Mainstreet growth
Mainstreet Health Investments (Mainstreet) is adding seven seniors housing and care properties to its portfolio from several sellers, representing a total purchase price of approximately $152 million. First, the company bought four Mainstreet Property Group (MPG)-developed transitional care/assisted living facilities, which are scheduled to open between November 2016 and March 2017 in Texas and Kansas, for $92.8 million, or almost $247,000 per bed, with a year-one cap rate of 7.7%. The Ensign Group will manage the facilities. Second, Mainstreet is acquiring one transitional care/memory care facility in Evanston, Illinois from its existing operating partner Symphony Post-Acute Network for... Read More »Brookdale divests, big
We reported back in July that Enlivant was the rumored buyer of 44 assisted living/memory care communities in 12 states that Brookdale Senior Living was looking to sell. On September 15, it was announced that Enlivant was indeed the buyer, together with its PE backer TPG, except that the number of communities had increased to 48 in 14 states. This deal represents a nearly 40% increase in Enlivant’s portfolio, assuming all communities close. Sixteen of the transactions have already closed, and the remaining 32 are expected to be effective over the new few months. Read More »
Welcome to NIC
As we all descend upon D.C., please take some time to stop and chat with us at the conference. So, the 26th annual NIC Conference is upon us. I wonder what the big topic will be this year, if any. In years past there have been exciting developments right before or during the conference, such as Sunrise Senior Living’s share price plunging, or Formation Capital’s billion dollar plus sale of SNFs to GE, or last year the spin-off of skilled nursing assets by Ventas into a new REIT. Will people be talking about Welltower’s billion-dollar acquisition of Vintage Senior Living? Or will it be the upcoming skilled nursing spin-off by HCP? Whatever it is, we will be listening and trying to discern... Read More »
CBRE doubles down
CBRE pulled double duty with its last transaction, arranging and funding an acquisition of a 76-unit assisted living/memory care community in the Philadelphia area. Lisa Widmier and Matthew Whitlock handled the sale on behalf of the previous owner. This was built in 2013 at a cost of about $250,000 per unit, and a joint venture between Sage Senior Living and an institutional partner acquired it for just over $400,000 per unit. Aron Will arranged a non-recourse, five-year floating-rate loan, with 36 months of interest only, from a regional bank. Sage Senior Living will take over management. Read More »Grandbridge hits the Town…Village
It was recently announced that Grandbridge Real Estate Capital closed $125 million in financing to assist in the acquisition of four Town Village-brand independent living communities in four states. A joint venture between Chicago Pacific Founders and Grand Park Capital Management (owned by former Brookdale Senior Living executives John Rijos and Bill Doniger, respectively) was the buyer. According to some media outlets, the properties sold for $180 million, or approximately $220,000 per unit. Grandbridge provided $25 million in supplemental loans and also closed $100 million in assumption loans for existing Fannie Mae debt that Grandbridge had previously originated. Read More »
Divest in Dallas
A West Coast-based private equity group is divesting itself of a 30-year old independent living community in Garland, Texas (Dallas MSA). Built in 1984, the 111-unit community had received numerous renovations over the years and was in good shape. Its occupancy (around 83%) and operating margin (approximately 18% on $1.7 million of revenues) however could be improved. Rod Llanos and Heidi Castiglione of Marcus & Millichap represented the buyer, a regional Texas owner/operator looking to add to their holdings in the area. The seller will maintain a handful of properties in the state despite this sale. Mark Myers, Ryan Fleming and Joshua Jandris of Marcus & Millichap represented the... Read More »From the rumor mill
We have heard that a joint venture between Capitol Seniors Housing and Formation-Shelbourne Partners may have sold an assisted living and memory care community outside of Philadelphia to a private equity firm. Pricing has not been disclosed yet, but we understand that it could have been close to $400,000 per unit for the newly built community. Lisa Widmier and Matthew Whitlock of CBRE represented the seller, and Aron Will of CBRE arranged a five-year floating rate loan for the buyer, with three years of interest only. It looks like this is a case of buying a state-of-the-art community in a good market. Details to follow. Read More »
Majority rules
Merrill Gardens found a new majority partner for a small portfolio of four senior living communities on the West Coast it had either developed or acquired in the last couple of years. Previously a minority owner with an affiliate of Heitman (a real estate investment management company based in Chicago), the Seattle-based operator had developed three of the communities in the Orange County, San Francisco and Silicon Valley markets of California in 2014/15, and had acquired the fourth community in Seattle back in 2014 after already operating it for a couple of years. Featuring a combination of independent living, assisted living and memory care, the California properties were all stabilized... Read More »
Acquiring in the Acela Corridor
As we are about to travel from the New York City area to Washington, D.C. for the upcoming NIC Fall Conference, we must take note of two teams that did that trek probably a number of times recently. Grandbridge Real Estate Capital provided through its proprietary lending platform, BB&T Real Estate Funding, a $43.5 million non-recourse acquisition/bridge loan for a joint venture between Blue Vista Capital Management and Meridian Senior Living. Owned by Holladay Corp., a D.C.-based real estate developer/owner, the targets included an 88-unit assisted living/independent living/respite care community built in 1976 in Yorktown Heights, New York and a 131-unit (147 units post-renovation)... Read More »
Only in Oregon
Evans Senior Investments sold a portfolio of three seniors housing properties in McMinnville, Oregon, for $36.5 million, or $272,388 per unit. Built in 2008, 2014 and 2015 all within four miles of each other, the properties consist of 134 total units and 181 beds of independent living, assisted living and memory care. The two stabilized communities have occupancies in the mid- to high-80s, while the third is currently in lease-up. All three have majority Medicaid censuses. National Health Investors (NYSE: NHI) acquired the portfolio from FirCrest Community Living. Chancellor Health Care will operate the communities under a lease with NHI. Read More »Schedule a demo
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