Capital Senior Living Acquires 4 Properties for $65M

Source:  CPE

Capital Senior Living Corp. has acquired four seniors housing properties for a combined purchase price of nearly $65 million. The properties are in Indiana and South Carolina, and total 388 units, consisting of 48 independent living units, 257 assisted living units, and 83 memory care units.

The company hasn’t disclosed detailed information about the individual properties yet, but did say that the four properties, in aggregate, were financed with about $49.3 million of 10-year fixed-rate non-recourse debt with an interest rate of 5.56 percent.

Also, Capital Senior Living expects the properties to generate annual revenue of about $14.7 million. The properties are more than 95 percent occupied, with average rents of about $3,100 a month. The sales will be closed during the first quarter of 2014.

Dallas-based Capital Senior Living, which currently owns 112 seniors housing properties, has been a major buyer in the segment in 2013, spending about $150 million for that purpose. Before the four aforementioned properties, the company bought a 64-unit assisted living property in Oakwood, Ga., for $11.8 million, and a 61-unit assisted living property in Middletown, Ohio, for $9.9 million, among others this year.

Seniors housing remains a hot property type among investors because of generally strong fundamentals. According to the National Investment Center (NIC) for the Seniors Housing & Care Industry, during the third quarter of 2013, seniors housing fundamentals experienced steady absorption, increased construction activity — mostly focused on assisted living properties — but somewhat slower rent growth, driven by independent living properties.

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