PETALUMA, CALIF. — CareTrust REIT Inc. has acquired The Oaks, a 59-bed skilled nursing facility in the San Francisco suburb of Petaluma, for $6.9 million. CareTrust immediately leased the facility to West Harbor Healthcare upon purchase. The REIT expects an initial annual revenue of approximately $700,000 under the new lease, which has a 15-year term, two five-year renewal options and CPI-based rent escalators. CareTrust is a publicly traded REIT based in California. The company currently owns 145 net-leased healthcare properties in 20 states.
HILLIARD, OHIO — Spectrum Retirement Communities has opened Hilliard Assisted Living & Memory Care, a 100-unit assisted living and memory care community in the Columbus suburb of Hilliard. The new community features 75 assisted living units, 25 memory care units and a transitional memory care program for seniors with only mild cognitive impairment. The 87,000-square-foot community includes studio, one-bedroom and two-bedroom units. Spectrum currently has three other communities under construction in the Columbus area and another in the planning stages. Based in Denver, Spectrum owns and operates 31 communities in 12 states totaling more than 3,700 units, with eight more communities currently under construction.
PALATINE, ILL. — Inland Real Estate Brokerage & Consulting Inc. has arranged the sale of an apartment portfolio totaling 102 units in Palatine, approximately 30 miles northwest of Chicago, for more than $8.1 million. The portfolio consists of 17 six-unit buildings located within the Long Valley Apartment complex and a controlling interest in the apartment association. The buildings, constructed in the 1970s, provide a mix of 80 percent two-bedroom units and 20 percent one-bedroom units. Both parties in the transaction are undisclosed.
SOUTHFIELD, MICH. — Friedman Integrated Real Estate Solutions has brokered the sale of a 104-unit apartment property in Southfield, approximately 15 miles northwest of Detroit. Cambridge Square Partners LLC sold the property, located at 27315 Greenfield Road, to Loop Cambridge Square LLC and OM Gardner LLC. Cambridge Square Apartments offers one- and two-bedroom units. Amenities at the property include a playground, courtyard and covered parking. Ryan Cohn and David Cohen of Friedman Integrated Real Estate Solutions represented the seller in the transaction.
ORLANDO, FLA. — Brasfield & Gorrie’s Orlando office has completed construction on The Sevens, a 360,000-square-foot apartment building situated on a 2.5-acre lot between Park Lake Street and Colonial Drive in Orlando’s North Quarter district. The property features 333 luxury units, a seven-level parking garage and 8,000 square feet of ground-floor retail space. The Sevens’ amenities include a rooftop pool deck with a lounge and bar, fitness center and a ninth-floor clubhouse. Units feature granite and quartz countertops, stainless steel appliances and balconies in select units. The project team includes developer and owner The Pizzuti Cos. and architect Charlan Brock & Associates.
ACWORTH, GA. — The RADCO Cos. has purchased Stanton Place Apartments, a 240-unit, Class A multifamily community located one mile from I-75 in Acworth, for $23.3 million. Atlanta-based RADCO has renamed the asset The Landing at Acworth and plans to invest $3 million to modernize and upgrade the property. Built in 2001, The Landing at Acworth’s amenities include a standalone fitness center, swimming pool, nature trail, tennis court, dog park, playground, business center, car wash and detached garages. Units average 960 square feet and include one- and two-bedroom floor plans. RADCO financed the acquisition using a loan from First Tennessee Bank and $8.4 million in private capital. The Landing at Acworth is RADCO’s third property in northern Cobb County and its eighth transaction of the year. RADCO Residential will manage the apartment community once the transaction is finalized.
Favorable hiring trends in metro Detroit have driven household formation to its highest point since the start of the new millennium. As a result, multifamily asset performance and operations have shown marked improvement with respect to demand, occupancy, rents and prices. In the first quarter of the year, local employers created 14,500 jobs for a year-over-year gain of 2.3 percent, which brought Detroit’s unemployment level to its lowest level since 2001. Employment advances were led by the professional and business services sector as well as the leisure and hospitality sector, which added 16,100 and 6,000 workers, respectively. Total employment at the end of 2016 is projected to be 1.9 percent higher than it was at the end of 2015. The generally higher paying professional and business services jobs will lead to broad-based employment growth through the rest of the year, and gains in this segment are expected to support growing demand for luxury rentals. In any event, rental demand in Detroit is on the rise for the foreseeable future. Construction takes off Encouraged by positive employment trends, economic indicators and a recovering automotive industry, new construction, renovation and conversion are thriving. Developers have new multifamily projects underway in more than …
SANTA ANA, CALIF. — Decron Properties has purchased the 349-unit Adagio at South Coast in Santa Ana for $96 million. The multifamily community is located at 3124 S. Main St. The garden-style property was built in the 1970s. Decron plans to renovate unit interiors with shaker-style cabinets, quartz countertops, stainless-steel appliances, vinyl plank flooring and in-unit washers and dryers. The seller was Prime Residential.
IRVINE, CALIF. — Sabra Health Care REIT (NASDAQ: SBRA) plans to sell off 29 of its 78 skilled nursing facilities currently managed by Genesis Healthcare Inc. The plan, announced on the Irvine-based company’s second-quarter earnings call, is the latest in a trend of publicly traded REITs reducing their exposure to skilled nursing. Last year Ventas spun off its skilled nursing portfolio into a separate REIT, and in May HCP Inc. announced it planned to do the same. As part of the deal, as the facilities are sold, Genesis’ rent will be reduced by 7.5 percent of the net proceeds from the sales. Sabra is currently under contract to sell five other Genesis-managed facilities. If Sabra completes those transactions and is able to sell the entire 29-property portfolio, it will reduce the number of Sabra-owned, Genesis-managed facilities from 78 to 43. If completed, Sabra estimates the sales will reduce the percentage of its revenue from skilled nursing from 51.1 percent to 24.9 percent, after sales proceeds are reinvested.
RIVERBANK, Calif. — Blueprint Healthcare Real Estate Advisors has arranged the sale of Riverbank Nursing Center, a 99-bed skilled nursing facility in Riverbank, approximately 90 miles east of San Francisco. The property was positioned as a value-add property in an underserved market. Neither the buyer nor seller were disclosed. Christopher Hyldahl was the lead advisor on the transaction, supported by Gideon Orion.