KENNEWICK, Wash. — Blueprint Healthcare Real Estate Advisors has arranged the sale of a 36-unit assisted living community in Kennewick, located near the Oregon border in the eastern half of the state. The property was over 90 percent occupied at the time of sale, though it has struggled in recent years due to key leadership turnover, according to Blueprint. For this reason it was still marketed as a value-add opportunity. The buyer was well capitalized and local, and this is the company’s fourth acquisition in Washington. The seller and price …
Acquisitions
Monticello Provides $50M Acquisition Financing for 868-Bed Skilled Nursing Portfolio in Arkansas
by Jeff Shaw
ARKANSAS — Monticello has provided $50 million in first lien debt financing for the acquisition of six skilled nursing facilities totaling 868 beds in Arkansas. The transaction also includes a $2 million working capital loan to the operating companies of the properties provided by Monticello’s asset-based lending group, Monticello Commercial Capital LLC. The borrower is an owner-operator with previous experience in Arkansas. The names and locations of the properties were not disclosed.
ST. LOUIS — Blueprint Healthcare Real Estate Advisors has brokered the sale of a 167-bed skilled nursing facility in St. Louis. A REIT owner sold the property, with the operating partner planning to exit Missouri altogether. Despite a $1.2 million renovation in 2015, occupancy and cash flow were both in decline. An East Coast-based owner-operator with an existing presence in the state was the buyer. Housing & Healthcare Finance sourced the acquisition loan. The price was not disclosed.
TACOMA, Wash. — Evans Senior Investments (ESI) has arranged the sale of Heartwood Extended Healthcare, a 120-bed skilled nursing community in Tacoma. A joint venture between an East Coast capital group and a Los Angeles-based operator acquired the facility for for $8 million, or $66,000 price per bed. The seller was a local owner-operator. Built in 1986, the community was 69 percent occupied and not profitable at the time of sale. The new buyers plan to replace contracted staff with full-time employees. In addition, Medicaid rate increases have already been …
GREAT FALLS, Mont. — Blueprint Healthcare Real Estate Advisors has brokered the sale of a 70-unit seniors housing community in Great Falls, located in the central part of Montana approximately 130 miles south of the Canada border. A partnership between an Oregon-based operator and a private equity fund purchased the property. The seller was a REIT. The price and the name of the community were not disclosed.
NEWTON, Mass. — Diversified Healthcare Trust (NASDAQ: DHC) has completed the sale of three seniors housing communities in California. The portfolio totals 599 units. An undisclosed buyer purchased the properties for $47 million. These sales were part of Newton-based DHC’s previously announced disposition plan to sell up to $900 million of assets in connection with the restructuring of its business arrangements with Five Star Senior Living Inc. DHC expects to use the proceeds from these sales to repay debt and for general business purposes.
IRVINE, Calif. — Sabra Health Care REIT Inc. (NASDAQ: SBRA) has completed the sale of two skilled nursing facilities located in Montana. Genesis Healthcare operates both communities. An undisclosed buyer paid $14.4 million for the properties, and also took on $14.2 million in HUD-insured mortgage debt associated with the properties. As a result of this disposition, the total annual rental obligation from Genesis to Irvine-based Sabra will decrease by approximately $1.1 million.
PEKIN, Ill. — Senior Living Investment Brokerage (SLIB) has arranged the sale of Hallmark House Nursing Center. Located in Pekin, a suburb of Peoria, Hallmark House was built in 1964 and features 71 beds. The property totals 22,588 square feet on a six-acre plot. The seller was a private owner based in California struggling to oversee this single asset in Illinois. Occupancy was 62 percent at the time of sale. The buyer was a regional owner-operator with other facilities in Illinois. The price was not disclosed. Ryan Saul of SLIB …
SEATTLE — Evans Senior Investments (ESI) has arranged the sale of Washington Care Services, a 165-bed skilled nursing community in Seattle, for $10.5 million, or $64,000 per bed. Built in 1974, the community was placed into receivership in June 2019 after the previous owner, a local nonprofit organization, defaulted on its existing HUD loan. At the time of the sale, the property was 77 percent occupied and losing over $500,000 a year in net operating income. The new owner plans to correct course by replacing contracted staffers with full-time workers, …
WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT that invests in seniors housing and healthcare properties, has completed the sale of its entire portfolio of Preferred Care-operated properties. Preferred Care declared bankruptcy in 2017 amid a slew of personal injury lawsuits against the operator. The combined net proceeds for the portfolio, including one property sold in 2019 and 21 properties sold in the first quarter of 2020, were $77.9 million, resulting in a total estimated gain on sale of $44 million. The 21 properties sold …