CNL Healthcare Trust Inc., a real estate investment offering focused on senior housing and healthcare properties, announced its first acquisition of five senior housing communities from affiliates of Primrose Retirement Communities LLC for approximately $84 million.
The acquisition represents a total of 394 senior housing units, all of which were built between 2004 and 2007. Purchased communities include Casper Senior Living in Casper, Wyo., Grand Island Senior Living in Grand Island, Neb., Sweetwater Senior Living in Billings, Mont., Marion Senior Living in Marion, Ohio and Mansfield Senior Living in Mansfield, Ohio. Primrose will continue to operate the communities under a long-term triple net lease. As of Feb. 12, 2012, the communities were 95 percent occupied.
“We are thrilled to complete our first acquisition with Primrose, which has a successful track record of developing and operating high quality senior housing communities,” CNL Healthcare Trust President and COO Stephen H. Mauldin said in a statement. “We believe senior housing and other healthcare assets provide an excellent opportunity for our investors as the aging population and rising healthcare costs are expected to continue to drive demand for well-positioned and well-managed real estate assets.
Senior Living InvestmentSells 13 Properties for $55M
Senior Living Investment Brokerage Inc. recently brokered the sale of 13 senior living properties in nine states in nine separate transactions worth $55.4 million.
In Illinois, the brokerage firm sold three assets built between 2007 and 2009 for a total $30.8 million. The 186 units in the three independent/assisted living communities located in Washington, Sterling and Pekin, Ill., were 96 percent occupied. The new owner specializes in acquiring recently developed, high-end properties in premier locations with stable yet improving cash flow. An operating company affiliated with the seller will continue to manage the sites.
In Texas, the firm sold two skilled nursing centers specializing in dementia care for $14.2 million to a publicly-traded REIT. Windcrest Alzheimer's Care Center, Abilene, Texas, and Wesley Woods Alzheimer's Care Center, Waco, Texas are both 120-bed properties that will be leased to an operator in Maryland with several other facilities in Texas. Windcrest was built in 1994, and Wesley Woods was built in 2004. The seller is a not-for-profit organization based in Austin, Texas, that focuses on continuing care retirement communities.
Senior Living Investment Brokerage also arranged the sale of a 142-bed skilled nursing center and 25-bed inpatient rehabilitation facility in Daphne, Ala. The asset was sold by a local not-for-profit organization for $10.6 million. The buyer operates a large portfolio of health care assets nationwide and plans to capitalize on the quality of the acquisition, the location and lack of competition to improve performance.
Additionally, the firm arranged the sale of Stone County Nursing and Rehab, a 97-bed skilled nursing center, and Stone County Residential Care Center, a 32-bed residence in Mountain View, Ark. The assets were sold by White River Health System. for $4.2 million. The properties had a combined occupancy of 92 percent.
In Virginia, the brokerage firm sold North Roanoke Assisted Living, a 142-unit residence in for $3.5 million. Other transactions included the $3.2 million sale of Rose Court Senior Living in Phoenix, the $2.6 million sale of Creekside Senior Living in Green Bay, Wisc., to SABRA REIT, the $1.2 million sale of an assisted living facility in Saint Ann., Mo. and the $561,000 sale of a 29-bed skilled nursing facility in Fairland, Okla.
Northmarq Arranges Bridge Loan for Oregon Portfolio
Stuart Oswald, senior vice president and managing director of NorthMarq Capital’s Seattle regional office, arranged a first mortgage/bridge loan of $20.07 million for a seniors housing portfolio with a combined total of 136 units.
The portfolio consists of two assets—a 49-unit/79-bed memory care facility in Eugene, Ore. and an 87-unit independent living and assisted living facility in Klamath Falls, Ore. Financing was arranged for the borrower by NorthMarq through its relationship with an institutional bridge lender. According to Oswald, this cross-collateralized loan enabled the borrower to refinance the first asset and purchase the second asset with a non-recourse loan, with a competitive rate and flexible prepayment and release provisions.
NorSouth Development Announces HearthSide Peachtree City
NorSouth Development will break ground this summer on HearthSide Peachtree City a rental community reserved exclusively for independent seniors age 62 and older.
The $14.2 million community of 96 apartments is located in Kedron Village, Ga., adjacent to the 471,000-sq.-ft. Kedron Village retail center. Scheduled for completion in mid-2013, the project was designed by FoleyAssociates Architects Inc. and is being built by NorSouth Constructs.
HearthSide Peachtree City will consist of a three-story building of stone, brick and hardiplank siding with two elevators and security card access for residents. Exterior features include a walking path near the creek that borders the site, a garden center with planting beds and covered golf cart parking spaces with charging stations. NorSouth plans to relocate, rather than cut down mature trees, and will create a tree-lined entryway off Newgate Road into the development.
Love Funding Closes $17.5M in Loans
Love Funding refinanced of four loans totaling $17.5 million for assisted living and skilled nursing facilities.
The transactions closed include Rosemont Assisted Living Communities in Kingwood, Texas, and West Monroe, La; Olmsted Manor Care Center in North Olmsted, Ohio; and Jerseyville Nursing & Rehabilitation Center in Jerseyville, Ill. All four loans were secured through the U.S. Department of Housing and Urban Development’s 232/223(a)(7) LEAN loan program, which allows for a streamlined refinancing of existing HUD-insured properties.
The Love Funding originators who secured the four loans were Brian Robertson and Robyn Cunningham of the St. Louis office, and Bruce Gerhart and Robert Smallwood of the Cleveland office.
Oak Grove Adds SVP of Seniors Housing
Oak Grove Capital, a provider of real estate financial services added Jeffrey Ringwald as senior vice president of seniors housing.
Prior to joining Oak Grove Capital, Ringwald, who is based in Dallas, was employed by RED Capital Group as a managing director of its seniors housing group, Prudential Mortgage Capital Co. and Guaranty Bank.
DARA Closes Loan Mod onAssisted Living and Memory Care Facility
Dominion America Realty Advisors closed a loan modification and finance restructuring on a newly acquired assisted living and memory care facility in Riverside County, Calif. DARA President Paul Horvitz and Executive Vice President Keith Olson negotiated the extension, discount and loan modification of an expired bankloan on behalf of the borrower.
The newly constructed but not yet opened assisted living facility was in default on an expired construction loan. DARA, through its borrower advocacy program, was able to reach an amicable conclusion with the bank and junior trust deed lender and extend the original $6 million loan.
The new financing arranged by DARA provided the borrower with an extension of the original loan principal and extended the loan term by an additional 12 years at the existing rate. The result was that the borrower was not forced to file bankruptcy, the most likely scenario prior to DARA’s re-negotiation efforts, thus keeping both the borrower’s credit rating good name intact.
Hunt Midwest Builds Third Benton Facility in KC Area
Hunt Midwest Real Estate Development Inc. announced plans to build an 80-bed assisted living facility for senior living and care at the site of the former Somerset Elementary School at Somerset Drive and Belinder Avenue in Prairie Village, Kan. Benton House of Prairie Village is scheduled to open in early 2013.
Hunt Midwest will partner on the project with Principal Senior Living Group, which has owned and operated senior facilities in Florida, Georgia and South Carolina. The two companies have also partnered on two other Benton House facilities in the Kansas City area. Benton House at Shoal Creek, which is located in Benson Place, a Hunt Midwest master-planned community in Kansas City, Mo. and Benton House of Lee’s Summit at US-50 and Todd George Road. Both of those facilities will open in early 2012.
The initial build-out of Benton House of Prairie Village will provide 59 rooms for senior living and care – 75 percent will be designed for assisted living residents and 25 percent will be reserved for memory loss patients, primarily those living with Alzheimer’s.