the start of 2024, Senior Living Investment Brokerage completed several more transactions for senior care clients across the country. First, Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson represented a family owner looking to exit the seniors housing industry with the sale of their 77-unit assisted living/memory care community in San Bernardino, California. Built in 2003, the community has 97 licensed beds and 88 operational beds. It was 85% occupied.
CareTrust REIT announced that it and a third-party regional healthcare real estate investor entered into a joint venture arrangement under which CTRE provided a combined common equity and preferred equity investment amount totaling $10.7 million, or $139,000 per unit. CTRE is the managing member of the JV, and its initial contractual yield on its combined preferred and common equity investments in the JV is about 9.3%. That puts an estimated cap rate at around 10.4%. Going forward, the community will be operated by Oxford Health Group, a new operator relationship for CareTrust.
Punzel, Anderson and Brad Clousing next closed the sale of two senior care facilities in Sleepy Eye and Maplewood, Minnesota. The campuses were previously owned by Volunteers of America National Services, a national not-for-profit looking to condense its portfolio to just its core communities. Built in 1972 and 1986, respectively, the Sleepy Eye campus includes the former Sleepy Eye Care Center SNF (61 beds) and Countryside Retirement Community independent/assisted living community (67 beds/53 units). Meanwhile, the Maplewood campus, which was built in 1970 and 1995, respectively, includes Maplewood Care Center (149 SNF beds) and The Homestead at Maplewood (61 AL/MC units). Occupancy was 80% across the two locations.
Monarch Healthcare Management, an experienced, in-state owner/operator looking to grow its footprint in Minnesota, announced that it bought the campuses for an undisclosed price.
Finally, it appears that several SLIB teams arranged leases for different portfolios owned by LTC Properties. Clousing, Daniel Geraghty and Patrick Burke first sourced a new leasehold tenant for five assisted living communities previously operated by Brookdale Senior Living in North Carolina, located in the towns of New Bern, Shelby, Goldsboro, Greenville and Rocky Mount. Totaling 210 units, the communities were leased to Navion Senior Solutions. The six-year lease starts with an annual rent of $3.3 million, according to a recent LTC announcement.
Analyzing LTC Properties’ announcement, almost all of the buildings are relatively small, and the quality, at least based on the rent, is very different among them. The five communities going to Navion average about 42 units, but the annual rent comes to $15,714 per unit.
Clousing, Geraghty, Punzel and Viverito also worked to find a tenant for six assisted living/memory care communities in Colorado. Totaling 328 units in Fort Collins, Greeley, Longmont, Loveland and Arvada, these communities were also operated by Brookdale. After analyzing potential tenant options presented by SLIB, LTC ultimately decided it did not make sense to disrupt the operations and replace Brookdale. So, they renewed, with the new lease commencing January 1, 2024. Across the 17 communities with 738 units that Brookdale renewed its leases for six years, the first-year lease rate is $9.325 million, or $12,635 per unit, as disclosed in the same LTC announcement.
Finally, Clousing and Geraghty also were engaged to find a tenant for two assisted living/memory care communities in the Southeast. The properties have a combined 159 units and are located in Watkinsville, Georgia, and Murrells Inlet, South Carolina. The new tenant is a Tennessee-based seniors housing operator with a large presence throughout the Southeast. The new lease commenced January 1, 2024.
