Fannie Mae Origination in Oregon
Almost five years after taking over the operations of a 92-unit senior living community in the town of The Dalles in northern Oregon, family-owned The Springs Living has become its sole owner, thanks to a $17.5 million Fannie Mae refinance arranged by Capital One’s Dague Retzlaff and Mark Bultman. Harrison Street Real Estate Capital bought the community as part of a four-property, 419-unit portfolio in November 2012 for a total of $65 million, or $155,130 per unit, and brought in The Springs to operate. At the time, the portfolio was 89% occupied and operated at a 26% margin on $15.65 million of revenues. We believe Harrison Street has since added value to the property, as it typically... Read More »High price for the Upper West Side
Seniors housing deals valued above $500,000 per unit are rare. In fact, in our M&A database dating back to 1993, only nine have been announced in the U.S. (all since 2015). And up until this month, we only had one domestic deal above $600,000 per unit, which was Health Care REIT’s acquisition of three senior living communities in the Boston area for $150 million, or $652,174 unit. Now, a single 239-unit independent living building in New York City’s Upper West Side is selling for approximately $150 million, and surpassing $625,000 per unit. The Esplanade had been owned by the Scharf family, an owner/operator of senior living communities in the New York City MSA, since they bought it... Read More »HCP boosts seniors housing holdings
Just as HCP, Inc. is about to spin off its large skilled nursing portfolio into a new REIT, it has closed a smaller, but large in today’s M&A market, acquisition of a portfolio of seven assisted living and memory care communities with 526 units in Maryland and Virginia. The price was $186.25 million, which comes in at $354,400 per unit, much higher than the average price per unit of $198,000 for the past four quarters, but near the levels we have been seeing for some good portfolios of late. The properties were built between 1993 and 2013, and talking to other buyers it appears that occupancy was not quite stabilized, so there should be room for improvement for the new operator, Senior... Read More »Greystone’s giant deal
Greystone Real Estate Advisors certainly ended May with a bang, closing the largest transaction of the month at a value of $210 million, or $202,117 per unit. Involving seven senior living communities in Texas and one in Oklahoma City, the sold portfolio was owned by Harrison Street Real Estate Capital and Bridgewood Property Company. Built between 1989 and 2000, it included 1,039 total units, with two independent living communities, three independent/assisted living communities and three that included independent living, assisted living and memory care services. Texas-based Cardinal Bay was the buyer, which will retain Retirement Center Management as operator. Cody Tremper of Greystone... Read More »Schedule a demo
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