Earlier this week we discussed how continued construction starts in senior housing are demonstrating that the market isn’t oversaturated and that these assets continue to remain in high demand in many areas of the country. In addition to construction starts, another indicator that the industry remains robust is the pace of acquisitions in the space, and a number of recent acquisitions in various parts of the country provide evidence of this.
For example, a joint venture between Focus Healthcare Partners and Garrison Street Partners is acquiring four properties from the Canadian-based company, Chartwell Retirement Residences for $136.1 million. These properties are located in Alabama, Michigan, Tennessee, and Oklahoma, and together they have a total of 827 units. The sale will allow Chartwell to focus on its other U.S. properties and the parties expect the deal to close in the third quarter of this year.
Meanwhile, in Massachusetts, LCB Senior Living, LLC recently acquired the 78-unit assisted living and memory care facility, The Cedars Assisted Living Community of Dartmouth from Cedar Holdings, LLC for $9.9 million. LCB is renaming the community The Residence at Cedar Dell and plans to spend the next year renovating it so that when all is said and done, it will have new furniture, new carpeting, and other additions as well. LCB has other communities it is constructing in New England and is extremely excited to add this latest purchase to its portfolio as demonstrated by a comment from its CEO, Michael A. Stoller who stated that “It’s hard to imagine a better addition to the LCB family of communities. The Residence at Cedar Dell is a first-rate property in a gorgeous ocean-side town that offers seniors a breadth of amenities and lifestyle benefits.”
Over on the other side of the country in the Pacific Northwest, the real estate investment trust CNL Lifestyle Properties recently purchased the La Conner Retirement Inn in La Conner, Washington, and South Pointe Assisted Living in Everett, Washington for $12.5 million. The La Conner Retirement Inn is an independent living community with 67 units and was running at approximately 84% occupancy earlier this month. At 41 units, South Pointe Assisted Living has less capacity than La Conner but at roughly 98% occupancy, its occupancy ratio is much higher than that of La Conner’s. However, CNL is optimistic that La Conner’s operator, Radiant Senior Living, can take the necessary steps to increase occupancy at the community and bring it closer in line with South Pointe’s.
These transactions represent just a few of the acquisitions that have taken place in the senior housing industry recently, and together with the continued construction of senior housing facilities across the nation, they demonstrate the sustained demand for these services and the attractiveness of senior housing assets. Furthermore, now that the Federal Reserve is winding down its quantitative easing program and discussing steps to wind down its other stimulus programs as well, interest rates are poised to rise in the future. Before this occurs, industry participants and investors that are interested in acquiring additional senior housing assets should continue to look to the Chicago-based financing firm Cambridge Realty Capital to facilitate these transactions.
