Earlier this week we discussed how some senior housing participants are using sale/leasebacks to enhance their portfolios. In addition to this method, many senior housing providers and investors continue to take advantage of the market’s strong dynamics by engaging in standard acquisitions of senior housing assets. There are examples of this happening all across the country, and we will discuss a few of them here.
A Western Company Expands its Reach in the Midwest
The California-based senior housing company Titan SenQuest Senior Housing recently expanded its presence in the upper Midwest by purchasing Sentinel Pointe in Michigan for $10.3 million. Sentinel Pointe is a 152-unit retirement community that is located on a large campus in Grand Rapids, Michigan. Titan SenQuest is especially excited about this purchase because it views the Midwest region as a growing market, and is trying to expand its presence there as of late. Including the Sentinel Pionte purchase, Titan SenQuest now owns a single property in Missouri, two more in Ohio, and is continuing to pursue opportunities in the region, especially in western Michigan.
The Ensign Group Continues to Grow
Meanwhile, in the western part of the country, the Ensign Group expanded its already sizable portfolio by purchasing the Sherwood Village Assisted Living and Memory Care assisted living facility in Tucson, Arizona. The Sherwood facility is the third Arizona purchase the Ensign Group made this year, and increases the company’s portfolio to include 127 health care facilities, nine hospice companies, 14 urgent care clinics, and 11 home health businesses. The Sherwood property contains 135 units and, although its occupancy rate is just 65 percent, Ensign is still very excited about this purchase because it adds an assisted living and memory care presence to the skilled nursing presence that the company already maintains in Tucson. This allows the company to reach even more members of the community. It also gives it the opportunity to care for seniors from the beginning of their transition into senior housing, when they will most likely live in an independent or assisted living facility, to the end of their transition, when some of them will need to live in a nursing or memory care facility.
A Connecticut Company Extends its Reach in New England
Lastly, on the others side of the country in New England, Athena Health Care Systems of Connecticut expanded its portfolio by purchasing its first nursing home in Western Massachusetts, the 120 bed nursing facility The Overlook at Northampton. The Overlook is located in Leeds, Massachusetts, and the seller is Masonic Health Systems of Charlton. Masonic purchased the facility in 2009 and is now selling it in order to focus on its other properties. Pursuant to the terms of the purchase agreement, Athena Health Care Systems gets 106 acres of land in addition to acquiring the nursing property. And although the purchase price was not disclosed, according to public records, the city of Northampton previously assessed The Overlook at $4.3 million.
These acquisitions are just a few of the many that are taking place across the country as senior housing providers and investors continue to take advantage of today’s low interest rates. While rates remain low and the demand for senior housing services continues to grow, industry participants who are seeking capital to grow their portfolios the way these companies are should contact Cambridge Realty Capital to learn more about the many different financing options that it offers for acquisitions and other purposes as well.
