In addition to the senior housing acquisitions in the West and Midwest regions of the country that we discussed yesterday, additional activity continues to take place in other areas of the U.S. as well. The volume and geographic diversity of these transactions demonstrates the attractiveness of senior housing assets. As the industry’s strong fundamentals continue to attract new investors, the competition for the most attractive assets will increase. Before this occurs, industry participants and investors who are seeking capital to quickly add additional properties to their portfolios should contact Cambridge Realty Capital to learn more about the different financing options that it offers for acquisitions, joint ventures, debt refinancing, and other purposes as well.
Acquisitions in the Upper Midwest and Mid-Atlantic
Capital Senior Living, one of the country’s largest senior housing operators, recently announced that it has purchased two senior housing properties in Wisconsin and Virginia for $33.9 million. Due to monthly rents averaging roughly $3,700 and an average occupancy of more than 90% between the facilities, Capital Senior Living expects these properties to add $8.2 million in annual revenue to its coffers and $2.9 million to its EBITDAR. Capital Senior Living has been on a buying frenzy recently and this latest purchase brings the number of senior housing communities it has purchased this year to seven. Capital Senior Living has spent more than $145 million on these acquisitions and it is continuing to pursue other opportunities in the space to grow its portfolio even further.
Acquisitions in the Northeast and Southern Regions
In Brooklyn, New York, Providence Care, Inc. has purchased the Bishop Hucles nursing home for approximately $30 million. Providence Care has been managing the facility since 2012 and has successfully turned it around from a poor performing community that was operating at a loss, into a successful community that is now generating strong profits. This transaction was initially supposed to close many months ago but was delayed by issues relating to Hurricane Sandy, and the need to obtain approval from the Dormitory Authority of New York. However, the sale is now complete and Providence Care looks forward to continuing to manage the facility successfully and providing quality care to its residents.
Lastly, in Louisiana, the private investment firm Kandu Capital and its operating company Bloom Senior Living, have purchased the Glenview Gardens senior housing property in Bossier City. The buyers wasted no time in putting their stamp on the 119-unit facility by changing its name from Glenview Gardens to Bloom at Bossier and have also decided to convert some units in the property to assisted living and memory care as well. This change will allow residents to stay at the facility as they age and their care needs become greater.
The senior housing industry experienced strong acquisition activity during the second quarter and it appears that continued economic growth, low interest rates, and increased demand for senior housing services has kept the pace strong in the third quarter as well. Before the Federal Reserve raises interest rates and changes the market’s dynamics, industry participants who are seeking capital for acquisitions and other purposes should contactCambridge Realty Capital to learn more about the attractive financing programs that it offers.
