Walker & Dunlop announced the closing of the Magnolia Springs portfolio consisting of seven communities across Ohio, Kentucky and Indiana. The seller appears to be a joint venture between LCS Real Estate and Nuveen Real Estate, which acquired the portfolio in 2018 and financed the deal with CBRE (before refinancing part of the portfolio in 2020). The average year built of the communities is 2014, and each had strong operating margins at the time of closing. The communities comprise more than 690 assisted living and memory care units, with average occupancy hovering in the low to mid-80s.
Josh Jandris, Brett Gardner and Alex Vice handled the transaction. There were multiple offers ranging from full-portfolio to single-asset executions. The ultimate buyer was a publicly traded REIT, later revealed to be Ventas, which plans to invest capital into the physical plant of each community to take advantage of strong submarket supply and demand fundamentals. According to Ventas, the purchase price was $143 million, or around $204,300 per unit.
