ESI Arranges Sale of 10-Property Senior Living Portfolio in the Southeast for $145M

by Jeff Shaw

CHICAGO — Evans Senior Investments (ESI), a Chicago-based brokerage, has arranged the sale of 10 seniors housing communities in Louisiana, Mississippi and South Carolina for $145 million.

Schonberg Care, a regional owner-operator, sold the assets to White Oak Healthcare, which will install Discovery Senior Living as the operator. The REIT buyer also assumed a recently refinanced Fannie Mae loan on the portfolio.

The communities consist of 590 seniors housing units and 666 functional beds (117 independent living units, 293 assisted living units, and 180 memory care units). The communities were built between 1972 and 2015, with a median year built of 2007. All communities have experienced significant renovations and capital improvements in recent years.

In 2019, the portfolio demonstrated an average bed occupancy of 91 percent and produced a net operating income margin of 34 percent. Due to visitation/move-in restrictions from the COVID-19 pandemic, the portfolio’s bed occupancy fell to 78 percent in October of 2020. The portfolio rebounded to 84 percent bed occupancy by April of 2021. At the time of sale, the portfolio was 87 percent occupied, resulting in a net operating income margin of 32 percent.

Discovery plans to rename three of the communities under its TerraBella brand, and five under its SummerHouse brand. The two communities in Mississippi represent Discovery’s entry into the state.

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