Plains Commercial is starting off the second quarter strong, closing two separate seniors housing transactions in Oklahoma and Arkansas. The two communities are Glade Avenue Assisted Living (OK) and Magnolia Assisted Living (AR). Daniel Morris handled both transactions.
Glade Avenue is in Bethany with 110 assisted living and memory care units spread across two adjacent buildings that were built in 1990 and 1996. The community was approximately 70% occupied at the time of sale with both private pay and Medicaid residents, and it was cash flow negative at the time of sale.
That offers the buyer, a Northeast-based private investment group that will operate the community, significant upside through further lease-up and capex improvement. This was the buyer’s first senior community acquired in Oklahoma, whereas the seller, a local group of investors, was looking to exit the senior space. There were a number of hurdles in the extended contract time, however, the deal closed on April 1, after getting state approval of the operating licenses and Medicaid billing approval for the buyer. The purchase price was not disclosed.
Built in 2009, Magnolia is a 36-bed assisted living community in Piggott that takes Medicaid and could use some capex. However, occupancy hovered around 90% at the time of sale. The buyer, a Northeast-based owner/operator, was able to assume an existing HUD loan for the acquisition. The closing timeline was extended while waiting on HUD loan approval, however, the deal crossed the finished line April 1.
The seller, General Baptist Healthcare, a regional not-for-profit owner/operator, opted to exit the healthcare space following the pandemic. So, Plains was engaged to divest its entire operating portfolio, which included both owned and leased assets. Magnolia is the last of four different transactions that finishes General Baptist’s planned exit. Previously, Plains sold General Baptist Nursing Home of Piggott (AR) and General Baptist Nursing Home of Campbell (MO) in April 2023 to the same buyer that acquired Magnolia, a Northeast-based owner/operator. General Baptist also had leased a SNF and a small AL community in Pine Bluff, AR. But on behalf of the landlord, Plains re-leased the SNF, Davis West in Pine Bluff, to another nursing home operator in 2023, and sold the AL community, Pine Bluff Assisted Living, in January 2024.
