PRAIRIE VILLAGE, KAN. — Tutera Senior Living & Health Care will soon break ground on Mission Chateau Senior Living, an independent living, assisted living and memory care community in the Kansas City suburb of Prairie Village. Development costs are estimated at $40 million. The 18.4-acre community will feature over 200 units when completed. Tutera hired studioSIX5, Nearing Staats Prelogar & Jones Architects and BHC RHODES to design the project.
CHICAGO — What are the best buying opportunities today for investors in the seniors housing space? The answer begins with an understanding of the deals that are among the least attractive, according to veteran broker Ryan Saul. A property that is 99 percent full that trades at a 6.5 percent cap rate could hardly be called opportunistic because there is no upside, points out Saul, managing director of Chicago-based Senior Living Investment Brokerage. Instead, buying a property that is 75 percent occupied for $100,000 a unit with a broken management team in place presents real opportunity, he believes. “You can go in, turn it around and really add value so that you can sell it stabilized for a much larger premium.” Saul’s insights came during a panel discussion on the state of the investment market at InterFace Seniors Housing Midwest, which took place Tuesday at the Westin Chicago River North Hotel. The conference attracted 265 attendees from a cross-section of the seniors housing industry. Moderated by Ben Firestone, managing director of Blueprint Healthcare Real Estate Advisors, the investment panel discussed who’s buying, who’s selling and what’s driving deal velocity. In addition to Firestone, the panelists included Talya Nevo-Hacohen, chief investment …
PHOENIX — Life Care Services and Westminster Funds have completed the $13.2 million addition of 60 units of skilled nursing and memory care to Sagewood, a continuing care retirement community (CCRC) in Phoenix. The expansion doubled the size of the community’s Acacia Health Center, adding 36,300 square feet. The project included the addition of a 20-bed memory care neighborhood and 40 skilled nursing suites totaling 78 beds. The expansion also added new amenities, including three neighborhood dining rooms, three activity kitchens, three neighborhood living areas and an expanded rehabilitative therapy center. The CCRC as a whole, which totals 292 units, is currently 90 percent occupied. The Weitz Company served as the general contractor for the Acacia Health Center expansion. Architecture firm Todd & Associates and interior designers Spellman Brady Co. designed the project.
BROWN DEER, WIS. — New Perspective Senior Living has nearly finished work on a 133-unit seniors housing community in the Milwaukee suburb of Brown Deer. The property is scheduled to open in early August. The 153,000-square-foot community will feature 87 independent and assisted living units and 46 memory care units. Founded in 1998, New Perspective Senior Living is a Minneapolis-based developer and operator with 14 communities in Minnesota, Wisconsin and Illinois.
CHARLESTON, S.C. — Grandbridge Real Estate Capital has arranged a $9.5 million construction loan for Benton House of West Ashley, a 59-unit seniors housing facility set to break ground in Charleston. Benton House will offer both assisted living and memory care services upon completion in the summer of 2017. Richard Thomas of Grandbridge’s seniors housing and healthcare finance team in Atlanta arranged the loan through BB&T on behalf of the borrower, Principal Senior Living Group, which will manage the property upon completion. Principal Senior Living currently operates more than 20 properties in Georgia, Florida, South Carolina, Missouri and Kansas.
BEDFORD, OHIO — Greystone’s Real Estate Advisors group has arranged the sale of Woodside Village, a 211-unit assisted living and memory care community in the Cleveland suburb of Bedford, for $6.5 million. Pritok Capital purchased the property from a public healthcare REIT. MB Financial served as the lender on the transaction. Woodside Village was built in 1988 and sits on 20 acres. The facility is 164,920 square feet.
There are a lot of ways to increase and unlock value in lower-quality seniors housing, according to the June 2016 Seniors Housing Market Trend Report from Greystone Real Estate Advisors. According to Senior Care Investor’s annual report, Class A properties reaped $248,500 per unit for assisted living and $243,300 per unit for independent living communities in 2015. Class B properties, comparatively, earned only $138,300 per unit for assisted living and $72,900 per unit for independent living. In 2015, approximately 60 percent of assisted living properties sold were Class B, while 40 percent were Class A. In independent living, approximately one-third of the properties sold were Class A, while two-thirds were Class B. In Greystone’s report, the writers distinguish three different factors — physical location, asset quality and operational performance — that set Class A and Class B properties apart. The report outlines five ways to boost value if a property is lacking in one of those measures. 1. Add amenities — Location is extremely important when it comes to the value of an asset, the report suggests. Since this factor is out of the owner’s control when disposing of a property, owners should focus on increasing the quality of the …
CHICAGO — Harrison Street Real Estate Capital LLC, a private equity firm, has purchased the “Nellie Black” property at the former Children’s Memorial Hospital in the Lincoln Park neighborhood of Chicago. Harrison Street plans to partner with operator Belmont Village Senior Living to convert the property into a seniors housing facility named Belmont Village Lincoln Park. The new community will feature 160 assisted living and memory care units and will be part of the larger Lincoln Common mixed-use development. Co-developed by McCaffery Interests and Hines, when completed Lincoln Commons will consist of two 19-story luxury apartment buildings with a total of 540 units, up to 60 low-rise condominiums, and approximately 160,000 square feet of retail and commercial space. The developers plan to break ground on Belmont Village Lincoln Park in early 2017. The project is set for completion in 2018.
MERRILLVILLE, IND. — McShane Construction Co. has completed the construction of Merrillville Memory Care, a 48-unit memory care community in Merrillville, approximately 40 miles southeast of Chicago. Dete Development hired McShane on behalf of Whiteco Industries, the land owner. The 33,760-square-foot, single-story complex is located on a nine-acre site.
CHICAGO — KeyBank Real Estate Capital has provided a $182 million Freddie Mac loan and a $142 million corporate credit facility to Enlivant, a Chicago-based owner and operator of nearly 200 seniors housing communities throughout the United States. The Freddie Mac loan is secured by 36 assisted living communities comprised of 1,477 units in 14 states. The capital provides permanent, non-recourse financing. The corporate credit facility is comprised of a $100 million term loan and a $42 million revolver, secured by 40 assisted living communities that are located throughout 12 states. The credit facility provides Enlivant with capital to implement its operating and growth strategy. Charlie Shoop of KeyBank Healthcare Mortgage Banking Group arranged the Freddie Mac financing. Paul Di Vito, Tim Sylvain and Mark Amantea of KeyBank Real Estate Capital’s Healthcare Group arranged the corporate credit facility.
