SAN CLEMENTE, CALIF. — CareTrust REIT Inc. (NYSE: CTRE), along with a regional investor in healthcare real estate, has acquired four skilled nursing facilities on the West Coast. The four-property acquisition includes 450 skilled nursing beds and 20 assisted living units. Links Healthcare Group, a new operator relationship for CareTrust, will operate the facilities pursuant to a 15-year master lease with two five-year extension options. Links is an experienced operator founded by Toby Tilford and Curt Rodriguez and currently operates 16 skilled nursing and seniors housing communities. CareTrust’s initial investment in the facilities, inclusive of transaction costs, was approximately $71.5 million. Aggregate annual cash rent for the first year is approximately $5.4 million, increasing to approximately $6.1 million in the second year, and increasing to approximately $7.1 million in the third year, with CPI-based annual escalators thereafter. The acquisition of these facilities was funded using proceeds from San Clemente-based CareTrust’s $600 million unsecured revolving credit facility.
PORTLAND, ORE. — Senior Living Investment Brokerage (SLIB) has arranged the sale of a 72-unit assisted living and memory care community in Portland. The facility was built in 1961 with renovations in 2021. The property totals 52,217 square feet on approximately 4.22 acres. The seller was a local owner-operator seeking to retire from the industry. The buyer was a private equity company based in Salt Lake City, with senior living communities throughout the country. This is the buyer’s second community in the Portland market. The price was not disclosed. Jason Punzel, Brad Goodsell, Vince Viverito and Jake Anderson of SLIB handled the transaction.
Berkadia Provides $26.3M Agency Loan for Refinancing of Multifamily Asset in Allentown, Pennsylvania
ALLENTOWN, PA. — Berkadia has provided a $26.3 million Freddie Mac loan for the refinancing of Terrain on the Parkway, a 160-unit multifamily property located north of Philadelphia in Allentown. The property was built in 2022 and offers studio, one- and two-bedroom units. Robert Falese of Berkadia originated the loan, which carried an 11-year term, on behalf of the borrower, Scully CO. & Serfass Construction.
LONG BRANCH, N.J. — Locally based brokerage firm The Kislak Co. Inc. has negotiated the $9.7 million sale of Virginia Court Apartments, a 52-unit multifamily property located in the Northern New Jersey community of Long Branch. Built in 1963, the five-building property houses 20 one-bedroom units and 32 two-bedroom units. Barry Waisbrod of Kislak represented the seller and procured the buyer, both of which requested anonymity, in the transaction.
NEW YORK CITY — JLL has brokered the $6.1 million sale of a 10-unit multifamily property located at 323 W. 89th St. in Manhattan’s West End Historic District. The unit mix consists of one studio, six one-bedroom apartments and three duplex apartments, as well as a basement office. A family office sold the property to a private investor, with both parties involved in the deal requesting anonymity. Hall Oster and Teddy Galligan of JLL brokered the deal.
— By Kimberly Stepp, Principal, Stepp Commercial Group — Los Angeles’ Westside apartment market is poised to see a robust pipeline of transactions in 2023. Long-time owners have been increasingly seeking to trade into out-of-state assets, while 1031 investors or those looking to pay all cash seek to take advantage of opportunities in a high interest rate environment. Last year, Stepp Commercial Group saw a significant number of transactions with LA-area sellers who were frustrated with rent control and other problematic apartment legislation. They were looking to trade into states like Arizona, Florida and Texas because they provide a stronger ROI over the long-term and offer fewer landlord restrictions. We see that trend continuing into 2023 as owners want to enjoy a passive income as they achieve their individual investment goals and objectives. Additionally, while Measure ULA (“the mansion tax”) went into effect on April 1 — and impacts only homes and apartment complexes sold within the City of Los Angeles at $5 million or more — the overall sentiment has been sour from owners throughout the Greater LA area. They are justifiably concerned that similar legislation will soon be coming to their city, on top of other landlord-unfriendly restrictions …
HAMPTON, VA. — Berkadia has arranged the $31 million sale of Carson Square, a 292-unit apartment community located at 1587 Briarfield Road in Hampton, a principal city in Virginia’s Hampton Roads region. A New Jersey-based entity doing business as Carson Square Assoc LLC purchased the garden-style community from Virginia-based Seminole Trail Properties. David Hudgins of Berkadia’s Norfolk office represented the seller in the transaction. Carson Square was built in 1971 and features renovated one-, two-, and three-bedroom apartments.
NEWARK, N.J. — JLL has arranged a $64.3 million construction loan for Bridge Point 15E, a 211,388-square-foot speculative industrial project in Newark. The site is located less than three miles from the city’s airport and seaport facilities. Michael Klein, Jon Mikula and Michael Lachs of JLL arranged the three-year loan through global investment management firm Heitman LLC on behalf of the borrower, Bridge Industrial. A tentative completion date was not disclosed.
BALA CYNWYD, PA. — LCB Senior Living has completed The Residence at Bala Cynwyd, an adaptive reuse project located northwest of Philadelphia. The number of units was not disclosed. Built in the 1850s as Benjamin Schofield’s West Manayunk Woolen Mills, the property eventually became known as Lee’s Shoddy Mill, named after the heavy fabric created from recycled wool and cotton. The Residence at Bala Cynwyd offers independent living, personal care and memory care accommodations. Units are available in studio, one-bedroom and two-bedroom floor plans.
LOWELL, MASS. — Regional brokerage firm Northeast Private Client Group (NEPCG) has negotiated the $12.8 million sale of Willard Street Apartments, a 72-unit multifamily complex in Lowell, a northern suburb of Boston. The three-building property houses three studios, 24 one-bedroom units and 45 two-bedroom apartments. Francis Saenz, Drew Kirkland, Jim Casey, Brad Carlson and Brett Curtis represented the seller and procured the buyer, both of which requested anonymity, in the transaction. The new ownership plans to implement a value-add program.