On Thursday, Ventas had announced its acquisition of 20 seniors housing communities from Chicago Pacific Founders, one of the largest deals of the year so far, at $725 million, or $244,000 per unit in cash. Now, JLL Capital Markets has revealed that it represented CPF in the transaction.
JLL’s Jay Wagner had this to say on the deal: “As one of the largest seniors housing transactions closed year to date, it is a meaningful indicator that appetite for scaled seniors housing portfolios is back.” With other nine-figure deals like CareTrust REIT’s acquisition of 31 skilled nursing facilities for $500 million, The Inland Real Estate Group of Companies’ acquisition of the Clarendale Portfolio for $253 million recently announced, we would agree.
Totaling 2,971 units, split between 69% independent living and 31% assisted living/memory care, the portfolio is located across 14 states (Alabama, Arizona, Florida, Illinois, Kansas, Maine, Michigan, Nevada, New York, Ohio, Oklahoma, South Carolina, Tennessee and Texas). Current occupancy is about 92% and has been at 90% or higher since 2022. Additionally, the expected year one NOI yield to Ventas is between 7% and 8%, so we calculate that the in-place EBITDAR may be close to $50 million.
The properties were previously owned by Chicago Pacific Founders in its CPF Living Fund I, and operated by Grace Management. They had undergone approximately $49 million in improvements and now boast an average renovated vintage of 2020.
JLL’s Seniors Housing Capital Markets team, representing the seller, was led by Senior Managing Directors Jay Wagner and Rick Swartz, Director Jim Dooley and Analyst Sean Kirk. Representing the seller from JLL’s M&A team, Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc., was Senior Managing Director Ted Flagg.
